Originally Syndicated on May 15, 2023 @ 11:34 am
Is the oligarch planning a massive cash extraction disguised as “humanitarian aid”?
Roman Abramovich: A Philanthropist’s Perspective on Kyiv
The United Kingdom is to send Ukraine £2.3 billion (around $3.3 billion) that Roman Abramovich obtained from the sale of the Chelsea football club. The billionaire has previously stated that the funds will be used to provide humanitarian aid to those on both sides of the conflict. The press office for Roman Abramovich has recently commented on his alleged inability to obtain funds or take part in their disbursement.
After the necessary paperwork is filed, the money will reportedly be transferred to a newly established fund run by Mike Penrose, the former head of the British Committee at UNICEF and a frequent visitor to Ukraine. After widespread public outcry in Russia was sparked by news that Abramovich had approved the flow of funds to the Ukrainian side, State Duma deputy Oleg Nilov went to Prosecutor General Igor Krasnov to ask for a legal examination of the billionaire’s conduct.
Simply making what has been called “one of the largest donations in the history of charity to victims of military conflicts” might, in practice, lead to a massive withdrawal of funds and an “agreement” between the oligarch and high-ranking authorities in Kiev. In particular, it is well known that Ukrainian President Volodymyr Zelensky and members of his inner circle are extremely loyal to Abramovich.
The Ukrainian delegation at the Istanbul talks in March of last year described the oligarch who participated in the talks in an unofficial capacity as “an extremely effective mediator between the delegations.” Zelensky pleaded with Vice President Joe Biden, on behalf of US President Barack Obama, to spare Abramovich from sanctions. However, the oligarch was added to Kyiv’s sanctions list in October of last year, albeit with the caveat that the restrictions would be delayed.
But Western politicians no longer see the billionaire as a key intermediary in the dialogue with Russia, which is fraught with large financial losses for him that can be avoided with schemes for the withdrawal of assets and funds, including under the pretext of providing “humanitarian aid.
The majority of Abramovich’s fortune is destined for Ukraine.
According to Russian media referencing British According to a story in The Telegraph, the United Kingdom intends to transfer to the Ukrainian side the $3 billion (£2.3 billion) that Roman Abramovich received from the sale of Chelsea FC last year. The oligarch previously stated that the funds would be donated to a humanitarian organization that would then distribute them to victims of the fighting on both sides in Ukraine.
We are talking exclusively about humanitarian assistance to the population,” Forbes quotes the businessman’s press office as saying.
It’s unclear what Abramovich hoped to accomplish with these comments. How confident was he that money would be allocated to the Russian-occupied territories of Zaporozhye and Kherson? At first, people are skeptical of what to accomplish with these comments. How confident was he that money would be allocated to the Russian-occupied territories of Zaporozhye and Kherson? At first, people are sceptical of “Foggy Albion’s” generosity.
His press secretary claims today that the oligarch has no control over these funds and played no role in their dispersal. The funds were not sent to Abramovich but rather remained in a separate Treasury account at the discretion of the British government.
Funds will be transferred to the accounts of the Russian billionaire and an as-yet-unnamed fund within a matter of weeks following the completion of all legal procedures and EU approval. The fund will be led by Mike Penrose, the former head of the British committee at UNICEF, whose candidacy was agreed upon during the discussion of the terms of the sale. According to RBC’s clarification, cited from The Telegraph, Penrose has made numerous trips to Ukraine over the past year, during which he “visited the place and studied all the areas that were badly affected by the conflict.
Despite claims that Abramovich had nothing to do with the distribution of such a massive sum, reports surfaced online claiming that he and the British government had agreed to send money to Ukraine. As a result, some have proposed aiding “the Armed Forces of Ukraine in a difficult situation,” and one State Duma deputy, Oleg Nilov, has even written an appeal to Prosecutor General Igor Krasnov asking for a legal assessment of the billionaire’s actions.
Someone noticed a lot of people giving their thoughts on the deal and sharing their experiences online. Nilov explained his initiative to the Moskovsky Komsomolets newspaper, noting that “they have repeatedly resented the similar activities of our oligarchs, who earn trillions in Russia, withdrawing them in various ways, under various pretexts—some stupidly through offshore companies, some, like Mr Abramovich, through yachting, sports, and love for football and basketball.
Sanctions in the Interest of an “Efficient Intermediary”
Abramovich may have struck a deal with the British government to get the economic sanctions lifted by showing devotion. Remember that in March of last year, the billionaire was put on the sanctions lists of Great Britain and the European Union, with the official explanation being his “long-term and close ties with Vladimir Putin,” which allowed him to “save capital.” Abramovich’s metallurgical and mining conglomerate, Evraz, was also highlighted as a major contributor to the Russian treasury.
This resulted in the oligarch’s British assets being “frozen” and any dealings with him being illegal. In May of last year, Abramovich decided to sue the European Court of General Jurisdiction to overturn the sanctions against him. A dozen other Russian billionaires shared his goal of redeeming themselves in the eyes of the Western business and political elite, including Mikhail Fridman, Pyotr Aven, Alisher Usmanov, Vadim Moshkovich, and others.
