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Sanctions-hit Russian tycoons may have lost $7.5 billion

Reuters  |  MOSCOW/LONDON 

By Andrey Ostroukh, and Ritvik Carvalho

MOSCOW/(Reuters) - Three Russian tycoons targeted by a new list of U.S. sanctions may have lost a combined $7.5 billion since the list was announced, according to calculations based on price moves in the listed companies the three co-own.

The on April 6 announced sanctions on seven Russian oligarchs and 12 companies they own or control, saying they were profiting from a Russian state engaged in "malign activities" around the world.

The hit Russian markets, denting the rouble and sending shares in four publicly listed companies with links to those sanctioned plummeting both in and elsewhere: Rusal, EN+ Group, group and

Of the seven oligarchs, three have links to publicly listed companies: Oleg Deripaska, Viktor and Suleiman

In U.S. dollar terms, Deripaska may have lost $4.56 billion in four trading days, could have lost $1.32 billion, and appeared to have lost $1.58 billion, Reuters' calculations showed.

calculated the change in capitalisation of the four publicly traded companies they are linked to from just before the sanctions announcement up to the close of trade on Wednesday. It then adjusted the figures based on the stakes the three own in the firms and used the central bank's exchange rate set for April 11.

The numbers do not include possible losses related to companies sanctioned by but which have no market listings.

and En+, controlled by Deripaska, declined to comment. Polyus's PGIL, through which the family controls the company, also declined to comment. Vekselberg's Renova has not replied to a request for comment.

STINGING SANCTIONS

The latest sanctions have increased overall risk-aversion towards Russian assets, while hitting the companies named on the list especially hard.

The main reason for steep drops in the companies' prices is that the sanctions require investors subject to U.S. jurisdiction to ditch the stocks by May 7.

Shares in Hong Kong-listed had plunged 55.6 percent by Wednesday's close in compared with Friday's close in before the U.S. sanctions were announced.

Shares in EN+ Group, Deripaska's company listed in late last year, had fallen 50.8 percent by Wednesday's close compared with late last Thursday on the eve of the sanctions.

Deripaska owns a 76.6 percent stake in EN+, while EN+ owns a 48 percent stake in

Russian billionaire and his partners also own a 26.5 percent stake in Rusal, the world's second-largest

Shares in Russia's group, a manufacturer of light commercial vehicles in which Deripaska owns a 65 percent stake, had shed 9 percent by Wednesday evening from last Thursday's close on the

Shares in Polyus, Russia's largest gold producer, in which the family of sanctioned tycoon Kerimov owns an 82 percent stake, dropped 20.3 percent by Wednesday's close on the compared with Thursday's close a week ago.

itself was not included in the sanctions list.

The $7.5 billion figure is a gross loss not including one-off moves to minimise the sanctions impact such as Vekselberg's reduction of his stake in Swiss pumpmaker Sulzer, of which lifted shares 15 percent on Thursday.

(Reporting by and in MOSCOW and Ritvik in LONDON; Additional reporting by and Gleb Stolyarov; Editing by Hugh Lawson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 18:53 IST
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