The Attack on Ukraine Costs Russian Billionaires $39 Billion in a Single Day

You may think that the Russian President’s decision to invade Ukraine may be a sought-after plan. But the aftermath is impacting even the riches of Russia. The loopholes and cracks are not going in favor of Russian billionaires.

The 22 most influential Russians who are known for their riches have seen a considerable fall that decreased their net worth. Russian billionaires had a total of $39 billion drop in their net worth just within 24 hours of their invasion. It was bound to happen but no one could predict that actions will be this immediate.

How Severe Is the Impact?

Russia’s moves had directly influenced the assets of many billionaires. MOEX Russia Index claimed to have crashed hugely and closed at 33% lower compared to other days on Thursday itself. Of course, the losses were much more compared to what happened on Wednesday.

But if the attacks continue, the Russian economy will face a serious downfall, some of the most prominent names who suffered due to this are Vladimir Potanin, Russia’s deputy prime minister with a fall of 3 billion in his net worth, Alexey Mordashov from Severstal, Vagit Alekperov of Lukoil and many others.

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The names mentioned above are said to be the major losers during this period. Out of everyone, the chairman of Lukoil had to suffer the most. His wealth had plunged down by one-third in just a matter of one day. The share price has crashed by 32% and it can be worse in the future. Before the attack, the net worth of the chairman was $19.2 billion and now he is standing at a net worth of $13 billion. The reports were confirmed by Bloomberg.

We already said that Vladimir Potanin has experienced his fair share of consequences. He was the richest Russian man that the world knew of. But as Norilsk Nickel faced the decline in share price by 36%, Potanin being the president was highly affected.

Russian Billionaires
Russian Billionaires

If you check the records of history, this is the fifth-worst plunge for Russia. The first major hit was experienced back in 1987 that recorded the Black Monday crash. On this day; the market plummeted by a historic number of $50 billion.

On the other hand, the price of the Russian currency rouble had hit its all-time low mark. One rouble was valued at 89.60 against the dollar. So, there might be a long-term effect.

However, there was only one exception who made a profit out of this situation. Andrew Melnichenko is a popular industrialist as well as a philanthropist who has witnessed an increase in wealth by $100 million. But things can turn quickly and it might not be in favor all the time.

Were the Sanctions Responsible?

The Western sanctions had intensified the influence on the market. On Tuesday, the U.S. had confirmed some sanctions against the Russian oligarchs and the inner circle of Putin. That was further doubled up on Thursday as the U.S. President added some more sanctions.

Even the UK was firmly against the actions of Russia and released sanctions against as many as five Russian banks plus three prominent individuals. Even the E.U. and many different countries are joining together for sanctions. The Russians are losing out of business and many countries are trying to backlist them.

The invasion that was initiated by Russia started early Thursday. Missiles were fired, bombings were done and many civilians lost lives. Almost a majority of the world isn’t in support of Russia’s actions but still, the tensions are increasing.

The world has united to stop the President of Russia, Vladamir Putin from continuing such actions. Now only the upcoming days can say if there will be any major impact on Russia’s economy or if the invasion will be stopped. Let’s pray for peace and happiness.

You can also consider: What Is Putin’s Net Worth? The Russian President’s Financial Fortune Remains a Mystery, Complicating Biden’s Decision to Penalize Him

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