Russian billionaires hit hard by lower oil prices

The sharp drop in world oil prices has had a strong impact not only on the global economy, but on the fortunes of Russian billionaires, many of whom have become rich on this product. According to Wealth-X and the UBS Billionaire for 2014, the value of many of the 114 Russian billionaires in the index was affected by low oil revenues, affecting associated assets in oil companies. In addition, international sanctions imposed on Russia have contributed to the slide of the Russian economy into recession this year.

Among the billionaires most affected by the confluence of these factors is Alisher Usmanov, the main shareholder of Metalloinvest, who was the richest man in Russia according to the Americas research at Wealth-X. According to Max Schneider, director of Wealth-X, "Usmanov lost $ 4.5 billion between March and December 2014, which represents almost 25 percent of his fortune." Another hit by the fall in commodity prices was Mikhail Fridman, chairman of investment firm Alfa Group, who lost $ 2.7 billion during the same period, representing about 18 percent of his fortune.

"However, the biggest losses in 2014 were in Leonid Mikhelson, chairman of the board and CEO of the gas company NOVATEK, who lost $ 7 billion, which is more than 40 percent of his assets," according to Schneider.

Other billionaires who saw their fortunes fall are Vladimir Lisin, NLMK's largest shareholder, Andrey Melnichenko, who has interests in the mining industry, and Sergei Galitsky, founder and owner of the food retail chain Magnit, although their losses were not documented, Schneider says. In addition, German Khan, executive director of TNK and Mikhail Prokhorov, owner of the ONEXIM Group investment fund, also reduced their fortunes.

While Russian billionaires may be examples of falling fortunes from declining oil prices, this trend is "not exactly a Russian phenomenon," says an analyst at Wealth-X. In December 2014, Harold Hamm, chief executive officer of the Oklahoma Continental Resources (CLR), claimed that a drop in oil prices robbed him of $ 10 billion of his net worth.

Oil prices jumped to around $ 64 a barrel for Brent crude and around $ 59 for US light oil. But if prices stay low for a long time, Russian billionaires could face even greater losses, and the country's economy will have low or negative growth in industries outside the oil business, according to Schneider.