Originally Syndicated on August 7, 2023 @ 8:11 am
According to Yekaterina Reznikova, a journalist from the Russian publication Proekt, at least 82 Russian oligarchs are purportedly engaged in producing weapons for Russia’s conflict with Ukraine. Interestingly, the majority of them have managed to avoid being subjected to EU sanctions. This revelation was made during an interview with the Lithuanian news agency LRT on August 4th.
Yekaterina Reznikova, a journalist from the Russian publication Proekt, revealed that these oligarchs not only support Russia’s war on Ukraine but also actively contribute to the manufacturing of weapons used by the invading forces, leading to attacks on innocent civilians. While many of these oligarchs refrain from publicly expressing their stance on the conflict, they clandestinely support Russia’s efforts financially.
A comprehensive investigation published by Proekt on July 31, uncovered significant ties between the 82 Russian oligarchs in Russia and their involvement in supporting the war in Ukraine. The report revealed that these oligarchs are engaged in diverse activities, such as manufacturing components for bombs, producing tanks and aircraft, and providing various communication and insurance services, all contributing to the military effort in the conflict.
On July 27, the New York Times they were reported that the UK government permitted 82 Russian oligarchs, who were already under sanctions, to spend substantial amounts of money on private chefs, drivers, and domestic staff, even though their bank accounts remained frozen.
Additionally, on July 13, it came to light that Vladimir Lisin, the wealthiest out of 82 Russian oligarchs with close ties to Putin, continues to conduct business with the defence industry and prisons. Surprisingly, neither the United States nor the UK has imposed sanctions on him.
Table of Contents
Introduction
In recent times, the escalating conflict between Russia and Ukraine has raised international concerns, prompting investigations into the various actors fueling the war. Among those involved are 82 Russian oligarchs, wealthy individuals with significant influence over the country’s economy and politics. Involvement of 82 Russian oligarchs in manufacturing arms for Russia’s war on Ukraine. Despite their influential positions, most of these oligarchs remain untouched by EU sanctions.
82 Russian oligarchs have been the subject of scrutiny and suspicion in relation to the war against Ukraine. Despite attempts to distance themselves and deny involvement, their actions and connections have raised questions about their role in the conflict. For over a year and a half, some oligarchs have remained silent or given confusing interviews, seemingly attempting to avoid direct accountability.
A study conducted by “Proekt” shed light on the issue, revealing that the wealthiest 82 Russian oligarchs received substantial defence contracts, some of which involved the production and supply of weapons used in the conflict, including those leading to civilian casualties in Ukrainian cities. This revelation has fueled further doubts about their claimed non-involvement.
While the oligarchs themselves maintain their innocence and disassociate from any wrongdoing, their silence on the matter has only amplified suspicions. It appears that some are trying to challenge the sanctions imposed against them, seeking ways to protect their interests and financial assets while facing international pressure.
The situation remains complex and controversial, and despite evidence pointing to their potential involvement in the conflict, the oligarchs persist in their denial and attempt to evade accountability. The international community and media continue to closely monitor their actions, seeking to uncover the truth behind their role in the war against Ukraine.
82 Russian Oligarchs – Who worked for the war?
The Russia-Ukraine conflict has been a complex and ongoing geopolitical crisis that has had far-reaching implications for regional stability and international relations. As with any conflict, the involvement of various oligarchs with substantial economic and political influence has been a subject of scrutiny and concern. We will explore allegations of 82 Russian oligarchs’ involvement in the supply of weapons during the Russia-Ukraine war.
