Russia's richest businessman, Vladimir Potanin, the president of metals giant Norilsk Nickel (NILSY), accused President Vladimir Putin of bringing the country back to 1917 with its invasion of Ukraine.
The oligarch warned the Kremlin against confiscating assets of companies that have opted to flee the nation since the war against the European neighbor. The billionaire also cautioned that the situation could set back the country's economy by more than 100 years.
Russia's Richest Businessman
Potanin, the biggest shareholder of Norilsk Nickel, said that Russia is risking going back to a time of chaos during the 1917 revolution if it continues to shut the door on Western companies and investors. The entrepreneur called on the country's federal government to move forward with extreme caution in its decision to seize assets.
The billionaire wrote a message and posted it on Norilsk Nickel's Telegram account on Thursday where he said that the move's consequences include global distrust of Russia on the part of investors, saying that such a situation would last for many decades.
He added that his view of companies suspending operations in Russia was somewhat emotional in nature and may have been the result of public pressure. Potanin argued that they could potentially come back, saying the government should be willing to take them back in if it happens, as per CNN.
The situation comes as many Western companies, including H&M, McDonald's, and Ikea, have opted to stop operating in Russia amid its continued aggression against Ukraine. Due to this, Russia is struggling against its gravest economic crisis since the 1991 fall of the Soviet Union after sanctions from the West on nearly the entire Russian financial and corporate system.
The plethora of financial consequences have caused the value of the Ruble, Russia's official currency, to drop amid already high inflation rates. On Thursday, Putin, avoiding the word "nationalization," said that foreign companies who chose to leave Russia should be left to those who were willing to "make them work."
Losing Foreign Investors
According to Dailymail, the president also said that the country was still open for business despite the heavy sanctions from the West. Putin also called the remaining foreign investors in the country to get protection from potential sanctions.
The sanctions have caused Russia's 22 richest individuals' net worths to drop by a total of $39 billion in less than 24 hours after the beginning of the war in Ukraine. The primary reason for the loss is Moscow's benchmark MOEX Russia Index crashing and closing 33% lower on the day of the incursion.
The net worth loss was more money that the oligarchs have lost compared to year-to-date up until Feb. 23, 2022. The chairman of Moscow-based oil company Lukoil, Vagit Aleperov, was found to be the biggest loser among the billionaires. The entrepreneur saw his fortune be cut by one-third in less than a day.
On Feb. 24, 2022, Lukoil's share price plummeted by 32%, causing Alekperov's $19.2 billion net worth to drop to only $13 billion. Potanin's wealth was also reduced by $3 billion after his company's share price crashed by 26%, Business Insider reported.
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