U.S. sanctions hit Russian oligarchs
April 10, 2018 -- The combined net worth of Russia’s wealthiest people fell by almost $16 billion following U.S. sanctions on oligarchs who have benefited financially from close ties to Russian President Vladimir Putin.
The U.S. Treasury Department placed new sanctions on seven Russian oligarchs, 12 companies they either own or control and 17 senior Kremlin officials. The move is designed to prevent the targeted oligarchs from doing business in U.S. dollars and stop them dealing with U.S. citizens.
Russia’s wealthiest tycoons lost a staggering $15.8 billion by Tuesday morning, according to Bloomberg Billionaires Index which updates figures at the close of every trading day in New York.
According to analysts’ estimates, most of the losses fell on Siberian nickel miner Vladimir Potanin, whose fortune declined $2.28 billion. Lukoil CEO Vagit Alekperov lost $1.37 billion, while Viktor Vekselberg saw his net worth fall by $1.28 billion. Of the three oligarchs, sanctions only applied to Vekselberg.
Of the seven Russians sanctioned, Oleg Deripaska lost $905 million on Monday. Investors wiped off 54 percent of the value of his industrial conglomerate En+ Group since Thursday, according to London Stock Exchange data. Through EN+, Deripaska owns 48 percent of Rusal, the sanctioned giant aluminium producer.
The sanctions are America’s response to Russia’s actions in Crimea, Syria and Ukraine as well as interference in the 2016 U.S. presidential election.