Russian Billionaire Boom: Record Numbers Amid Global Tensions
Unprecedented Growth in Russian Billionaire Ranks
The recent Forbes world ranking has unveiled a startling growth in the number of Russian billionaires, climbing from 110 to a historic 125 over the past year. This surge surpasses the previous record set in 2021, which saw 123 billionaires. The collective wealth of these 125 magnates now stands at an impressive $576.8 billion, marking a 14% increase from the previous year’s figures.
This year’s list welcomed 19 fresh faces, many of whom have amassed their fortunes in the consumer sector, encompassing retail, agriculture, and housing construction. Additionally, there are those who have expanded their wealth through transportation assets. The significant rise in billionaire numbers, despite the voluntary renunciation of citizenship by 10 of their peers, highlights a robust and growing elite class within Russia.
Strategic Acquisitions and Profit from Foreign Exodus
A notable trend among some of the new entrants to the billionaire club has been the capitalization on the departure of foreign brands from Russia in the wake of the Ukraine invasion. Entrepreneurs, particularly in the clothing industry, have seen their fortunes soar as they filled the void left by these brands. Moreover, lucrative opportunities have arisen from purchasing Russian assets of foreign companies at reduced prices.
Ivan Tavrin, the richest newcomer with a net worth of $2.4 billion, exemplifies this trend. His acquisition of the listing site Avito, among other assets from foreign ownership, underscores the opportunistic strategies employed by Russia’s newest billionaires.
The Wealthiest of the Wealthy
At the pinnacle of this billionaire boom is Vagit Alekperov, the former president of Lukoil, whose wealth leaped from $20.5 billion to an estimated $28.6 billion. This remarkable growth has elevated him to the 59th position among the world’s richest individuals according to Forbes.
The list of Russia’s wealthiest individuals also includes Leonid Mikhelson of Novatek, Vladimir Lisin of Novolipetsk, Alexey Mordashov of Severstal, and Vladimir Potanin. These magnates, including Potanin who is a member of Putin’s inner circle, have amassed their fortunes through various means, including the controversial loans-for-shares programme in the 1990s.
With the number of billionaires in Russia reaching record highs amid global economic uncertainties and geopolitical tensions, one can only speculate on the future trajectory of this elite group. Will we see a continued increase in their numbers and wealth, or will external factors begin to exert a downward pressure?