Industrial sectors from steel to mining have been in the vanguard of the sell-off in Russian stocks, while the Russian rouble has dropped in value to new lows.

The sharp fall in asset values around the world has been particularly painful for Russia’s rich. Vladimir Potanin, who became one of the country’s wealthiest men through mining companies, has seen losses of up to $1.3bn in the turmoil as his net worth fell to $13.3bn, while Leonid Mikhelson, the chairman and chief executive of Russian gas giant Novatek, also saw $1.5bn wiped of his holdings, and lowering his net worth to $11.5bn.

In total the 13 richest Russians, who control around $130bn between them, have lost as much as $11.1bn since the start of the year, according to the Bloomberg billionaires index.

Asset rich income poor

In a cruel twist of fate the sudden reversal of fortunes could see the newly enriched of Russia facing the age old problem of being asset rich but income poor, a headache that might more usually be associated with expatriate British pensioners.

Given the uncertain political landscape in Russia and the opaque network of allegiances that surrounds President Vladimir Putin, many oligarchs have chosen to take their money out of the country. The dash to remove cash resulted in soaring asset prices around the globe in everything from artwork and luxury yachts, to prime property.

This creates a situation of vast wealth on paper, but assets such as luxury houses tend to generate little cash unless rented out, and assets such as yachts, private jets, helicopters and football teams can cost millions to support each year.

Roman Abramovich’s Eclipse superyacht (photo Alamy/Rex features)

The problem for the average Russian billionaire is made worse by the currency mismatch of spending in dollars and pounds, while the income in dividends from holdings in Russian companies falls in line with the rouble.

Abramovich billions

The man most usually associated with leaving Russia behind to make London his home is Chelsea owner Roman Abramovich. He built his fortune through selling a stake in Russia steel group Rusal for up to $3bn in 2003, and earned in the region of $10bn from the sale of oil company Sibneft to state owned Gazprom two years later, and on top of that it is estimated he may have earned $5bn in dividends and share sales.

Gazprom logo Moscow Russia  Photo: Alamy

Like everything involving Russian oligarchs, it is difficult to know the exact numbers because very little is publicly declared. However, from the holdings in London-listed entities it is safe to say some of the investments are suffering sharp falls.

Abramovich’s 29.1pc stake in steel and mining giant Evraz, which is held through the Lanebrook investment vehicle located in Cyprus, has fallen in value by 60pc from £670m during the past 12 months. To make matters worse Evraz halted dividend payments in 2013.

He also owns a 32pc stake in Aim-listed Highland Gold, through his Moscow-based investment vehicle, Millhouse. The stake in Highland was increased in 2007 at around 150p per share, and has since fallen more than 60pc to around 55p.

Holdings in smaller energy and technology related companies, such as AFC Energy, Velocys and Propell Technologies, which are held through the Cyprus-based Ervington investments, have brought mixed results.

Bricks and mortar

Mr Abramovich’s property holdings have fared much better. He steadily accumulated flats in London’s exclusive Lowndes Square, before putting them on the market three years ago. There is also a £90m Kensington mansion and £50m New York mansion on Fifth Avenue. Holiday homes in the Caribbean, Aspen, Sardinia and the South of France will all spread risk.

It has not all been successful as property in Russia will suffer from currency devaluation. Mr Abramovitch won a $400m tender to turn the old naval barracks at New Holland island in St Petersburg into an art gallery. The Millhouse vehicle also bought White Gardens, an office center in central Moscow, thought to be worth about $750m.

The Russian rouble has more than halved against the pound during the past two years.

Cash is king

The shrewdest investment decision seems to have been holding high cash balances. It is thought Mr Abramovitch is still sitting on more than $6bn in savings accounts around the world.

Lucian Freud’s painting ‘Benefits Supervisor Sleeping’ sold for $33.6 million USD, a world record price for a work by a living artist, in 2008.  Photo: CHRISTIES/EPA Abramovich paid £17m for Lucian Freud’s Benefits Supervisor Resting in 2008, before selling it for £36m last year

The other asset class that should have held its value would be rare paintings by the likes of Francis Bacon and Lucian Freud, worth well over $200m. The toys, such as the Eclipse mega yacht and fleet of supercars are of more uncertain value in a downturn. The value of Chelsea football club has certainly soared but it has come at a cost in excess of £2bn.

Roman empire: Chelsea owner has spent £2bn on the club during his time in charge at a cost of £154m per trophy  Photo: AFP

The Russian oligarchs are far from being on their uppers, but the brutal downturn in markets and commodities will certainly have clipped their wings, and brought an end to the era of expanding influence.