As Russia’s economy edges closer to recession, the country’s wealthiest business tycoons have extracted a record-breaking amount in dividend payouts from their companies in 2024, according to a new report by Forbes Russia.
The report reveals that 50 of Russia’s richest businessmen collectively received 1.769 trillion rubles ($20 billion) in dividends last year — the highest figure on record. This surpasses the 1.4 trillion rubles ($18.2 billion) paid out in each of the previous two years, 2022 and 2023.
At least 11 individuals pocketed over 50 billion rubles ($650 million) each, underlining a sharp rise in personal withdrawals during a period of economic uncertainty.
Top Earners from Dividends
Leading the list is Alexei Mordashov, controlling shareholder of steelmaker Severstal, who along with affiliated entities, received a staggering 201.8 billion rubles ($2.62 billion).
Close behind was Vagit Alekperov, co-owner of energy giant Lukoil, who earned 201 billion rubles ($2.61 billion).
Steel magnate Vladimir Lisin, who returned to the billionaire rankings this year, claimed third place with 152 billion rubles ($1.98 billion) in dividends from NLMK, his steel company.
Leonid Mikhelson, a key shareholder in Novatek and Sibur, received 104 billion rubles ($1.35 billion), while Alisher Usmanov, head of holding group USM, rounded out the top five with 96.2 billion rubles ($1.25 billion).
Economy on the Brink
These payouts come as the Russian economy faces mounting pressure, with the Russian Union of Industrialists and Entrepreneurs (RSPP) warning of clear recessionary signs, particularly in civilian industries hit hard by Western sanctions.
The RSPP, which represents many of the corporations controlled by these billionaires, has raised alarms about unsustainable borrowing costs, driven by the Central Bank’s high key interest rate. Several companies are reportedly approaching technical default.
In contrast to the billionaire withdrawals, more than 50 firms retained their 2024 earnings, prioritizing liquidity and reinvestment. Igor Danilenko, investment director at Renaissance Capital, noted that many of these companies used profits to support operations and long-term stability.
Corporate Strain vs. Personal Gain
The massive dividend extractions by Russia’s wealthiest have raised eyebrows, as they appear to prioritize personal wealth over corporate resilience.
Even Severstal CEO Alexander Shevelev has warned that continued financial strain could lead to complete shutdowns in the steel industry if economic conditions don’t improve.
In a year marked by economic volatility and growing financial stress, Russia’s top business elites have secured unprecedented personal profits — a move critics say could undermine long-term corporate and national stability.