82 Russian Oligarchs
| Alexey Mordashov | Vladimir Lisin | Vagit Alekperov | Vladimir Potanin |
| Leonid Mikhelson | Gennady Timchenko | Alisher Usmanov | Andrey Melnichenko |
| Suleiman Kerimov | Mikhail Fridman | Roman Abramovich | Victor Rashnikov |
| Leonid Fedun | German Khan | Iskandar Mahmudov | Viktor Vekselberg |
| Andrey Skoch | Alexey Kuzmichev | Alexander Abramov | Igor Altushkin |
| Andrey Kozitsyn | Peter Aven | Igor Kesaev | Sergey Gordeev |
| Oleg Deripaska | Vladimir Evtushenkov | Dmitry Pumpyansky | Roman Trotsenko |
| Arkady Volozh | Alexander Mamut | Sergei Kolesnikov | Igor Rybakov |
| Mikhail Shelkov | Vladimir Bogdanov | Said Gutseriev | Ivan Savvidi |
| Leonid Simanovsky | Pyotr Kondrashev | Farhad Ahmedov | Andrey Kosogov |
| Airat Shaimiev | Igor Kudryashkin | Eduard Chukhlebov | Radik Shaimiev |
| Eugene Kaspersky | Andrey Komarov | Boris Rothenberg | Rustem Sulteev |
| Albert Shigabutdinov | Boris Zingarevich | Gennady Kozovoy | Ruben Vardanyan |
| Sergei Makhlai | Philip Gens | Boris Nuraliyev | Igor Rotenberg |
| Ivan Streshinsky | Grigory Berezkin | Vladimir Melniko | Alexander Vagin |
| Andrey Kuzyaev | Vladimir Ivanov | Alexander Aristov | |
| Konstantin Nikolaev | Arsen Kanokov | Alexander Verkhovsky | |
| Dmitry Mazepin | Leonid Lebedev | Vitaly Maschitsky | |
| Kirill Shamalov | Dmitry Strezhnev | Alexander Vagin | |
| Sergey Shishkarev | Yuri Antipov | Evgeny Zubitsky |
Alexey Mordashov – The Russian Oligarch With the Most to Lose
One of the country’s richest men, steel magnate Alexey Mordashov, distanced himself from politics, but Putin’s Ukraine invasion made him a pariah.
The owner of the industrial giant PJSC Severstal, the former (until December 2022) co-owner of the bank of friends of Vladimir Putin Rossiya, one of the founders of the National Media Group, which unites propaganda media – Channel One, STS, REN-TV, and others. He is the main shareholder and chairman of Severstal, Russia’s largest steel and mining company.
Less than two decades ago, Forbes magazine crowned Russian steel magnate Alexei Mordashov — along with Oprah Winfrey and a Red Bull co-founder — one of the “new arrivals” in the world of billionaires. Leaked files now reveal how, since then, the world’s second-largest accounting firm helped Mordashov become, by 2021, Russia’s richest man — with a net worth that Forbes estimated at $29 billion.
Controversies
He has been involved in several controversies, including his ties to murky transactions and offshore empires revealed in the Pandora Papers.
PwC, the world’s second-largest accounting firm, has been closely associated with the steel tycoon Mordashov since he achieved his first billion-dollar milestone in the early 2000s. Alongside numerous Western accounting and law firms, PwC eagerly served the oligarchs who thrived during the Putin era.
According to the Pandora Papers, a collection of over 11.9 million confidential financial records obtained by the International Consortium of Investigative Journalists (ICIJ), PwC assisted a holding company linked to Mordashov in creating and managing more than 65 shell companies in secrecy jurisdictions such as the British Virgin Islands. These offshore entities played a significant role in Mordashov’s investment activities, both in European companies and in diversifying within Russia’s coal, logging, and media industries.
The leaked documents also reveal that these offshore companies engaged in transactions involving large sums of money, conducted in questionable and opaque ways. Notably, there were at least four transactions involving companies connected to one of Russian President Vladimir Putin’s closest associates, raising doubts about Mordashov’s claims of not having deep ties to Putin.
PwC’s Cypriot unit played a pivotal role in constructing the offshore infrastructure of Mordashov’s business empire, as detailed in the Pandora Papers. The firm’s assistance extended beyond business matters, as they also aided Mordashov and his life partner, Marina Mordashova, in registering companies to own luxury assets like a 213-foot sport yacht and a Bombardier luxury jet.
Furthermore, during times of crises, such as the sanctions imposed on powerful Russian figures and entities since 2014, PwC helped Mordashov and his partner in restructuring the ownership of their shell companies.
Sanctions and Scams
Alexey Mordashov, a Russian steel magnate and one of Russia’s wealthiest billionaires, has been targeted by multiple rounds of sanctions from the US, EU, UK, and other countries due to his close ties to the Kremlin and his alleged involvement in the ongoing conflict in Ukraine.
