Originally Syndicated on August 18, 2023 @ 11:55 am
When Russia’s invasion of Ukraine took place on February 24, the immediate focus turned to prominent Russians and individuals who were likely candidates for economic sanctions in the global reaction to this unwarranted conflict. This group included several Russian Jewish oligarchs known for their profitable engagements with enterprises linked to the Russian government.
Table of Contents
Here’s an overview of Russian Jewish oligarchs and their actions and outcomes since February. Out of the 18 Russian Jewish oligarchs initially pinpointed as probable targets for sanctions by the Jewish Telegraphic Agency in March, 15 of them are currently facing these sanctions. Collectively, their net worth surpasses $120 billion.
They are among thousands of Russians who have been sanctioned since the war’s onset, including more than 1,200 by the United States.
Numerous Russian Jewish Oligarchs currently grappling with travel restrictions and asset freezes have established ties with European and American Jewish entities, frequently through their charitable contributions. These sanctions have begun to have effects in the realm of Jewish philanthropy.
For instance, all three initiators of the Genesis Philanthropy Group relinquished their board positions in response to sanctions, and a former member of Israel’s parliament, the Knesset, advocated for a boycott of the annual Genesis Prize event held in Jerusalem.
List of Russian Jewish oligarchs who have Israeli citizenship too
| Name | Net worth (USD) | Source of wealth |
| Alisher Usmanov | 16.8 billion | Metals, telecom, and media |
| Viktor Vekselberg | 15.3 billion | Metals, mining, and energy |
| Leonid Mikhelson | 23.5 billion | Gas and oil. |
| Gennady Timchenko | 20.2 billion | Oil and gas |
| Andrey Melnichenko | 18.4 billion | Fertilizers and coal |
| Pyotr Aven | 4.7 billion | Banking and investment |
| Mikhail Prokhorov | 9.7 billion | Mining, metals, and media |
| Vladimir Potanin | 21.7 billion | Mining, metals, and banking |
| Suleyman Kerimov | 14.3 billion | Metals, mining, and real estate |
| Mikhail Fridman | 15.2 billion | Banking, investments |
| German Khan | 8.2 billion | Oil, banking, telecom |
| Leonid Nevzlin | 1.3 billion | Oil and Gas |
| Arkady Rotenberg | 8.9 billion | Construction, infrastructure |
| Yuri Kovalchuk | 9.9 billion | Banking, media |
| Roman Abramovich | 12.9 billion | Oil, steel, and investments |
Why did Israel become A Safe Haven For Russian Billionaires?
Israel has become a prevalent choice for Russian-born billionaires seeking second passports, particularly as European nations tighten their scrutiny on “golden passport” initiatives. This trend is set to surge further among the ultra-wealthy aiming for swift exit strategies due to recent crackdowns on such programs in Europe.
Russian Jewish oligarchs are increasingly pursuing Israeli citizenship, drawn by a combination of financial advantages, political stability, cultural affinities, and investment prospects. However, this migration has not been without controversy.
Some of these Russian Jewish oligarchs have faced scrutiny for their close ties to the Kremlin and alleged involvement in corrupt practices. In recent years, a notable number of Russian Jewish oligarchs, including figures like Roman Abramovich, Mikhail Fridman, Petr Aven, and Viktor Vekselberg, are believed to have embraced Israeli citizenship or residency.
Remarkably, some of these individuals have found themselves internationally sanctioned due to their suspected associations with Russian President Vladimir Putin. Despite this, Israel has opted not to participate in the Western sanctions campaign against Russia, partly due to concerns about provoking Putin’s displeasure.
Why do so many Russian Jewish oligarchs have dual nationalities with Israel?
In recent years, a significant number of Russian Jewish oligarchs have acquired Israeli citizenship, primarily due to their Jewish heritage. This trend can be attributed to several factors:
1. Passport and Travel Benefits: Israeli citizenship grants access to a passport that allows visa-free travel to various countries, including the European Union.
