As Western nations prepare to ratchet up sanctions and other financial penalties designed to pressure the Russian oligarchs who have benefited from Vladimir Putin’s corrupt regime, many are turning on their benefactor and criticizing the invasion he ordered of Ukraine.
The Wall Street Journal reports:
In recent days a parade of Russian businessmen burnished their antiwar stances as governments tightened a noose around Kremlin-connected businesses and property. Oligarch Roman Abramovich, who hasn’t been sanctioned, said that he was helping Ukraine negotiate peace with Russia. Oleg Tinkov, the billionaire founder of Russia’s Tinkoff Bank, a unit of TCS Group Holding PLC, highlighted the work his foundation does to help children and his desire for no war. Mr. Tinkov also hasn’t been sanctioned. Oleg Deripaska, a raw-materials magnate who was previously sanctioned in the U.S., wrote on social media Sunday that peace “is very important.”
“Please don’t draw an equal sign between Russians, the Russian state and the Government of [the] Russian Federation. There are many Russians strongly opposing the current military action, and I am one of them,” said Andrey Yakunin, the founder of private-equity group VIY Management and son of Vladimir Yakunin, former president of OAO Russian Railways. The elder Mr. Yakunin was sanctioned in the U.S. a few years ago.
But the anti-war rhetoric may be too little too late. During Tuesday’s State of the Union address, President Joe Biden said the U.S. and Europe would target elite Russian and “seize their yachts, their luxury apartments, their private jets.”
“Tonight, I say to the Russian oligarchs and the corrupt leaders who built billions off this violent regime — no more,” Biden said. “We’re coming for your ill-begotten gains.”
On Wednesday, The Washington Post previewed a tranche of sanctions currently being prepared by the U.S. government:
The White House is weighing imposing new sanctions on Alisher Usmanov, the owner of an iron and steel conglomerate who Forbes has estimated to be worth more than $15 billion, the people said. The people spoke on the condition of anonymity to reflect internal deliberations not yet made public. Usmanov was placed under sanctions by E.U. officials Monday. The U.S. sanctions would also probably include travel restrictions and the seizure of overseas assets that could run into the billions.
The U.S. is also expected to announce new sanctions on Belarus and Russian defense firms as soon as Wednesday, according to two other people familiar with the matter, who spoke on the condition of anonymity to reflect matters not yet made public. Belarus has prepared to join the Russian invasion, according to U.S. intelligence officials.
The Post adds:
America’s sanctions are expected to be more complicated than those imposed by the E.U., targeting not just the individuals but also their family members and companies they own, according to a White House official.
The Department of Justice created a task-force, dubbed “KleptoCapture,” to help issue the sanctions and initiate related legal proceedings.
Deputy Attorney General Lisa Monaco, the head of “KleptoCapture,” said in a statement on Wednesday, “Oligarchs be warned: we will use every tool to freeze and seize your criminal proceeds.”
CNBC reports:
The new task force, comprised of interagency law enforcement officers from the FBI, Marshals Service, IRS, Postal Inspection, Homeland Security Investigations and Secret Service, will target “the crimes of Russian officials, government-aligned elites, and those who aid or conceal their unlawful conduct.”
The task force will use various tools at its disposable, including cryptocurrency tracing, to track down and prosecute those who violate the sanctions and seize assets.
CNBC adds:
Superyachts owned by Russian billionaires have been on the move ever since the U.S. and their allies started previewing possible sanctions against these types of properties.
CNBC previously reported that at least four massive yachts owned by Russian business leaders have been moving toward Montenegro and the Maldives. The Maldives doesn’t have an extradition treaty with the U.S., according to Nomad Capitalist.
Meanwhile, The Associated Press reports that Putin crony Roman Abramovich, whose business dealing with state-owned companies in Russia fueled a $13 billion net worth, is selling Chelsea Football Club, one of the most storied franchises in all of sports.
The AP explains:
The speed of Abramovich’s pending exit from Chelsea is striking as he was trying to instigate a plan this past weekend to relinquish some control in order to keep the club under his ownership.
But as Russia’s war on Ukraine entered a seventh day, pressure was growing on the British government to include him among the wealthy Russians to be targeted in sanctions.
“In the current situation, I have therefore taken the decision to sell the club, as I believe this is in the best interest of the club, the fans, the employees, as well as the club’s sponsors and partners,” Abramovich said in a statement.
“I have instructed my team to set up a charitable foundation where all net proceeds from the sale will be donated,” Abramovich added. “The foundation will be for the benefit of all victims of the war in Ukraine.”
ESPN reports that Abramovich is also trying to unload other Western assets :
Swiss business tycoon Hansjoerg Wyss has claimed Abramovich contacted interested parties on Tuesday to sound out potential interest [in Chelsea FC].
“Abramovich is currently trying to sell all his villas in England. He also wants to get rid of Chelsea quickly now. I, along with three other people, received an offer on Tuesday to buy Chelsea from Abramovich,” Swiss newspaper Blick quoted Wyss as saying in an interview published Wednesday.