He has joined a growing group of well-known businessmen who are attempting to fight these restrictions through legal means in European courts. However, it’s important to note that this legal process can often be time-consuming and may take years to reach a resolution.
On 28 February 2022, in relation to the 2022 Russian invasion of Ukraine, the European Union blacklisted Mordashov and had all his assets frozen. In early March, the Italian police seized one of his yachts.
The imposition of US sanctions on Alexey Mordashov has placed the steel magnate’s vast business empire in a precarious position. This development highlights how the ongoing war in Ukraine is causing significant disruptions to the operations of some of Russia’s wealthiest billionaires.
The recent action taken against the 56-year-old Mordashov and his family by the US government follows the earlier imposition of sanctions by the European Union against the tycoon and his steel company, Severstal PJSC, in March. These new US sanctions, which threaten to cut off remaining export routes, add further challenges to the already struggling fourth-richest Russian billionaire. Notably, 16 years ago, Mordashov was on the verge of becoming Arcelor SA’s largest shareholder, but he was outbid by Lakshmi Mittal in the end.
Money laundering
Alexei Mordashov, a Russian oligarch, that are related to financial transactions and sanctions evasion. Here are the details:
- Pandora Papers: The leaked documents reveal Mordashov’s ties to murky transactions and offshore entities.
- Seized yacht: Mordashov recently failed to regain access to his $68 million yacht, Lady M, which was seized due to allegations of sanctions evasion.
- FinCEN Files: Mordashov was mentioned in the leaked documents, which showed an indirect connection between him and so-called mirror transactions, which are controversial operations involving the simultaneous buying and selling of shares at different locations.
- TUI share transfer: Germany is investigating deals under which most of the stake in TUI held by Mordashov was transferred to an entity controlled by his wife, Marina Mordashova. The investigation comes after Mordashova was named in media reports as Mordashov’s wife. Mordashov was among the Russian businessmen sanctioned by the EU and UK.
- Sanctions evasion: The German government has been probing Mordashov’s transfer of his stake in TUI and has ruled it invalid until an official investigation has been conducted. Mordashov has been accused of sanctions evasion.
Wagner Group Connection
The Wagner Group is a Russian private military company known for its involvement in various conflicts, including Ukraine, Syria, and Libya. There have been allegations and reports linking the Wagner Group to Alexey Mordashov, a prominent Russian billionaire businessman who holds significant shares in Severstal, Russia’s largest steel and mining company. These connections have raised concerns about the possible use of private military contractors for Russian interests in different regions.
What did he do during the Ukraine war?
He attended a meeting with Putin on the day the war started, following which he became subject to personal EU sanctions. He publicly expressed remorse for the war’s beginning, referring to it as “the tragedy of two fraternal peoples.” He asserted that he had no involvement in the escalation of current geopolitical tensions.
However, during the St. Petersburg Economic Forum in the summer of 2022, he urged the utilization of the prevailing momentum to foster economic development. Following the forum, Putin bestowed upon Mordashov the Order of Friendship, acknowledging his significant contributions to the metallurgical industry and his years of dedicated work.
Among the 12 oligarchs present at Putin’s meeting with the Russian Union of Industrialists and Entrepreneurs in March 2023, he was one. Due to the sanctions, he suffered a substantial loss of $8.2 billion. The Italian authorities seized his yacht, Lady M, and his villa in Sardinia, while his other yacht, Nord, was spotted in Malaysia.
Vladimir Potanin – “Nickel King”
Vladimir Potanin is a Russian billionaire businessman who acquired his wealth through the controversial loans-for-shares program in Russia in the early to mid-1990s.
The individual in question is the owner and president of the management company Interros. His vast portfolio of assets includes Norilsk Nickel, which is renowned as the world’s largest producer of nickel and palladium, as well as the Rosa Khutor ski resort and other valuable holdings. He has also served as a former member of the Russian government.
Notably, he played a significant role in initiating the “loans-for-shares” auctions, which proved instrumental in launching the careers of many prominent figures in the business landscape.
