COMRADE OLIGARCH
Sanctioned Russian billionaire banker Mikhail Fridman was locked out of the private-equity firm he cofounded and staff were told to ignore him, report says
Russian banker Mikhail Fridman has a net worth of $10 billion.
AP/Alexander Zemlianichenko
Kate Duffy
Fri, March 4, 2022
Kate Duffy
Fri, March 4, 2022
Russian banker Mikhail Fridman stepped down from the board of the investment firm he cofounded.
Fridman was barred from entering LetterOne's offices and speaking to employees, per the FT.
The billionaire is among oligarchs sanctioned by the EU in response to Russia's invasion of Ukraine.
Russian billionaire and banker, Mikhail Fridman, was locked out of the investment firm he cofounded after he was hit by European Union sanctions, the company announced on Wednesday.
London-based LetterOne said in a press release that Fridman and Russian banker Petr Aven had stepped down from the company's board and will no longer have any dealings with the group. Fridman and Aven jointly own under 50% of LetterOne, so the company has avoided sanctions imposed on the two men.
Chairman Mervyn Davies, who has now taken control of LetterOne, told the Financial Times that employees aren't allowed to speak to Fridman. LetterOne, founded in 2013, has also locked Fridman out of its offices and blocked him from having access to documents, Davies told the FT.
Fridman's assets in the company were "effectively frozen" and his rights as a shareholder were taken away, LetterOne's press release said. He won't receive dividends, funds, or communications in any way, said LetterOne.
A company spokesperson told Insider that Fridman has "no involvement in the day-to-day management or decision-making of LetterOne and appropriate arrangements have been put in place to give effect to this."
LetterOne's actions came after the EU sanctioned Fridman as part of a package of responses to Russia's invasion of Ukraine. Fridman is one of the many Russian oligarchs targeted by Western sanctions aimed at crippling Russia's economy.
The board isn't obligated to give shareholder rights back to Fridman if the EU sanctions are lifted, according to LetterOne's press release.
Fridman, who has a net worth of $10 billion according to Bloomberg, was one of the first Russian business leaders to speak out against the invasion of Ukraine.
In a letter to LetterOne employees, Fridman said that "war can never be the answer," and that "this crisis will cost lives and damage two nations who have been brothers for hundreds of years."
LetterOne, which describes itself as "an international investment business led by successful entrepreneurs and former CEOs and international businesspeople," held $22.3 billion in net assets as of 2020, according to its website.
‘They’re scared’: Wealthy Russians look to sell U.S. real estate everywhere from Fisher Island to Billionaires’ Row
Lance Lambert
Fri, March 4, 2022
President Joe Biden had a crystal clear message for Russian oligarchs: We're coming for your assets.
"The United States Department of Justice is assembling a dedicated task force to go after the crimes of the Russian oligarchs. We're joining with European allies to find and seize their yachts, their luxury apartments, their private jets. We're coming for your ill-begotten gains," Biden said Wednesday during the State of the Union. Just hours after that speech, French authorities announced they had seized a yacht linked to Russian oligarch Igor Sechin.
But it isn't just Russian oligarchs who are on edge. Wealthy non-oligarch Russians are also fretting asset seizure. In the decades since the Soviet Union collapsed, rich Russians have poured gobs of money into American real estate. Now they're worried they could get caught in the crossfire as the U.S. goes after Vladimir Putin's allies.
Dolly Lenz, one of the most sought-after luxury real estate brokers in America, tells Fortune she's getting inundated with inquiries from Russian clients who are considering selling their U.S. real estate holdings. Those luxury units—with a lot worth over $10 million—are in some of Miami’s and New York City’s most exclusive neighborhoods, including Billionaires’ Row in Manhattan.
"The heat is up. They're scared that they're going to have their real estate seized or potentially seized. Or linked to someone who is seized. They're scared to death of [guilt] by association," Lenz says. While she has yet to see a flood of Russian-owned luxury real estate hit the market, she says it's on the horizon. "There are already more inquiries, and that's how it starts. That's how we know [a flood of listings by Russians] is coming."
