One of the world’s biggest accountancy firms, PwC, helped Russia’s “richest” oligarch to transfer hundreds of millions in assets as sanctions by the European Union (EU) loomed after the Russian invasion of Ukraine, according to an investigation report. 
 
Alexei Mordashov's case is among several uncovered in a document leak being called Cyprus Confidential, said a report by the Guardian.

The documents were leaked by an anonymous source to the International Consortium of Investigative Journalists (ICIJ) and Germany’s Paper Trail Media.&nbsp;

<h2>Cyprus Confidential</h2>

In what is said to be the largest-ever financial data leak from Cyprus, a cache of 3.6 million files suggests that PwC Cyprus and other advisers played a role in managing transactions as Russian forces launched the invasion of Ukraine in February 2022.&nbsp;

The cache of millions of files sheds light on the blue-chip accountancy firm’s work for the Kremlin-connected mining and banking tycoon, Alexei Mordashov, raising serious questions about PwC Cyprus’ role in a potential sanctions breach.

According to the Guardian, the files contain emails of PwC Cyprus staff discussing transfers of about a third of the shares in Tui, Europe’s largest travel company, to Mordashov’s life partner.&nbsp;

It is also reported that PwC Cyprus and other advisers helped one of Russia’s most powerful oligarchs attempt to transfer $1.2 billion in a public company on the day he was placed under EU sanctions.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/explained-why-businesses-are-pulling-money-out-at-a-fast-rate-from-china-658658">Explained: Why businesses are pulling money out at a fast rate from China?</a>

The documents, as per the Guardian, also showed $652,629 worth of undisclosed payments from companies linked to the same oligarch to an influential German journalist who is said to be a &nbsp;leading expert on Russia, to support the publication of two books about President Vladimir Putin.

Since the beginning of what Russia calls its “special military operation” in Ukraine, western countries have imposed the largest-ever package of sanctions against Moscow and its business elite, but recently the focus has shifted to ensuring the enforcement of those restrictions.&nbsp;

The leak also revealed Cyprus’ role as a gateway into Europe for the Kremlin-connected elite as out of 104 Russian billionaires&nbsp;that the Forbes magazine identified this year two-thirds appeared alongside family members as clients of the island’s professional service providers.

According to the reports, 71 Russian clients have come under sanctions since February 2022. However, advisers have reportedly said that many of these relationships have been terminated.&nbsp;

<h2>Cyprus govt vows to respond with ‘zero-tolerance approach’</h2>

Following the leak and the report by the Guardian, the Cypriot government has vowed to take a &nbsp;“zero-tolerance approach” to sanctions violations. A spokesperson said Cyprus was receiving technical support from the British government to create a sanctions implementation unit next year.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/russias-rouble-rises-as-cash-inflow-surges-amidst-oil-export-recovery-658655">Russia's rouble rises as cash inflow surges amidst oil export recovery&nbsp;</a>

Additionally, the country has also joined an EU cross-border project on making sanctions effective, reported the Guardian.&nbsp;

The exact rules around the timeline and enforcement of the sanctions against the Russian president, officials, and its oligarchs are now under scrutiny, both in Cyprus and across Europe.&nbsp;

The Cyprus finance ministry said it had launched a criminal investigation into the transfer of Mordashov’s stake in Tui. “We are aware of Tui share transfers and a criminal investigation is being carried out,” said a spokesperson for the ministry, as quoted by the Guardian, when asked about the report.&nbsp;

Mordashov and PwC told the British media outlet they were unaware of the criminal investigation.

One of the world’s biggest accountancy firms, PwC, helped Russia’s “richest” oligarch to transfer hundreds of millions in assets as sanctions by the European Union (EU) loomed after the Russian invasion of Ukraine, according to an investigation report.

One of the world’s biggest accountancy firms, PwC, helped Russia’s “richest” oligarch to transfer hundreds of millions in assets as sanctions by the European Union (EU) loomed after the Russian invasion of Ukraine, according to an investigation report. Alexei Mordashov's case is among several uncovered in a document leak being called Cyprus Confidential, said a report by the Guardian. The documents were leaked by an anonymous source to the International Consortium of Investigative Journalists (ICIJ) and Germany’s Paper Trail Media. Cyprus Confidential In what is said to be the largest-ever financial data leak from Cyprus, a cache of 3.6 million files suggests that PwC Cyprus and other advisers played a role in managing transactions as Russian forces launched the invasion of Ukraine in February 2022. The cache of millions of files sheds light on the blue-chip accountancy firm’s work for the Kremlin-connected mining and banking tycoon, Alexei Mordashov, raising serious questions about PwC Cyprus’ role in a potential sanctions breach. According to the Guardian, the files contain emails of PwC Cyprus staff discussing transfers of about a third of the shares in Tui, Europe’s largest travel company, to Mordashov’s life partner. It is also reported that PwC Cyprus and other advisers helped one of Russia’s most powerful oligarchs attempt to transfer $1.2 billion in a public company on the day he was placed under EU sanctions. ALSO READ | Explained: Why businesses are pulling money out at a fast rate from China? The documents, as per the Guardian, also showed $652,629 worth of undisclosed payments from companies linked to the same oligarch to an influential German journalist who is said to be a leading expert on Russia, to support the publication of two books about President Vladimir Putin. Since the beginning of what Russia calls its “special military operation” in Ukraine, western countries have imposed the largest-ever package of sanctions against Moscow and its business elite, but recently the focus has shifted to ensuring the enforcement of those restrictions. The leak also revealed Cyprus’ role as a gateway into Europe for the Kremlin-connected elite as out of 104 Russian billionaires that the Forbes magazine identified this year two-thirds appeared alongside family members as clients of the island’s professional service providers. According to the reports, 71 Russian clients have come under sanctions since February 2022. However, advisers have reportedly said that many of these relationships have been terminated. Cyprus govt vows to respond with ‘zero-tolerance approach’ Following the leak and the report by the Guardian, the Cypriot government has vowed to take a “zero-tolerance approach” to sanctions violations. A spokesperson said Cyprus was receiving technical support from the British government to create a sanctions implementation unit next year. ALSO READ | Russia's rouble rises as cash inflow surges amidst oil export recovery Additionally, the country has also joined an EU cross-border project on making sanctions effective, reported the Guardian. The exact rules around the timeline and enforcement of the sanctions against the Russian president, officials, and its oligarchs are now under scrutiny, both in Cyprus and across Europe. The Cyprus finance ministry said it had launched a criminal investigation into the transfer of Mordashov’s stake in Tui. “We are aware of Tui share transfers and a criminal investigation is being carried out,” said a spokesperson for the ministry, as quoted by the Guardian, when asked about the report. Mordashov and PwC told the British media outlet they were unaware of the criminal investigation.

