The White House on Thursday announced a new wave of sanctions against over 400 Russian elites, including 328 members of Russia’s parliament, the Duma. But one character remains conspicuously absent: Roman Abramovich.
European and Canadian authorities have already sanctioned the billionaire, widely known as the owner of Chelsea football club. But so far, the US has not followed suit, although Abramovich owns a number of US assets that could be seized – including a $50 million estate near Aspen and apparently deep financial ties to US financiers.
The sanctions against so-called oligarchs – wealthy Russians with strong political connections – come as the US and the West seek to inflict “maximum pain” on Russia to punish it for its invasion of Ukraine. The US has also banned imports of Russian oil and played a role in removing Russian banks from SWIFT, essentially cutting them off from international transactions.
Roman Abramovich smiles after a Chelsea FC win in Portugal in May 2021. (Alexander Hassenstein – UEFA/UEFA via Getty Images)
So far, Abramovich has apparently escaped US economic wrath because he could play a role in peace talks between Russia and Ukraine, which President Vladimir Putin’s troops invaded on February 24. On Wednesday, The Wall Street Journal reported that none other than Ukrainian President Volodymyr Zelenskyy was initially behind schedule in sparing his US fortune.
The Ministry of Finance had apparently even prepared sanctions. But it resigned after a phone call between President Joe Biden and Zelenskyy, who reportedly hopes Abramovich will facilitate peace talks.
The billionaire’s luck has also allowed him to keep two luxury yachts that were last seen in Turkey. One ship, “The Eclipse,” is one of the largest yachts in the world that Abramovich reportedly paid $590 million for in 2009. Other Russian yacht owners were not so lucky.
“He participated”
Abramovich said he was trying to urge Moscow to find a peaceful solution, and the Kremlin acknowledged that he did indeed play an early role in the peace talks.
The story goes on
“He participated in the early stages,” Kremlin spokesman Dmitry Peskov told reporters.
But now Russia claims it is negotiating directly with Ukraine.
The ‘Eclipse’, a superyacht linked to Roman Abramovich, is seen March 22 in Marmaris, Turkey. (REUTERS/Yoruk Isik)
The full list of new recipients of Thursday’s US sanctions includes the 328 Duma members; Sberbank boss Herman Gref; oligarch Gennady Timchenko; and 17 board members of Russian financial institution Sovcombank.
The US and its allies also announced a new sanctions evasion initiative to stop those attempting to circumvent the existing measures.
“Our goal here is to systematically eliminate the advantages and privileges that Russia once enjoyed as a participant in the international economic order,” a senior government official told reporters.
Many of the US announcements on Thursday will further bring the US into line with other EU or G7 nations, the official said.
Abramovich largely amassed his fortune following the collapse of the Soviet Union, reportedly using ties to former Russian President Boris Yeltsin and Putin. In recent years, Abramovich has become increasingly well-known in Britain and the West. Forbes estimates his current fortune at $7.3 billion, making him the 142nd richest person in the world.
On March 2, after the invasion had begun but before British sanctions against him were announced, he announced plans to sell his London football club Chelsea FC. The sanctions came days later, freezing Abramovich’s assets, although the club was allowed to continue playing.
Abramovich could not completely escape the Western approach. The Commerce Department has announced the grounding of 100 planes – including Abramovich’s – that allegedly flouted sanctions when they flew to Russia recently.
Ben Werschkul is a writer and producer for Yahoo Finance based in Washington, DC.
Correction: A previous version of this story said Abramovich announced plans to sell Chelsea after the sanctions against him were announced. In fact, he announced his intention to sell the team after the invasion of Ukraine started but before the UK announced sanctions on his assets.
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