A House on Fire: Russia’s Oligarchy Today
In March 2022, Italy seized Russian oligarch Andrey Melnichenko’s $578 million superyacht, part of sweeping sanctions targeting Russia’s elite. These oligarchs, deeply connected to the Kremlin, have long profited from state patronage. Under Putin, they face a stark choice: align with the regime or face ruin, as seen in the case of Mikhail Khodorkovsky. Despite sanctions, many still protect their wealth through offshore systems, while Western companies’ exit from Russia has worsened the country’s economic decline. With inflation, stagnation, and rising military spending, Russia’s economy is increasingly hollowed out, and its oligarchs remain key to Putin’s war effort.