Since the war in Ukraine began, Russia has seen a surge in its number of billionaires, reaching an all-time high. However, the influence of these wealthy elites, or oligarchs, has diminished under President Vladimir Putin’s rule. This shift benefits Putin, as he has successfully turned many of these billionaires into loyal supporters rather than adversaries.
Oleg Tinkov, a former banking tycoon, offers a poignant example. After he voiced his disapproval of the war on social media, the Kremlin threatened to nationalize his bank unless he severed ties with it. He described the experience as akin to being a hostage, as he had no choice but to accept what was dictated to him. He ultimately lost nearly $9 billion and left Russia.
This scenario starkly contrasts the early post-Soviet era when oligarchs wielded significant power. After the Soviet Union’s collapse, individuals gained vast wealth by privatizing state-owned enterprises. They played major roles in Russia’s political landscape, especially in the chaotic 1990s. Boris Berezovsky, a prominent oligarch, even claimed to have helped elevate Putin to the presidency. However, as Putin consolidated power, he effectively neutralized these powerful figures, leading to their decline.
When Putin convened business leaders just hours after the invasion on February 24, 2022, fear was palpable. Many understood that their fortunes were on the line. In the ensuing year, the number of Russian billionaires plummeted from 117 to 83, with a staggering $263 billion lost collectively due to sanctions and economic turmoil. Yet, in a surprising twist, the war effort has since become lucrative for those willing to align with the Kremlin.
According to Forbes, more than half of Russia’s billionaires are now connected to the military supply chain. Economic growth driven by war spending has lifted many ultra-rich individuals, despite initial losses. In 2024, there were 140 billionaires on the Forbes list, nearing pre-war wealth levels.
Putin has proven adept at ensuring loyalty among Russia’s elite. If anyone dares to speak out or oppose his agenda, the consequences can be severe. Mikhail Khodorkovsky, once the richest man in Russia, spent a decade in prison for challenging Putin’s authority. His fate serves as a warning to others who might consider dissent.
Western sanctions aimed at targeting these billionaires have largely backfired. Many have rallied around Putin instead of turning against him. Analysts, like Alexander Kolyandr from the Center for European Policy Analysis, claim that these measures inadvertently strengthened the Kremlin’s grip on the wealthy, as there is little room for them to escape or oppose the regime.
The shifting dynamics illustrate a significant change in Russia. The oligarchs who once shaped the nation’s policies now find themselves quiet and compliant. As the war continues, the Kremlin’s power over the billionaires grows, making them crucial to supporting Russia’s war economy. The landscape of power has changed, but for those who stay loyal, there appears to be profitable rewards ahead.
