In brief
Despite an increase in the number of billionaires, Russian oligarchs have lost significant political sway under Putin's regime. Following the invasion of Ukraine, many billionaires who opposed the war suffered severe repercussions. While Western sanctions aimed to diminish their influence, they have instead solidified bonds with the Kremlin, leading to a paradoxical rise in wealth amidst silence over the conflict.
During the war with Ukraine, the number of billionaires in Russia has reached an all-time high. However, in the nearly 25 years since Vladimir Putin has been in power, these wealthy individuals—known as oligarchs—have lost nearly all political influence.
Western sanctions intended to leverage the wealthy against Putin have overlooked a critical dynamic: his use of carrot-and-stick policies to convert these billionaires into silent supporters of the regime.
For former banking billionaire Oleg Tinkov, the consequences of expressing dissent were stark. After calling the war 'crazy' online, he was subjected to pressure leading to the nationalization of his bank unless he severed ties—a transaction that forced him to sell at a fraction of its worth.
This precedent highlights how the dynamics shifted after Putin took control, with oligarchs like Boris Berezovsky, who initially supported him, later regretting their choices as their power eroded. He famously appealed for forgiveness, realizing too late the extent of Putin's consolidation of control.
At a Kremlin meeting held just hours after the invasion of Ukraine, billionaires appeared visibly distressed, aware that their fortunes were about to suffer drastic losses. Indeed, their collective wealth saw a staggering decrease, shedding $263 billion following Western sanctions. Yet, despite initial losses, the long-term ramifications of the conflict have yielded advantages for those aligned with the Kremlin’s war economy.
Significantly, just a year post-invasion, Russia witnessed the introduction of new billionaires who capitalized on foreign exits, reflecting a shift in privilege towards those supportive of Putin. Many entrepreneurs, seeing their wealth intertwined with the regime's stability, have exchanged criticism for compliance.
As of 2024, the number of billionaires in Russia burgeoned to a record high of 140, with a total value just shy of pre-invasion levels. Thus, while the Western goal of diminishing these elites' power has not materialized, Putin has deftly maneuvered the landscape to reinforce his control over both wealth and loyalty within Russia.
