Can Vladimir Potanin save his empire?
Last April, Vladimir O. Potanin proudly celebrated the fifth anniversary of his Oneximbank, then one of Russia’s most powerful financial institutions. At a press conference, the once-media-shy Russian magnate acclaimed Oneximbank’s $3.7 billion in assets–and declared it on the way to becoming one of the world’s largest banks. All across Moscow, Potanin plastered billboards with the image of the ancient god Zeus proclaiming that Oneximbank could ”withstand the elements.” Hardly. Less than a year later, Potanin’s empire is disintegrating. Oneximbank owes almost $2 billion to foreign and domestic creditors and has virtually no assets. In February, it became the first Russian commercial organization to default on $250 million in Eurobonds. From its peak in October, 1997, the market capitalization of Potanin’s three big industrial holdings–Sidanko Oil, Svyazinvest Telecommunications, and Norilsk Nickel–has dropped from about $31 billion to $3.8 billion. As Oneximbank approaches its six
