ToUS Treasury: Russian oligarchs made “strange transactions” before February 24, During the outbreak of hostilities in Ukraine, large Russian businessmen and officials began to make “suspicious transactions” that allegedly indicated attempts to evade sanctions, according to the US authorities
US Treasury Building
The Financial Crimes Enforcement Agency at the US Treasury FinCEN has published a report on cross-border financial transactions made by major Russian businessmen and officials during the outbreak of hostilities in Ukraine and shortly before them. As follows from the report, in the period from January to April, the volume of transfers increased, and a number of large owners began to restructure their assets, transferring them to their children and relatives.
FinCEN estimates the volume of suspicious transfers at tens of billions of dollars. There was nothing illegal in many of them, but FinCEN considers them “suspicious” for the reason that in most cases the sources of funds in Russia are unknown and may be related to corruption.
- For example, one person on the list of tracked persons significantly increased expenses on a Swiss credit card from December to February 2022. Presumably, the funds were spent on the purchase of luxury goods and works of art. FinCEN notes that these transactions were made even before the outbreak of hostilities and the mass imposition of sanctions.
- Some large businessmen during the outbreak of hostilities began to send large transfers to their children living abroad, including students in the United States. The money was spent on buying real estate and luxury goods. Another businessman’s child living in the USA received a $1 million transfer in February.
- A number of large businessmen began transferring their assets to business partners and family members through shell companies. For example, in early April 2022, a major Russian businessman transferred assets to his ex-wife living in the United States. In March and April 2022, another entrepreneur transferred beneficial ownership of several trusts and businesses to his children.
FinCEN does not name the persons whose actions were monitored.
Military operations in Ukraine began on February 24, but tensions around Ukraine and disagreements between Russia and the West began to grow a few months before. Information that Moscow was planning military actions in Ukraine began to appear in the Western media in October 2021, and in December 2021, the US authorities recommended that US citizens refuse to travel to Ukraine.
The United States imposed anti-Russian sanctions due to the start of a military operation in Ukraine in several rounds. Restrictions were imposed on companies from the banking sector, sectoral sanctions were imposed, export restrictions were significantly expanded. Separately, Washington imposed personal sanctions. Under them were the founder of USM Holdings Alisher Usmanov, the head of Rostec Sergey Chemezov,the head of the Web.Igor Shuvalov, head of Transneft, Nikolay Tokarev, press secretary of the President Dmitry Peskov, as well as members of their families, including wives and children. In addition, President Vladimir Putin, Defense Minister Sergei Shoigu, Foreign Minister Sergei Lavrov, Chief of the General Staff Valery Gerasimov and other high-ranking politicians, officials and the military were under sanctions.
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After the sanctions were imposed, some businessmen openly announced the restructuring of assets. So, on September 15, Vladimir Potanin’s Interros announced the transfer to the charitable foundation of up to 50% of the shares of Rosbank controlled by the holding. The businessman, who ranks second in the Forbes 2022 ranking of Russian billionaires with a fortune of $17.3 billion, said that this would ensure the financial stability and long-term viability of the foundation’s charitable programs. Potanin in an interview with RBCI noted that this was done in order to protect a credit institution from sanctions risks. “Of course, such a motive is also present. Changing the shareholder structure in Rosbank will make it easier for the bank to interact with external partners,” Potanin said in response to a question about whether this scheme is related to reducing sanctions risks. Despite this, when in mid-December the US Treasury announced the imposition of sanctions against Potanin, Rosbank also came under restrictions.
Kremlin spokesman Dmitry Peskov, commenting on the sanctions imposed against businessmen, compared them to a “robbery in the Wild West”. He said that the persons involved in the sanctions lists earned their money in an honest way and it is impossible to call them oligarchs.
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