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    Home»News»How Russia’s Wealthy Elite Lost Independence and Had Their Fortunes Redirected to Fuel War
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    How Russia’s Wealthy Elite Lost Independence and Had Their Fortunes Redirected to Fuel War

    Grace JohnsonBy Grace JohnsonDecember 28, 2025No Comments4 Mins Read
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    Rich and voiceless, Russia’s billionaires reached record numbers during the war against Ukraine. Their wealth grew, but their political influence all but disappeared. Over 25 years, Vladimir Putin stripped the rich of independent power. Once-feared oligarchs now avoid public opposition. This reality benefits the Kremlin. Western sanctions failed to spark elite resistance. Pressure and privilege instead ensured loyalty.

    The Kremlin enforces obedience through rewards and threats. Loyalty brings access, protection, and profit. Defiance triggers immediate punishment. Former banking billionaire Oleg Tinkov experienced this firsthand. One day after calling the war “crazy” online, officials contacted his executives. They issued a blunt ultimatum: the state would seize his bank unless all ties were severed. Tinkov later said negotiation was impossible. He described the process as coercion.

    Within days, a company linked to Vladimir Potanin acquired the bank. Potanin ranks among Russia’s wealthiest businessmen. His companies supply nickel for fighter jet engines. Tinkov said the sale reflected only three percent of the bank’s true value. He lost nearly nine billion dollars and soon left Russia.

    When Wealth Once Meant Power

    Russia once followed a very different path. After the Soviet collapse, massive state assets passed into private hands. A small group exploited the chaos of early capitalism. They amassed enormous fortunes and political influence. These men became known as oligarchs. Boris Berezovsky emerged as the most powerful among them.

    Beresovsky later claimed he helped engineer Putin’s rise in 2000. Years later, he publicly expressed regret. He admitted he failed to foresee a future autocrat. His influence may have been overstated, but oligarchs once shaped high-level decisions. In 2013, Berezovsky died in exile under mysterious circumstances. By then, oligarch political power had already vanished.

    A Kremlin Meeting Without Objection

    On 24 February 2022, Putin summoned Russia’s richest figures to the Kremlin. Hours earlier, he ordered the full invasion of Ukraine. None openly objected. They understood their wealth was at risk. Putin urged cooperation under new conditions. A journalist described the billionaires as pale and exhausted.

    The months leading to the invasion caused sharp losses. The immediate aftermath worsened them. Between 2021 and April 2022, the number of billionaires fell from 117 to 83. War, sanctions, and a weak rouble erased vast fortunes. Collectively, they lost 263 billion dollars. On average, each lost more than a quarter of their wealth.

    War as an Economic Engine

    The following years reshaped the economy. Heavy military spending drove growth. Russia posted growth above four percent in 2023 and 2024. Many billionaires benefited, even those without direct defence contracts. In 2024, over half of Russia’s billionaires supported military supply chains. Others profited indirectly from war-driven market shifts.

    Forbes analyst Giacomo Tognini emphasized that survival requires Kremlin ties. Any major enterprise depends on government cooperation. In 2025, Russia reached a record 140 billionaires. Their combined wealth hit 580 billion dollars, just three billion below the pre-war peak.

    Discipline Through Fear

    Putin consistently punishes disloyalty. Russians remember Mikhail Khodorkovsky, once the country’s richest man. After funding a pro-democracy organisation, authorities arrested him. He spent ten years in prison. Since the invasion, almost all billionaires stayed silent. The few critics fled Russia, abandoning much of their wealth.

    Despite sanctions, billionaires remain central to the war economy. Many face frozen accounts and travel bans abroad. Western efforts to provoke elite opposition failed. Wealth endured. Dissent disappeared.

    Sanctions That Cemented Loyalty

    Sanctions also blocked escape routes. Moving money abroad became nearly impossible. Accounts froze. Properties were seized. Analyst Alexander Kolyandr said this strengthened Kremlin authority. Without alternatives, billionaires aligned closer to the state. Their capital now fuels war production.

    The departure of foreign companies created new opportunities. Kremlin-friendly businessmen quickly filled the gap. They bought valuable assets at discounted prices. Economist Alexandra Prokopenko described a new loyal elite. Their prosperity depends on confrontation with the West. Their greatest fear remains the return of former owners.

    In 2024 alone, eleven new billionaires emerged. Despite war and sanctions, Putin retained firm control over Russia’s economic elite. In many ways, external pressure reinforced that grip.

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    Grace Johnson
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    Grace Johnson is a freelance journalist from the USA with over 15 years of experience reporting on Politics, World Affairs, Business, Health, Technology, Finance, Lifestyle, and Culture. She earned her degree in Communication and Journalism from the University of Miami. Throughout her career, she has contributed to major outlets including The Miami Herald, CNN, and USA Today. Known for her clear and engaging reporting, Grace delivers accurate and timely news that keeps readers informed on both national and global developments.

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