South African Billionaire Johann Rupert Loses Close to R19 Billion Since Russia's Invasion of Ukraine
- Russia's invasion of Ukraine has impacted South African billionaire Johann Rupert's wealth drastically
- As a result of the sanctions on Russia, Rupert's business, Compagnie Financiere Richemont, has not been able to produce and distribute luxury brands
- Some South Africans have found Rupert's loss of billions amusing, with some people saying he will be able to bounce back with the help of the government
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JOHANNESBURG - Russia's invasion of Ukraine seven days ago has had multiple ripple effects on the markets to such an extent oil prices soared to an all-time high.
South African billionaire Johann Rupert has also been heavily hit by the economic effects of the war and has reportedly lost approximately R18.8 billion so far.
According to BusinessInsider, Rupert might lose more money as the invasion of Ukraine continues because of the uncertainty of what the future might look like for the luxury brands that fall under Rupert's business, Compagnie Financiere Richemont.
Source: Getty Images
The Richemont brand produces and sells jewellery, watches, leather goods, pens, firearms, clothing and accessories. The brand might have a harder time distributing products as sanctions have been placed on Russia due to the invasion.
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Despite the loss of billions, Rupert still sits comfortably as the number one most prosperous man in South Africa, with a net worth of approximately R160 billion.
Current economic sanctions on Russia
Since the invasion of Ukraine, Western countries responded to Russia by placing various economic sanctions on the country. The first sanction placed was to exclude seven Russian banks, Swift, a global trade messaging system, reports The Guardian.
The second act of sanctions by the United States of America and the United Kingdom is to target the Russian oligarchs and their assets. Countries such as Brussels have already begun to freeze businesses that have ties to Russia.
Thirdly, more than 30 countries have banned Russian aircraft from accessing their airspace, meaning that Russian planes will not be able to fly to countries such as Canada, the United Kingdom and countries in the European Union.
South Africans react to Rupert losing billions
@HLABARINTO said:
"Expect Ramaphosa to issue a statement calling out Russia, phela his blesser is losing. Another hard lockdown is coming if Putin doesn't stop."
@TMgubhela said:
"He is probably pacing up & down his Stellenbosch Mansion lounge, cigar in hand calling Putin all sorts of profanities & describing his mother in choice Afrikaans words which will shame even the devil...what a time to be alive."
@Owaselangenii said:
"So how does that affect the ordinary lives of poor South Africans? In a way, we lost R500 billion last year that we have to repay through taxes, he'll be fine."
@BennetLindelani said:
"Manje thina singenaphi , make it billions he owes black South Africans."
South Africa abstains from United Nations member states' vote to slam Russia over Ukraine invasion
Briefly News previously reported that the United Nations (UN) General Assembly has undertaken to reprimand Russia over its invasion of Ukraine amid a Moscow offensive that had by Wednesday surpassed a week since the first missiles targeting Kyiv were launched.
But where is South Africa in all of this? At the start of the conflict, the Minister of International Relations and Cooperation Naledi Pandor sent out a strongly worded statement in which she called for Russia to withdraw its forces from Ukraine.
Not long after, Pandor backtracked on her sentiments, now toeing the party line in supporting talks, as President Cyril Ramaphosa reportedly expressed his unhappiness with his minister's "misrepresentation of South Africa's position on the conflict", SowetanLIVE reported.
Source: Briefly News
