The Oligraph: Putin's Power Players

CRITICAL CONTEXT: THE WILD '90S AND THE BIRTH OF THE RUSSIAN OLIGARCH

• Opportunity Knocks: When the Soviet Union collapsed in 1991, Russia's radical "shock therapy" transition to a free-market economy devastated the country as GDP contracted by 40%, hyperinflation wiped out savings, and weak state institutions created an environment where personal connections trumped formal rules. This institutional vacuum, combined with the simultaneous privatization of state enterprises created the perfect storm for opportunism.

• Loans-for-Shares Scheme: A pivotal moment in the history of Russian oligarchy came in 1995 with the "loans-for-shares" program, orchestrated by one of Russia’s richest men today, Vladimir Potainin and President Boris Yeltsin's government. Officially, it was designed to raise revenue for the cash-strapped state by allowing select banks to provide loans to the government using stakes in Russia's most valuable companies – primarily in oil, gas, and metals – as collateral. When the government predictably defaulted, these assets were transferred to the lenders at rigged auctions for a fraction of their true value.

• Bargain Hunters: Through this mechanism, figures like Vladimir Potanin (metals), Mikhail Khodorkovsky (oil), Boris Berezovsky (media/oil), and Roman Abramovich (oil) acquired assets worth billions for millions. Roman Abramovich partnered with Boris Berezovsky to acquire Sibneft for $100 million in 1995; ten years later, Abramovich sold his 75% stake to Gazprom for $13.1 billion. Overnight, they gained control of Russia’s greatest power levers  – energy resources that fuelled the economy and media outlets that shaped public opinion.

• Oligarchy: Unlike wealthy businessmen in established democracies, these oligarchs wielded direct political influence. They financed political parties, bankrolled Yeltsin's 1996 re-election campaign, and used their media empires to shape electoral outcomes.

The chaos of Russia in the 1990s had allowed a few men to rise from the ashes of the USSR with unprecedented control over Russia’s rich natural resources and new political playing field. Volatility both economically and politically had defined this decade but at its turn, a new player would rewrite the rulebook of this new federation.

PUTIN’S BARGAIN: WEALTH FOR LOYALTY

When Boris Yeltsin resigned on New Year's Eve 1999, Vladimir Putin, who had only been made Prime Minister a few months prior became acting president. Oligarchs like Boris Berezovsky had helped engineer the rise of Vladimir Putin, a relatively unknown former KGB officer. These oligarchs mistakenly believed that they had found the perfect controllable successor. 

• New Rules: When Vladimir Putin assumed the presidency in 2000, he fundamentally restructured Russia's power dynamics through an implicit but iron-clad bargain with the oligarchs: retain your enormous wealth but avoid politics at all costs.  

  

  (Vladimir Putin and Boris Yeltsin in 2000 - Source: Wikimedia Commons)

  • ‘Crime’ and Punishment: In 2003, Putin destroyed Russia's richest man, Mikhail Khodorkovsky, after he funded opposition parties and criticized the Kremlin - arresting him for tax fraud (a common practice) in 2003, dismantling his $40 billion Yukos Oil company, and redistributing its assets to state firms while Khodorkovsky spent ten years in prison, sending an unmistakable message that political challenges to Putin would cost everything.

  • Putin's Praetorians: In place of the independent oligarchs emerged a new elite drawn directly from Putin's personal networks. These "siloviki" (“strongmen”) often came from circles of loyalty rather than business merit: Ex-KGB colleagues and longtime friends such as Putin’s judo partners or St. Petersburg associates from his years in the city as deputy mayor.

    

    (Billionaire oligarch Arkady Rotenberg and Vladimir Putin - Source: Mikhail Svetlov/Getty Images)

  • The Franchise System: This transformation created what analysts call "state capitalism" or more accurately, a franchise system where private wealth is allowed to exist by the state. Oligarchs were essentially reduced to franchise managers – they could operate profitable businesses and accumulate personal wealth but at any moment, the Kremlin could step in.

  • Breaking Ranks: After 2014's Crimea annexation and especially following the 2022 Ukraine invasion, Western sanctions forced the system to evolve - dissenters like billionaire Oleg Tinkov lost his bank overnight for calling the war "insane," forced to sell his 35% stake at 3% of its true value with the Kremlin threatening nationalization if he refused.

