It goes without saying that Vladimir Putin reigns supreme in Russia, in all ways. He's the President. He's the head of the influential Kremlin. He's also the richest person in Russia with a net worth we currently peg at $70 billion. Other reports have pegged Putin's net worth at $200 billion.
After Mr. Putin, who is the richest person in Russia? With a net worth of $30 billion that honor does go to a different Russian billionaire named Vladimir Potanin.
Vladimir Potanin's Background and Rise to Wealth
Vladimir Potanin was born into Russian elite society in 1961 in Moscow to a high-ranking family. His educational journey led him to study international economic relations, which paved the way for a career at the Ministry of Foreign Trade, echoing his father's path. During this time, he made numerous connections that would later prove invaluable in his business ventures.
In 1990, as the USSR was collapsing, Potanin left the Ministry to pursue entrepreneurial opportunities. Armed with merely $10,000, he started a foreign trade financial consulting agency called Interros VEA, entering a rapidly changing economic landscape.
Within two years, Potanin and Mikhail Prokhorov, who would later own the Brooklyn Nets, opened one of the first private banks in Russia. Their timing was impeccable as they capitalized on President Boris Yeltsin's controversial "loans for shares" program, acquiring significant assets in nickel, oil, shipping, and steel. Among their most notable acquisitions was Norilsk Nickel, a massive nickel mining conglomerate.
The Controversial "Loans for Shares" Program
The "loans for shares" program enabled private investors to acquire stakes in state-owned companies in exchange for loans. This approach was designed to generate revenue for the government during a time of economic turmoil. Potanin and Prokhorov won the auction for Norilsk Nickel in 1995 for a mere $170.1 million, despite the company’s actual value being estimated at $4 billion.
At that time, Potanin held the position of Deputy Prime Minister, overseeing privatization efforts. This dual role raised eyebrows, as it allowed him to benefit personally from decisions made in a government capacity.
Norilsk Nickel's fortunes soared over the next decade, drastically increasing Potanin's wealth. When Potanin and Prokhorov took the company public, they expanded their investments into other sectors such as real estate, media, and retail, further solidifying their financial power.
Scandal and Strategic Maneuvering
In January 2007, a scandal involving Mikhail Prokhorov, which included a controversial trip to Courchevel, provided Potanin with a strategic advantage. As the stock for Norilsk Nickel reached an all-time high, Potanin seized the opportunity to buy out Prokhorov’s stake for $7 billion in cash and $3 billion in stock from another company.
While Potanin thrived, the financial crisis of 2008 severely impacted his empire, shrinking his net worth from $28 billion to $2 billion in a short time. Meanwhile, Prokhorov, who had liquid assets, capitalized on the downturn by acquiring additional assets, including the Brooklyn Nets.
Personal Life and Divisive Divorce
Vladimir Potanin's personal life took a tumultuous turn after he filed for divorce from his wife Natalia in November 2013 after 30 years of marriage. Their marriage produced three children, and up until that point, they seemed like a happy family. However, Potanin requested the divorce be retroactive to 2007, claiming that was when their relationship began to falter.
The day he announced the divorce, the family was enjoying dinner together, discussing a planned trip to the U.S. for their youngest son, Vasily. The shock of the divorce left Natalia reeling, as she believed they were in the midst of normal family life.
After the divorce announcement, Potanin's actions escalated the situation. While Natalia prepared for their trip, he had their family home demolished and cut off her access to their bank accounts. This maneuver was viewed as a blatant attempt to protect his assets during the divorce proceedings.
The Aftermath of the Divorce
Despite the community property laws in Russia, the court ruled in favor of Potanin, declaring the marriage ended in 2007, not 2013. Natalia presented evidence of their continuing life together, but the ruling favored Potanin, showcasing the influence of wealth and connections in legal matters.
Potanin offered no support for Natalia and their children during the divorce settlement. Initially, she was awarded $41.5 million, but she continued to fight for a more substantial share. In 2016, she filed a lawsuit seeking $15 billion in profits generated by Norilsk during their marriage. After numerous legal battles across multiple countries, she ultimately settled for $84 million, along with additional child support and funds for a home.
Today, Vladimir Potanin's net worth stands at around $30 billion, firmly establishing him as the wealthiest individual in Russia after Putin. His journey reflects the intertwining of personal decisions, economic strategy, and the complex landscape of wealth in modern Russia.