2. Financial Advantages: Obtaining Israeli citizenship offers substantial financial perks for the affluent. New immigrants to Israel enjoy a decade-long exemption from taxes on foreign income and assets.
3. Political Stability: Israel is renowned for its stability, robust economy, and well-established legal framework.
4. Cultural Bonds: Israel has witnessed a wave of Russian Jewish immigration since the 1960s, fostering strong cultural connections between the two nations.
5. Sanctions Avoidance: Israel has chosen not to participate in the Western sanctions directed at Russia, as there are concerns about triggering the displeasure of Russian President Vladimir Putin.
6. Investment Opportunities: Russian oligarchs have taken a keen interest in investing in Israeli technology startups, recognizing them as a means to diversify their investment portfolios.
However, some Russian oligarchs who have secured Israeli citizenship, like Roman Abramovich, have faced censure due to their links to the Kremlin and alleged engagement in corrupt practices.
In response to this phenomenon, the United States has cautioned Israel against bypassing international sanctions imposed on Russian Jewish oligarchs, some of whom hold dual Russian-Israeli citizenship. As Western countries intensify sanctions on business figures connected to Russian President Vladimir Putin, Israel grapples with the challenge of addressing numerous Jewish Russian oligarchs.
How does having dual nationality affect the oligarchs’ businesses in Russia?
Dual nationality with Israel can have significant implications for Russian oligarchs and their business endeavours, influencing various aspects of their operations:
1. Legal Complexities: The acquisition of dual citizenship can introduce legal complexities, complicating efforts to seize their assets. This can pose challenges when attempting to enforce legal actions or sanctions against them, potentially shielding their resources from such actions.
2. Sanctions Evasion: Russian oligarchs holding dual Russian-Israeli citizenship might exploit this status to evade international sanctions aimed at them. Utilizing their Israeli citizenship, they could sustain their business activities and retain access to global markets despite the sanctions.
3. Political Dynamics: The possession of dual nationality may carry political implications within Russia. It could be construed as an indicator of disloyalty or a strategy to distance themselves from the Russian government. Such perceptions might strain their relationships with the Russian authorities.
4. Diversifying Business: Israeli citizenship can open doors for Russian oligarchs to diversify their business ventures. This could involve investments in sectors like Israeli technology startups or other segments of the Israeli economy, enabling them to extend their business interests beyond Russia.
5. Circumventing Legal Constraints: Dual citizenship offers Russian oligarchs greater flexibility when navigating legal restrictions and regulations. By capitalizing on the distinct legal frameworks and business environments in both countries, they can optimize their operations and strategies.
6. International Mobility: Having Israeli citizenship provides Russian oligarchs with the advantage of visa-free travel to numerous countries, including the European Union. This enhanced mobility can facilitate their international business activities, enabling them to operate globally with greater ease.
Unsanctioned Russian oligarch Prokhorov flees to Israel and gets citizenship
Russian Jewish oligarch Mikhail Prokhorov has acquired Israeli citizenship after arriving in the country from Switzerland on a private jet. Eligible under the Law of Return, Prokhorov underwent assessments by Nativ, an administrative unit responsible for evaluating eligibility for Jewish immigration. With an estimated net worth of $11.5 billion, Prokhorov’s case highlights the intricate relationship between wealth, citizenship, and global mobility.
Following a criminal record check by the Population and Immigration Authority, which turned out to be clean, Prokhorov was given a blue passport.
As of April 4, Prokhorov’s name is not mentioned on the lists of sanctioned oligarchs compiled by the United States or any other Western nation.
Prokhorov’s Varied Background and Political Aspirations
Mikhail Prokhorov, a former owner of the NBA’s Brooklyn Nets, amassed his wealth primarily through his mining and smelting venture, Norilsk Nickel. Notably, shares of Norilsk Nickel were previously held by another influential figure in the Russian-Israeli oligarchic sphere, Roman Abramovich.
