Ukraine invasion: why US sanctions on Russia may hardly dent jet-setting lifestyles of Putin’s oligarchs

The measures aimed at the Russian president have spared oligarchs like Roman Abramovich and Alisher Usmanov who own superyachts, football club and luxury homes

Experts say Putin ‘owns the tycoons absolutely’ and some of them hold dual citizenship which complicates efforts to unilaterally seize their assets

Reading Time:6 minutes

Chelsea soccer club owner Roman Abramovich. Photo: AP

Published: 5:02pm, 26 Feb 2022Updated: 1:25pm, 9 Mar 2022

The term Russian oligarch conjures images of posh London mansions, gold-plated Bentleys and sleek superyachts in the Mediterranean, their decks draped with partiers dripping in jewels.

But the raft of sanctions on oligarchs announced by President Joe Biden this week in response to the invasion of Ukraine may do little to dim the jet-setting lifestyles of Russia’s ultra-rich and infamous – much less force a withdrawal of tanks and troops.

US sanctions target Russian President Vladimir Putin and a handful of individuals believed to be among his closest security advisers, including Foreign Minister Sergey Lavrov. But the list is just as notable for who isn’t on it – most of the top names from Forbes’ list of the richest Russians whose multibillion-dollar fortunes are now largely intertwined with the West, from investments in Silicon Valley start-ups to British Premier League soccer teams.

Citing the concerns of European allies, the US also didn’t impose what was seen as the harshest punishment at its disposal, banning Russia from SWIFT, the international financial system that banks use to move money around the world.

Biden said on Thursday the new US sanctions would nonetheless cripple Russia’s financial system and stymie its economic growth by targeting Russia’s biggest banks, which the Treasury Department said holds nearly 80 per cent of all the country’s banking assets.

“Putin is the aggressor. Putin chose this war. And now he and his country will bear the consequences,” Biden said, laying out measures that will “impose severe cost on the Russian economy, both immediately and over time.”