Hit the wallet directly. Even the safe. This is the objective of the European Union, which has deployed numerous sanctions against Russia since the invasion of Ukraine on February 24, 2022. Among these are the freezing of assets and the prohibition of entry into the territory of 680 people, including the Russian President, Vladimir Putin, and 53 entities. Twenty-two additional people have been added to this blacklist, Wednesday, March 2, indicates the European Union.
These measures were initially introduced in March 2014 and greatly tightened at the end of February 2022. They are valid until March 15, 2022, and renewable every six months. But what are they really and how are they applied? Franceinfo takes stock.
A freezing of assets that can turn into a seizure
The “freezing” consists of blocking bank accounts and other financial assets, as specified on the website of the European Data Protection Supervisor. The freezing of funds, explains the Financial Markets Authority, aims to “prevent any movement, transfer, modification, use or manipulation of funds which would result in a change in their volume, amount, location, ownership”. So once frozen, it is impossible to sell property, transfer or withdraw money, sell shares. “Iand Freezing property or bank assets does not mean that we remove the property, recalls Olivier Dussopt.
“If we want the freeze to be effective, we need to know what is frozen. This allows us to clearly discern what belongs to the people sanctioned. If, during a freeze, fraud is discovered, we open procedures”, explained Olivier Dussopt, Minister Delegate in charge of Public Accounts to the Minister of the Economy, on franceinfo, Saturday March 5.
But the sanction will not stop at freezing, warned Bruno Le Maire, Minister of the Economy, guest on franceinfo Tuesday March 1. “We’re going to make sure it’s not just an asset freeze, it’s also an asset seizure.”
However, in the case of a seizure, notes Bruno Le Maire,“you lose ownership of that apartment, that yacht, or that house.” But this entry cannot be made “only in the context of criminal proceedings at the end of which a final confiscation may be made”, specifies the Club des juristes, a specialized think-tank. On the contrary, the freezing of assets requires only an administrative procedure.
A French “task force” to locate assets
Bruno Le Maire did not specify how many people affected by these sanctions were in France. But he mentioned a “task force” (an intervention group) establishment“to identify all the Russian oligarchs” in France.
Several dozen agents, and up to several hundred including those punctually mobilized throughout the territory, may be concerned, for example to carry out a seizure, specifies the Ministry of the Economy to AFP. The objective: to identify financial assets (bank accounts, investments, etc.) and property (real estate, boats, etc.) belonging to more than 500 people and entities under European sanctions.
In France, a first yacht immobilized in La Ciotat
France has so far blocked five boats: four freighters and a yacht. Symbols of the massive enrichment of senior Russian political and economic leaders, yachts are part of the property they hold abroad.
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The first immobilized yacht is L’Amore Vero, estimated at 110 million euros, seized Thursday in the French port of La Ciotat (Bouches-du-Rhône). The 86-meter-long mega-yacht is owned by a company linked to the boss of Russian oil giant Rosneft, Igor Sechin. Considered one of the leaders of the “siloviki” clan, which designates senior officials from the security services, Igor Setchin has been a faithful of the master of the Kremlin since the 1990s.
Abroad, detentions and extension of sanctions to the family
In Italy. A first yacht, the Lady M, was seized on Friday, according to the government. It belongs to the Russian steel magnate Alexei Mordashov. This close friend of Vladimir Putin was targeted by EU sanctions. The value of the ship is estimated at 65 million euros. According to the Italian newspaper La Stampa (article in Italian)a second yacht, the Lenaowned by Gennady Timchenko, billionaire co-founder of a commodity trading company (Guvnor), was seized in Sanremo, in the northwest of the country.
UK. In addition to the end of the “golden visa” system, which allowed very wealthy investors, especially Russians, to obtain a residence permit quickly, the assets of Russian billionaires have been frozen. It’s the case for Alisher Usmanov, in Uzbekistan, already sidelined by English football club Everton. Former Deputy Prime Minister Igor Shuvalov, head of the Russian development bank VEB, is also concerned. Access to British financial systems, but also American, is blocked to them.
In the USA. The list of people targeted by the asset freeze was expanded on Thursday. Theynow extends to the members of my family of each person concerned, to prevent them from transferring their property to their loved ones. Among them, Nikolai Tokarev, CEO of Transneft, a heavyweight in the oil and gas sector, and Sergei Chemezov, boss of the defense industry conglomerate Rostec.
Joe Biden promised, Tuesday evening during a speech in Congress, to track down the “ill-gotten gains” Russian oligarchs and seize their “yachts, luxury apartments and private jets”. The US Department of Justice on Wednesday created a cell of investigators responsible for prosecuting “corrupt Russian oligarchs” and those who help them to circumvent the sanctions, but also to seize their luxury goods.