Here’s a shocking truth: while Russia’s war with Ukraine has ravaged lives and economies, the number of billionaires in Russia has skyrocketed to an all-time high. But here’s where it gets controversial—these tycoons, once known as the untouchable oligarchs, have been stripped of their political clout under Vladimir Putin’s 25-year reign. So, how has Putin kept them in line? And why aren’t they rising up against him? Let’s dive in.
In the chaotic aftermath of the Soviet Union’s collapse, a handful of Russians seized control of state-owned enterprises, amassing colossal fortunes and becoming the infamous oligarchs. Their wealth translated into immense political influence, with figures like Boris Berezovsky even claiming to have orchestrated Putin’s rise to power in 2000. But fast forward to today, and the oligarchs’ grip on power is a distant memory. Berezovsky himself later lamented, ‘I didn’t see the future greedy tyrant in him,’ before his mysterious death in exile. And this is the part most people miss—Putin’s systematic dismantling of their power has turned them into silent spectators, even as their fortunes hang in the balance.
Take Oleg Tinkov, a former banking billionaire, whose story illustrates Putin’s iron-fisted approach. After criticizing the war as ‘crazy’ on Instagram, Tinkov’s Tinkoff Bank was threatened with nationalization unless he severed all ties. ‘It was like a hostage situation,’ Tinkov told the New York Times. Within days, his bank was sold for a mere 3% of its value to a company linked to Vladimir Potanin, Russia’s fifth-richest man. Tinkov lost nearly $9 billion and fled Russia. This isn’t an isolated case—it’s a pattern.
When Putin summoned Russia’s elite to the Kremlin hours after invading Ukraine, they were ‘pale and sleep-deprived,’ according to one reporter. Despite knowing their fortunes would take a hit, they had no choice but to comply. Western sanctions, meant to cripple Putin’s war machine, have instead backfired. Instead of turning the ultra-rich against him, they’ve trapped them in a system where defiance means ruin. As Alexander Kolyandr of the Center for European Policy Analysis (CEPA) puts it, ‘The West did everything possible to ensure Russian billionaires rallied around the flag.’ Frozen assets, seized properties, and blocked accounts left them with no escape route.
Here’s the twist: while sanctions aimed to impoverish them, Russia’s war economy has thrived. Lavish military spending spurred over 4% GDP growth in 2023 and 2024, benefiting even those not directly tied to defense contracts. By 2024, more than half of Russia’s billionaires were either supplying the military or profiting from the invasion. This year, Russia boasted a record 140 billionaires, with a collective wealth of $580 billion—just $3 billion shy of the pre-war peak. New loyalists emerged, filling the void left by fleeing foreign companies, creating what Alexandra Prokopenko calls an ‘army of influential and active loyalists.’ Their survival depends on Putin’s continued rule.
So, what does this mean for the West’s strategy? If the goal was to turn Russia’s elite against Putin, it’s failed spectacularly. Instead, sanctions have inadvertently strengthened his grip. But here’s a question to ponder: Is there a way to target Russia’s billionaires without pushing them further into Putin’s arms? Or is the West’s approach only deepening their loyalty? Let us know your thoughts in the comments—this is a debate worth having.
