Russian President Vladimir Putin has successfully maintained the loyalty of Russia’s billionaires during the war in Ukraine, with their numbers and wealth reaching record highs despite Western sanctions. Through a mix of coercion and economic incentives, oligarchs have become silent backers of the Kremlin’s military efforts.
In the 25 years since Vladimir Putin came to power, Russia’s wealthy elite, once known as oligarchs with significant political influence, have seen their power wane dramatically. During the chaotic post-Soviet era, figures like Boris Berezovsky amassed fortunes and claimed roles in Putin’s ascent, but the president has systematically curtailed their autonomy. By the time of the full-scale invasion of Ukraine in February 2022, oligarchs were largely powerless to oppose Kremlin decisions, as evidenced by their pale and sleep-deprived appearance at a key Kremlin meeting hours after the invasion order.
Putin’s control is enforced through a carrot-and-stick approach. Those who criticize the war, such as banking billionaire Oleg Tinkov, face severe consequences. After Tinkov called the war “crazy” on Instagram, he was forced to sell his bank at a fraction of its value and lost nearly $9 billion, ultimately leaving Russia. This mirrors past crackdowns, like the imprisonment of oil tycoon Mikhail Khodorkovsky, demonstrating that dissent is met with harsh punishment.
Conversely, loyalists have profited immensely from the war economy. Lavish military spending spurred over 4% annual economic growth in 2023 and 2024, benefiting even billionaires not directly involved in defense contracts. According to Forbes, more than half of Russia’s billionaires now play some role in supplying the military or gain from the invasion, and in 2024, the number of billionaires hit a record 140, with collective wealth nearing pre-war highs.
Western sanctions, intended to pressure oligarchs into opposing Putin, have largely backfired. By freezing assets and restricting movement, sanctions have trapped billionaires in Russia, rallying them around the Kremlin. Analysts like Alexander Kolyandr of the Center for European Policy Analysis argue that the West effectively helped Putin mobilize these elites by leaving them no exit strategy, turning them into compelled supporters of the war effort.
The exodus of foreign companies post-invasion created opportunities for Kremlin-friendly businessmen to acquire lucrative assets cheaply, spawning a new class of loyal billionaires. In 2024 alone, 11 new billionaires emerged this way, forming what Carnegie analyst Alexandra Prokopenko calls an “army of influential and active loyalists” whose fortunes depend on continued Russia-West confrontation.
Today, Russia’s billionaires are richer and more numerous than ever, but politically voiceless. They operate in a system where obedience is rewarded and defiance is crushed, ensuring their alignment with Putin’s war objectives. This dynamic underscores the resilience of Putin’s regime and the limitations of external pressure in altering domestic power structures.
Looking ahead, the entrenched dependence of these elites on the war economy suggests that any peace settlement could threaten their newfound wealth, potentially making them obstacles to de-escalation. As the conflict continues, the silent support of Russia’s billionaires remains a cornerstone of Putin’s strategy, highlighting the complex interplay of wealth, power, and coercion in wartime Russia.
