Russia's richest lose $3.1bn as tax proposal hits shares
MOSCOW – Russia’s super-rich tycoons lost more than $3-billion in one day after a top economic aide to the president proposed raising taxes on the nation’s giant metal and mining companies.
In a letter to Vladimir Putin, adviser Andrey Belousov named 14 companies that could pay more. The resulting investor exodus saw $3.1-billion wiped off the fortunes of their affluent bosses, according to the Bloomberg Billionaires Index.
The companies that would be affected by the plan include MMC Norilsk Nickel PJSC, co-owned by tycoon Vladimir Potanin; Severstal PJSC, where magnate Alexey Mordashov is the largest shareholder; and petrochemical group Sibur Holding PJSC, controlled by Leonid Mikhelson and Gennady Timchenko.
The proposal could raise as much as 500-billion rubles ($7.4-billion) a year to help fund Putin’s spending plans, according to Belousov’s letter, obtained by Bloomberg News. It would also affect chemical and fertilizer producers.
The proposition “looks like a promotion of inefficiency", Vladimir Lisin, the controlling shareholder of Novolipetsk Steel PJSC and head of the Russian Steel Association, said in emailed comments. “The lower the profitability, the less taxes you will have to pay.”
Lisin lost the most among the affected billionaires as Novolipetsk Steel slumped 5.4% in Moscow trading on Friday. His $832-million loss equates to about 4% of his net worth, according to the billionaires index. Viktor Rashnikov, owner of Magnitogorsk Iron & Steel Works PJSC, was the second-biggest loser as his company dropped 5.2%.
The Bloomberg Billionaires Index tracks the wealth of the world’s top 500 richest people.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation