Sanctions Fail? Russia Added 56,000 Millionaires Despite Ukraine War While US Lost Most Wealth Last Year

While U.S. and Europe lost trillions of dollars in 2022, Russians were piling on wealth despite sanctions amid the ongoing conflict in Ukraine, a UBS report has revealed.

What Happened: The ongoing Ukraine war and the Western sanctions did not prevent Russia from adding $600 billion to its total wealth last year, Business Insider reported, citing UBS.

The count of Russian millionaires saw a surge, with an addition of around 56,000, reaching a total of 408,000. Ultra-high-net-worth individuals in Russia, those with a net worth of over $50 million, also saw an increase of nearly 4,500.

This rise in wealth was seen despite the Western sanctions imposed on the Kremlin following its invasion of Ukraine in February last year. These sanctions resulted in a contraction of the Russian economy and a slump in Moscow-listed stocks.

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On the other hand, the U.S. lost more wealth than any other nation in 2022, amounting to a loss of $5.9 trillion. The number of American millionaires also saw a decrease of 1 million.

However, the U.S. still accounts for over 50% of the world’s ultra-high-net-worth individuals, as per the report.

Why It Matters: Regarding the ongoing military operation in Ukraine, the Kremlin maintains a firm stance, with spokesperson Dmitry Peskov earlier this month stating that there are currently no grounds for a peace agreement.

Meanwhile, the Ukraine invasion has significantly impacted the global food supply chain. Prices have surged due to export difficulties from both countries. Russia and Ukraine are among the largest wheat producers and other essential ingredients.

According to political scientist Ian Bremmer, Russia’s actions could be a strategy to disrupt the global food supply. Russia backed out of a key food export deal and launched strikes against the Port of Odesa, destroying grain stocks.

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