Why No One Wants That Mega Yacht in Tuscany to Be Putin’s
Barbie Latza Nadeau
Wed, March 23, 2022
Wikimedia Commons
ROME—For the last two weeks, Russian oligarch watchers have had their eyes on the Scherezade mega yacht docked in the posh Marina di Carrara in northern Tuscany. There are growing suspicions that the $7 million, six-deck super-luxurious vessel—with its two helicopter pads, various swimming pools, his-and-hers beauty salons and gold fixtures that would make Donald Trump jealous—belongs to Vladimir Putin. And until two days ago, its Russian crew, led by British captain Guy Bennett Pearce, whose mother told the Daily Telegraph her son would “never work for a murderer,” didn’t leave the ship. But The Daily Beast has learned that all that changed this week when the Russian crew disappeared overnight, replaced by an entirely British set who, despite Brexit constraints that would require work visas, seem to have descended out of nowhere.
The crew change caught the attention of Italy’s General Confederation of Labor, which confirmed to The Daily Beast that the Russians are gone. “Yes, they were all Russians until a few days ago,” Paolo Gozzani, secretary of the confederation, told The Daily Beast. “Today the crew is made up entirely of English. We are monitoring the situation inside the shipyards but not because I care whether it is Putin’s or not: I am worried about the repercussions that a seizure, or a freezing of assets, could have on the shipyard workers.”
Italian financial police, who have already confiscated millions in yachts, villas and bank accounts tied to sanctions against Russia, are working to untangle reams of documents that may or may not link the ship to Putin. Marianna Ferrante, spokesperson for the Italian Sea Group that manages the port, says the ship arrived about a year ago to be refitted. She says it does not belong to Putin—at least not directly.
But Russian opposition leader Alexei Navalny says it does. His research team published a video they say proves the yacht belongs to Vladimir Putin, a sentiment shared by U.S. intelligence officials after The New York Times reported alleged ties to the Russian president.
The area where the Scherezade—named after a key female character in Middle Eastern tale One Thousand and One Nights—is as close to Little Russia as anywhere in Italy. The port is lined with designer shops and a magnet for Russian tourists who flock to Forte dei Marmi resort, which hosts around 500 Russian “regulars” each summer, according to the local tourist board, which says most have cancelled for the upcoming season. In 2010, the residents petitioned to stop Russians from pushing out the locals, but in the end, the Russian Ruble won out and most of the port workers speak enough Russian to accommodate the numerous Russian yachts that are docked there most of the long Italian summers. The port authority said all the Russian yachts disappeared months before Russia’s invasion of Ukraine. All but the Scheherazade, which is currently the only vessel in Italian waters without a distinct owner, according to the Italian Financial police.
Francesco De Pasquale, the mayor of Carrara, has grown weary of the interest in the mega ship. He and the leaders of the Italian Sea Group have issued a joint statement denying Putin is the owner. “According to the documentation available to the company and following what emerged from the checks carried out by the competent authorities, the 140-meter yacht Scheherazade, currently under construction for maintenance activities, is not attributable to the property of Russian President Vladimir Putin,” says the statement, also sent to The Daily Beast.
But the port also conceded that if the Scheherazade were to be seized, it would be disastrous for the port’s 400 workers who have already invested hundreds of hours and materials in the mega yacht refit. “Inside the yard, 400 direct workers and another 200 work in the related industries,” union leader Gazzoni says. “If the yacht, which has been carrying out refitting operations for weeks now, were seized it would be a disaster, an immense impact on the work of the workers; the seizure would freeze a huge area of the construction site, who knows for how long, and would prevent new work from coming in.”
A new class of oligarchs could rise from Putin's seizure of Western assets, says an expert in Russian financeBarbie Latza Nadeau
Wed, March 23, 2022
Wikimedia Commons
ROME—For the last two weeks, Russian oligarch watchers have had their eyes on the Scherezade mega yacht docked in the posh Marina di Carrara in northern Tuscany. There are growing suspicions that the $7 million, six-deck super-luxurious vessel—with its two helicopter pads, various swimming pools, his-and-hers beauty salons and gold fixtures that would make Donald Trump jealous—belongs to Vladimir Putin. And until two days ago, its Russian crew, led by British captain Guy Bennett Pearce, whose mother told the Daily Telegraph her son would “never work for a murderer,” didn’t leave the ship. But The Daily Beast has learned that all that changed this week when the Russian crew disappeared overnight, replaced by an entirely British set who, despite Brexit constraints that would require work visas, seem to have descended out of nowhere.
