NewsPutin's ex profits from war: Lending firm nets millions as Russia struggles

Putin's ex profits from war: Lending firm nets millions as Russia struggles

Vladimir Putin and Lyudmila Ocheretnaya

Images source: © TG

5 April 2024 19:11

Ludmila Oczeretna, the former spouse of Russian dictator Vladimir Putin, has seen her lending company net a profit of roughly 10 million pounds over two years of war with Ukraine. Independent media analyses say, "Oczeretna's rising income is directly linked to the population's impoverishment."

Financial reports reviewed by two independent Russian outlets, Możem Objasnit' and Metla, reveal that the microfinance organization CarMoney, affiliated with Putin's ex-wife, earned around 6.5 million pounds by the end of 2023. "During the Russian invasion of Ukraine, the company's net profit nearly tripled," reports The Moscow Times.

Russians take payday loans amid huge interest rates

Despite the country's economic downturn, the business associated with the former tsarina flourished, with a significant increase in “payday loans.” Stringent repayment terms bind customers of these microfinance organizations, often unachievable.

CarMoney charges extremely high fees for its microloans, with interest rates reaching 150%, 200%, and even 360% annually, as indicated by court documents reviewed by Możem Objasnit'.

Failing to fulfil their obligations, borrowers frequently faced lawsuits initiated by CarMoney, alongside collections efforts and extra fines for delayed payments. Profits have surged since the onset of the conflict. The company made around 2.4 million pounds in 2021.

In 2022, as Oczeretna’s ex-husband initiated the attack on Ukraine, profits climbed to roughly 3.9 million pounds. In 2023, they soared to approximately 6.5 million pounds, effectively tripling over two years.

"Oczeretna's growing income is closely related to the impoverishing Russian populace. According to financial statement audits, in 2023, there was a significant increase in Russians applying for microloans at CarMoney. In 2022, they amassed debts of about 68 million pounds, and in 2023, this ballooned to 80 million pounds," the analysis states.

Moreover, the former tsarina's secondary business venture is also prospering. Her company, "Meridian," which leases out smartwatches, smartphones, or tablets, recorded profits of about 760,000 pounds, a stark increase from around 38,000 pounds in the previous year.