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As Ukraine battle intensifies, the fortunes of Russia’s super-rich have shrunk amid sanctions and sinking inventory markets.
The fortunes of Russia’s super-rich have tumbled $32 billion this 12 months, with the escalating battle in Ukraine poised to make that wealth destruction a lot bigger.
U.S. President Joe Biden on Tuesday unleashed sanctions concentrating on Russia’s sale of sovereign debt overseas and the nation’s elites, and stated he’s sending an unspecified variety of further U.S. troops to the Baltics in a defensive transfer to defend NATO international locations.
Gennady Timchenko heads the checklist of Russian billionaires who’ve seen their fortunes drop, with virtually a 3rd of his wealth disappearing this 12 months, in line with the Bloomberg Billionaires Index, a list of the world’s 500 richest individuals.
Timchenko, 69, the son of a Soviet navy officer who met and befriended Russian Federation President Vladimir Putin throughout the early Nineties, now has a fortune of about $16 billion, with the majority of his wealth derived from a stake in Russia fuel producer Novatek, in line with Bloomberg’s wealth index.
Fellow Novatek shareholder Leonid Mikhelson’s fortune has tumbled $6.2 billion this 12 months, whereas Lukoil Chairman Vagit Alekperov’s internet price has declined about $3.5 billion in the identical interval because the power firm’s inventory has slid virtually 17%.
The nation’s 23 billionaires at the moment have a internet price of $343 billion, in line with the wealth checklist, down from $375 billion at year-end.
Markets slumped additional this week after Putin acknowledged two separatist republics in Ukraine, resulting in Germany halting an power mission with Russia and the U.Ok. imposing sanctions on 5 of the nation’s banks and three of its rich people, together with Timchenko.
Additionally on the U.Ok.’s sanctions checklist are Boris Rotenberg, 65, and his nephew, Igor, 48, whose households made their fortune via gas-pipeline development agency Stroygazmontazh.
Igor’s father, Arkady, considered one of Putin’s former judo sparring companions, bought the pipeline agency in 2019 for about $1.3 billion. He bought a minority stake from his youthful brother Boris 5 years earlier when each siblings and Timchenko have been hit with U.S. sanctions over Russia’s annexation of Crimea.
Moreover, U.S. Secretary of State Antony Blinken stated Tuesday he wouldn’t meet with Russian International Minister Sergei Lavrov this week as a result of it “doesn’t make sense” given Russia’s strikes in Ukraine.