The crew change caught the attention of Italy’s General Confederation of Labor, which confirmed to The Daily Beast that the Russians are gone. “Yes, they were all Russians until a few days ago,” Paolo Gozzani, secretary of the confederation, told The Daily Beast. “Today the crew is made up entirely of English. We are monitoring the situation inside the shipyards but not because I care whether it is Putin’s or not: I am worried about the repercussions that a seizure, or a freezing of assets, could have on the shipyard workers.”
Italian financial police, who have already confiscated millions in yachts, villas and bank accounts tied to sanctions against Russia, are working to untangle reams of documents that may or may not link the ship to Putin. Marianna Ferrante, spokesperson for the Italian Sea Group that manages the port, says the ship arrived about a year ago to be refitted. She says it does not belong to Putin—at least not directly.
But Russian opposition leader Alexei Navalny says it does. His research team published a video they say proves the yacht belongs to Vladimir Putin, a sentiment shared by U.S. intelligence officials after The New York Times reported alleged ties to the Russian president.
The area where the Scherezade—named after a key female character in Middle Eastern tale One Thousand and One Nights—is as close to Little Russia as anywhere in Italy. The port is lined with designer shops and a magnet for Russian tourists who flock to Forte dei Marmi resort, which hosts around 500 Russian “regulars” each summer, according to the local tourist board, which says most have cancelled for the upcoming season. In 2010, the residents petitioned to stop Russians from pushing out the locals, but in the end, the Russian Ruble won out and most of the port workers speak enough Russian to accommodate the numerous Russian yachts that are docked there most of the long Italian summers. The port authority said all the Russian yachts disappeared months before Russia’s invasion of Ukraine. All but the Scheherazade, which is currently the only vessel in Italian waters without a distinct owner, according to the Italian Financial police.
Francesco De Pasquale, the mayor of Carrara, has grown weary of the interest in the mega ship. He and the leaders of the Italian Sea Group have issued a joint statement denying Putin is the owner. “According to the documentation available to the company and following what emerged from the checks carried out by the competent authorities, the 140-meter yacht Scheherazade, currently under construction for maintenance activities, is not attributable to the property of Russian President Vladimir Putin,” says the statement, also sent to The Daily Beast.
But the port also conceded that if the Scheherazade were to be seized, it would be disastrous for the port’s 400 workers who have already invested hundreds of hours and materials in the mega yacht refit. “Inside the yard, 400 direct workers and another 200 work in the related industries,” union leader Gazzoni says. “If the yacht, which has been carrying out refitting operations for weeks now, were seized it would be a disaster, an immense impact on the work of the workers; the seizure would freeze a huge area of the construction site, who knows for how long, and would prevent new work from coming in.”
Huileng Tan
Tue, March 22, 2022,
Russian President Vladimir Putin's plan to seize and nationalize the assets of foreign companies leaving the country could create a new class of oligarch.
Photo by Mikhail Metzel\TASS via Getty Images
Russian President Vladimir Putin has threatened to take over assets of foreign companies that leave the country.
The assets could be auctioned off, Russia's Economy Ministry has suggested.
A fire sale of the assets could create a new class of oligarchs, said a Russian finance expert.
Russia has announced it's considering seizing the assets of foreign companies that exit the country — and it could create a new class of oligarchs, an expert on Russian finance told Insider.
Those who manage to acquire ownership of seized assets at fire-sale prices through state auctions could become the new class of tycoons, said Hassan Malik, a senior sovereign analyst at Boston-based investment management consultancy Loomis Sayles.
"There's certainly a risk that you just see the creation of a new class of crony capitalists or oligarchs," Malik told Insider.
As international companies exit Russia en masse, they are leaving behind assets such as factories and offices that are in working condition. Russian President Vladimir Putin has threatened to take over such idle but productive assets, telling government officials the Kremlin would seek to "introduce external management and then transfer these enterprises to those who actually want to work," according to the Associated Press.