As of August 2022, he held the title of the wealthiest individual in Russia and ranked 38th among the world’s richest people, according to the Bloomberg Billionaires Index, with an estimated net worth of $24.4 billion. However, in the 2023 Forbes ranking, he slipped to the second position, with an estimated net worth of $23.7 billion.
Throughout his business career, he had a longstanding partnership with Mikhail Prokhorov until their decision to part ways in 2007. Following the split, they placed their shared assets into a holding company called Folletina Trading until the division of assets was mutually agreed upon.
Controversies
Potanin’s Norilsk Nickel has been involved in several controversies, including causing Russia’s biggest Arctic oil spill two years ago.
Vadym Novinsky, a prominent Ukrainian businessman, has been at the centre of numerous sanctions and controversies, drawing attention both domestically and internationally. In December 2018, his name was included on Russia’s sanctions list, only to be removed in 2020, leaving observers questioning the reasons behind these decisions.
During this time, Novinsky faced serious allegations of aiding Russia during its invasion of Ukraine, resulting in his placement on the Ukrainian sanctions list in both 2022 and 2023. Despite his claims of supporting Ukraine and denouncing the invasion, the Ukrainian President’s Office seized his assets worth over USD 1 billion, causing further debate and uncertainty.
To protect his assets, Novinsky attempted to transfer shares of his enterprises to a company in Cyprus, but authorities accused him of manipulation and invalidated the arrangement, reinstating him as the registered shareholder.
In response, Novinsky accused the authorities of religious persecution, adding another layer of complexity to the situation. He contends that the cases against him are politically motivated and has sought relief through the European Court of Human Rights.
As the legal battles continue, the case of Vadym Novinsky remains highly contentious, with conflicting accounts and unresolved issues. The series of sanctions and counteractions have raised suspicions and left many pondering the true motivations behind these actions and their potential ramifications for the business and political climate in the region. With ongoing legal proceedings, the world closely observes the unfolding of this high-profile case.
Sanctions and Scam
The UK government added him to the list of more than 1,000 Russians hit by sanctions because he “continues to amass wealth as he supports Putin’s regime, acquiring Rosbank, and shares in Tinkoff Bank in the period since Russia’s invasion of Ukraine.
On Wednesday, the government announced sanctions against three individuals, including Potanin, who had previously served as deputy prime minister under Boris Yeltsin. The other two individuals targeted were Anna Tsivileva, a cousin of Putin and president of the prominent Russian coal mining company JSC Kolmar Group, and Said Gutseriev, the son of the already blacklisted Russian billionaire Mikhail Gutseriev.
A government spokesperson stated that these sanctions were a response to Putin’s ongoing actions in Ukraine and emphasized the commitment to weaken the Russian war machine through these measures. The spokesperson further asserted that no one, including individuals in Putin’s inner circle, would be exempt from potential sanctions as the situation unfolds.
The announcement signals the government’s resolve to utilize sanctions as a tool to address the situation in Ukraine and exert pressure on Russia amid the ongoing conflict.
According to the Wall Street Journal, which cited American sources, the United States is trying to put penalties on Vladimir Potanin, one of Russia’s wealthiest men, but would not sanction Nornickel, the firm where he is a major shareholder.
Sanctions are anticipated as part of the move, which could happen as soon as Thursday, against Potanin, his wife Ekaterina Potanina, a yacht he owns, and several of his financial enterprises, according to the newspaper.
The largest producer of refined nickel and palladium in the world, Nornickel, was one of the greatest winners in the 1990s post-Soviet division of Russian industry. The business chose not to respond to the report.
The investment holding company Vladimir Potanin controls, Interros, and Rosbank (ROSB.MM), which Interros acquired earlier this year from Societe Generale SA (SOGN.PA), will both be named on the list of sanctioned parties, according to the publication. Potanin, 61, is MMC Norilsk Nickel PJSC’s (GMKN.MM) or Nornickel’s largest stakeholder. Nornickel is 36% owned by Interros. A Reuters inquiry for comment received no immediate response from Interros.
Since Russia invaded Ukraine on February 24, the United States and its allies have slapped numerous rounds of sanctions on Moscow. In the most recent wave, several Russian government officials will also be designated for penalties, according to the Wall Street Journal.