Beyond his business endeavours, Prokhorov ventured into the realm of politics. In the 2012 Russian presidential elections, he took on President Vladimir Putin as an independent candidate. This foray into politics marked a significant departure from his business pursuits and underscored his willingness to engage in the political landscape at a high level.
Prokhorov’s Presidential Bid and Kremlin Speculations
In his bid for the Russian presidency, a campaign he deemed the “most important decision of his life,” Mikhail Prokhorov adopted a distinctive approach. Unlike attacking Vladimir Putin, he concentrated on outlining his prospective presidential actions, as reported by Bloomberg. His strategy emphasized positive proposals rather than criticisms.
However, Prokhorov’s connections to the Kremlin generated scepticism. Certain Russian opposition figures speculated that his campaign might have been orchestrated by Putin himself. These voices suggested that the oligarch’s candidacy served as a tactic to divert attention from ongoing protests and to offer liberal Russian voters an alternative candidate. This perception added layers of complexity to Prokhorov’s political endeavours.
Russian Jewish Oligarchs
Jewish institutions have accepted hundreds of millions of dollars from Putin confidante Roman Abramovich. Will Russia’s invasion of Ukraine force a reckoning?
Russian Invasion Spurs Oligarch Asset Protection Measures
Amid the swift onset of Russia’s invasion of Ukraine, notable Russian oligarch Roman Abramovich, a close associate of President Vladimir Putin, took immediate action to safeguard his substantial wealth. He departed Monaco for Moscow aboard his private Boeing jet to be by Putin’s side during the crisis. Recognizing the threat of Western sanctions targeting Putin and his inner circle, Abramovich initiated strategic moves to protect his assets from potential seizure. Within the first 48 hours, he made two significant announcements that underscored his intentions.
Chelsea Football Club Ownership Transfer to Charitable Foundation Trustees
Abramovich, renowned for his ownership of the London-based Chelsea Football Club since 2003, announced the transfer of control to the trustees of the club’s associated charitable foundation. This step indicated his commitment to altering ownership dynamics while demonstrating philanthropic intentions. This move was likely driven by a combination of factors, including asset protection and the desire to preempt potential sanctions.
Intent to Sell Chelsea Football Club and Real Estate Holdings
Following speculation in the British media, Abramovich declared his intention to sell Chelsea Football Club. In his statement, he cited the decision’s alignment with the best interests of the club, its stakeholders, and even those affected by the war in Ukraine. The net proceeds from the sale were earmarked for the benefit of war victims. The announcement also hinted at a sense of urgency, with the implication that selling quickly would help evade possible sanctions.
Oligarchs as Extensions of Putin’s Power
Abramovich stands as one of the most prominent “oligarchs” intertwined with President Putin’s regime. This term is often used to describe wealthy individuals closely connected to the Kremlin and considered conduits of substantial fortunes that effectively serve the Russian government’s interests. These fortunes are often amassed from Russia’s vast energy and mineral resources and discreetly stashed in offshore accounts, luxury properties, and extravagant assets.
Global Efforts to Counter Putin’s Government and Oligarch Wealth
In the face of Russia’s military actions in Ukraine, the international community, led by the United States and its allies, is rallying to counter Putin’s government by targeting the overseas assets of oligarchs. The strategy involves seizing these assets as a means to isolate and weaken the Russian leadership. These efforts are rooted in the belief that the wealth held by Kremlin-connected oligarchs constitutes resources effectively at Putin’s disposal for advancing his foreign interests.
Calls for Oligarch Sanctions and Asset Seizure
Prior to the invasion of Ukraine, the call to impose sanctions on oligarchs was gaining momentum. In 2021, Russian opposition figure Alexei Navalny identified Abramovich as a primary target for Western sanctions due to his role in what Navalny termed “Russian kleptocracy.” Navalny’s assertion gained traction and was echoed by influential figures globally. Notably, in President Joe Biden’s recent State of the Union address, he directly addressed the oligarchs and vowed to establish a dedicated task force to pursue their crimes. The collaboration with European allies and the determination to locate and seize oligarch assets send a clear message of intent.