Russia's Economy Ministry has suggested the assets could be auctioned off, Bloomberg reported on March 10. The auctions could mirror a controversial 1990s "loans-for-shares" program launched by former Russian president Boris Yeltsin, Malik told Insider. At the time, rich Russian businessmen and banks close to the authorities lent the government money in exchange for stakes in state-owned industrial companies. The shares were acquired at "dirt-cheap prices," The New York Times wrote in 1996.
Malik described the deals as "sweetheart deals" because when the Russian state "predictably defaulted" on the loans, the creditors seized their shares. This created a generation of outrageously rich oligarchs, said Malik, who is also the author of "Bankers and Bolsheviks," a book about finance in the early 1900s during the Russian Revolution.
Russia's richest man, Vladimir Potanin, built up his vast fortune through the "loans-for-share" scheme when he acquired metals giant Nornickel. Potanin has a net worth of $24.7 billion, according to the Bloomberg Billionaires Index. Billionaire Roman Abramovich (net worth $14.5 billion) acquired a controlling stake in oil company Sibneft through the program.
Today, the Russian government — in need of funds amid sweeping international sanctions over the Ukraine war — could offload seized foreign assets to favored investors at a discount again, Malik told Insider. "I think it's a real risk given Russia's history," he said.
Russian President Vladimir Putin has threatened to take over assets of foreign companies that leave the country.
The assets could be auctioned off, Russia's Economy Ministry has suggested.
A fire sale of the assets could create a new class of oligarchs, said a Russian finance expert.
Russia has announced it's considering seizing the assets of foreign companies that exit the country — and it could create a new class of oligarchs, an expert on Russian finance told Insider.
Those who manage to acquire ownership of seized assets at fire-sale prices through state auctions could become the new class of tycoons, said Hassan Malik, a senior sovereign analyst at Boston-based investment management consultancy Loomis Sayles.
"There's certainly a risk that you just see the creation of a new class of crony capitalists or oligarchs," Malik told Insider.
As international companies exit Russia en masse, they are leaving behind assets such as factories and offices that are in working condition. Russian President Vladimir Putin has threatened to take over such idle but productive assets, telling government officials the Kremlin would seek to "introduce external management and then transfer these enterprises to those who actually want to work," according to the Associated Press.
Russia's Economy Ministry has suggested the assets could be auctioned off, Bloomberg reported on March 10. The auctions could mirror a controversial 1990s "loans-for-shares" program launched by former Russian president Boris Yeltsin, Malik told Insider. At the time, rich Russian businessmen and banks close to the authorities lent the government money in exchange for stakes in state-owned industrial companies. The shares were acquired at "dirt-cheap prices," The New York Times wrote in 1996.
Malik described the deals as "sweetheart deals" because when the Russian state "predictably defaulted" on the loans, the creditors seized their shares. This created a generation of outrageously rich oligarchs, said Malik, who is also the author of "Bankers and Bolsheviks," a book about finance in the early 1900s during the Russian Revolution.
Russia's richest man, Vladimir Potanin, built up his vast fortune through the "loans-for-share" scheme when he acquired metals giant Nornickel. Potanin has a net worth of $24.7 billion, according to the Bloomberg Billionaires Index. Billionaire Roman Abramovich (net worth $14.5 billion) acquired a controlling stake in oil company Sibneft through the program.
Today, the Russian government — in need of funds amid sweeping international sanctions over the Ukraine war — could offload seized foreign assets to favored investors at a discount again, Malik told Insider. "I think it's a real risk given Russia's history," he said.
Some foreign investors could be eyeing Russia
The Kremlin may also open such auctions up to foreign players, which could entice opportunistic investors eyeing a way into the market, said Malik.
"There may be players from countries where they feel relatively insulated from the threat of Western sanctions," he said.
Potential investors could hail from China, India, or countries in the Middle East that have not condemned Russia's invasion of Ukraine, said Malik.
Among them, China is most likely to take an active role in pursuing investments in Russia, as it has more leverage in its power relations with the West than do many other countries, said Malik. Large, state-owned companies are unlikely to take the risk of running afoul of international sanctions, but investors could set up a holdings company that only operates and trades in China and Russia to get around restrictions, he said.
China appears to be eyeing opportunities in the Russian market already.
Chinese ambassador to Russia, Zhang Hanhui, told a group of business leaders in Moscow on Sunday to seize opportunities presented by a "void" in the country, the Russia Confucius Culture Promotion Association wrote on its official WeChat account.
