Roman Abramovich, seen at the Kremlin in 2016, is one of Russia's most
prominent oligarchs. Getty: Mikhail Svetlov
Roman Abramovich is the owner of
the Eclipse, which, at 162.5 metres in length, is the world's second largest
privately-owned yacht.
The
$500 million boat sits alongside a list of possessions that include a
multi-million-dollar art collection, a Boeing 767 plane, and the English
Premier League football club Chelsea.
Mr
Abramovich, like most Russian oligarchs, found his billions in the carve-up of
the Soviet Union's industrial assets in the early '90s, through his connections
to the Kremlin.
The oligarchs, sitting atop the most unequal economy in the
developed world, can seem almost comical to observers in the West.
But
beyond their glitzy extravagance, a complex social transformation is taking
place, according to sociologist Elisabeth Schimpfossl.
Dr
Schimpfossl, who travelled Russia interviewing oligarchs for a recent book,
says the elite are working to legitimise their monied status.
They
are, she says, moulding into a class akin to the Soviet intelligentsia or
Tsarist aristocracy, using cultural patronage to disguise the often-murky
origins of their wealth.
A happy break-up — for some
The
Russian ultra-rich amassed their wealth during the economic and social turmoil
following the collapse of the Soviet Union, and the introduction of the market
economy.
Many
had ventured into commerce in the 1980s, unaware they were positioning
themselves to benefit unimaginably from one of the fastest redistribution of
assets in history.
Russia's
early post-Soviet elite were from modest social backgrounds who had genuinely
benefited from the Soviet education system.
Mr
Abramovich, for example, grew up in poverty.
Over
the course of the 1990s, a group of bankers and tycoons appeared at the top of
the new rich stratum by seamlessly turning their political clout into wealth.
"The
early Russian oligarchs seemed to have appeared from nowhere and got their
hands on the driving wheel of government," Dr Schimpfossl says.
During the oil price boom that helped fuel President Vladimir
Putin's resurgence in the 2000s, Moscow regularly topped rankings of cities
with the most billionaires.
"A whole new layer joined them getting rich on the back of
the high oil price which lasted until 2008," Dr Schimpfossl says.
"It
was almost as important as the first round of privatisation in the '90s."
Mr
Putin eventually brought economic liberalisation under his personal control and
significantly reined in the oligarchs.
"If
they didn't fall out with Vladimir Putin shortly after he came to power, they
now prop up his kleptocracy with injections of cash whenever he asks them
to," Dr Schimpfossl says.
One of Russia's richest men, Vladimir Potanin, meets with a recently installed President Vladimir Putin in 2002.
And while living abroad is popular for many, Russia's oligarchs
are being forced to keep a foothold at home regardless of their position in the
state apparatus.
A
2013 law forced government officials, their spouses, and children under 18 to
divest themselves of foreign stocks and bank accounts.
From yachts to paintings
Inequality
in Russia is at staggering levels.
In
2013, the country had one billionaire for every $11 billion of household
wealth, a ratio more than 15 times less equitable than the global average.
In a society that is still acclimatising to the idea of private
property, these levels pose some challenges for the oligarchs, who are trying
to legitimise their extraordinary wealth.
"The
oligarchs are usually hated, and the re-shift of wealth in the population is
resented by a population who trace their power directly to corruption during
the '90s," Dr Schimpfossl says.
"When
this first post-Soviet generation passes its wealth on, it will be the single
biggest transfer of assets within the smallest group of people ever to have
occurred."
Russian
oligarchs have now set out to develop more cultured tastes, rediscover their
family histories, and actively engage in philanthropy in order to justify their
position in society.
According to Dr Schimpfossl, wealthy Russians are seeking to situate
themselves in the tradition of the Soviet, and even Tsarist, intelligentsia.
"They may imagine themselves to be living like the Tsarist
aristocrats in a Tolstoy novel, and they're brilliant at constructing
narratives of their past," she says.
"This allows them to say they are not random people that made it to
the top, but they actually have an obligation to be there, even a moral
duty."
Key to this is their involvement in culture and philanthropy,
reinvigorating the Soviet concept of 'kulturnost' which prescribed that social
elites were versed in Russian music and literature.
Igor Tsukanov, for example, is a successful banker who frequently lends
pieces of his world-class post-war Russian art collection to museum
exhibitions.
Igor Tsukanov's collection of postwar Russian
art, including this piece by Tselkov Oleg, is said to be worth well over $100
million.
The Tsukanov Family Foundation, run with his well-connected wife Natasha
Tsukanov, is a London-based charity supporting education, arts and culture in
Russia and the UK.
"My art is not for myself. My dream is to have a museum, for the
best Russian collection outside Russia," he told the Financial Times in
2016.
It is hard to judge whether the ultra-rich of today's Russia will be
able to find the social legitimacy Dr Schimpfossl believes they are seeking.
But as the country plans for a new wave of privatisations, they can
probably count on getting richer.
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