During the conflict with Ukraine, the number of billionaires in Russia has reached a record high. However, over the 25 years of Vladimir Putin's leadership, the political influence of these wealthy individuals, commonly referred to as oligarchs, has significantly waned. This shift has been beneficial for Putin, as Western sanctions have not succeeded in turning these affluent individuals against him, and his policies have effectively transformed them into compliant supporters.

Oleg Tinkov, a former banking billionaire, exemplifies the consequences of dissent. After publicly criticizing the war on social media, he faced immediate repercussions from the Kremlin, which threatened to nationalize his bank unless he severed ties with it. Tinkov reported that he had no choice but to comply, resulting in a sale of his bank at a fraction of its value, leading to a personal loss of nearly $9 billion and his subsequent departure from Russia.

Historically, the rise of the oligarchs followed the dissolution of the Soviet Union, where individuals acquired vast wealth by privatizing state-owned enterprises during a period of economic upheaval. Initially, these oligarchs wielded considerable power, with figures like Boris Berezovsky claiming to have played a role in Putin's rise to power. However, as Putin consolidated control, the oligarchs' influence diminished, culminating in Berezovsky's exile and mysterious death in the UK.

When Putin convened Russia's wealthiest individuals shortly after the invasion of Ukraine in February 2022, they were reportedly unable to voice objections, fully aware of the impending economic fallout. Forbes reported a significant decline in the number of billionaires in Russia due to the war and sanctions, with their collective wealth decreasing by $263 billion.

Despite initial losses, the war economy has since provided substantial opportunities for those aligned with the Kremlin. Economic growth driven by military spending has benefited many billionaires, with over half reportedly involved in military supply chains or benefiting indirectly from the conflict. In 2024, the number of billionaires in Russia reached 140, with their combined wealth nearing pre-invasion levels.

Putin's regime has maintained a tight grip on the oligarchs, punishing dissent while rewarding loyalty. The case of Mikhail Khodorkovsky, once the richest man in Russia, illustrates the risks of opposing the state, as he was imprisoned for a decade after advocating for democratic reforms.

Western sanctions aimed at undermining the oligarchs have largely failed, as they have instead solidified their support for the Kremlin. The exodus of foreign companies post-invasion allowed Kremlin-aligned businesspeople to acquire valuable assets at reduced prices, creating a new class of loyalists whose fortunes are tied to the ongoing conflict. In 2024 alone, 11 new billionaires emerged in this context, further entrenching the relationship between wealth and state power in Russia.