The impact of Russia’s invasion of Ukraine is now reflecting in the net worth of the country’s elite business people known to control vast fortunes, as the economic sanctions imposed by the West have seen these wealthy individuals, some known as ‘oligarchs’, incur significant losses.
Data acquired and calculated by Finbold indicates that Russia’s ten wealthiest people have cumulatively lost $45 bln so far this year. The group currently controls a combined fortune of $179.70 bln.
Russia’s third-richest person and the main shareholder in Novatek gas company, Leonid Mikhelson, has suffered the biggest, with a third of his wealth, or 33.3%, wiped out. Mikhelson has a net worth of $21.6 bln.
Vladimir Lisin, who ranks fourth with a net worth of $20.6 bln, has the second-highest losses at 26.3%. Alexey Mordashov, the third richest Russian with a fortune of $21.5 bln, recorded a plunge of 25.3% to rank in the biggest drop.
Elsewhere, Mikhail Prokhorov has the least losses at 2.28%, while the fortune of the country’s richest person Vladimir Potanin has declined by 19.9%. Potanin’s current net worth stands at $24.7 bln.
Sanctions and stock market sell-off
The Finbold report highlights some of the drivers behind the wealth loss besides sanctions imposed by western countries.
According to Justinas Baltrusaitis, author of the report, the wealthy have also suffered the impact of the stock market sell-off that began this year when geopolitical tensions were brewing.
“The sell-off resulted in the value of most companies experiencing a drastic fall. The situation has been complicated with the almost one-month-long closure of the Russian stock market,” he wrote.
Although the billionaires are suffering the consequences of their association with President Vladimir Putin, they might incur further losses if the Ukraine war continues.
Notably, a few of them are taking the initiative to condemn the country’s invasion of Ukraine.