Zhang did not mention sanctions, but told business leaders the international situation was "complex," with large companies facing issues in supply chains and payments. "This is a time when private, small- and medium-sized enterprises can play a role," said Zhang.
Zelenskyy calls on Italy to stop Russian oligarchs from using the country as a 'resort for murderers'
Jake Epstein
Tue, March 22, 2022
Ukrainian President Volodymyr Zelensky addresses the Italian Parliament via live video from the embattled city of Kyiv on March 22, 2022 in Rome, Italy.
Photo by Alessandra Benedetti - Corbis/Corbis via Getty Images
Zelenskyy called on Italy to stop Russian oligarchs from using the country as a safe haven.
"Almost all of them use Italy as a place for vacation. So don't be a resort for murderers," he said.
The Ukrainian president addressed Italian lawmakers during a video address on Tuesday as Russia's invasion continues.
Ukrainian President Volodymyr Zelenskyy urged Italy on Tuesday to stop Russian oligarchs from using the country as a safe haven.
"You know those who brought war to Ukraine," Zelenskyy said while addressing Italian lawmakers in a video speech that was posted to his Telegram. "Those who order to fight and those who promote it."
He added: "Almost all of them use Italy as a place for vacation. So don't be a resort for murderers."
Zelenskyy urged lawmakers to seize Russian leaders' real estate and block access to oligarchs' bank accounts, yachts, and other assets.
"Let them apply their influence for peace to be able to come back to you someday," Zelenskyy said. "Support greater sanctions against Russia."
He also suggested Italy place an embargo on Russian oil imports and ban Russian ships from entering its ports.
Since Russian President Vladimir Putin launched his attack on Ukraine nearly four weeks ago, the US, UK, and European Union have sanctioned a number of Russian oligarchs — powerful and wealthy individuals accused of having close ties to Putin.
As a result of the sanctions, many oligarchs have been stripped of their wealth and assets.
Italian authorities on Saturday seized a building complex owned Russian oligarch Alexei Mordashov, and the country has taken control of yachts and villas belonging to other oligarchs — all worth hundreds of millions of dollars.
Zelenskyy's appeal for Italian lawmakers to do more to punish Russian elites comes after a string of virtual addresses to other countries, including the US, Germany, and Canada.
Meanwhile, Russia's war against Ukraine moved into its 27th day as Putin's forces continue to bombard Ukrainian cities and civilians.
Ongoing peace talks between the two sides have yet to lead to an end to the war.
Zelenskyy called on Italy to stop Russian oligarchs from using the country as a safe haven.
"Almost all of them use Italy as a place for vacation. So don't be a resort for murderers," he said.
The Ukrainian president addressed Italian lawmakers during a video address on Tuesday as Russia's invasion continues.
Ukrainian President Volodymyr Zelenskyy urged Italy on Tuesday to stop Russian oligarchs from using the country as a safe haven.
"You know those who brought war to Ukraine," Zelenskyy said while addressing Italian lawmakers in a video speech that was posted to his Telegram. "Those who order to fight and those who promote it."
He added: "Almost all of them use Italy as a place for vacation. So don't be a resort for murderers."
Zelenskyy urged lawmakers to seize Russian leaders' real estate and block access to oligarchs' bank accounts, yachts, and other assets.
"Let them apply their influence for peace to be able to come back to you someday," Zelenskyy said. "Support greater sanctions against Russia."
He also suggested Italy place an embargo on Russian oil imports and ban Russian ships from entering its ports.
Since Russian President Vladimir Putin launched his attack on Ukraine nearly four weeks ago, the US, UK, and European Union have sanctioned a number of Russian oligarchs — powerful and wealthy individuals accused of having close ties to Putin.
As a result of the sanctions, many oligarchs have been stripped of their wealth and assets.
Italian authorities on Saturday seized a building complex owned Russian oligarch Alexei Mordashov, and the country has taken control of yachts and villas belonging to other oligarchs — all worth hundreds of millions of dollars.
Zelenskyy's appeal for Italian lawmakers to do more to punish Russian elites comes after a string of virtual addresses to other countries, including the US, Germany, and Canada.
Meanwhile, Russia's war against Ukraine moved into its 27th day as Putin's forces continue to bombard Ukrainian cities and civilians.
Ongoing peace talks between the two sides have yet to lead to an end to the war.
