“Gold one hundred” Forbes: why billionaires from Russia, the newly rich

Photo: Yuriko Nakao / Reuters

After declining for three consecutive years the wealth of Russian billionaires they began again to prosper, to be fresh rating Forbes. RBC understood why Russian businessmen for the year added more than $100 billion

For the richest in Russia the crisis is over: after an unsuccessful 2014-2015 Russian billionaires once again began to prosper, has revealed the updated ranking of the American magazine Forbes published Monday, March 20. In fresh rating was 96 Russian businessmen, their total fortune — $386 billion, calculated by RBC based on the data Forbes. Compared to last year’s list, which had only 77 of the Russians, the richness of the Russian part of the rating increased by more than $100 billion.

As a result, the share of Russian wealth in total as all the participants of the Forbes for the year grew from 4.4 to 5%, follows from the calculations of RBC.

The annual Forbes by tradition captures the assessment of the state of the world’s billionaires, in February, in the current list used data from 17 Feb 2017. In 2016, the world prices for raw materials — the basis of the Russian economy and the main source of Russian wealth rose for the first time after five years of decline: the Bloomberg Commodity Index, which tracks the cost of two dozen commodities over the past year increased by 11% (after falling by 25% a year earlier).

In the top ten of the richest Russians of the global ranking of Forbes-2017 all somehow connected with oil and gas, steel and metals, coal and fertilizers. In Russia, 64% of billionaires have become owners of such wealth because of political connections and proximity to raw materials, revealed last year economists of the American Institute of world economy Peterson’s behalf on the basis of the analysis of Forbes for the years 1996-2015.

Russia leads the world in the degree of income inequality: it 62% of all national wealth belongs to dollar millionaires and 26% — the billionaires, from the data of the South American research firm New World Wealth published in September last year.

Russian Forbes: first, the regulars and gainers Video: RBC

The richest are the same

For the second year in a row the Russian part of the global Forbes list was headed by the co-owner of NOVATEK, Chairman of the Board of Directors of the chemical holding “SIBUR” Leonid Michelson: his condition has increased over the year by $4 billion to $18.4 billion, Michelson takes the 46th place in the global rating Forbes (previous year it was the 60s). In December 2016 it sold around 9% of SIBUR to the Chinese silk road Fund, and the transaction amount could exceed $1.2 billion, wrote RBC. The representative of the Michelson declined to comment on RBC fresh rating Forbes.

All of the richest Russian businessmen has increased his fortune for the year of at least $1 billion, but some grew rich much faster than others — this explains the changes in the top of the Russian list. The most impressive growth was led by Alexey Mordashov (“Severstal” Nord Gold, the “Power machines”) and Vladimir Lisin (NLMK, UCL Holding): the state of the first increased by 61% to $17.5 billion and the second at 73%, to $16.1 billion, Mordashov and Lisin won, respectively, second and third lines in the Russian Forbes list, relegating Mikhail Fridman and Alisher Usmanov. Representatives Mordashov and Lisin refused to comment.

The cumulative condition of the Russian Forbes list of participants before declined for three consecutive years: the effect of Western sanctions against Russia superimposed the cycle of falling commodity prices. But in 2016, the raw material is finally moved to growth. In particular, the price index of six primary metals traded on the London stock exchange of metals LMEX Index over the past year grew by 20.7% (after falling by 24% a year earlier). The status of Roman Abramovich and Mikhail Prokhorov, who largely depend on market conditions metals (Evraz, Rusal) increased, respectively, by $1.5 billion and $1.3 billion (they occupy 12th and 13th place in the list with total estimated $9.1 billion and $8.9 billion). Next comes the main owner of the Magnitogorsk metallurgical combine (MMK) Viktor Rashnikov, who have increased their wealth more than doubled, to $8.3 billion.

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The richest Russian businessmen in Forbes world rating

March 20, Forbes published a ranking of the world’s billionaires, which included 96 Russians — 12 more than the year before. Among the richest Russian businessmen…

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To improve the position of Russian billionaires in the Forbes ranking was influenced by the strengthening of the ruble and stock market growth, the analyst adds BCS Vladimir Tikhomirov. The ruble in the past year has appreciated by 20% after a strong decline in 2014-2015, and the dollar index of Russian shares, RTS has grown by 52% after declining by 4% a year earlier. The rise in the cost of raw materials (metals, oil, gas, fertilizers) supported the ruble and, as a consequence of ruble assets, the expert concluded.

Although the average price of Brent crude in 2016 decreased by 16% compared to the previous year, after the agreement was reached by OPEC and other oil-producing countries, including Russia, the oil strengthened above $50 per barrel. As the primary owner of LUKOIL Vagit Alekperov has increased over the year by $5.6 billion ($14.5 billion, the sixth place in the Russian part of the list). One of the main reasons for the increase of its state — valuing the shares of LUKOIL, says senior analyst of “Aton” Alexander Kornilov. A year ago on the Moscow stock exchange the company was worth 2.2 trillion rubles ($32,4 billion), and now to 2.6 trillion rubles ($45.9 billion). In addition, last year has been significant interest in the Russian market: investors bought shares, hoping for a warming of relations between Russia and the United States after winning Donald trump’s presidential elections, says the analyst.

The rich get richer not only in Russia

2017 was a record for the richest people in the world on several indicators. The number of billionaires compared with the year 2016 increased from 1810 until 2043 people, 13%, or 233 people, the biggest increase in 31 years of doing global rating Forbes. The number of those whose condition has increased, surpassed the number of those, whose fortune declined by more than 33%. USA kept the lead on number of the richest people in the world — vs 565 530 in Europe. In China 319 billionaires; Hong Kong — 67, Macau — 1; and only in the Asia-Pacific region 720. The third and fourth largest number of billionaires occupied Germany (114) and India (100).

First place in the top for the second year in a row won bill gates over the past 23 years, 18 times he was the leader of the rating (the state — $86 billion). Second place went to investment guru Warren Buffett (the state — $75,6 billion). Third on the list was the founder of online retailer Amazon Jeff Bezos ($72.8 bn). The state’s richest man of Europe is Amancio Ortega, founder of clothing brand Zara, reached $71,3 billion, securing him fourth position in the top. Mark Zuckerberg for the first time in history entered the top 5 with a fortune of $56 billion Newcomers rankings this year were 195 people, 76 of whom were residents of mainland China, 25 beginners — US citizens. The most remarkable among them is the founder of the American brand of sportswear Patagonia Yvonne Chouinard, founder of cruise companies Viking Cruises Norwegian Torstein Hagen, American hedge-Fund magnate cliff Asness and his two partners, as well as the Irish John and Patrick Collison, the founder of e-payment service Stripe. John Collison at 26 became the youngest billionaire in the world, he is two months younger than the founder of Snapchat Evan Spiegel. In the ranking of 56 billionaires younger than 40 years: over the year their number decreased by ten.

Three of the five richest people in the world earned their fortunes in the IT sector. The number of IT billionaires increased to 23 people, to 183 people, their total wealth reached $1 trillion. Most of them (78 persons) are American. For the year from the prestigious list out of 78 people — at least in 2013. Most billionaires have lost China (33), the US lost seven billionaires. The biggest loser in the ranking was Elizabeth Holmes: she’s lost all of his fortune, a year earlier reached $3.6 billion, wrote RBC. The status of the President of the United States Donald trump has decreased over the year by $1,200 billion to $3.5 billion During the year he fell in the rankings for 220 positions and occupied the 544-th line. From the election (November 2016) as trump declined by $200 million.