Russian business owners lose billions in financial crisis

Russia's wealthiest oligarchs and business owners have lost about two-thirds of their personal fortunes over the past year, the Moscow business magazine Finans reported Monday.

The magazine's annual list of Russia's richest shows them suffering breathtaking losses as the country faces its worst financial crisis in a decade.

Oleg Deripaska, who had topped Finans' list in the previous two years, fell to eighth place after losing 85 per cent of his wealth — down to $4.9 billion US from $40 billion US, the magazine reports.

Mikhail Prokhorov, the metals and banking billionaire who sold his stake in mining company Norilsk Nickel early last year, moved up from seventh place to top the list with a fortune of $14.1 billion, down from $21.5 billion a year ago, the magazine said.

Roman Abramovich, owner of Britain's Chelsea soccer club and a stake in steelmaker Evraz, held on to second place. But his fortune, estimated last year at $23 billion, has shrunk to $13.9 billion.

Russia's stock markets lost 70 per cent of their value last year, while the national currency has depreciated 35 per cent since the summer.

Aggressive military behaviour against Georgia last year — along with evidence of corruption and worsening corporate governance — drove many investors away, while plunging prices for oil and metals underscored the fragility of Russia's eight-year oil-fuelled boom.

Sold stake in Magna

Deripaska, whose business interests include metals, construction and energy, was forced to cede stakes in Canadian auto parts maker Magna last year. Deripaska built his fortune up on the back of aggressive borrowings, and his Rusal aluminum company is reported to owe approximately $17 billion.

Others who saw their fortunes decline include steel magnates Vladimir Lisin, owner of a majority stake in NLMK, and Alexei Mordashov, owner of Severstal. Lisin, who clings on to third place, has seen his fortune plunge by 65 per cent to $7.7 billion. Mordashov's fortune is down 81 per cent to just $4.1 billion.

Finans, which publishes its rich list two months ahead of the better-known U.S. Forbes list of billionaires, said the list had halved from last year, when they counted 101 billionaires. Last year, Forbes confirmed Deripaska as Russia's richest man.

With files from the Associated Press