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02-25-2022, 02:34 AM
(Bloomberg) – Russia’s wealthiest people were already feeling the strain of escalating tensions between the nation and Ukraine.
Things got worse for their net worth after Russian President Vladimir Putin’s decision to invade Ukraine. In less than 24 hours, they lost $39 billion – more than they had so far this year.
The damage affected all asset classes. Russia’s benchmark MOEX Russia Index closed 33% lower in Moscow, the fifth worst fall in stock market history in local currency terms. It was the first time since the Black Monday crash of 1987 that a decline of this magnitude hit a market worth more than $50 billion.
UBS Group AG, meanwhile, has triggered margin calls on some wealth management clients who are using Russian bonds as collateral for their portfolios after it reduced the loan value of some of the country’s debt to zero, Bloomberg News told Bloomberg News. people familiar with the subject. The Swiss wealth manager says it caters to half of the world’s billionaires.
One of Europe’s worst security crises since World War II threatens to deepen the decline of markets in the region, but especially in Russia, which has been hit by sanctions by the United States and the United Kingdom. A handful of billionaires, including Gennady Timchenko, are also facing sanctions for their links to Putin, although there are calls to broaden the potential targets.
“There are a lot of people in the United States and Europe who want to hit them straight,” Chris Miller, co-director of the Russia and Eurasia program at Tufts University’s Fletcher School, said of Russian billionaires in an interview. . “I don’t think there is good news in the sanctions for them.”
Vagit Alekperov, the chairman of Lukoil, experienced the biggest drop in his net worth. It was cut by almost a third in one day, falling from about $6.2 billion to $13 billion, according to the Bloomberg Billionaires Index. Shares of the Moscow-based oil producer fell about 33% on Thursday.
Alexey Mordashov, chairman of steelmaker Severstal, lost $4.2 billion on Thursday, taking his fortune to $23 billion. Vladimir Potanin, chairman of Norilsk Nickel and currently Russia’s richest person, lost $3 billion.
Alekperov and Timchenko have each lost around $10 billion this year, more than 40% of their fortunes. These are the biggest percentage drops among Russian billionaires tracked by the Bloomberg Wealth Index.
Bloomberg Businessweek’s Most Read
©2022 Bloomberg LP
https://www.theautimes.com/russian-billionaires-lose-39-billion-dollars-in-one-day-because-of-the-attack-in-ukraine/?amp
Things got worse for their net worth after Russian President Vladimir Putin’s decision to invade Ukraine. In less than 24 hours, they lost $39 billion – more than they had so far this year.
The damage affected all asset classes. Russia’s benchmark MOEX Russia Index closed 33% lower in Moscow, the fifth worst fall in stock market history in local currency terms. It was the first time since the Black Monday crash of 1987 that a decline of this magnitude hit a market worth more than $50 billion.
UBS Group AG, meanwhile, has triggered margin calls on some wealth management clients who are using Russian bonds as collateral for their portfolios after it reduced the loan value of some of the country’s debt to zero, Bloomberg News told Bloomberg News. people familiar with the subject. The Swiss wealth manager says it caters to half of the world’s billionaires.
One of Europe’s worst security crises since World War II threatens to deepen the decline of markets in the region, but especially in Russia, which has been hit by sanctions by the United States and the United Kingdom. A handful of billionaires, including Gennady Timchenko, are also facing sanctions for their links to Putin, although there are calls to broaden the potential targets.
“There are a lot of people in the United States and Europe who want to hit them straight,” Chris Miller, co-director of the Russia and Eurasia program at Tufts University’s Fletcher School, said of Russian billionaires in an interview. . “I don’t think there is good news in the sanctions for them.”
Vagit Alekperov, the chairman of Lukoil, experienced the biggest drop in his net worth. It was cut by almost a third in one day, falling from about $6.2 billion to $13 billion, according to the Bloomberg Billionaires Index. Shares of the Moscow-based oil producer fell about 33% on Thursday.
Alexey Mordashov, chairman of steelmaker Severstal, lost $4.2 billion on Thursday, taking his fortune to $23 billion. Vladimir Potanin, chairman of Norilsk Nickel and currently Russia’s richest person, lost $3 billion.
Alekperov and Timchenko have each lost around $10 billion this year, more than 40% of their fortunes. These are the biggest percentage drops among Russian billionaires tracked by the Bloomberg Wealth Index.
Bloomberg Businessweek’s Most Read
©2022 Bloomberg LP
https://www.theautimes.com/russian-billionaires-lose-39-billion-dollars-in-one-day-because-of-the-attack-in-ukraine/?amp