DAS CAPITALISTS REELING
Talk about a red scare.
The burgeoning ranks of Russia’s billionaires shrank by more than half over the past year, as the uber-rich from that country got slammed by plummeting energy and mineral prices.
According to Russian business magazine Finans, Russia had just 49 billionaires this year, down from 101 the year before, as the credit crunch finally took its toll on a group that at one point had a combined net worth of $522 billion – almost half the country’s gross domestic product.
The resources-rich country had been benefiting from growing global demand for oil and other commodities, and that created a new class of super wealthy who collectively became known for their profligate spending on everything from British soccer clubs to New York City real estate.
However, with a recession putting the brakes on global growth, the combined riches of the 10 wealthiest Russians have shriveled 66 percent to $75.9 billion, the magazine said.
That’s pushed the ranks of Russia’s mega-rich to its lowest level in more than three years: Finans counted 61 billionaires in 2007 and 50 in 2006.
Jumping to the top of the list from seventh place is 43-year-old Mikhail Prokhorov, a notorious playboy who made his fortune in metals and banking.
The mag rated Prokhorov’s fortune at $14.1 billion, down from $21.5 billion last year.
Prokhorov, founder of a magazine called Snob, was arrested in 2007, while vacationing in the French ski resort Courcheval, for allegedly supplying prostitutes to his wealthy friends. He was eventually released without charges.
In second place is another colorful character, Roman Abramovich, owner of Britain’s Chelsea Football Club. Abramovich’s fortune shrank to $13.9 billion from an estimated $23 billion last year.
Abramovich is known for his close ties to Russia’s political elite, including Boris Yeltsin.
When Vladimir Putin came to power Abramovich entered politics himself, becoming governor of Chukotka – a remote, resource-rich region located in Siberia.
Twice married and divorced, Abramovich is now dating Russian fashion designer and socialite Dasha Zhukova.