  • Rewards for Loyalty: Loyalists like Arkady Rotenberg won multibillion-dollar contracts despite limited qualifications - he received the contract to build the controversial Crimean Bridge despite his construction company's minimal experience in the field. Today's survivors understand the rules: be useful to the state, stay silent on politics, and maintain perfect alignment with Putin's agenda.

  This carefully calibrated system of reward and punishment has produced today's oligarchic class – men who have mastered the art of serving both as business titans and obedient pawns in Putin's grand strategy.

THE PICTURE TODAY: PUTIN’S CHESS PIECES

The Picture Today: Putin’s Chess Pieces 

Russia’s economy now runs on four oligarchic arteries – energy, metals, industry, and financial services. Below are the men who oversee each sector, wielding both boardroom power and Kremlin‑sanctioned muscle to keep Russia’s war‑proof economy running.

Energy Empire: The Core of Putin's System

Igor Sechin - Rosneft

• Putin Ties: Ex-KGB Dresden colleague and St. Petersburg chief of staff who has remained Putin's most trusted enforcer for over 30 years, often described as his "right hand" and "de facto deputy."

• Profile: Igor Sechin is one of Russia's most powerful figures and a key member of Putin's inner circle. As CEO of Russia's state oil giant, he serves as the architect of Russia's energy diplomacy and is widely recognised as the leading “silovik” (“strong-man”) oligarch.

• Key Roles/Holdings: CEO and chairman of Rosneft oil company since 2004. Under Sechin's leadership, Rosneft absorbed the dismantled assets of Yukos, making it the world's largest publicly traded oil company at the time. He has also served as Deputy Prime Minister (2008-2012) and Deputy Head of Presidential Administration (1999-2008).

• Estimated Wealth: $800 million. Although his net worth is meagre in comparison to some of Russia’s wealthiest oligarchs, Sechin’s leverage stretches far beyond his financial means. 

Gennady Timchenko - Novatek and Sibur (formerly Gunvor)

• Putin Ties: Close friends since the early 1990s when Putin gave Timchenko an oil export license in 1991. Part of Putin's "judo circle" from St. Petersburg. 

• Profile: The archetypal "old-friend" oligarch who leveraged 30+ years of personal friendship with Putin into a massive energy trading empire. Started as an engineer but built his fortune through state connections, with Gunvor handling about 30% of Russian oil exports at its peak. 

• Key Roles/Holdings: Co-founder and former co-owner of Gunvor - one of the largest energy commodities trading houses globally (sold stake in 2014 before sanctions hit). Major shareholder in Novatek - Russia's largest independent natural gas producer (5% of the global supply) and Sibur, the country’s largest integrated petrochemicals company. 

• Estimated Wealth: $23 billion. 

Leonid Mikhelson - Novatek and Sibur 

• Putin Ties: Regularly consults with Putin on Novatek’s LNG strategy; hired Putin’s daughter’s partner, Yevgeny Nagorny, as director of a key Novatek subsidiary in 2023. 

• Profile: Mikhelson rose from pipeline engineer to gas magnate by creating Russia’s top independent gas producer through the strategic acquisitions of multiple large natural gas reserves during Russia's privatization period.

• Key Roles/Holdings: Novatek (CEO, Chairman, major shareholder), Sibur: Owns 57.5% of Russia’s largest petrochemicals firm.

• Estimated Wealth: $28 billion.

Metals & Mining: The Backbone of War

Oleg Deripaska - Rusal 

• Putin Ties: Long regarded as “Putin’s favourite industrialist” in Kremlin circles. Despite his close ties, he drew ire from hardliners in 2024 after denouncing the Ukraine war as “mad” and calling for an “immediate, unconditional ceasefire”. 

• Profile: Deripaska built a global aluminum empire, co-founding Rusal, in the 1990s. His occasional dissent on Kremlin policy has, however, come at a cost to his influence.

• Key Roles/Holdings: Founder and former CEO of Rusal (now part of En+ Group) – one of the world’s largest aluminum producers – and a major shareholder in En+ Group. He also held significant stakes in energy firm EuroSibEnergo and other assets.

