It was not a great day to be a Russian billionaire…
After Washington unleashed yet another round of sanctions, this time targeting the Oligarch class, Russian stocks plunged the most since 2014, Russian bond spreads blew out the most since 2000, and the Ruble plunged most since Jan 2015
But it was the richest Russians that suffered the most as Bloomberg reports the combined net worth of the country’s wealthiest people fell by $16 billion Monday — erasing all of their year-to-year gains — following last week’s U.S.-imposed sanctions.
Not all the Russian billionaires were hit equally though.
All but one of the 27 Russian tycoons listed on the Bloomberg Billionaires Index lost money, led by Siberian nickel miner Vladimir Potanin, whose fortune declined $2.25 billion.
As RusLetter.com reports, the condition of the billionaire Oleg Deripaska, who fell under personal US sanctions, is rapidly declining. Based on the rating of the richest people of the planet according to Forbes (real time) version at 18:00 Moscow time, it decreased by $ 957 million and in real time is $ 5.3 billion. This was due to a sharp drop on the background of En + London stock exchange by 20% – to $ 9.6 per share.
In addition to Deripaska, six more participants of the Forbes list were also hit: they themselves were included in the new list of sanctions, as well as 12 of their companies. Suleiman Kerimov’s fortunes decreased (by $ 244 million to $ 6.6 billion) and Viktor Vekselberg’s F 10 (by $ 41 million to $ 14.6 billion). The condition of Igor Rotenberg and Kirill Shamalov did not change, and Vladimir Bogdanov and Andrei Skoch even grew by $ 1 million and $ 8 million, respectively.
Before the publication of the “Kremlin report” in which the US authorities promised to name the main friends of Vladimir Putin, against whom restrictions must be imposed, the richest people in Russia were visibly nervous. When the “Kremlin report” was made public, it turned out that it fully coincides with the Russian part of the world ranking Forbes. The Russian billionaires were confused: “Will the sanctions be imposed for the entire Forbes list?” For some time everyone was waiting for new personal sanctions, but problems, as it turned out, do not threaten everyone.
On Friday, April 6, Washington said that now “Russian oligarchs will not have a chance to profit from the Russian corrupt system, they will not be isolated from the consequences of the destabilizing activity of their government.” All assets of their assets in the US are frozen. Citizens of the United States are forbidden to enter into any business relations with them. More details about the seven billionaires who are under sanctions, via Forbes:
Assessment of the state: $ 14.4 billion
Place in the world ranking: 89
Source of income: is the founder and chairman of the board of directors of the group “Renova”. Now Vekselberg’s main asset is investment in the Swiss company Sulzer, the manufacturer of pumping equipment. Previously owned assets in the “Sual Holding”, the company Deripaska “Rusal” and “Rosneft”
For which he got on the sanctions list: “for bribing officials associated with the project for the production of electricity in Russia.”
Assessment of the state: $ 4.9 billion
Place in the world ranking: 404
Source of income: a share in USM Holdings (30%) owned by OOO Metalloinvest Managing Company is a large Russian mining and metals company specializing in steel production, as well as a share of Vnukovo airport shares (formally the shares of Skoca are held by his father, pensioner Vladimir Skoch).
For which I got on the sanctions list: “for being a State Duma deputy and having links with Russian organized criminal groups.”
State estimation: $ 6.4 billion
Place in the world ranking: 265
Source of income: the Kerimov family owns 83% of the shares in the largest Russian gold mining company Polyus, the international airport of Makhachkala
For which he got on the sanctions list: “for being associated with the Russian government, for money laundering and non-payment of taxes in the amount of 400 million euros for the purchase of villas in Cap d’Antibes”.
Assessment of the state: $ 6.7 billion
Place in the world ranking: 248
Source of income: holding company En +, which owns blocks of shares of aluminum producer US Rusal and electricity company Eurosibenergo. En + Group is an energy company that is valued at $ 9.8 billion and is managed through the NG “Basic Element”, which also fell under sanctions. Deripaska also controls the GAZ Group, Ingosstrakh, Basel Aero (airports in the Krasnodar Territory), and the Kuban agroholding
For which I got on the sanctions list: “for representing the interests of the Russian government, for money laundering, bribing officials and links with criminal groups.”
Assessment of the state: $ 1.8 billion
Place in the world ranking: 1339
Source of income: a stake in Surgutneftegaz
For which he got on the sanctions list: “for being the general director and deputy chairman of the board of directors of Surgutneftegaz, the company contributed by the US sanctions service to the appropriate list.”
Condition assessment: $ 1.4 billion
Place in the world ranking: 1650
Source of income: 3.88% stake in Sibur (17%, which he bought from Gennady Timchenko in 2014, in the spring of 2017 he sold Leonid Mikhelson)
For which he got on the sanctions list: “for working in the energy sector of the Russian economy and for marrying Katerina Tikhonova, who is considered Vladimir Putin’s daughter (Bloomberg reported divorce in January), and for a loan from Gazprombank, which was sanctioned.”
State estimation: $ 1.1 billion
Place in the world ranking: 1999
Source of income: 50% of the shares of RT-Invest Transportation Systems, operator of the Platon system for collection of heavy-duty vehicles, as well as 46.2% of the shares of the Tula Cartridge Plant and 79% of the shares of Gazprom Drilling, which he acquired from his father, Arkady Rothenberg
For which he got on the sanctions list: for his work “in the energy sector of the economy of the Russian Federation”.