Some of Russia’s biggest metal tycoons have reportedly seen a loss of $3.1 billion in share value after a proposal by President Vladimir Putin’s top economic adviser to raise taxes on mining companies.
Andrei Belousov, Putin’s closest economic aide, proposed a tax increase on 14 metal and chemical producers that would raise up to 500 billion rubles ($7.5 billion) to fund a promised increase in social spending. The Kremlin said the tax plan was under consideration by Putin.
Companies owned by 11 tycoons saw losses ranging from a drop of $37 million for Andrei Guryev’s PhosAgro fertilizer producer to a plummet of $832 million in shares for Vladimir Lisin’s Novolipetsk Steel.
Gerard Depardieu Amasses New Tax Debts in Russia, Media Reports
Lisin, one of Russia’s richest men and the most vocal critic of the tax hike proposal, lost an estimated 4 percent of his fortune, according to calculations from the RBC news website.
The announcement also hit Viktor Rashnikov’s Magnitogorsk Iron & Steel Works, which lost $446 million in shares, along with a fall of $444 million for Alexei Mordashov’s Severstal. Roman Abramovich’s Evraz steel and mining giant saw a slump of $381 million.