The Battle for Billionaire Oligarchs Continues: Alisher Usmanov Fights Claim that EU Sanctions are Due to Ties with Putin
Russian metals magnate Alisher Usmanov refuses to yield to EU sanctions, blaming the banning on his fame and fortune: the council of the EU alleges that Usmanov provides material and financial support to Russian decision-makers. Usmanov contests this claim, instead asserting that the council wrongfully imposed sanctions because he is a “visible symbol” known to the public. Jerome Grand d’Esnon, Usmanov’s lawyer, stated before the EU court that people know Usmanov not only as one of the wealthiest men in Russia but also as a former major shareholder of Arsenal Football Club and for building the largest privately owned yacht.
Background on the EU Sanctions
Since the 2014 annexation of Crimea and subsequent invasion of Ukraine in February last year, the EU has imposed sanctions on almost 1,500 people and 207 entities. Usmanov is one of many billionaires, including Roman Abramovich and family members, that has taken to EU courts to break free from sanction lists and have their assets unfrozen. EU court disputes over sanctions can last for years, and very rarely result in victory for those affected. Former Ukrainian President Viktor Yanukovych and his son have been on the EU’s sanctions list since 2014, despite opposing their inclusion on the 2020 sanctions list.
Germany’s Investigation and Responding Raid on Usmanov Properties
German authorities conducted nationwide measures last year on Usmanov’s properties as part of an investigation into sanctions violations from allegedly employing and paying security personnel to guard a luxury complex in Bavaria. However, a Frankfurt court ruled that these searches were unlawful.
Expanding on Sanctions and Lifting Them
While the majority of the sanctions are in place, some are lifted to incentive Russia to make policy changes towards the respective country. Numerous countries and organizations enact sanctions on businesses and individuals due to a variety of reasons, including sponsorship of terrorism, human trafficking, drug trafficking, money laundering, unfair business disputes, or violation of international agreements, health, or environmental safety regulations. Sanctions can take many forms and degrees of severity: some only affect a company’s export-import abilities, while others go as far as prohibiting individuals from entering the country or disabling financial transactions or blocking assets.
Consequences of Sanctions
Back to Usmanov and other oligarchs, sanctions often result in crippling amounts of debt, the devaluation of assets, dying business relationships and damage to reputation. Usmanov is not alone in his challenge of fighting EU sanctions: the battle between billionaire oligarchs and the Western world continues to heat up. Sanctions are most effective when imposed by a large organization, such as the United States and the European Union, but have weakened trade relationships between Russia and their partners and impacted Russia’s economy significantly with inflation skyrocketing and economic growth contracting. Sanctions also end up affecting businesses and people who are innocent.
Conclusion
In conclusion, despite being the fifth richest person in Russia with a net worth of $18.8 billion, Usmanov contends that his wealth, not his ties with Putin, led to his imposition of the EU sanctions. Usmanov further argues that the council wrongfully imposed sanctions and failed to follow proper procedures causing him financial loss in terms of asset freezing. While the sanctions are ongoing and difficult to maneuver, it is essential to recognize that sanctions can negatively affect those who are innocent, creating a ripple effect beyond the intended target.
—————————————————-
table {
width: 100%;
border-collapse: collapse;
}
th, td {
padding: 10px;
text-align: left;
border-bottom: 1px solid #006699;
}
th {
background-color: #006699;
color: #FCB900;
}
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Russian metals magnate Alisher Usmanov claims his fame and fortune, and not his ties to President Vladimir Putin, made him a target of European Union sanctions after the invasion of Ukraine.
Usmanov’s lawyers, speaking at a hearing in an EU court, said he had been wrongly labeled “prey” by officials because he was a “visible symbol” known to the public.
While “nobody” knows the deputies in the State Duma, the lower house of parliament, who voted in favor of the invasion last year, “many people” know Usmanov not only as one of the richest men in Russia, but also as one of the richest men in Russia former major shareholder of Arsenal Football Club and for building the largest privately owned yacht, his lawyer told the EU lower court on Tuesday.
“He is rich, very, very rich and it is known that these are the reasons for the sanctions,” Jerome Grand d’Esnon, Usmanov’s lawyer, said at a hearing before the EU court. “These are obviously not reasons on the basis of which restrictive measures can be pronounced.”
Usmanov, 69, owns 49% of USM, a Russia-based investment group that controls Metalloinvest, Russia’s largest iron ore producer, and a stake in MegaFon, a Moscow-based telecommunications company. According to the Bloomberg Billionaires Index, he is the fifth richest person in Russia with a net worth of $18.8 billion. Besides Russian citizenship, he is also an honorable citizen of Uzbekistan, where he was born.
“This is not only because he is extremely wealthy,” but “because a combination of elements leads to the conclusion that the applicant provides material and financial support to Russian decision-makers,” said Diane Laurent, a lawyer at the Council of the EU. imposing such sanctions.
The EU has imposed sanctions on nearly 1,500 people and 207 entities since Russia’s attacks on Ukraine, beginning with the 2014 annexation of Crimea and the subsequent invasion of Ukraine in February last year. Usmanov is among dozens of billionaires, including Roman Abramovich and family members, who have flocked to the Union’s top courts to break free from the list and have their funds frozen.
EU court disputes over sanctions can last for years and rarely result in victory for those affected. Former Ukrainian President Viktor Yanukovych and his son have remained on the EU’s sanctions list since 2014, even after opposing their inclusion on the 2020 sanctions list.
German authorities implemented nationwide measures last year raids of properties linked to Usmanov as part of an investigation into sanctions violations for allegedly employing and paying security personnel to guard a luxury complex in Bavaria. A Frankfurt court later declared these searches illegal.
https://fortune.com/2023/06/06/russian-tycoon-alisher-usmanov-sanctioned-fame-fortune-lawyers-say/
—————————————————-