A group of protesters in an inflatable dinghy tried to stop a Russian oligarch's $600 million superyacht from docking in Turkey, a report says
Protesters in a dinghy tried to stop a luxury yacht belonging to Roman Abramovich from docking in Turkey, The Independent reported.
The protesters were carrying Ukrainian flags with the words "No War" written on them.
The super-yacht later docked in the port of Bodrum, Turkey.
A group of protesters tried to block a luxury superyacht belonging to sanctioned Russian billionaire Roman Abramovich from docking in Turkey, The Independent reported.
The Solaris berthed at the port of Bodrum in southwest Turkey on Monday. According to The Independent, prior to mooring it was confronted by a dinghy carrying a group of protesters waving Ukrainian flags marked with the phrase "No War."
A video published on the paper's website showed the group maneuvering the dinghy near the bow of the yacht as it approached the quayside.
The $600 million vessel later successfully docked after the coastguard told the protesters to move, according to the paper.
Monday's protest is the latest aimed at luxury yachts belonging to the Russian elite.
Solaris was the target of a graffiti attempt while docked in Barcelona earlier this month, Insider's Grace Dean previously reported. Meanwhile, a Ukrainian engineer was arrested on suspicion of attempting to sink an $8 million luxury yacht belonging to his Russian boss in Mallorca, Spain, last month, in response to Russia's invasion of Ukraine, Spanish media reported.
The US, UK, and European Union have imposed sanctions against Russia in the wake of its attack on Ukraine, which has resulted in freezing some assets belonging to Russian individuals. Several luxury yachts linked to oligarchs have been seized in ports across Europe, while other vessels are cruising towards destinations where they are less likely to be impounded as a result of sanctions.
Abramovich has been sanctioned by both the UK and the EU.
Bodrum has been popular with Russia's wealthy in the past, but Turkey's ports may also appeal to those sanctioned by other governments due to Ankara's stance on the invasion of Ukraine. Unlike other NATO members, Turkey has not imposed sanctions on Russia. Turkish president Recep Tayyip Erdogan has criticized the measures, while at the same time also supporting Ukraine.
Solaris left the port of Tivat in Montenegro on March 13, two days before Abramovich was sanctioned by the EU. The vessel avoided other European locations where it could be at risk of seizure, before docking in Turkey, Insider's Kate Duffy reported.
The vessel was joined on Tuesday by another of Abramovich's luxury vessels, Eclipse, which moored at the nearby Turkish port of Marmaris.
Sanctioned oligarch Alisher Usmanov, the 5th-richest person in Russia, previously transferred his assets to trusts and doesn't own them anymore: report
Sanctioned oligarch Alisher Usmanov, the 5th-richest person in Russia, previously transferred his assets to trusts and doesn't own them anymore: report
Huileng Tan
Wed, March 23, 2022
AP/ Alexei Druzhinin
Russian oligarch Alisher Usmanov has been sanctioned by the European Union, the US, UK, and Switzerland.
The UK government singled out two mansions Usmanov owns when announcing sanctions against the tycoon.
Usmanov's spokesman said the billionaire doesn't own the properties as they've been put into trusts.
Russian billionaire Alisher Usmanov has been sanctioned by the European Union, UK, US, and Switzerland as governments rushed to freeze Russian oligarchs' assets amid the war in Ukraine.
But despite the wave of sanctions, the billionaire's assets might still be out of governments' reach, reports indicate. That's because Usmanov previously put hundreds of millions of dollars of assets — including most of his UK properties and a superyacht — into irrevocable trusts, the Guardian reported, citing a spokesperson for the tycoon. Such trusts cannot be amended after creation.
"From that point on, Mr Usmanov did not own them, nor was he able to manage them or deal with their sale, but could only use them on a rental basis," the billionaire's spokesperson told the Guardian. "Mr Usmanov withdrew from the beneficiaries of the trusts, donating his beneficial rights to his family."
The UK government said on March 3 that Usmanov owns mansions worth tens of millions of dollars in the country.
Usmanov's spokesperson would not tell Guardian when the trusts were established, but told Reuters all the tycoon's properties were transferred in 2006.
"All of Mr Usmanov's properties were settled into the irrevocable trusts long before the sanctions came," the spokesperson told Reuters. "It had nothing to do with sanctions and was determined by estate planning."
