Russian billionaires lost $ 32 billion because of the Ukraine crisis

 Russian billionaires lost $ 32 billion because of the Ukraine crisis

The stock market plunge makes the rich in Russia now own $ 343 billion, down from $ 375 billion at the end of last year.

According to the Bloomberg Billionaires Index, Gennady Timchenko tops the list of asset declines in Russia, having lost nearly a third since the start of the year. The 69-year-old billionaire currently owns only 16 billion USD. Most of his wealth comes from his stake in Russian gas company Novatek. He is a longtime friend of Russian President Vladimir Putin.

Russian billionaire Gennady Timchenko. Photo: Bloomberg

Russian billionaire Gennady Timchenko. Photo: Bloomberg

Leonid Mikhelson - another shareholder of Novatek also saw his fortune decrease by $ 6.2 billion since the beginning of the year. Lukoil Energy Chairman Vagit Alekperov lost $3.5 billion as the company's shares fell nearly 17%.

In total, 23 Russian billionaires on the Bloomberg Billionaires Index list are now worth $343 billion, down from $375 billion at the end of last year.

Global stock markets fell this week after President Putin recognized two breakaway regions of Ukraine. Russia's Moex Index alone lost 10.5% on February 21 - the strongest since 2014, when Russia annexed Crimea.

Shares of the oil company Rosneft fell 20% in the first session of the week and have lost nearly 30% since the beginning of the year. Gazprom fell 16% and Novatek lost 12% that day.

Russia's recognition of two breakaway regions of Ukraine prompted Germany to announce the suspension of a joint energy project. Britain also imposed sanctions on five banks and three rich people in this country, including Timchenko, Boris Rotenberg (65 years old) and grandson Igor (48 years old).

The Rotenbergs made their fortunes thanks to the gas pipeline builder Stroygazmontazh. Arkady - Igor's father - sold this company in 2019 for $ 1.3 billion. He bought a small stake from his brother Boris five years earlier when both the brothers and Timchenko were under US sanctions after Russia annexed Crimea.

US President Joe Biden on February 22 imposed the first sanctions on Russia's banks and elites, and promised more sanctions. Australia, Canada and Japan then followed suit.