Windfall for Russian Oligarchs

Large Russian companies have this year increased or resumed previously suspended dividend payments to their owners. The billion-dollar dividend payments indicate a decreased concern in the Russian business community about the economic effects of the invasion war against Ukraine.

» Updated:

» Published:

Windfall for Russian Oligarchs
Photo: Pavel Golovkin AP/TT

Share this article

Large Russian companies have this year increased or resumed previously suspended dividend payments to their owners. The billion-dollar dividends indicate a decreased concern in the Russian business community about the economic effects of the invasion war against Ukraine.

A dozen Russian oligarchs have so far this year received more than 1,000 billion rubles (approximately 120 billion kronor) in dividends for 2023's results and in some cases for the first quarter of this year, according to a compilation made by the news agency Bloomberg.

Many of the largest oligarchs have close ties to Russia's President Vladimir Putin and some of them are also on Western sanctions lists.

Lukoil's Alekperov tops the list

The person on the list who has received the most in dividends this year is Vagit Alekperov, major owner and former CEO of the Russian oil company Lukoil. He has received 186 billion rubles in dividends.

Alekperov is on British and Australian sanctions lists, but has so far not appeared on the US and EU lists.

Aleksey Mordashov, major owner of Severstal, and Vladimir Lisin, major owner of Novolipetsk Steel, are two others who have received significant dividends this year, with payouts of 148 billion and 121 billion, respectively. Mordashov is on sanctions lists in the US, UK, and EU.

Gennady Timchenko – former major owner of Torbjörn Törnqvist's oil trading company Gunvor Group – is also on Bloomberg's top list of Russian oligarchs who have received the most in dividends. He has brought home 79 billion rubles from the companies Novatek and Sibur.

Growth of 5.4 percent

The Russian economy immediately went into recession after the invasion war against Ukraine began in 2022, but has since recovered as consumption of weapons, fuel, ammunition, and other equipment for the Ukraine war has taken off.

Russia's GDP grew by 5.4 percent during the first quarter of this year compared to the first quarter of 2023, and many of the large raw materials companies have redirected their exports to countries like China and India, which have not imposed any sanctions due to the Ukraine war.

State-controlled companies like gas giant Gazprom and major bank Sberbank never paused their dividend payments and have racked up record profits in the shadow of the war. Sberbank's owners received a dividend of 752 billion rubles last month.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Trump Welcomes Foreign Investment and Workforce in the USA

Trump Welcomes Foreign Investment and Workforce in the USA

Government Boosts Support for Sweden's Regional Airports

Government Boosts Support for Sweden's Regional Airports

Klarna CEO: Embracing "Swedishness" as a Key Asset

Klarna CEO: Embracing "Swedishness" as a Key Asset

Handelsbanken Swish Payment Disruption Resolved

Handelsbanken Swish Payment Disruption Resolved

Government Proposes Increased Export Credit Guarantees for Swedish Companies

Government Proposes Increased Export Credit Guarantees for Swedish Companies

AstraZeneca Halts UK Research Facility Expansion Plans

AstraZeneca Halts UK Research Facility Expansion Plans

Princess Madeleine's Skincare Brand Launch Draws Lukewarm Interest

Princess Madeleine's Skincare Brand Launch Draws Lukewarm Interest

Länsförsäkringar Swish Payment Issue Resolved

Länsförsäkringar Swish Payment Issue Resolved

Blind Box Trend Raises Concerns Over Consumer Behavior and Spending

Blind Box Trend Raises Concerns Over Consumer Behavior and Spending

France's Credit Rating Downgraded by Fitch

France's Credit Rating Downgraded by Fitch

Microsoft Gains Amid Mixed US Market

Microsoft Gains Amid Mixed US Market

FTC Investigates Google and Amazon Over Advertising Practices

FTC Investigates Google and Amazon Over Advertising Practices

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

ECB Officials Divided on Future Interest Rate Decisions

ECB Officials Divided on Future Interest Rate Decisions

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Microsoft to Remove Teams from Office Package in EU Agreement

Microsoft to Remove Teams from Office Package in EU Agreement

UK Economy Growth Stagnant in July as GDP Remains Unchanged

UK Economy Growth Stagnant in July as GDP Remains Unchanged