Despite the ongoing war in Ukraine and Western sanctions, Russia’s billionaire count has hit a record high, according to the BBC. Over Vladimir Putin’s 25 years in power, the country’s richest have lost significant political influence, becoming subdued supporters of the Kremlin. This shift is seen as a success for Putin, as Western measures have not turned these wealthy individuals against him; instead, they have adopted a “carrot and stick” approach, leading to silent compliance.
For instance, billionaire banker Oleg Tinkov faced severe consequences for criticizing the war publicly, leading to the forced sale of his bank at a drastically undervalued price. This illustrates the stark transformation from the post-Soviet era, when oligarchs wielded considerable political power.
After Putin’s 2022 invasion of Ukraine, many billionaires initially faced substantial losses, with Forbes noting a sharp decrease in the billionaire count and total wealth. However, the war economy has since created new opportunities, benefiting even those not directly connected to defense. By 2024, more than half of the billionaires were connected to the military supply chain, and Russia added a record number of billionaires, closing in on pre-invasion wealth levels.
The Kremlin has punished dissenters severely, maintaining a tight grip on the economic landscape. Pro-Kremlin businessmen have filled the void left by foreign companies, establishing a new cohort of compliant elites. Despite the war and sanctions, Putin continues to exert control over key players in the Russian economy and political sphere.
