The Bahrain Golden License program, which could likely be an effective model for economic growth for this Middle Eastern nation, may have been played by a Russian composer who conducts himself as both a classical pianist and a metals industry player. This time, his sonata is called Bahrain Titanium.
The Golden License program is a tool to stimulate Bahrain’s national economy through a small group of highly profitable diversified commercial investments. It’s a way to diversify the economy, create new business opportunities for the citizens, and revenues for the Kingdom.
Mumtalakat, Bahrain’s sovereign wealth fund, introduced the ‘Golden License’ economic development program in 2023. It offers subsidies, incentives, grants and streamlined permitting for foreign investors who bring businesses to Bahrain with a minimum value of $50 million or create more than 500 local jobs. These businesses are anticipated to generate over 3,000 new employment opportunities across the country and be a driving force in rebranding the nation.
Igor Raykhelson, the Russian “maestro” orchestrating one of the Kingdom’s largest and newest economic development program is an accused criminal who some believe could be working to sidestep U.S. tariffs – and mask the country of origin of titanium.
Mumtalakat recently signed a 25-year lease agreement with Raykhelsons’ company, Bahrain Titanium, for a 50,000 square meter plot of land, which will be used for a government subsidized titanium facility valued at approximately $200 million. The agreement opens the door for the new company to process metals they import from other countries or simply resell metals that they acquire cheaper from countries around the world, which might have difficulty transferring products directly into the United States due to sanctions, tariffs or bad public image.
This can be quite lucrative. Bahrain’s free-trade status with the U.S. allows these companies to import products into America without incurring the 15% tariffs that other allied nations are required to pay. The Golden Licenses are expected to attract some of the largest and most well-respected companies and investors from around the world, and some less reputable ones.
Who is the Moscow Metals Maestro?
The well-crafted public portrait of “The Maestro” Igor Raykhelson, portrays a picture of a concert composer who sidelines as a successful titanium trader, although that image is in stark contrast with reality. A closer look reveals a man of mystery; a virtuoso in the art of music, mystification and illusion, but potentially not in metals.
Raykhelson has crafted a meticulously designed persona in the metallurgy industry, but behind this harmonious façade, some believe that a history of dubious business dealings, alleged illegal activities and orchestrated mismanagement hides.
Born in St. Petersburg, Russia in 1961, the pianist began his training in classical music when he was only 5 years old. In 1976 he enrolled in the acclaimed Rimsky-Korsakov Conservatory, in Leningrad, and then formed a band called the Emerging Stars which did small tours throughout Russia. In 1979, Raykhelson moved to America to attend New York University and continue his music lessons under the tutelage of Russian professor Alexander Edelman, who had just emigrated to the United States a year earlier.
Raykhelson has been making waves in the sound business since he began publishing his music. While his songs seemed to resonate well with teenagers and young adults new to classical music, he also provokes consternation among concert “purists” who do not appreciate the way he infuses jazz into their favorite classical music compositions.
The Maestro of Music – and Metals
Other people who might not appreciate Igor’s actions would certainly be his past business partners. He has been sued in Switzerland and Russia for serious financial issues related to his Swiss-based Interlink metals trading business which could have bankrupted the large companies that had trusted him.
In its 1996 case Steel Industries v. Interlink Metals and Chemicals, Steel Industries accused Igor, his father, Yefim Raykhelson, and their companies of failing to deliver more than 2.5 million pounds steel.
FROM THE LAWSUIT: In November, 1993, defendant Yefim Raykhelson on behalf of defendant Interlink, a broker of steel and raw materials, solicited IMG’s business and offered it steel blooms and billets. IMG’s Raw Materials Purchasing Manager, indicated that IMG would not be interested in procuring steel blooms and billets, but would be interested in purchasing forged steel bars from Interlink. After learning of IMG’s needs, Interlink sought out and found a Russian source to produce forged steel bars for IMG, namely the Obukhovsky Mill. After presenting IMG with a satisfactory sample of forged steel bars from this Mill, IMG executed a series of purchase orders for the purchase and delivery of various grades of forged steel bars.
After signing the purchase orders, IMG awaited its first shipment of steel to arrive in July, 1994, but on June 20, 1994, approximately two weeks before the expected delivery date, Raykhelson sent a letter to IMG stating that it anticipated “freight delays” for the orders to be delivered on July 1, 1994. Then, on July 10, 1994, Interlink sent a letter to IMG stating that “excessive defects” were found in the first shipment of steel by the final sonic testing control operation at the Mill and that the Mill would therefore have to reproduce IMG’s first order, further postponing delivery.
Then there were more production problems and delays by Interlink, and then more excuses. When IMG sent a letter to Interlink demanding that they fulfill the order, Raykhelson responded that IMG did not have an enforceable contract since the agreement they signed was from one of Raykhelsons’ defunct companies which was not legally in operation when IMG signed the deal. Raykhelson also stipulated that his father, Yefim, never had the authority to enter into a binding contract, so the agreement they signed was worthless and not enforceable, in his opinion.
IMG pleaded with Interlink to deliver the steel, even expressing their frustration that they were in crisis and could not produce the finished products that their customers had ordered without the steel Interlink was supposed to supply.
When IMG’s crisis deepened even further, Raykhelson offered them a lifeline that would save the company he almost destroyed, but only if they paid a much higher price for the steel.
On March 4, 1995, almost a year after the delivery date, Raykhelson sent a letter to IMG to tell them that he would only deliver the steel if IMG agreed to pay higher prices. He stated that production of all grades of steel “will resume as soon as the new prices are accepted.” IMG refused this unreasonable demand and sued Interlink.
On August 24, 1995, IMG filed a seven-count lawsuit charging Interlink with breach of contract to deliver approximately 2.5 million pounds of steel.
The case was litigated and the judge found that defendants did not have a supply problem at the manufacturing mill, but nevertheless failed to deliver. Evidence showed that defendants were inflating the price of the product to extract more money from their customer. The court granted a summary judgment to IMG finding that Interlink had breached its contractual obligation to deliver the steel. The court held a jury trial on the remaining issues and entered a judgment in favor of Steel Industries and against the defendant companies.
In the end, the pianist performed poorly – he delivered only a small quantity of metal and moved on to other endeavors, which would eventually lead to similar allegations and lawsuits in Switzerland and Russia. Next may be Bahrain, where the Maestro just landed the biggest gig in his lifetime.