Dismantling the Kremlin’s Financial Network Abroad
The overarching strategy of dismantling the Kremlin’s financial influence abroad is viewed as a crucial step toward undermining Putin’s grip on power. The Kremlin’s connection to the wealth amassed by oligarchs is seen as a key driver of the country’s foreign pursuits. By dismantling this financial network, Western powers seek to diminish Putin’s capacity to advance his agenda and assert control beyond Russia’s borders.
History of the Jews in Russia
The roots of the Russian Jewish Oligarchs and their historically linked regions extend over 1,500 years. This enduring connection has led to a significant religious and ethnic diaspora, with the Russian Empire once serving as the home of the world’s largest Jewish population. Within these lands, diverse Ashkenazi Jewish communities thrived, giving rise to many of modern Judaism’s distinct theological and cultural customs.
Yet, alongside these achievements, they also confronted episodes of anti-Semitic bias, institutional discrimination, and violent pogroms. In recent times, an observer might note a rekindling of the Jewish community within Russia, particularly at the dawn of the 21st century. However, it’s important to acknowledge that since the dissolution of the USSR, the Russian Jewish populace has witnessed a sharp decline that persists to this very day. Regardless of this decline, it remains one of the most substantial Jewish populations in Europe.
Diverse Jewish Presence in Russia: A Historical Overview
Ashkenazi Dominance and Multifaceted Inclusion
The predominant faction among Russian Jews is the Ashkenazi community, yet this vibrant tapestry also encompasses a substantial representation of non-Ashkenazi groups. These encompass Mountain Jews, Sephardi Jews, Crimean Karaites, Krymchaks, Bukharan Jews, and Georgian Jews, creating a rich mosaic of Jewish heritage within the region.
Tracing the Roots: 7th–14th Centuries CE
The emergence of Jewish communities in the European expanse of Russia can be traced back to the periods between the 7th and 14th centuries CE. During the 11th and 12th centuries, Jewish inhabitants in Kyiv, situated in present-day Ukraine, were segregated into distinct quarters. The chronicles of 1471 first record the presence of Jewish people in Muscovite Russia.
The Pale of Settlement and Escalating Restrictions
Catherine II’s reign in the 18th century ushered in an era of confinement for Jewish residents. The Pale of Settlement, established from 1791 to 1917, limited Jewish habitation and migration to designated areas within Russia. Alexander III further intensified anti-Jewish policies. These regulations contrasted starkly with Western Europe’s emancipation, as Russia’s Jewish population encountered increasingly stringent constraints.
Pogroms and Exodus: Late 19th to Early 20th Century
Commencing in the 1880s, waves of anti-Jewish pogroms swept across the empire, perpetuating for decades. This tumultuous period saw over two million Jews depart Russia between 1880 and 1920, many migrating to the United States and modern-day Israel. The Pale of Settlement confined numerous Jews to specific regions like Belarus, Lithuania, eastern Poland, and Ukraine, leading to the formation of sporadic and often impoverished communities known as Shtetls.
Challenges and Shifts Amidst Revolution
As World War I, the February and October Revolutions, and the Russian Civil War rocked the nation, a rise in antisemitism was witnessed. The pogroms of 1918–1922 resulted in the tragic loss of around 150,000 Jewish lives, primarily in Ukraine and Belarus. The dynamics of these pogroms were multifaceted, involving anti-communist factions and even instances within the Red Army.
Revolutionary Impact and Soviet Era
The aftermath of the Russian Civil War engendered a surge in secular Jewish culture in Belarus and western Ukraine during the 1920s. The Soviet government took measures to combat antisemitism, including punitive measures against the ethnic slur “Yid.” Efforts to modernize the Jewish community included establishing Yiddish-language schools, and newspapers, and settling Jews in agricultural areas. Despite challenges, a notable proportion of university students were Jewish in the early 1930s.
