Thursday, 25 September 2008

Russian oligarchs suffer $42bn losses

Wealth Bulletin

25 September 2008 - Jason Corcoran in Moscow

Russian oligarchs are nursing paper losses of $42bn (€28.6bn) from the dramatic sell-off in the Russian stock markets over the past two months.

US publication Forbes calculated the net worth of Russia's richest businessmen last week and compared it to the end of July when widespread market falls were triggered by Prime Minister Putin's accusations of price fixing at miner Mechel.

The Russian stock markets have since fallen 50% as the international banking crisis, falling commodity prices and the war with Georgia has taken its toll.

The greatest losses were suffered by Vladimir Lisin, the steel magnate owner Novolipetsk Steel, who saw his portfolio holdings drop by $11.2bn since the end of July.

The next biggest loser has been chairman of mineral fertiliser company Uralkali Dmitry Rybolovlev who has stacked up market losses of $7.3bn.

Vagit Alekperov, president and one of the biggest shareholders in oil major Lukoil, has seen $5.13bn come off his total net worth of $14.3bn.

Alexei Mordashov, chairman of steel giant Severstal, has shed $4.49bn from his net worth of $24.5bn over the past two months while Arsenal football club shareholder Alisher Usmanov has lost just $1.25bn of his $9.5bn net worth.

Kirill Pisarev and Yuri Zhukov, executives at listed property developer PIK have each lost over $2.2bn, according to Forbes.

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