Usmanov is Russia's fifth-richest person with a net worth of $18.7 billion, according to the Bloomberg Billionaires Index. He founded USM, a holding company, in 2012 to consolidate his interests in a wide range of industries including metals, telecoms, and tech.
The two mansions the UK government said belonged to Usmanov have been linked to a web of trusts and companies registered in tax havens like the British Virgin Islands, reported the BBC.
"Complex networks of secretive shell companies in these jurisdictions means the UK government is attempting to enforce these sanctions with one arm tied behind its back," Steve Goodrich, Head of Research and Investigations at Transparency International UK, told the BBC.
A spokesman for British Prime Minister Boris Johnson told Reuters the country's sanctions would have a "significant impon Usmanov.
Usmanov did not immediately respond to Insider's request for comment, sent via USM, but has said EU sanctions against him were based on "false and defamatory allegations" and that he will use "all legal means" to protect his honor and reputation.
Sanctioned oligarch Alisher Usmanov, the 5th-richest person in Russia, previously transferred his assets to trusts and doesn't own them anymore: report
Huileng Tan
Wed, March 23, 2022
AP/ Alexei Druzhinin
Russian oligarch Alisher Usmanov has been sanctioned by the European Union, the US, UK, and Switzerland.
The UK government singled out two mansions Usmanov owns when announcing sanctions against the tycoon.
Usmanov's spokesman said the billionaire doesn't own the properties as they've been put into trusts.
Russian billionaire Alisher Usmanov has been sanctioned by the European Union, UK, US, and Switzerland as governments rushed to freeze Russian oligarchs' assets amid the war in Ukraine.
But despite the wave of sanctions, the billionaire's assets might still be out of governments' reach, reports indicate. That's because Usmanov previously put hundreds of millions of dollars of assets — including most of his UK properties and a superyacht — into irrevocable trusts, the Guardian reported, citing a spokesperson for the tycoon. Such trusts cannot be amended after creation.
"From that point on, Mr Usmanov did not own them, nor was he able to manage them or deal with their sale, but could only use them on a rental basis," the billionaire's spokesperson told the Guardian. "Mr Usmanov withdrew from the beneficiaries of the trusts, donating his beneficial rights to his family."
The UK government said on March 3 that Usmanov owns mansions worth tens of millions of dollars in the country.
Usmanov's spokesperson would not tell Guardian when the trusts were established, but told Reuters all the tycoon's properties were transferred in 2006.
"All of Mr Usmanov's properties were settled into the irrevocable trusts long before the sanctions came," the spokesperson told Reuters. "It had nothing to do with sanctions and was determined by estate planning."
Usmanov is Russia's fifth-richest person with a net worth of $18.7 billion, according to the Bloomberg Billionaires Index. He founded USM, a holding company, in 2012 to consolidate his interests in a wide range of industries including metals, telecoms, and tech.
The two mansions the UK government said belonged to Usmanov have been linked to a web of trusts and companies registered in tax havens like the British Virgin Islands, reported the BBC.
"Complex networks of secretive shell companies in these jurisdictions means the UK government is attempting to enforce these sanctions with one arm tied behind its back," Steve Goodrich, Head of Research and Investigations at Transparency International UK, told the BBC.
A spokesman for British Prime Minister Boris Johnson told Reuters the country's sanctions would have a "significant impon Usmanov.
Usmanov did not immediately respond to Insider's request for comment, sent via USM, but has said EU sanctions against him were based on "false and defamatory allegations" and that he will use "all legal means" to protect his honor and reputation.
3 Russian oligarchs step down from the Jewish philanthropy group they founded after pledging $10 million in aid to Ukraine
Hannah Towey
Mon, March 21, 2022,
Mikhail Fridman gives a speech at The 3rd Genesis award at the Jerusalem Theater on June 23, 2016 in Jerusalem, Israel.Lior Mizrahi/Getty Images for Genesis Prize Foundation
Petr Aven, Mikhail Fridman, and German Kahn resigned from a Jewish philanthropy group they founded.
The three Russian oligarchs were recently sanctioned by both the EU and the UK.
The foundation said it will not affect the $10 million in aid GPG has pledged to donate to Ukraine.
Russian oligarchs Petr Aven, Mikhail Fridman, and German Kahn have resigned from the board of Genesis Philanthropy Group (GPG), a Jewish grant-making foundation founded by the trio in 2007.