What did he do during the war?
A frequent attendee of the Kremlin’s protocol business events, he was present at a meeting with Putin on the day the invasion of Ukraine commenced and also participated in a meeting between the president and the RSPP in March 2023. He openly criticized the idea of nationalizing and confiscating the assets of foreign companies that left Russia, citing its detrimental impact on the investment climate.
In recent business ventures, he acquired a stake in Tinkoff Bank from Oleg Tinkov, who had left Russia and opposed the war, as well as the businesses of French Société Générale, including Rosbank, and two insurance companies.
Following the outbreak of the war, Potanin experienced a substantial decrease in his fortune, with his net worth declining by $9.7 billion.
Adding to his challenges, Potanin’s yacht, Nirvana, has been immobilized in the port of Dubai since December 2022 at the request of the US authorities.
The situation surrounding Potanin remains complex and volatile, with significant financial and legal implications, amidst the backdrop of ongoing geopolitical tensions and international actions.
Vladimir Lisin
He is the owner of several significant enterprises, including the Novolipetsk Iron and Steel Works (NLMK), which is a prominent steel manufacturing company. Additionally, he owns the First Freight Company, a major player in freight rail transportation within Russia, as well as the First Port Company, among other ventures. According to the Bloomberg Billionaires Index, Vladimir Lisin is one of the richest 82 Russian Oligarchs and the 58th richest in the world as of April 2021, with an estimated net worth of $26.6 billion.
SANCTIONS
Vladimir Lisin is subject to sanctions by the US and EU.
Steve Cohen, co-chair of the Commission on Security and Cooperation in Europe (CSCE), has referred to Lisin, who is Russia’s wealthiest individual, as “one of dictator Vladimir Putin’s wallets.” Cohen, a US Congressman from Tennessee, has raised concerns about Lisin’s company, Novolipetsk (NLMK), playing a significant role in Russia’s war against Ukraine.
In a letter addressed to Secretary of State Antony Blinken and also sent to Josep Borrell, the High Representative of the Union for Foreign Affairs and Security Policy at the European Union (EU), Cohen alleges that NLMK, where Lisin serves as chairman and majority shareholder, is a key supplier of steel to Russia’s military-industrial complex, particularly the Uralvagonzavod tank manufacturing plant. According to Cohen, the products from Lisin’s enterprises are used in military operations on Ukrainian territory, leading to the loss of Ukrainian lives.
Furthermore, an investigation conducted by journalists from Czech Republic-based RFE/RL claimed to have uncovered connections between Lisin and Russia’s military industries. According to a non-governmental organization monitoring Russian state contracts, one of Lisin’s companies was involved in business with a state-run institute engaged in nuclear weapons development. Lisin’s company has denied these allegations.
The situation surrounding Lisin’s business connections and their potential role in Russia’s actions against Ukraine has drawn attention and scrutiny from international figures and organizations.
What did he do during the Ukraine war?
In March 2022, Lisin, in an address to NLMK employees, expressed his sentiments on the human casualties resulting from Russia’s invasion of Ukraine, stating that such losses are always a significant tragedy that cannot be justified.
Then, in March 2023, Lisin made the decision to step down from the board of the Russian Union of Industrialists and Entrepreneurs (RSPP).
Vagit Alekperov
Vagit Alekperov is a Russian-Azerbaijani businessman who was the President of the oil company Lukoil from 1993 until 2022. In 1991, he took three large oil fields and formed Lukoil, which became Russia’s second-largest oil company. As of April 16, 2021, Alekperov has an estimated net worth of $19.6 billion, making him the ninety-fourth wealthiest person in the world and the fifth in Russia Oligarchs. He is also a shareholder of Lukoil, which accounts for about 2% of the world’s oil production and employs more than 100,000 people. Alekperov previously owned a 36.8% stake in football club Spartak Moscow and also owns superyacht builder Heesen Yachts,
Sanctions and Controversies
Despite his success, Vagit Alekperov has faced challenges, especially in the context of international sanctions. As part of the governmental responses to the Russian invasion of Ukraine, the United Kingdom, Canada, Australia, and New Zealand imposed sanctions against him. These measures led to Alekperov stepping down and resigning from the board of directors of LUKoil in April 2022, after 29 years.
