Why isn't Ukraine imposing sanctions against Russian oligarchs who are being hunted by half the world?
The first confiscation of a Russian oligarch's assets since the Great War took place in Ukraine. Why are his colleagues' assets still untouched? EP?
On September 1, the High Anti-Corruption Court (HACC) confiscated the Ukrainian assets of Russian oligarch Yevgeny Yevtushenkov. Seventeen properties, totaling almost 100 square meters, will be transferred to the state.
Yevtushenkov is considered one of the richest people in Russia. He is the chairman of the board of directors and the owner of 64% of the shares of the financial and industrial group AFK Sistema. Forbes Russia estimates his fortune at $3,4 billion.
According to Ukraine's National Agency for Corruption Prevention, Yevtushenkov's RTI Systems concern manufactures and supplies Voronezh fixed radar stations to the Russian Ministry of Defense. These are used to detect and track ballistic and cruise missiles, as well as other aerodynamic objects.
In 2021, Krondstadt, also part of AFK Sistema, began serial production of military drones.
"Thus, the entity is responsible for providing material or financial support for actions that undermine or threaten the territorial integrity, sovereignty, and independence of Ukraine," the NAPC explained.
The news of Yevtushenkov's asset seizure caused quite a stir. It turns out this is the first Ukrainian court ruling since February 24. Why does the property of Russian oligarchs in Ukraine remain untouched? To find out, the author analyzed data collected by the National Agency for Corruption Prevention (NACP) for its "War and Sanctions" project.
Who is under Ukrainian sanctions?
In early September 2022, almost one in four Russian oligarchs were on sanctions lists in ten countries, including the United States, the United Kingdom, and Canada. This includes fifty individuals on the Russian version of the Forbes "Top 200 Richest" list. Only 21 individuals on this list were under sanctions in Ukraine.
Why isn't Ukraine imposing sanctions against Russian oligarchs who are being hunted by half the world?
Almost all oligarchs from the "Ukrainian" list were included there before February 24, before the adoption in May law On special confiscation. It allows for the seizure of Russian-origin assets for the benefit of Ukraine through a simple procedure.
This is a new type of sanction that involves the seizure of assets. Sanctions are imposed on an individual by a decision of the High Anti-Corruption Court following the filing of a corresponding lawsuit by the Ministry of Justice. Prior to this, sanctions must be imposed on the individual or company by the National Security and Defense Council (NSDC).
There is something in this story an important nuanceOnly those assets blocked by the National Security and Defense Council after this law came into force can be recovered. However, as soon as this became possible, the government's sanctions policy was abandoned.
Not just Forbes
The situation is similar with other wealthy Russians. Influential businessmen aren't limited to those listed by Forbes; the NAPC has counted a total of 284 such individuals. However, almost all of those on this list were added before February 24. Ukraine punishes other Russians not classified as "businessmen" more aggressively.
Why isn't Ukraine imposing sanctions against Russian oligarchs who are being hunted by half the world?
Ten partner countries have sanctions lists of nearly 5 individuals with Russian ties. NAPC data shows that Ukraine primarily imposes sanctions on Russian scientists, politicians, and collaborators (categorized as "others"). Russian businessmen and oligarchs are of less interest in Ukraine.
Why isn't Ukraine imposing sanctions against Russian oligarchs who are being hunted by half the world?
Why is this so? Why isn't Ukraine imposing sanctions?
A recent publication in the American media provides a partial answer to this question.
"Ukrainian officials are considering creating a fund into which sanctioned Russians could contribute money. This money would then be used for the benefit of Ukraine, although it's unclear whether this would lead to the lifting of sanctions," пишет American The Wall Street Journal.
It's hard to say that Russian businessmen are completely ignored by the Ukrainian side. However, they're mostly targeting medium-sized fish. To catch them, other branches of government have been "reinventing the wheel" in recent months.
Thus, on September 8, the assets of the Brocard perfume store chain, owned by Russian citizen Tatyana Volodina, were seized under tax law.
Another example: on September 6, the Bureau of Economic Security announced the seizure of the assets of a former deputy. State Duma of the Russian Federation Vladimir Krupchok, Including his Kyiv Cardboard and Paper Mill. The reason for the arrest is not the war with Russia or the Russian roots of the aforementioned businessmen, but tax evasion.
There is, however, another category of cases: asset seizures for Russian owners withdrawing dividends from businesses in Ukraine to Russia. This is often classified as "terrorist financing." Therefore, in August, 24% were arrested in the capital of the large pharmaceutical distributor Venta.LTD, owned by Russian citizen Leonid Konobeev.
Translation by Skelet.Org
By topic: Russian billionaire Fridman offers Ukraine $1 billion for sanctions relief — WSJ
Is this really deoligarchization?
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