The three oligarchs were hit by sanctions from the EU and UK following Russia's invasion of Ukraine. Earlier this March, the billionaires similarly left the board of LetterOne, a $22 billion investment firm founded by Fridman.
From French vineyards to British football clubs, sanctioned oligarchs are scrambling to shift and sell their Western assets to avoid seizure. Now, it appears even their philanthropy efforts (and the tax deductions that often come with) cannot escape international scrutiny.
"In order to assure the ability of GPG to stay true to its mission and build on the foundation we have created over the past 15 years, all three have resigned from the Board of Directors," GPG wrote in the emailed announcement first reported by The Jerusalem Post on Friday.
The oligarchs' resignations will not impact a $10 million donation that GPG previously pledged to donate to the Ukrainian Jewish community, according to the announcement. Half of the emergency aid relief will go toward evacuation efforts and food distribution, with the second $5 million reserved to "support humanitarian needs as the situation develops," per the foundation's website.
GPG did not respond to Insider's request for comment on whether or not the aid has made it to Ukraine, and which local organizations it will be funding.
Petr Aven and Mikhail Fridman, who are described by the EU as "one of Vladimir Putin's closest oligarchs" and "enabler of Putin's inner circle," have said they will "vigorously contest" the sanctions placed against them in recent weeks.
Mikhail Fridman, a Ukrainian-born Jew, was one of the first Russian oligarchs to speak out against the war in Ukraine in a message sent to LetterOne employees. In a recent interview with Bloomberg, he said sanctioned oligarchs like him have no influence on Putin and it would be "suicide" to challenge him on Ukraine.
Despite growing criticism from Russia's elite who have lost billions since the start of the war, experts previously told Insider that Putin is likely unconcerned about the oligarchs' pushback, and only his tiny inner circle have his ear.
Hannah Towey
Mon, March 21, 2022,
Mikhail Fridman gives a speech at The 3rd Genesis award at the Jerusalem Theater on June 23, 2016 in Jerusalem, Israel.Lior Mizrahi/Getty Images for Genesis Prize Foundation
Petr Aven, Mikhail Fridman, and German Kahn resigned from a Jewish philanthropy group they founded.
The three Russian oligarchs were recently sanctioned by both the EU and the UK.
The foundation said it will not affect the $10 million in aid GPG has pledged to donate to Ukraine.
Russian oligarchs Petr Aven, Mikhail Fridman, and German Kahn have resigned from the board of Genesis Philanthropy Group (GPG), a Jewish grant-making foundation founded by the trio in 2007.
The three oligarchs were hit by sanctions from the EU and UK following Russia's invasion of Ukraine. Earlier this March, the billionaires similarly left the board of LetterOne, a $22 billion investment firm founded by Fridman.
From French vineyards to British football clubs, sanctioned oligarchs are scrambling to shift and sell their Western assets to avoid seizure. Now, it appears even their philanthropy efforts (and the tax deductions that often come with) cannot escape international scrutiny.
"In order to assure the ability of GPG to stay true to its mission and build on the foundation we have created over the past 15 years, all three have resigned from the Board of Directors," GPG wrote in the emailed announcement first reported by The Jerusalem Post on Friday.
The oligarchs' resignations will not impact a $10 million donation that GPG previously pledged to donate to the Ukrainian Jewish community, according to the announcement. Half of the emergency aid relief will go toward evacuation efforts and food distribution, with the second $5 million reserved to "support humanitarian needs as the situation develops," per the foundation's website.
GPG did not respond to Insider's request for comment on whether or not the aid has made it to Ukraine, and which local organizations it will be funding.
Petr Aven and Mikhail Fridman, who are described by the EU as "one of Vladimir Putin's closest oligarchs" and "enabler of Putin's inner circle," have said they will "vigorously contest" the sanctions placed against them in recent weeks.
Mikhail Fridman, a Ukrainian-born Jew, was one of the first Russian oligarchs to speak out against the war in Ukraine in a message sent to LetterOne employees. In a recent interview with Bloomberg, he said sanctioned oligarchs like him have no influence on Putin and it would be "suicide" to challenge him on Ukraine.
Despite growing criticism from Russia's elite who have lost billions since the start of the war, experts previously told Insider that Putin is likely unconcerned about the oligarchs' pushback, and only his tiny inner circle have his ear.