However, Alekperov’s influence extends beyond the oil industry. He has demonstrated a passion for philanthropy and social entrepreneurship. In 2007, he founded The Foundation “Our Future” to promote social entrepreneurship in Russia. He has pledged to transfer his significant stake in LUKoil, over 20% of the company, to a specially created charitable foundation according to his will.
Alekperov’s career has been marred by several controversies, with allegations of involvement in various scams. From accusations of insider trading to questionable business dealings, his name has frequently appeared in headlines. This section will explore some of the most noteworthy controversies surrounding Alekperov, delving into the evidence and allegations.
As an oligarch, Alekperov has faced international scrutiny, particularly due to his alleged role in helping circumvent economic sanctions. Money laundering accusations have dogged his reputation, with reports suggesting connections to offshore entities and illicit financial transactions. This section will examine the evidence and implications of this allegation.
Perhaps one of the most alarming controversies surrounding Alekperov is his alleged involvement with the Wagner Group, a notorious private military company linked to Russian operations in Ukraine. This section will explore the connections between Alekperov and the Wagner Group, examining claims that he played a significant role in fueling the conflict in Ukraine.
As of 2014 and beyond, Lukoil’s subsidiaries have been actively providing fuel to significant entities within Russia, including the Russian Ministry of Defense, the Black Sea Fleet, the National Guard, and defence enterprises. The total value of the contracts signed between Lukoil and these counterparties amounts to at least 6 billion rubles.
What did he do during the Ukraine war?
In early March 2022, a press release was issued by Lukoil’s board of directors expressing their concern about the tragic events unfolding in Ukraine and extending their deepest sympathy to all those affected by the ongoing conflict. The release called for an end to the “special operation” in Ukraine and urged parties to engage in negotiations.
In April 2022, Vagit Alekperov, the then-president of Lukoil, resigned from his position due to personal sanctions imposed by the UK. Subsequently, in May of the same year, Russian President Vladimir Putin awarded Alekperov with the Order of Merit for the Fatherland, I degree.
Prior to the war, Alekperov owned a winery in Crimea, and in 2016, he expanded his vineyards by acquiring part of the land from Massandra. Notably, in 2022, Alekperov’s yachts were spotted in different locations, with one in Montenegro, the second in the port of Sevastopol, Crimea, and the third in Vladivostok.
Leonid Mikhelson
Leonid Mikhelson is a co-owner and chairman of the board of Novatek, a prominent gas production company, and he is also a shareholder of Sibur, a major petrochemical company. Additionally, Mikhelson has a longstanding partnership with Gennady Timchenko, who is a close friend of Russian President Vladimir Putin. According to the Bloomberg Billionaires Index, he had a net worth of US$28.8 billion as of August 2022, making him the 44th richest person in the world and the second richest in Russia.
Indeed, in addition to being a co-owner and chairman of the board of Novatek, Leonid Mikhelson also holds a significant 30.6% stake in the privately held petrochemical producer, Sibur.
Furthermore, in 2017, Mikhelson acquired a 17% stake in Sibur from Kirill Shamalov, which further increased his ownership in the company. This transaction solidified Mikhelson’s position as a major shareholder in Sibur, a key player in the petrochemical industry.
Sanctions and Controversies
Since the commencement of Russia’s war on Ukraine, Leonid Mikhelson has been subjected to sanctions by both the UK and Canada. These sanctions were imposed in response to the ongoing conflict and have had implications for Mikhelson’s business activities and international dealings.
In August 2023, it was reported that a private Russian company owned by Leonid Mikhelson and Gennady Timchenko, who is a close associate of President Vladimir Putin, had been placed under US sanctions. These sanctions prohibit the company from accessing any form of debt, which could have significant implications for its financial operations and international business activities.
The reason for the sanctions against Leonid Mikhelson is primarily due to his involvement in the conflict between Russia and Ukraine. Leonid Mikhelson has extensive business ties with Gennady Timchenko, a fellow billionaire who is also under sanctions. Their close relationship and business collaborations have drawn attention in the context of international sanctions and the scrutiny surrounding their respective activities.