Not only are more ultrawealthy Russians looking to sell their properties, Lenz says, many want to cancel upcoming real estate projects and business deals, even if it means losing their deposit.
"We know of several deals where [Russian] buyers had put down money on new development—with significant deposits. And are deciding to not go through with the deal. That's pretty bad…They told us they will walk away from the deposit if the climate stays this way," Lenz says. In some cases, she says, they'd lose a deposit upwards of $15 million if they go through with exiting the real estate development deals.
Fri, March 4, 2022
President Joe Biden had a crystal clear message for Russian oligarchs: We're coming for your assets.
"The United States Department of Justice is assembling a dedicated task force to go after the crimes of the Russian oligarchs. We're joining with European allies to find and seize their yachts, their luxury apartments, their private jets. We're coming for your ill-begotten gains," Biden said Wednesday during the State of the Union. Just hours after that speech, French authorities announced they had seized a yacht linked to Russian oligarch Igor Sechin.
But it isn't just Russian oligarchs who are on edge. Wealthy non-oligarch Russians are also fretting asset seizure. In the decades since the Soviet Union collapsed, rich Russians have poured gobs of money into American real estate. Now they're worried they could get caught in the crossfire as the U.S. goes after Vladimir Putin's allies.
Dolly Lenz, one of the most sought-after luxury real estate brokers in America, tells Fortune she's getting inundated with inquiries from Russian clients who are considering selling their U.S. real estate holdings. Those luxury units—with a lot worth over $10 million—are in some of Miami’s and New York City’s most exclusive neighborhoods, including Billionaires’ Row in Manhattan.
"The heat is up. They're scared that they're going to have their real estate seized or potentially seized. Or linked to someone who is seized. They're scared to death of [guilt] by association," Lenz says. While she has yet to see a flood of Russian-owned luxury real estate hit the market, she says it's on the horizon. "There are already more inquiries, and that's how it starts. That's how we know [a flood of listings by Russians] is coming."
Not only are more ultrawealthy Russians looking to sell their properties, Lenz says, many want to cancel upcoming real estate projects and business deals, even if it means losing their deposit.
"We know of several deals where [Russian] buyers had put down money on new development—with significant deposits. And are deciding to not go through with the deal. That's pretty bad…They told us they will walk away from the deposit if the climate stays this way," Lenz says. In some cases, she says, they'd lose a deposit upwards of $15 million if they go through with exiting the real estate development deals.
Lenz also has Russian clients who are interested in off-loading property they own on Fisher Island. Located just off the shore of Miami, the island, which is dotted with luxury condominiums, has become an absolute hotbed for Russian billionaires and oligarchs. In 2017, a Russian buyer snagged the largest penthouse at Fisher Island’s Palazzo del Sol—a luxury condominium where Russian billionaire Aras Agalarov used to have a residence—for $31 million. Just last month, Russian hockey star Ilya Kovalchuk bought a $8.5 million condo at Fisher Island's Palazzo Della Luna. Those two buildings, along with the island's Palazzo Del Mare—where Russian businessman Igor Olegovich Nesterenko sold his five-bedroom unit last month for $21 million—in particular, are known for being sought-after by wealthy Russians.
But not everyone Fortune spoke with is seeing an influx of Russian luxury sellers. Stuart Siegel, global head of private office at Engel & Völkers Americas, says it's too early to tell if the Ukraine invasion will correspond with a wave of Russians selling their U.S. real estate holdings. He says economic and political instability in Russia could even encourage some Russians—at least those who aren't on federal watch lists—to cling to their American real estate holdings.
"In times of global turmoil, American real estate has always been viewed as a safe harbor," Siegel says.
This story was originally featured on Fortune.com
Issued on: 04/03/2022 -
01:33
French authorities seized four cargo vessels and one luxury yacht linked to oligarchs as the United States and other governments ramped up sanctions on Russia's super-rich on Thursday over Moscow's invasion of Ukraine.
French authorities seized four cargo vessels and one luxury yacht linked to oligarchs as the United States and other governments ramped up sanctions on Russia's super-rich on Thursday over Moscow's invasion of Ukraine.
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