In March 2018, the United States imposed sanctions on 19 Russian oligarchs and 12 companies they own or control. The objective of these sanctions was to punish Russia for its interference in the 2016 U.S. presidential election and its military aggression in Crimea and Ukraine.
This list of Russian oligarchs sanctioned by the U.S. Treasury Department includes some of Russia’s wealthiest and most influential business people, including aluminium magnate Oleg Deripaska and Chelsea Football Club owner Roman Abramovich. So, who do U.S. sanctions target these Russian oligarchs? Let’s take a closer look.
Also read: Anatoly Sedykh: The Great Russian Oligarch
Image credit:pixabay.com
Overview Of The Russian Oligarchs And Their Role In Russian Politics
The Russian oligarchs are a class of wealthy businessmen who have amassed their fortunes primarily through privatizing state-owned assets in the 1990s. Many of these individuals have close ties to Vladimir Putin and his inner circle and are widely believed to wield significant political power within Russia.
In 2018, the U.S. Treasury Department imposed sanctions on several Russian oligarchs in response to Russian interference in the 2016 U.S. presidential election. The sanctions targeted seven oligarchs and 12 companies they own or control, freezing their assets and barring them from doing business with U.S. entities.
The sanctioned individuals include Oleg Deripaska, a close ally of Putin; Viktor Vekselberg, another billionaire with ties to the Kremlin; and Andrey Kostin, the CEO of state-owned bank VTB.
All three men have been deeply involved in Russian politics and accused of various human rights cases of abuse. While the sanctions have impacted the Russian economy, it remains to be seen whether they will be sufficient to change Putin’s behaviour or bring about any meaningful reform in Russia.
Also read: What Is Alexander Neshs Net Worth?
The Sanctions Against Them And How They Were Implemented
In 2018, the United States sanctioned several Russian oligarchs and businesses in response to Russia’s “malign activity” worldwide. The sanctions targeted wealthy businesspeople with close ties to Russian President Vladimir Putin and several Russian companies.
The move was meant to pressure Putin’s allies and inner circle or family members, significantly impacting the Russian economy. The oligarchs sanctioned were among the wealthiest men in Russia, and their companies were some of the biggest in the country that later did the invasion of Ukraine.
The sanctions hit them hard, freezing their assets and preventing them from doing business with western firms and the European Union. As a result, the Russian economy took a significant hit, and Putin’s approval ratings fell sharply.
In response to the sanctions, Putin has been working to rebuild ties with western countries and has made some concessions on issues like arms control. However, the sanctions have taken a toll on the Russian economy, and it is unclear how long they will last.
Reaction From The Oligarchs And The Russian Government
The United States government has recently taken action against Russian oligarchs by sanctioning them. This has caused a reaction among the oligarchs themselves as well as from the Russian Federation.
The reason for the sanctions is that these oligarchs are critical to the Russian economy, and their sanctions will significantly impact them. In response to the sanctions, some oligarchs have attempted to distance themselves from the Russian government, while others have attempted to increase their ties.
The Russian government has also reacted to the sanctions by trying to protect the oligarchs from further sanctions. This includes pressure on Western firms doing business with Russia and increasing its economic ties with China.
While it is still too early to tell how effective these measures will be, it is clear that the sanctions have a significant impact on both the oligarchs and the Russian government.
Also read: Alexander Abramoy Oligarch
Image credit:pixabay.com
What This Means For Russia’s Economy And Its Relationship With Other Countries
The U.S. sanctions have significantly impacted the Russian economy. The ruble losing nearly 10% of its value against the dollar since April 2018. The sanctions have also caused tensions between Russia and other countries.
In July 2018, for example, Britain threatened to impose “substantial” financial penalties on Russia. If it did not provide a “complete account” of how a nerve agent was used to poison a former Russian spy living in England.
The poisoning triggered a diplomatic crisis between Britain and Russia. With both countries expelling dozens of diplomats from their respective embassies. The U.S. sanctions on Russian oligarchs will further complicate relations between Russia and Western countries.
Also read: Russian Oligarchs In California
How Will This Impact Putin’s Popularity In Russia?
The sanctions were placed on these businessmen by the United States government. It will have far-reaching effects on many aspects of the Russian elites’ life and politics.
The businesses owned by the oligarchs will feel the first and most immediate effect. Many of these businesses are involved in international trade and will now be cut off from the American market. This will likely lead to a sharp decline in profits, and some businesses may even be forced to close their doors.
The sanctions will also batter the oligarchs themselves. Many of them have extensive investments in the United States,. They will now be cut off from that source of income. In addition, their ability to travel to the United Nations general assembly will be severely restricted.
The sanctions will also have an impact on Russian politics. Vladimir Putin has been relying on the support of the oligarchs to bolster his popularity. But that support will now vanish.
In addition, Putin’s opponents will use the sanctions as proof that his policies are harming Russia’s economy. This could lead to a decline in Putin’s popularity and an increase in support for his opponents. In short, the sanctions against the Russian oligarchs will have far-reaching consequences for Russia.
The Russian Oligarchs Who The U.S. Government Has Sanctioned
Many of them made their fortunes in the 1990s when the Russian economy was in chaos. Private ownership of businesses was allowed for the first time. Mikhail Khodorkovsky, Vladimir Gusinsky, and Roman Abramovich are among the most well-known oligarchs.
They have become increasingly involved in politics in recent years. Using their considerable wealth to support Vladimir Putin and his United Russia party. However, they have also been accused of corruption and human rights abuses.
In April 2018, the U.S. Treasury Department imposed sanctions on seven Russian oligarchs and 12 companies they own or control. The oligarchs are now cut off from the global financial system, and their assets are frozen.
This action was taken in response to the Russian leader’s interference in the 2016 U.S. elections and other “malign activity” such as supporting the Syrian regime and violating international law. The sanctions have significantly impacted the oligarchs’ businesses, but they continue to support Putin and his policies.
Also read: Rich Russian Oligarch’s Wives
Image credit:pixabay.com
Conclusion
The Russian oligarchs sanctioned by the U.S. are a varied group with diverse interests. While some may have ties to Putin or be involved in questionable activities, others appear to be legitimate business people who want to conduct business without interference from the government.
It will be interesting to see how this plays out in the coming months and whether more oligarchs will be targeted for sanctions.