The United States has escalated its economic pressure on Russia by imposing sanctions on prominent Russian businessmen, including the co-founders of Alfa Group, Mikhail Fridman and Pyotr Aven. The sanctions also target the Russian Union of Industrialists and Entrepreneurs (RSPP), according to a statement from the U.S. Treasury.
In a move that signifies the most stringent restrictions, the Office of Foreign Assets Control of the U.S. Treasury has included Fridman, Aven, German Khan, and Alexei Kuzmichev, all former shareholders of Alfa-Bank, in the SDN list. This decision, however, will not affect the LetterOne investment group founded by these entrepreneurs, as the company does not belong to them by 50 percent or more.
The sanctions come in the wake of personal sanctions already imposed on Fridman and Aven by the European Union and Great Britain since February 2022. Khan and Kuzmichev faced similar sanctions in March 2022.
According to Russian Forbes, at the time of the U.S. sanctions announcement, Friedman was the ninth richest businessman in Russia. As of August 11, his fortune is estimated at $12.6 billion, according to Forbes, with Khan’s fortune at $8.2 billion, Kuzmichev at $6.4 billion, and Aven at $4.2 billion.
The sanctions have had personal ramifications for the targeted individuals. In July, Friedman’s lawyer stated that the EU sanctions had “destroyed” his life. In September 2022, Bloomberg reported that British sanctions forced Herman Khan to leave London, where he had resided for about a decade, and return to Moscow. Among the four business partners, only Khan has returned to Russia, while Fridman, Aven, and Kuzmichev remain abroad.
The EU justified its sanctions on Fridman and Aven, alleging that they “benefited” from connections in the Russian government and supported actions or policies that “undermined the sovereignty of Ukraine.” The billionaires countered by deeming the EU decision unreasonable and potentially harmful to business. Both resigned from the board of directors of Alfa-Bank due to the sanctions and filed a lawsuit against the Council of the EU with the European Court of Justice in Luxembourg in May.
The U.S. sanctions represent a significant escalation in the ongoing economic warfare against Russia and its influential business figures. The move is likely to have far-reaching implications for international relations, economic diplomacy, and the global financial system. It also underscores the complex interplay between politics, business, and law in the rapidly evolving geopolitical landscape.