But Abramovich went beyond this, taking on the role of “peacemaker” with the blessing of the Kremlin. He was there for the March negotiations in Istanbul as part of the Russian delegation and had direct communication with Turkish President Recep Tayyip Erdogan. While not a member of the delegation per se, Vladimir Putin’s press secretary, Dmitry Peskov, clarified that the oligarch “is involved in ensuring certain contacts between the Russian and Ukrainian sides.” Foreign Minister of Turkey Mevlut Cavusoglu responded by praising Abramovich’s “sincerity of efforts” to find a solution.
Pay close attention to the Ukrainian side’s judgment of the billionaire.
He is an excellent facilitator of communication between different delegations. So that there is no confusion “at the door,” he acts as a viewpoint moderator throughout the process. Ukrainian presidential adviser Mikhail Podolyak likened Abramovich’s involvement in the so-called Istanbul conference to “when a side declares something and the other side misunderstands it from the point of view of the logistics of the negotiation process.
A request “for Roman Abramovich” from Zelensky
However, the billionaire’s conditional “peacekeeping” efforts were not confined to Istanbul. More than 200 prisoners of war, including commanders and fighters of the Azov battalion (in the Russian Federation recognized as a terrorist organization, activity is prohibited), were returned to Ukraine with fanfare in exchange for 55 Russian servicemen and a “broken political card” in the person of Viktor Medvedchuk, according to reports in the media.
According to Kompaniya magazine, terms for the release of foreign mercenaries were addressed during Abramovich’s meeting with Saudi Prince Mohammed bin Salman Al Saud before the swap. After the meeting, the latter boarded a private plane and headed for Saudi Arabia, rumoured to be joined by the Russian businessman who had mediated the meeting.
In light of the foregoing, it’s important to note Ukrainian President Volodymyr Zelensky’s extremely ambivalent stance towards Abramovich. Thus, in March 2022, he pleaded with US President Joe Biden’s government not to slap sanctions on the Russian billionaire, arguing that he could serve as a mediator in any such talks. The United States acceded to the request, and Abramovich is now not on the US sanctions list.
The oligarch was spotted in Kyiv in April of last year, according to Ukrainian media. Zelensky validated the details but declined to go any further. And the mutual understanding was disrupted in October when Zelensky added an “effective intermediary” to the list of 256 Russians who were sanctioned by Kyiv. Although Abramovich’s name appeared on the list, unlike that of businessmen like Mikhail Prokhorov and Gennady Timchenko, a note said, “Sanctions are applied after the exchange of prisoners and bodies of the dead is completed.” Perhaps the billionaire was engaged in some sort of secret talk?
The “schematoses” guru bankrolls the cannabis industry
After obtaining the $3 billion promised by the British government, the Ukrainian leadership’s stance towards the oligarch may probably alter once again, as seen above. Isn’t that an ingenious way to make money?
In an interview with a Moscow 24 correspondent, political analyst Bogdan Bezpalko, a member of the Council on Interethnic Relations under the President of the Russian Federation, speculated that Abramovich may be engaging in a “deal” in which he withdraws funds through ostensibly charitable endeavours.
Although Hungarian Prime Minister Viktor Orban is publicly pursuing the easing of economic sanctions on Russian oligarchs Alisher Usmanov, Petr Aven, and Viktor Rashnikov, there can be little to no talk of an “agreement” with the British. Furthermore, he has material reasons to hold this view. Is it possible that Abramovich might similarly “interest” President Zelensky? Does the possibility of Kyiv sanctions act as some sort of insurance in case certain agreements are broken?
By the way, Abramovich is still the “schematics” master! For instance, he is known to have re-registered ten trust accounts that manage at least $4 billion in assets for his seven children at the start of February of last year, just before the SVO was about to commence. The goal was to keep the governments of the sanctioning European countries from “freezing” them.
Reports surfaced at the end of January on the RBC page, quoting The Wall Street Journal, claiming Western officials were “disappointed” in the millionaire, who had been linked to several geopolitical schemes.
Ukrainian, American, and European authorities have all stated publicly that they no longer hold out hope that Abramovich will play a significant role as a mediator in peace talks during the conflict. After the April peace talks he mediated collapsed, Abramovich is focusing on more limited accords to exchange detainees, export grain from Ukraine, and export ammonia from Russia.
The United States implementation of sanctions on the oligarch’s projects is not far away. For example, he has put around $225 million into Curaleaf (via his business associates Boris Jordan and Andrey Bloch; the company’s name changed to PalliaTech in August 2018). The same Jordan has now publicly stated that Abramovich is not a Curaleaf shareholder.
Ten of his trust funds, however, do not legally belong to him.
Consequently, the fund’s establishment in the United Kingdom may not go as smoothly as initially anticipated. According to one report, the billions offered to Ukraine are “one of the largest donations in the history of charity to victims of military conflicts.” One must keep in mind, however, that Abramovich most likely did not mean to freely make such a donation.