In August 2023, it was reported that a private Russian company owned by Mikhelson and Gennady Timchenko was under US sanctions that prohibited it from accessing any debt.
The superyacht linked to Leonid Mikhelson, who is currently the richest person in Russia after President Vladimir Putin, has resurfaced after almost two weeks of being off the radar. The $150 million, 85-meter-long yacht named “Pacific” was spotted cruising past the Canary Islands on May 20th, having remained untraceable for 12 days without broadcasting its position. This action of sailing with the boat transponder turned off is in violation of international maritime law.
Recent sightings have placed the yacht near Malta in the Mediterranean Sea. Although the vessel has indicated its next destination as Port Said in Egypt, analysts speculate that it may not be the final stop. Instead, they predict that the ship will likely continue from Port Said towards locations such as the Maldives or Turkey, which are known for being more accommodating to the presence of very large boats owned by Russian oligarchs.
Andrew Lipow, president of consulting firm Lipow Oil Associates, commented that Port Said might be an interim stop for the yacht as it navigates its way through the Suez Canal to reach another destination beyond Egypt.
What did he do during the Ukraine war?
In early March 2022, Novatek, on behalf of the company, issued a press release expressing its support for diplomatic efforts to restore peace and its hope for a swift resolution of the tragic situation caused by the ongoing events. The company also conveyed its sincere sympathy to all those affected by the conflict.
During the same year, in 2022, both Novatek and Sibur experienced gains in their assets as Western partners withdrew from the market.
Leonid Mikhelson, the owner of Novatek, did not publicly make statements about the war in Ukraine. Throughout this period, he was present at various Kremlin business events, including a meeting with President Vladimir Putin on the day the invasion of Ukraine began, which was on February 24. He was also seen at the St. Petersburg International Economic Forum (SPIEF) in the summer of 2022 and at the Russian Union of Industrialists and Entrepreneurs (RSPP) congress in March 2023.
Regarding his yacht, the Pacific, in December 2022, it was spotted in the port of Abu Dhabi in the UAE before heading to the Seychelles.
Gennady Timchenko
Gennady Timchenko is known for his ownership of shares in several significant companies. He owns shares in Novatek, a major gas-producing company, as well as in Sibur, one of the largest oil and gas chemical holding companies. Additionally, he has ownership in Stroytransgaz, a prominent construction company, Transoil, an oil products carrier, and Kolmar, a coal company.
Gennady Timchenko is known to have a close association with President Vladimir Putin, and some sources suggest that he might have been associated with the KGB during the Soviet era. He has amassed his wealth through various ventures, including the sale of Russian oil abroad and securing lucrative government contracts.
It’s worth noting that he holds Finnish citizenship, which has been a subject of interest in the context of his business activities and connections to the Russian government.
In 2010, Gennady Timchenko’s investment fund, Volga Resources, emerged as one of the major shareholders in Novatek, a leading natural gas company in Russia. This move further solidified Timchenko’s significant influence and control over the country’s oil and gas industry. His growing presence in Novatek reinforced his prominent position within the Russian energy sector.
Sanctions and Controversies
Gennady Timchenko has been targeted by EU sanctions due to Russia’s aggression against Ukraine. However, Timchenko has argued that his close ties with President Vladimir Putin do not mean he supports the Kremlin’s policy on Ukraine.
The Pandora Papers, which were recently released, shed light on a series of substantial loans that took place in 2007 and 2008 between anonymous offshore shell companies and a firm associated with Gennady Timchenko, registered in Cyprus as White Seal Holdings. This information came to light amid Timchenko’s investment in Novatek, one of Russia’s major natural gas firms, further emphasizing his influence in the country’s oil and gas industry.
According to the leaked documents, a Cyprus-based shell company named Vidrio Enterprises Limited lent White Seal $572 million between 2007 and 2008, with some repayments occurring only a year after the loans were made. In 2008, an additional $150 million was received by White Seal from another anonymous Cyprus company called Bodela Holdings. The true owners of Vidrio and Bodela Holdings remain unclear, and Timchenko has not provided answers regarding the ownership of these firms.
