The last year has been challenging for some of Russia’s wealthiest men. Available data shows that 18 of them have been bleeding billions of dollars. Consequently, their net worths have dipped significantly.
StockApps.com has analyzed the top 500 wealthiest people globally. It concludes that the 18 Russian billionaires who featured in the top 500 list are $44.445 billion poorer in YTD figures. They have a combined net worth of $244.87B, down from the $289.315 they held a year ago.
Edith Reads StockApps.com’s finance expert attributes those losses to several factors. Commenting on the data, she said, “The Russian Billionaires’ woes are due to several factors. Firstly, Russia’s incursion into Ukraine has attracted sanctions both on the nation and Vladimir Putin’s close associates. That has seen them suffer asset freezes and seizures. Again a weak ruble and biting inflation have further conspired to erode their holdings.”
There are no signs of a quick end to the billionaires’ misery. Moscow is defying the sanctions to continue its invasion of Ukraine. Thus, the Western World is continuing to ring-fence it at the expense of its citizenry, more so perceived Kremlin sympathizers.
Who has suffered the most loss?
Immediate former Chelsea FC owner Roman Abramovic suffered the most loss. He lost $5.43B from his previous $18 B holdings, a 30% drop. Mr. Abramovic had to sell off his club following the British government sanctions. He says he intends to use the proceeds of the sale for humanitarian purposes in Ukraine.
Another that took a big hit was Gennady Timchenko. Russia’s eighth richest man lost $5.76B, representing a 26% drop from the $22.46B he held before. Mr. Timchenko is the founder and owner of the Volga Group, a private investment group. The Russian-born Finn is allegedly one of Putin’s close allies.
Laughing all the way to the bank
It hasn’t been all gloom and doom for all the Russian billionaires, though. Eight of them grew their net worths by 118% despite the hostile operating environment. The eight increased their combined wealth by $15.32B to $98.84B.
Russia’s richest man Vladimir Potanin recorded the most gains of the lot. He added $5.81B to the $30.69B he held a year ago. That was nearly a 19% surge from his previous holdings. A former Deputy Premier, Mr. Potanin made his fortune first in the metals industry. He has expanded his wealth by buying Russian banks at a discount.
Despite deep ties with Vladimir Putin, Potanin remains untouched by the sanctions his counterparts face. Some quarters suggest his importance in the global metals market has earned him preferential treatment from the West. Others that made significant gains were Vyacheslav Kantor and Andrey Guryev, who added $4.83B and $3.01B to their wealth.