The US and UK governments last week unveiled a batch of sanctions against individuals and entities who have allegedly enabled Russian oligarchs on the UK’s designated sanctions list to access their external assets. 

This latest set of sanctions looks to target methods that were being used to circumvent previous sanctions. The UK government alleges that oligarchs were using “financial fixers”  and family members as proxies to help skirt sanctions related to Russia’s invasion of Ukraine.

UK Foreign Secretary James Cleverly said that the UK is “closing the net on the Russian elite and those who try to help them hide their money for war.” US Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson added that “As the Kremlin seeks ways around the expansive multilateral sanctions and export controls imposed on Russia for its war against Ukraine, the United States and our allies and partners will continue to disrupt evasion schemes that support Putin on the battlefield.”

The US and UK added 14 new entries to their sanction lists, which include both individuals residing in Russia as well as several corporations located around the world linked to Russia. Most notably it targets individuals and companies who have known connections to oligarchs Alisher Usmanov and Roman Abramovich, who are among the wealthiest men in Russia and the most prominent supporters of Russian President Vladimir Putin.

Usmanov is a prominent Russian billionaire who owns USM holdings. The company’s business ventures include mining and telecommunications.  While Usmanov is no longer involved with the day-to-day running of the business and has officially retired to philanthropic activities, he is still a major stakeholder in the business.

The sanctions froze all British assets owned by USM Holdings and targeted several businessmen in Cypress who have had contact with Usamanov’s family.  USM Holdings, who provided a statement when contacted, claimed that the sanctions were “unjust and unfounded” and said they would be challenging them as “unlawful.” The statement also condemned the sanctions on Usmanov’s family, calling them “an immoral practice reminiscent of hostage taking,” as many of them have no links to Usmanov’s business dealings.

Abramovich, the other major target of the sanctions, is most familiar to many in the west as the former owner of the football club Chelsea FC. Abramovich founded what would become one of the largest oil production companies in Russia, “Gazprom Neft”. He also currently owns stakes in Russian steel and nickel companies. Abramovich also advised former Russian president Boris Yeltsin that Putin should take over the presidency after Yeltsin’s retirement.

Abramovich has been targeted through the asset freeze of Meritservus HC LTD, a Cyprus investment firm with strong ties to Abramovich. Additionally, several businessmen who have had contact with Abramovich and his companies have also been placed under a complete asset freeze and have been barred from doing further business.       

Since the beginning of Russia’s invasion of Ukraine, the US and the UK have led sanction efforts against Russia. The UK rolled out its first batch of sanctions in response to the invasion in March 2022. Many other countries such as Canada, France, Australia and Spain followed in an attempt to cripple Russia’s economy and bring an end to the war.  The targets of these sanctions have been wealthy Russian elites who are supporters of President Putin.