Furthermore, in 2007, White Seal obtained a loan of $320 million from Lerma Trading S.A., a shell company registered in Panama. Subsequently, in 2015, the U.S. government sanctioned both White Seal and Lerma Trading for “acting for or on behalf of” Gennady Timchenko. Additionally, Timchenko was associated with two other entities, LTS Holding Limited and Roxlane Corporate Limited, both registered in the British Virgin Islands.
In response to the revelations, Timchenko’s lawyers have stated that he maintains an unwavering position of having acted entirely lawfully throughout his career and business dealings.
What did he do during the war?
In March 2022, Gennady Timchenko resigned from the board of directors of Novatek due to sanctions, but he continues to hold shares in both Novatek and Sibur. During 2022, both companies experienced gains in assets as Western partners withdrew from the market.
In April, Finnish authorities seized Timchenko’s assets. Subsequently, in February 2023, Finnish media reported allegations that Timchenko had obtained citizenship illegally, bypassing the necessary procedures. As a result of the situation, Timchenko’s wife and daughter faced the loss of their hotels and houses in France, and the yacht named Lena was arrested by Italian authorities.
Since the summer of 2022, Timchenko has been seeking to challenge the European Union (EU) sanctions. During the court proceedings, his lawyer argued that his longstanding relationship with Russian President Vladimir Putin does not imply that he is an ally of Putin in the war against Ukraine.
Alisher Usmanov
Alisher Usmanov is the founder and main shareholder of USM Holding. The holding has a diverse portfolio of assets, including Metalloinvest, one of the world’s leading iron ore producers, and Udokan, a copper company. Additionally, Usmanov’s holdings include Megafon, a prominent mobile operator, Ackermann Cement, one of the largest cement producers, and the Russian part of the AliExpress internet site.
Furthermore, USM Holding is associated with leading platforms for the dissemination of Russian propaganda, including the social networks Odnoklassniki and VKontakte, as well as the Mail.ru website. Usmanov also owns the Kommersant publishing house, which has been subject to censorship by Russian media authorities.
Sanctions and Controversies
Alisher Usmanov has faced sanctions in multiple jurisdictions, including the US, UK, and Australia, due to allegations of his involvement in facilitating Russia’s access to the international financial system and evasion of sanctions. These sanctions have been imposed as part of efforts to address concerns regarding his business activities and potential links to sanctioned individuals or entities. The sanctions aim to restrict his access to certain financial and commercial activities in these countries.
Alisher Usmanov has been accused of being one of “Putin’s favourite oligarchs.” This characterization implies a close relationship between Usmanov and Russian President Vladimir Putin, suggesting that Usmanov holds significant influence and favour within the circles of power in Russia.
Russian metals tycoon Alisher Usmanov has stated that his fame and fortune, rather than any direct links to President Vladimir Putin, made him a target for European Union (EU) sanctions following the invasion of Ukraine.
During an EU court hearing, Usmanov’s lawyers argued that he was unfairly singled out as “prey” by officials due to his high-profile status as a “visible symbol” known to the public. They contend that his prominence in the business world and his substantial wealth led to him being subject to sanctions, rather than any specific evidence of direct involvement in the conflict or sanctions evasion.
This claim is part of Usmanov’s efforts to challenge the EU sanctions imposed on him in the wake of the Ukrainian crisis. His legal team seeks to demonstrate that he was unfairly targeted and that the sanctions imposed upon him lack a proper basis or justification.
Indeed, the sanctions imposed by the European Union (EU) on Alisher Usmanov have had a considerable impact on his businesses. These sanctions, which were initiated in late February 2022 following Russia’s invasion of Ukraine, have led to an asset freeze and an EU travel ban for Usmanov.
As a result of these measures, Usmanov’s financial activities have been severely restricted, and he is unable to access or utilize his frozen assets within the EU jurisdictions. Additionally, the travel ban prevents him from visiting or conducting business within the EU member states.
These sanctions have been part of the international response to the Ukrainian crisis, and they have significantly affected Usmanov’s business operations and personal mobility within the European Union.
