Analysis

Konstantin Strukov or the announced fall of a Russian gold oligarch


How did Russian billionaire Konstantin Strukov end up in the Kremlin's crosshairs? Despite being considered loyal to Vladimir Putin, the boss of Uzhuralzoloto, a Russian company specialising in gold mining, is on the verge of being dispossessed of his empire. The desire to nationalise his group illustrates the hardening of the Kremlin, which no longer demands only "loyalty but submission".


Published : 08/07/2025 - 
FRANCE24
By:  Sébastian SEIBT

Konstantin Strukov on board his private plane, which was immobilized shortly before takeoff by the airport's security services. 

© Telegram screenshot/ images taken by Russian law enforcement

From king of Russian gold to Vladimir Putin's target in the blink of an eye or almost. Konstantin Strukov is losing his empire of the precious metal to the Kremlin, and risks serious trouble with the law.

The billionaire - Russia's 78th richest person - was reportedly prevented from leaving the country by the police, while he was already on board his private jet leaving for Turkey on Saturday, July 5. At least that's what the business daily Kommersant suggests, which publishes a photo of him on board his plane facing airport security agents.

The gold tycoon, whose passport was cancelled, disputed this version of the story, without explaining where the incriminating photo came from.
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"Bling-bling" lifestyle abroad

However, no one disputes that Konstantin Strukov will not remain at the head of Russia's third largest gold producer for much longer, behind the private company Polyus Gold and the state-owned giant Polymetal International.

Russia's prosecutor general has asked the Russian judiciary to seize all of Konstantin Strukov's assets in order to transfer them to the state, the Russian news agency Tass said on Thursday 3 July. The gold tycoon is accused of corruption and the authorities are also demanding that the Kremlin obtain control of other companies that Konstantin Strukov has registered in several European countries in the name of his daughter, who lives in Switzerland.

In the indictment, the Russian authorities denounce the way in which the billionaire allegedly took part of his fortune out of Russian borders to protect it and to finance a very bling-bling lifestyle, made up of the purchase of yachts, cars and luxury homes.

This behaviour is the opposite of what Russian President Vladimir Putin has been demanding of wealthy Russian businessmen since the start of the war of invasion of Ukraine in February 2022. "A responsible entrepreneur is a real Russian citizen who does not open companies abroad to invest part of his assets and thus puts himself at the mercy of foreign powers," the Russian president said in March 2023 at the Russian Entrepreneurs' Forum.

The loyal billionaire portrayed as a bête noire of power

The indictment against Konstantin Strukov, whose fortune is estimated at $1.9 billion by Forbes, is particularly hostile.

The authorities have brought out the very heavy artillery. In addition to the corruption charges, the FSB - the domestic intelligence service - searched the Moscow headquarters of Uzhuralzoloto as part of investigations, one into violations of environmental standards at several of the group's gold mines and the other following several deaths at the company's sites.

A real downfall for Konstantin Strukov who appeared, until recently, as the example of the great Russian boss with irreproachable loyalty. The business leader was also a member of the presidential party and elected to the parliament of the mountainous region of Chelyabinsk, on the border with Siberia. He was also decorated with the Medal of Merit in 2021. Konstantin Strukov has also led the gold giant Uzhuralzoloto since its privatisation in 1997 without offending the sensitivities of the government, unlike many oligarchs, businessmen who became rich after the fall of the Soviet regime.

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Konstantin Strukov therefore had all the appearances of a rich and good little soldier of the Putin cause. His downfall implies that "appearances of loyalty no longer seem to be enough," says Stephen Hall, a Russia specialist at the University of Bath.

For this specialist, the Kremlin is sending a signal to all billionaires who think they can have the best of both worlds: proclaiming their support for the war in Ukraine while sending their children to study at the best Western universities. "Vladimir Putin had to decide that the 78th richest man in the country could be sacrificed to make it clear that he wants not loyalty but submission," says Stephen Hall.

The bonus effect is that the money that the Kremlin should recover at the end of this golden nationalisation should allow Vladimir Putin "to cajole a little more the billionaires who are more important in his eyes", continues Stephen Hall.
Strategic assets and scapegoats

This state takeover also takes place in a particular context. The Attorney General's Office has assured that nationalizations since 2022 have brought in $30 billion for the state.

Initially, it was mainly a question of getting their hands on the Russian branches of foreign groups that could no longer or did not want to do business in Russia because of sanctions and the war. But the example of Uzhuralzoloto shows that Russian groups are not immune either. "There is a resumption of control of so-called strategic or critical sectors, such as gold, and other raw materials, particularly agriculture," said Maximilian Hess, founder of the consulting firm Ementena Advisory and author of "Economic War: Ukraine and the Global Conflict between Russia and the West".

In February, Moscow decided to nationalise Rodnye Polya, Russia's largest grain exporter. Vadim Moshkovich, the boss of Rosagro, Russia's largest agri-food group, was accused of fraud and imprisoned in March. "These are assets that the government does not want to see fall into the wrong hands," confirms Stephen Hall.

And especially not at the moment. The race for nationalisations, which, in the opinion of the prosecutor's office, has been accelerating since the beginning of 2025, should allow Moscow to get its hands on assets that are profitable and worth a lot "while the Russian economy is showing serious signs of slowing down and could even enter a recession," says Maximilian Hess.

Konstantin Strukov is not the only one to suffer Moscow's ire either. Viktor Strigunov, who was the deputy director of the National Guard until 2023, was arrested on charges of corruption and abuse of power in early July. Other members of the National Guard are also being investigated for similar incidents, the Moscow Times, an independent Russian-language news site, added.

"This is a sign that Vladimir Putin is pulling out the old tricks he has already used in the past, which consists of increasing arrests to give the impression that the country's problems come from corrupt individuals and that he is the only one who can fix the situation," said Maximilian Hess. For this specialist, the fall of Konstantin Strukov and the multiplication of nationalisations of strategic companies aim to further strengthen Vladimir Putin's almost exclusive control over the Russian economic and political apparatus.