The story so far: U.S. President Joe Biden on March 2 delivered his first State of the Union address, during which he addressed Russia’s invasion of Ukraine even before the Covid-19 pandemic and other domestic issues. During his address, Mr. Biden announced that the U.S. Department of Justice (DOJ) will form a task force “to go after the crimes of the Russian oligarchs.”
The United States, European Union, the United Kingdom and a few other nations have slapped sanctions on Russia and some individuals – most notably Russian President Vladimir Putin and his Foreign Minister Sergei Lavrov — following the country’s invasion of Ukraine. Countries including the U.K. have also moved to block the assets and properties owned by some of Russia’s richest, known as the oligarchs.
How the oligarchs rose to riches and power
Historically, an oligarchy is a form of governance where a group of few rich and powerful people rule, with the ruler being called an ‘oligarch’. However, over passage of time, the term has gotten a particular meaning in Russia, referring to a group of many influential businesspeople close to the ruling establishment in the country. These oligarchs gained their riches and power in the years after the collapse of the erstwhile Soviet Union in 1991 by leveraging their connection to the ruling establishment in Russia. They profited from the vast privatisation and economic reforms in Russia immediately after the collapse of the USSR
The U.S. formulated the Countering America's Adversaries Through Sanctions Act (CAATSA) law to impose sanctions on individuals and entities, who are placed under a list. Here are some of the wealthy individuals sanctioned this time for the war in Ukraine.
Sergei Borisovich Ivanov and his son Sergei Sergeevich Ivanov
Sergei Borisovich Ivanov is considered a close ally of Mr. Putin and is currently serving as the special presidential representative for environmental protection, ecology, and transport in Russia. He had also held several other offices such as the Chief of Staff of the Presidential Executive Office, Deputy Prime Minister, and also as the Defence Minister of Russia.
His son Sergei Sergeevich Ivanov is the current CEO of Alrosa, a Russian state-owned diamond mining company, and also a board member of Gazprombank, a private bank in Russia.
The Ivanovs have been considered to be within the inner circles of Mr. Putin and have been sanctioned for the various roles they have held within the Russian administration, the U.S. Department of Treasury said.
Nikolai Platonovich Patrushev and his son Andrey Patrushev
Another close associate of Mr Putin, Nikolai Platonovich Patrushev is the secretary of the Russian Federation security council and his son Andrey Patrushev, who served in leadership roles in the country’s oil producer Gazprom Neft, is also employed in the Russian energy sector.
Igor Ivanovich Sechin and his son Ivan Igorevich Sechin
Russia’s former Deputy PM (2008 - 2012) Igor Ivanovich Sechin and his son Ivan Igorevich Sechin have also been on the U.S.’ sanctions list. While the senior Sechin is the CEO, chairman of the management board, and deputy chairman of the board of directors of Rosneft, another oil company, his son is reportedly a department head inside the company.
Alexander Aleksandrovich Vedyakhin
Alexander Aleksandrovich Vedyakhin is the first deputy chairman of the executive board of Sberbank. Sberbank, which was also part of the U.S.’ sweeping sanctions, holds close to a third of all bank assets in Russia.
Andrey Sergeyevich Puchkov and Yuriy Alekseyevich Soloviev
Two of the high-ranking officials at the VTB Bank, Mr. Puchkov and Mr. Soloviev were sanctioned for working closely with Andrei Kostin, chief executive of the VTB Bank. Kostin was placed under the sanctions list in April 2018. Apart from his position in the VTB Bank, Puchkov also has other business interests such as Limited Liability Company Atlant S and Limited Liability Company Inspira Invest A, Moscow-based real estate companies.
Who is not in the list ?
Russian opposition leader Alexei Navalny, who survived a near-fatal poisoning incident in 2020, had proposed a list of 35 oligarchs and has repeatedly pressed western governments for sanctions on them.
Roman Abramovich, owner of the British football club Chelsea FC and Russian industrialist Oleg Deripaska, reportedly with close ties to Mr Putin, feature on Navalny’s list but have not been under any sanctions, the BBC reported.
Biden’s warning on ‘ill-begotten gains’
During his State of the Union speech, Mr. Biden said: “Tonight, I say to the Russian oligarchs and the corrupt leaders who’ve bilked billions of dollars off this violent regime: No more.”
“We’re joining with European Allies to find and seize their yachts, their luxury apartments, their private jets. We’re coming for your ill-begotten gains,” he said.
Alarmed by the sanctions and the U.S.’ warning, some wealthy Russians reportedly having ties with Mr. Putin have begun moving their superyachts to countries like Maldives and Montenegro, American business news website CNBC reported, citing Marine Traffic’s data.
- Historically, an oligarchy is a form of governance where a group of few rich and powerful people rule, with the ruler being called an ‘oligarch’
- However, over passage of time, the term has gotten a particular meaning in Russia, referring to a group of many influential businesspeople close to the ruling establishment in the country
- The U.S. formulated the Countering America's Adversaries Through Sanctions Act (CAATSA) law to impose sanctions on individuals and entities, who are placed under a list