Jewish Autonomous Oblast and Complex Realities
The establishment of the Jewish Autonomous Oblast (JAO) in Russia’s Far East in 1934 was a unique endeavour, although it never gained a majority Jewish population. The 1930s witnessed intensifying repressive measures, including the suppression of the Yiddish language and the persecution of Zionists. Amidst Stalin’s purges, Jews were targeted as “counterrevolutionaries” and “reactionary nationalists.”
Contributions and Tragedy during World War II
During World War II, Jewish soldiers played significant roles within the Red Army High Command, including notable generals such as Iona Yakir and Yakov Smushkevich. An estimated 500,000 Jewish soldiers served, and while approximately 200,000 lost their lives, over 150 attained the prestigious title of Heroes of the Soviet Union. Tragically, over two million Soviet Jews perished during the Holocaust, both on the battlefield and under Nazi occupation.
Emigration and Legacy
In the late 1980s and early 1990s, liberalized emigration policies led to a substantial exodus of Soviet Jews, with many relocating to Israel and Western nations. Even in the face of such emigration, Russia’s Jewish population remains prominent in Europe, trailing only France and the United Kingdom. The opening of the Jewish Museum and Tolerance Center in Moscow in 2012 attests to the enduring legacy of Russian Jews.
Grounded Planes Expose Consequences: Russian Jewish Oligarchs Reckon with Ties to Putin
Economic Fallout Following Russian Invasion
As Russia’s invasion of Ukraine unfolded on February 24, the global response turned attention toward influential individuals likely to face economic sanctions as a repercussion of this unprovoked conflict. A particular focus emerged on Jewish oligarchs, a group known for accumulating wealth through associations with businesses intertwined with the Russian government. Now, approximately five months later, a majority of these oligarchs are grappling with severe repercussions due to their close ties to both Russia and President Vladimir Putin.
Impact on Jewish Oligarchs
Out of the 18 Jewish oligarchs identified in March as potential targets for sanctions by the Jewish Telegraphic Agency, a staggering 15 are currently subjected to such measures. Collectively, their combined worth surpasses $120 billion. The scope of these sanctions extends to thousands of Russians, including over 1,200 individuals sanctioned by the United States.
Entanglements with Philanthropic Organizations
Many of these Russian Jewish oligarchs have affiliations with European and American Jewish institutions, often expressed through their philanthropic endeavours. However, these sanctions have triggered a series of reverberations within the Jewish philanthropic landscape. For instance, the founders of the Genesis Philanthropy Group have resigned from their positions on its board following their sanctions. Furthermore, a former member of Israel’s parliament advocated for boycotting the annual Genesis Prize ceremony in Jerusalem.
Complex Responses to the Conflict
While a few oligarchs who have vocally opposed the war have managed to avoid sanctions so far, such as Yuri Milner, not all who have spoken out against the conflict have been spared from these measures. Oleg Deripaska, who criticized the prospect of Ukraine’s destruction, remains under pre-existing sanctions imposed by the United States in 2018.
The Case of Leonard Blavatnik
A significant case in this narrative is that of Leonard Blavatnik, considered the wealthiest individual in Great Britain and born in Soviet Ukraine. Although he wasn’t initially on the sanctions list, his estimated net worth of around $27.5 billion, accumulated through Russian chemical production and other ventures, aligns him with those who faced sanctions. Presently, he has not been subjected to sanctions and frequently travels between the United States and Europe.
Aviation Impacts and Conclusion
The effects of these sanctions have even reached the realm of aviation. A Twitter bot that previously documented the flights of aeroplanes owned by Russian oligarchs has slowed down due to travel restrictions imposed by the sanctions. Only Blavatnik’s aircraft has appeared on the list since mid-May, highlighting the intricate and far-reaching consequences of these sanctions on various aspects of these oligarchs’ lives.