• Estimated Wealth: Once the ninth richest man in the world (peaking around $28 billion pre-2008 financial crisis), his net worth has plunged to roughly $4 billion.

Sergei Chemezov - Rostec Corporation

• Putin Ties: Chemezov’s friendship with Vladimir Putin dates back to their KGB postings in Dresden, East Germany, where they lived in the same apartment block.

• Key Roles/Holdings: Longtime CEO of Rostec Corporation (appointed by Putin in 2007), incorporating 700+ companies and over 700,000 employees across defense and industrial sectors. 

• Military Industrial Complex: Rostec’s portfolio includes the United Aircraft Corporation (manufacturer of the MiG and Sukhoi fighter jets), Kalashnikov, UralVagonZavod (tanks), Russian Helicopters, and VSMPO-Avisma, the world's largest titanium producer.

• Estimated Wealth: Officially modest income, but investigations reveal vast hidden fortune. Pandora Papers showed a $140 million superyacht and European real estate. Estimates range around $1 billion net worth via proxy owners and secretive trusts.

THE SANCTIONS PARADOX: HOW THE WEST STILL ENRICHES PUTIN’S CIRCLE

The oligarchs profiled above might appear isolated by Western sanctions, but the reality is often starkly different. Despite sweeping penalties following Russia's 2022 invasion, Europe continues to funnel billions into these same oligarch-controlled enterprises thanks to dependencies that the West have failed to wean themselves off.

• Rusal – Europe’s Aluminium Lifeline: Despite increasing restrictions, Rusal's aluminium has continued to make its way into Europe since 2022. In the first half of 2025, 22% of European aluminium was still sourced from Russia. A complete ban has been delayed until February 2026, with the EU granting a 275,000-tonne quota during the 12-month transition period and additional contract wind-down exemptions extending into late 2026.

• Novatek – LNG Dependencies: European countries spent €7.32 billion on Russian LNG in 2024. Germany's state owned energy company SEFE alone is expected to handle at least 50 shipments worth over €2 billion in 2025 under long-term contracts. Europe’s energy dependency will continue to line the pockets of Putin ally Gennady Timchenko who funds Redut, a private military company operating in Ukraine. 

• Rostec’s Titanium Cash Cow: Titanium produced by Rostec’s subsidiary VSMPO-AVISPA continues to be imported into Europe. Airbus publicly opposed any titanium sanctions in 2022, stating they would effectively be "sanctions on themselves," while French President Macron pressured Canada in 2024 to grant sanctions waivers so Airbus and Safran could continue sourcing from Rostec subsidiary VSMPO-Avisma. This money flows back into the state corporation responsible for the majority of Russian military manufacturing. 

Though the EU has imposed thousands of sanctions on Russian individuals and entities, these critical dependencies reveal how Putin's inner circle continues to profit from the very countries supposedly isolating them.

FALL FROM GRACE:THE CASE OF YEVGENY PRIGOZHIN

Yevgeny Prigozhin exemplifies the fragile foundations underpinning Russian oligarchs’ fortunes under Vladimir Putin's regime, where loyalty determines survival and wealth remains contingent on Kremlin favor.

• Rising from the Shadows: From selling hot dogs on street corners after his release from prison in the 1990s to becoming "Putin's chef," Prigozhin rose rapidly through close Kremlin connections.

• Wagner Group: Leveraging his proximity to Putin, Prigozhin founded the Wagner Group, significantly expanding his wealth and influence through military operations in Africa, Syria, and Ukraine.

• Mutiny and Ambition: In June 2023, Prigozhin challenged Putin’s authority by marching Wagner forces towards Moscow, protesting military mismanagement in Ukraine. He halted 200 km from Moscow, briefly avoiding charges.

• Flying too Close to the Sun: Prigozhin died in a suspicious plane crash two months later. Despite Kremlin denials, Western intelligence concluded the crash likely resulted from sabotage.

Prigozhin’s demise reinforces the Kremlin’s clear message: oligarchs retain wealth only through unwavering political loyalty, with disloyalty leading swiftly to ruin.