Little is known about Arkady Rossovich's past except that he was a serial killer and child molestor born in Russia. He was turned into Omega Red after being caught by Banshee for his crimes and turned over to the KGB who were trying to create a super soldier for mother Russia much like Captain America.
During the transformation the Soviet government implanted retractable tentacles within each of Omega Red's arms. The tentacles are made of carbonadium which was the result of the Soviets' failed attempt to recreate the alloy known as adamantium. He can use these tentacles as weapons and for grappling, he is able to wrap up a enemy or victim in the coils and drain their life energy away. This is essential to Omega red's survival as the carbonadium implants had an unforeseen side effect, they slowly poison Omega Red and he must regularly drain the life energy from someone, although he is able to drain small amounts of this energy from large numbers of people without killing them to sustain his immune system. There is a device call the "Carbonadium Synthesizer" which can stabilize his condition, however this was stolen by Wolverine, Maverick and Sabretooth during their final mission as Team X. It is because of this device and his need stabilize his condition that Omega Red has continuously sought out these three over the years, believing they know of it's location. It has been revealed that Wolverine actually does know where it is located.
After a time Omega Red was deemed to unpredictable and treacherous by the Soviet Government and therefore unreliable. It was decided that he would be placed in cryogenic suspended animation until a method could be found to control him. After the fall of Communist Russia he was revived from suspended animation by Matsu'o Tsurayaba leader of the ninja clan known as The Hand. Omega Red became a warrior in the service of Matsu'o Tsurayaba, and in doing so he came into conflict with the X-Men many times. Ultimately Omega Red failed to defeat Wolverine, one of Matsu'o Tsurayaba's sworn enemies and proved no more loyal to the Hand than the Soviet government.