35 percent of Russian wealth belongs to 110 of its citizens

BY News Desk  October 9, 2013 at 5:10 PM EDT

110 Russians own 35 percent of the country’s wealth, creating one of the largest income inequality gaps in the world, according to a new report by a major investment bank.

Credit Suisse, who published the report, wrote that Russian leadership crushed hopes of having a high income economy with social protections after the fall of the Soviet Union:

At the time of transition there were hopes that Russia would convert to a high skilled, high income economy with strong social protection programs inherited from Soviet Union days. This is almost a parody of what happened in practice. Efforts were made at the outset to distribute state assets equitably: most of the housing stock was given away to residents and shares in Gazprom were allocated to Russian citizens. But other choice assets in resource-rich companies went to the chosen few, and subsequent developments in a nation notorious for weak institutions have reinforced the importance of political connections rather than entrepreneurial talent.

Worldwide, there is one billionaire for every $170 billion in household wealth. The report says Russia has one billionaire for every $11 billion in wealth.

H/T Justin Scuiletti