The article by Vitaly Shevchenko discusses the changing dynamics of Russia’s oligarchy under President Vladimir Putin, particularly in the context of the ongoing war in Ukraine. Since Putin’s rise to power 25 years ago, the influence of Russian billionaires has diminished significantly, turning them into largely silent supporters of the Kremlin. Despite facing Western sanctions, the oligarchs have not formed a united front against Putin.
The piece prominently features Oleg Tinkov, a former banking billionaire, who lost his fortune after criticizing the war. Following his remarks, the Kremlin pressured executives to sever ties with his bank, leading to a nationalization that resulted in a steep financial loss for Tinkov.
Initially, the invasion led to a decrease in the number of Russian billionaires due to economic turmoil, but this gradually shifted as the war economy began to flourish, boosting GDP growth and enriching those aligned with the government. By 2024, the number of billionaires in Russia reached a historic high of 140 despite ongoing sanctions. Many of these billionaires have ties to military supply chains, benefiting from the war.
Even with the extraction of considerable wealth, there has been a notable lack of dissent among the oligarchs, largely due to fear of state retribution, as illustrated by the case of Mikhail Khodorkovsky, who spent years in prison for opposing Putin. Amid the departure of foreign companies, the Kremlin has effectively replaced them with loyal businessmen, creating a new wave of oligarchs who benefit from the war economy and have their futures tied to the continuation of the conflict.
In conclusion, the war and sanctions have fortified Putin’s control over Russia’s wealthy elite, who have become key components in sustaining the state’s economic system during the conflict.
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