The Seizing of Assets of Russian Oligarchs: How It’s Going

When Russia invaded Ukraine, the world turned its back on the threatening nation. In an effort to implore Russian President Vladimir Putin to stop his affront on Ukrainian soil, nations everywhere began sanctioning Russia. The US and EU, in particular, proposed the strictest sanctions ever imposed on a nation. In part, they called for the seizure of luxury assets owned by Russian oligarchs and officials.

Here, we will explain why the government pursued this tactic and where it stands today. Unfortunately, even with threats such as this, the crisis is still ongoing and the death toll is still rising.

Why Seize Luxury Assets?

The economic sanctions are an effort to avoid World War III and essentially force Putin to stop his attack on Ukraine. These include sanctions on Russian banks, state-owned enterprises, Putin’s friends and family, and a handful of Russian billionaires.

But why did the US government assemble a special task force to seize luxury assets ​including yachts, jets, real estate, and more? The idea is that if Russian oligarchs are unhappy and fearful of losing their wealth, they can put pressure on Putin to stop the war. This is why the targeted billionaires are all those with close ties to Putin or who have a somewhat shady record, including Malofeyev, one of the main sources of financing for Russians promoting separatism in Crimea.

Some seizures that have already occurred include a $90 million 255-foot yacht, while other assets have been frozen. Unfortunately, it’s not just Russians who are losing their assets. The actions have kept these prominent oligarchs from philanthropy and investment elsewhere, leaving groups lacking the funding they were once afforded.

This isn’t the first time financial coercion of the wealthy has been used to sway governments and it won’t be the last. In the case of Russia, the pain from the economic sanctions is surely being felt, but the seizure of assets may not be working. 

What Now?

Unfortunately, it’s proven true that albeit wealthy, Russian oligarchs have little sway over Putin. While they may be against the war in Ukraine, Putin has trudged onward.

So, what will happen next? Well, the seizure of assets may not completely miss the mark. In late April, Attorney General Merrick Garland met with the senate, saying that he supports efforts to allow some of the proceeds from seized assets to go directly to Ukraine. Hopefully, the profits can be used in a way that makes the world a better place.

The global conflict is still ongoing. And as investors, it’s critical to be aware of how and when the conflict changes and how it will impact companies in both the public and private sectors. Whether you’re seeking investor accreditation in the U.S. or a hopeful international accredited investor, you can learn more about the requirements for qualification and how to provide proof of assets right here on VerifyInvestor.com.