In the wake of the Russian election meddling, many people have been asking questions about Russian oligarchs and their businesses.
Which companies are owned by these powerful businessmen? How much control do they have over these businesses? And what implications does this have for international relations?
In this blog post, we will explore the world of Russian oligarchs and their business interests. Stay tuned for more information!
Brief History
Business oligarchs from the former Soviet republics known as Russian oligarchs earned huge wealth in the 1990s as a result of privatization in Russia after the collapse of the Soviet Union.
Since the Soviet Union was disintegrating, it was possible to acquire state property through informal agreements with former USSR officials, mostly in Ukraine and Russia. These oligarchs are linked to the system of strong boyars that developed in late-medieval Muscovy, according to historian Edward L. Keenan.
The first modern Russian oligarchs appeared as corporate owners during the market liberalization era of Mikhail Gorbachev (General Secretary 1985–1991) The word “oligarch,” which implies “the dominion of the few,” is derived from the Ancient Greek word oligarchic.
Companies Owned By Russian Oligarchs
In recent years, several Russian oligarchs have come under fire for their business dealings. Some of these men have been accused of corruption, money laundering, and other crimes. Here are some of the companies owned by Russian oligarchs:
Alexander And Evgeny Lebedev
Evgeny Lebedev, 34, and his father, Alexander Lebedev, co-own an enormous UK media empire that includes The Independent, I, and the free Evening Standard. The aggregate daily circulation of these newspapers is more than one million copies.
Although international media oligarchies are less common, Russian oligarchs have made a huge show of increasing their power within their own country (Alexander Lebedev is a co-owner of Russia’s liberal Novaya Gazeta). Lebedev prospered in banking while surviving the chaotic 1990s in Russia.
Yuri Milner – Facebook, Twitter
As the CEO of an investment company controlled by Mikhail Khodorkovsky, who infamously lost favor with Vladimir Putin and served eight years in prison, Milner saw his wealth surge in the mid-1990s.
He has staked some incredibly wise wagers on US social media firms. Milner invested $200 million in Facebook shares back in 2009 and held 5.5% of the firm as it filed for an initial public offering, growing that sum to well over $1 billion in only a few short years.
Similar to this, Milner’s stake in Twitter on the day of its IPO (about $400 million in 2011, when it was valued at $8 billion) increased after it went public. Currently, the corporation is worth roughly $26 billion.
Alisher Usmanov – Arsenal
Usmanov is Russia’s richest man and derives the majority of his money from mining ventures. Additionally, he is the owner of Mail.ru, the second-biggest mobile network provider in Russia, and the largest online company.
About 30% of Arsenal’s shares are held by Red & White, Usmanov’s holding firm. He divides it with another steel tycoon, Farhad Moshiri.
When the holding firm first invested, that stake was up 14.65%, gradually increasing. He has expressed a desire for an even greater stake in the past through his comments. Stan Kroenke, a rich American, currently holds the bulk of the company’s shares.
Oleg Deripaska – Strabag SE
The head of RUSAL, the biggest aluminum producer in the world, Oleg Deripaska, has ties to Russian politics. He contributed significantly to the Winter Olympics’ development in Sochi in 2014.
Strabag, which is one of the biggest companies on the list but isn’t one of the most glamorous, now has a blocking minority of shares owned by Deripaska.
With over 70,000 people and annual revenues of over €10 billion, it is one of Europe’s largest construction firms.
Roman Abramovich – Chelsea
Alisher Usmanov owns a stake in Arsenal, although Abromovich acquired majority ownership in Chelsea in 2003.
He uses the political-business back door that is open to a specific class of Russian multi-billionaires, making him an oligarch in the truest meaning of the word.
Dmitry Rybolovlev – AS Monaco And The Bank Of Cyprus
Up until 2010, Rybovlev controlled the bulk of the London-listed potash company Uralkali. He acquired a two-thirds share in AS Monaco, a significant European football club, a year later.
James Rodriguez, the 2014 World Cup Golden Boot winner, and Radamel Falcao, who eventually joined Manchester United, were two of the players he made Monaco a big spender.
Rybovlev was the Bank of Cyprus’s largest single stakeholder at the time of the country’s crisis in 2013, owning slightly under 10% of the company.
How Do Oligarchy Rulers Come To Be In Charge?
The majority of traditional oligarchies have arisen as a result of the recruitment of ruling elites solely from a ruling caste, a hereditary social group that is distinguished from the rest of society by religion, kinship, economic status, prestige, or even language. These elites frequently use their influence for the benefit of their class.
What Characterizes An Oligarch?
In general, an oligarch is a “member of an oligarchy; a person who is a part of a tiny group controlling power in a state” (from the Ancient Greek (oligos) “few” and v (archein) “rule”). The phrase is frequently used in Western media to distinguish between Russian and Western businessmen.
What Distinguishes Aristocracy From Oligarchy?
Aristocracies are made up of people who are thought to be the best fit to rule because of their nobility a level of moral and intellectual superiority that is assumed to have been genetically passed down through family lines while oligarchies are made up of people who are considered to be “rule by the few.”
Articles You Might Enjoy Reading
Why Are Russian Oligarchs Being Killed?
What Is Eugene Shvidler’s Net Worth?