Dusseldorf The Russian oligarchs have received particular attention in the course of the West’s sanctions: assets in foreign accounts have been frozen and luxury villas and yachts have been confiscated.
Men like FC Chelsea owner Roman Abramovich, Alfa Bank founder Mikhail Fridman and Tui major investor Alexei Mordashov have supported the Kremlin boss’s system for years and are among Putin’s closest confidants.
They usually own large companies in key industries such as extractive industries. “You have strong political connections, both with the Kremlin and with the regional governors,” explains Russia expert Mathias Brüggmann in the new episode of Handelsblatt Crime.
They have done all of this over the past few decades to amass billions in wealth, often using illegal but state-approved methods. “Evidence of various allegations of corruption is hard to come by. However, there are witnesses from back then who make such statements,” explains London correspondent Carsten Volkery. “However, these allegations were never pursued further,” adds Brüggmann.
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However, the allegations of corruption are huge: A large part of the most important government contracts, such as the construction of the bridge in Crimea, still goes to Putin’s closest confidants, and there are said to be no fair tenders.
News from Londongrad
However, the influence of the Russian oligarchs also extends beyond the Russian borders: for years, London has been a popular location for investing Russian assets due to the low bureaucratic inhibition thresholds.
Volkery says: “Many Russian fortunes that were acquired using dubious methods were legalized by so-called enablers, respectable personalities from the upper class who sit, for example, in the House of Lords or, as in Germany, a former Federal Chancellor.” For the European Union there is still a lot to be done here, Brüggmann sums up.
The EU and the sanctions loopholes of the oligarchs
And: There is a veritable cat-and-mouse game between the oligarchs and the authorities in the course of the sanctions measures. “Loopholes are one of the issues that the authorities now have to deal with,” says Martin Murphy, co-investigative chief in the Handelsblatt crime interview.
As was the case recently with the luxury yacht “Dilbar” by the Russian entrepreneur Alischer Burkhanowitsch Usmanow: This was to be confiscated by the local authorities in Hamburg. But according to Usmanov, the yacht is owned by a company in Malta, which in turn is owned by a foundation. “It’s not really possible to verify that,” Murphy notes, adding: “It’s word against word here at the end.” Legally, it’s difficult to prove, but practically Usmanov is the only one using the ship.
“We have a constitutional state and it is lived according to the principles. It just takes a little longer here. Where in Spain the boats would have been incorporated long ago, things are not going so quickly here. But once the authorities work, it’s effective,” Murphy explains.
More: You can hear the previous episode of Handelsblatt Crime here.
Handelsblatt Crime appears every 14 days and can be heard wherever there are podcasts.