Updated on 05/20/2022, 14:52
- The EU Parliament has asked the European Commission to impose sanctions on former Chancellor Schröder and other Rosneft speculators.
- But what do sanctions really mean for German citizens?
- The Bundesbank explains this when asked by CORRETIV. She is responsible for monitoring sanctions.
Gerhard Schröder never hid the fact that he was a hedonist. As chancellor, he posed for a magazine with a cigar and an expensive suit. In the case of EU sanctions, he would suddenly only have money for “basic necessities such as food, clothing, medicine and the like”. For all other legal purchases and transactions, today’s Russian lobbyist would need approval, as the Bundesbank explained to CORRETIV.
On Thursday, the EU Parliament asked the European Commission, by a large majority, to also sanction European citizens who hold positions in important Russian companies or who, as former politicians, receive money from Russia. The resolution prominently mentions Gerhard Schröder, chancellor from 1998 to 2005, and former Austrian foreign minister Karin Kneissl, who were supposed to resign.
Both sit on the board of directors of Russian oil giant Rosneft, Schröder even as chairman. So far, there are almost no EU citizens among those sanctioned by the EU.
Former Chancellor Schröder would always have to get permission from the Bundesbank
The Bundesbank informed CORRETIV of the consequences of the sanctions for German citizens. Schröder could hardly shop without permission, his assets would be frozen and any rental income would not be available to him either.
- Assets located in the EU “are frozen in these cases”. Affected people therefore cannot sell anything and “no money or economic resources can be made available to them without permission”.
- Even small amounts would require Bundesbank approval: “The Deutsche Bundesbank can issue approvals based on narrowly worded exceptions.” The Bundesbank includes legal transactions “to satisfy basic needs such as food, clothing, medicine and the like”.
- A sanctioned person may (also only with permission) settle liabilities “that have already arisen before the date on which sanctioning measures were issued against a person”.
- A sanctioned person would also have to waive rental income: “If a sanctioned person owns a rented home in Germany, the lease can continue. However, rent can only be paid into a frozen account, so the sanctioned person here , also, the funds paid can only be used in very exceptional cases and only with the approval of the authorities”, explained the Bundesbank to CORRETIV.
Schröder receives several hundred thousand euros a year for his lobbying activities. In addition to his work at Rosneft, he is also chairman of the Shareholders’ Committee of Nord Stream AG. In Germany, he also receives a monthly pension of around €8,300 as a former chancellor. In the event of a sanction, these funds would also be frozen.
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Its assets would then be monitored by the Bundesbank. She reports possible violations to the investigative authorities and the local public prosecutor. The Bundesbank is part of a task force that includes at least fourteen officials. The federal government established this weeks after the war of aggression began – previously there was no real framework for effectively enforcing sanctions.
Application of sanctions difficult to verify
However, tracking sanctioned persons remains difficult across Europe. The EU sanctioned 4,000 people for Russia’s attacks. Within the EU, they are no longer allowed to carry out legal transactions without permission. But wealth can actually be shifted even further through straw people or other people’s businesses. The EU has also created a task force to better monitor this situation. At Rosneft, only CEO Igor Sechin was affected by EU sanctions.
Updated on 05/19/2022 at 12:39 pm
Ukrainian President Volodymyr Zelenskyy is preparing the people of his country, which was attacked by Russia, for a longer war. In his video speech, he also gave hope to people in Russian-occupied areas in the south. Thumbnail: Imago
With the sanctions tracker, CORRETIV daily lists all sanctions imposed on individuals and legal entities and researches if and how sanctions are monitored and enforced. (liquid Paper)
Correctiv is the first grant-funded research center in Germany. As an award-winning media, Correctiv stands for investigative journalism and fact checking. Learn more at Correctiv.org.