During the war against Ukraine, Russia recorded the highest number of billionaires in its history. Yet these fortunes came with almost no political influence. Over 25 years in power, Vladimir Putin dismantled the independence of the wealthy elite. Men once feared as oligarchs now avoid any public challenge. This reality strongly benefits the Kremlin. Western sanctions failed to create resistance among the rich. Pressure and privilege instead produced loyalty and silence.
The Russian system runs on obedience enforced by fear. Loyalty delivers protection and profit. Defiance brings swift punishment. Former banking billionaire Oleg Tinkov learned this lesson personally. One day after he called the war “crazy” online, state officials contacted his executives. They delivered an ultimatum. The state would seize his bank unless ties ended immediately. Tinkov later said negotiation never existed. He described the process as pure coercion.
Within days, a company linked to Vladimir Potanin acquired the bank. Potanin ranks among Russia’s richest businessmen. His firms supply nickel used in fighter jet engines. Tinkov said the sale reflected just three percent of real value. He lost nearly nine billion dollars. Shortly afterward, he left Russia.
When Wealth Ruled the State
Russia once looked very different. After the Soviet collapse, massive state assets entered private hands. A small circle exploited the chaos of early capitalism. They built enormous fortunes quickly. Political instability granted them real power. These men became known as oligarchs. Boris Berezovsky emerged as the most influential among them.
Berezovsky later claimed he helped engineer Putin’s rise in 2000. Years later, he expressed regret publicly. He wrote that he failed to foresee a future autocrat. His role may have been exaggerated. Still, oligarchs once shaped decisions at the highest level. In 2013, Berezovsky died in exile under mysterious circumstances. By then, oligarch power had already collapsed.
A Room Full of Silence
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 faced severe damage. Putin called for cooperation under new conditions. A journalist present described the businessmen as pale and exhausted.
The months before the invasion damaged billionaire fortunes badly. The immediate aftermath worsened losses. Between 2021 and April 2022, their number fell from 117 to 83. War, sanctions and a weak rouble erased vast wealth. Collectively, they lost 263 billion dollars. On average, each lost more than a quarter of personal assets.
War Profits and Recovery
The following years changed the picture. Heavy military spending boosted economic growth. Russia posted growth above four percent in 2023 and 2024. Many wealthy figures benefited. Even those without defence contracts gained indirectly. In 2024, more than half of Russian billionaires supported military supply chains. Others profited from war-driven economic shifts.
Forbes analyst Giacomo Tognini said business survival requires Kremlin ties. Any major enterprise depends on government relations. In 2025, Russia reached a record 140 billionaires. Their combined wealth reached 580 billion dollars. That figure sat just three billion below the pre-war peak.
Punishment as Policy
Putin consistently punishes disloyalty. Russians remember the fate of Mikhail Khodorkovsky. The oil tycoon once ranked as the country’s richest man. After funding a pro-democracy group, authorities arrested him. He spent ten years in prison. Since the invasion, almost all billionaires stayed silent. The few critics fled Russia. They sacrificed much of their wealth.
Despite sanctions, billionaires remain central to the war economy. Many face asset freezes and travel bans abroad. Western governments hoped pressure would trigger elite opposition. That strategy failed. Wealth endured. Dissent disappeared.
Sanctions That Closed the Door
Sanctions also removed escape routes. Moving money abroad became nearly impossible. Accounts froze. Properties were seized. Analyst Alexander Kolyandr argued this strengthened Kremlin control. Without alternatives, billionaires rallied closer to the state. Their capital now fuels war production.
The exit of foreign companies created new opportunities. Kremlin-friendly businessmen filled the gap quickly. 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, this process created eleven new billionaires. Despite war and sanctions, Putin retained firm control over Russia’s economic elite. In several ways, external pressure reinforced that grip.
