The Frightening Fall of Russia's Richest Man | Newsweek International | Newsweek.com - 0 views
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it all rested on a bubble: in just two months last fall, aluminum prices plunged from $3,500 a ton to $1,350. Demand also went off a cliff, with more than 10 million tons—a full quarter of RusAl's 2008 production—lying unsold.
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Deripaska was dangerously exposed. In March 2008, at the very top of the metals market, he had bought 25 percent of the metals giant Norilsk Nickel for $4.5 billion from his fellow plutocrat Mikhail Pro-khorov. By late October, foreign creditors were threatening to seize Deripaska's piece of the company. National pride forced Russia's finance minister to order a $4.5 billion credit line so Deripaska could refinance his piece of Norilsk.
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Putin now has two options, says Dorenko: "He can nationalize everything Deripaska used to own—or he can throw Deripaska onto the people's pitchforks, like they did with barons here in the Middle Ages." That's bad news for Deripaska: cash is too tight these days for the government to bail him out. The Kremlin's sole priority is to avoid mass layoffs, possibly by letting foreign investors step in. Medvedev seems sincere in his desire to end the culture of oligarchy, says Kirill Kabanov, head of the National Anti-Corruption Committee, a Moscow-based NGO. But like it or not, the president's only choice may be to have another oligarch take over Deripaska's empire, despite the old system's flaws.