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According to Bloomberg’s Billionaire Index, Russia’s richest individuals added over $20 billion to their collective fortunes in the past year. Notably, several sanctioned oligarchs, including Vladimir Potanin (worth $30.6 billion), have seen significant wealth increases.
### Why It Matters
The rapid growth in the wealth of Russian billionaires is particularly noteworthy given ongoing Western sanctions aimed at weakening Russia’s economic power. Sanctions were imposed on numerous business figures following Russia’s 2022 invasion of Ukraine, with the goal of curbing President Vladimir Putin’s influence and deterring further aggression.
### Wealth Growth
Despite these measures, the data shows that Russia’s ultra-rich are still growing richer. This trend is occurring as the Kremlin emphasizes economic resilience, and some tycoons are regaining assets amid an exodus of Western corporations from Russia.
The latest wealth increases have occurred despite international sanctions imposed since 2022. Key Russian billionaires like Potanin, Vagit Alekperov, and Alisher Usmanov have seen new bans or asset freezes but still experienced wealth growth due to sustained high global commodity prices and relative insulation from some foreign investment shifts.
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### Wealth Drivers
The main sources of wealth for Russia’s billionaires remain the metal, mining, oil, gas, and chemical sectors. For example, Potanin (Norilsk Nickel), Alekperov (Lukoil), and Leonid Mikhelson (Novatek) derive most of their net worth from these extractive and export-centric industries.
Russia has generated a total of €847 billion in fossil fuel revenue since the war in Ukraine began. The wealth increases for Russian billionaires are largely attributed to high global commodity prices and Russia’s relative insulation from certain foreign investments.
### Sanctions and Future Outlook
The continued growth in Russian billionaires’ fortunes poses a challenge for Western policymakers seeking to use sanctions to limit Russian economic power. Analysts expect ongoing scrutiny of the sources of this wealth and the effectiveness of international sanctions in restricting it.
In summary, despite ongoing Western sanctions, Russia’s richest individuals have added more than $20 billion to their collective fortunes over the past year. This growth is largely due to high global commodity prices and the relative insulation from some foreign investments, raising questions about the effectiveness of the sanctions regime.
