Russian billionaires starting to lose big portions of their fortune due to Ukraine invasion

Russia started to attack Ukraine last week, and a full-scale invasion has been launched the past weekend. President Vladimir Putin has ordered devastating attacks by air, land, and sea, and the Russian troops are now closing in on Ukraine's capital.

Putin shuttered the peace deal in Europe when he sent the forces across Ukraine's borders at all points, including the north, east, and south. The number of deaths is climbing each day, and the rest of the world is also affected by the situation, including economically.

Many countries are making immediate plans to help local businesses in dealing with the impact of the Russia-Ukraine crisis. Some companies are already feeling the effects of the ongoing war as their businesses had to close down while others are experiencing supplies shortage since many firms have stopped operating though temporarily.

It was reported that billionaires in Russia have been affected as well, and the richest people there have paid a steep price for their president's invasion order of Ukraine. As Putin ignored the pleas and warnings to proceed with his plans of a full-fledged invasion, the New York Post reported that the country's billionaires reported a combined loss of $39 billion in on-paper net worth.

This happened as the nation's stock market sunk in response to the invasion. Moscow Exchange's (MOEX) Index was said to have closed 33% lower late last week, and this was the worst single-day market crash in Russia's history.

Among all the Russian billionaires, it was Vagit Alekperov, the chairman of Lukoil energy firm, was the most affected. He was hit the hardest and lost almost a third of his on-paper fortune net worth, which is based on the Bloomberg Billionaires Index is equivalent to more than $6 billion.

Next on the list is Alexey Mordashov, the chairman of Severstal steel firm. He lost over $4 billion, while Gennady Timchenko is the third hardest hit after losing $3.7 billion due to individual sanctions handed down by the US and European authorities as a response to Russia's destructive actions.

As per Bloomberg, Timchenko is a 69-year-old son of a Soviet military officer who met and befriended Putin in the early 1990s. His fortune is said to be about $16 billion, and the bulk of his wealth came from his stake at Novatek. Lastly, a close associate of Putin, who is also one of the richest people in the country, also lost around $3 billion.

Photo credit: m./Unsplash