KYIV. UkraineGate , 27 , May , 2022 | Society.
Western allies are considering whether to allow Russian oligarchs to redeem themselves from sanctions and use the money to rebuild Ukraine, citing officials familiar with the issue, reports AP .
Details
Deputy Prime Minister and Minister of Finance of Canada Christia Freeland suggested the idea at a meeting of G7 finance ministers in Germany last week. According to one official, Freeland raised the issue after the oligarchs talked to her about it.
The official said that Ukrainians were aware of the discussions. He added that the West is in favor of prominent oligarchs separating themselves from Russian President Vladimir Putin and at the same time securing funding for Ukraine.
The proposal was a violation in the context of providing Ukraine with additional money and how frozen funds and assets of oligarchs can be a source of funding.
For now, it’s just an idea, the official said, but Western allies have shown interest.
EU officials have already spoken of the need to find new ways to confiscate assets and provide money to Ukraine. The new proposal, it said, could help remove legal barriers to power in countries such as Germany, where the bar for confiscating frozen assets is very high. By voluntarily giving up some of their wealth abroad, the oligarchs would relieve Western governments of possible embarrassment by the refusal of their own courts.
Addition
Western countries have imposed a series of sanctions against the oligarchs in response to Russia’s invasion of Ukraine. Many of their multibillion-dollar fortunes are linked to the West, from investing in Silicon Valley startups to British Premier League football teams.
Former Chelsea owner Roman Abramovich, who has been sanctioned over his ties to Putin, has said that the net proceeds from the sale of the football team will be donated to victims of the war in Ukraine. The deal to sell the football club has been delayed as the British government makes sure Abramovich does not benefit from the forced sale.
A study of Russian oligarchs published in 2017 by the US National Economic Bureau found that wealthy Russians hold up to $ 800 billion in the UK, Switzerland, Cyprus and other offshore banking centers.
Attacks on oligarchs are also affecting Putin, and not just because it could reduce his support for financially privileged Russians, said former CIA officer Alex Finley, who is monitoring the impact of sanctions on Russian oligarchs.
“Many of these guys are his wallet,” Finley said of the Russian oligarchs. “They help launder his money, launder their own money, and yachts and other assets are places to store that money,” he added.
Source: Ukrgate