PwC Cyprus helped Russian oligarch move $1.2 billion after Ukraine invasion despite sanctions: Report

US President Joe Biden's son Hunter Biden's troubles continue to mount. House Oversight Committee Chairman James Comer on Wednesday (August 9), released a 19-page memo revealing that Hunter and his business associate received millions in payments from Russian and Kazakhstani oligarchs when Biden Sr served as the country's vice president.

US President Joe Biden's son Hunter Biden's troubles continue to mount. House Oversight Committee Chairman James Comer on Wednesday (August 9), released a 19-page memo revealing that Hunter and his business associate received millions in payments from Russian and Kazakhstani oligarchs when Biden Sr served as the country's vice president. The memo names Russian oligarch Yelena Baturina and Kazakhstani oligarch Kenes Rakishev as well as a Ukrainian energy company, known as Burisma Holdings. According to screenshots of redacted bank records added in the memo, Hunter received millions in payments from all three. Later on, VP Biden attended dinners with Baturina, Rakishev and a representative from Burisma. "Then-Vice President Biden joined approximately 20 phone calls on speakerphone with Hunter Biden’s foreign business associates and attended dinners with foreign oligarchs who paid huge sums of money to Hunter Biden," the memo reads. Bank records show that Baturina, the widow of former Moscow Mayor Yury Luzhkov, transferred $3.5 million to Rosemont Seneca Thornton (a company founded by Hunter) on 14 February 2014. Notably, Hunter's longtime business partner Devon Archer confirmed the payment during his interview last week. Afterwards, a total of $2.7 million was wired to Rosemont Seneca Bohai - another company that Hunter co-owned with Archer. WATCH | Gravitas: Did White House influence Hunter Biden case? During a press conference, after the release of the memo, Comer said Hunter sold his father and his position as 'the brand' to reap millions from oligarchs. “During Joe Biden’s vice presidency, Hunter Biden sold him as ‘the brand’ to reap millions from oligarchs in Kazakhstan, Russia, and Ukraine. It appears no real services were provided other than access to the Biden network, including Joe Biden himself," said Comer. "And Hunter Biden seems to have delivered. This is made clear by meals at Café Milano where then-Vice President Joe Biden dined with oligarchs from around the world who had sent money to his son," he added. Also read | Hunter Biden admits receiving $664K from company backed by Chinese Communist Party White House refutes the claims Despite the revelations by the GOP lawmaker, the White House continues to assert that Comer’s investigation is designed for political purposes. Washington says that GOP is yet to find any evidence that Joe Biden directly profited from his son's foreign business dealings. “Today House Republicans on the Oversight Committee released another memo full of years-old ‘news,’ innuendo, and misdirection – but notably missing, yet again, is any connection to President Biden," said White House spokesperson Ian Sams. (With inputs from agencies) WATCH WION LIVE HERE:

Hunter Biden sold his father as 'the brand' to oligarchs, House Oversight memo claims

The United States on Wednesday increased the ambit of sanctions imposed on Russian oligarchs and related entities for supporting Moscow’s invasion of ukraine. The US Treasury and State departments ticked off nearly 120 targets to squeeze Russia for its ongoing war with Ukraine.

The United States on Wednesday increased the ambit of sanctions imposed on Russian oligarchs and related entities for supporting Moscow’s invasion of ukraine. The US Treasury and State departments ticked off nearly 120 targets to squeeze Russia for its ongoing war with Ukraine. Russian billionaire businessman Alisher Usmanov was one of the main targets in the new list. It is believed that Usmanov is extremely close to Russian President Vladimir Putin and Dmitry Medvedev, the former Russian president. The Treasury Department accused him of having a "wide network of businesses in financial safe havens and family members through which to conduct financial transactions, enabling him to potentially circumvent sanctions". USM Holdings, Miramonte Investments, Savoler Development and Windfall Properties amongst others were the companies targeted by the department. Megafon, one of Russia's big four telecoms operators has also been named on the list. Up until now, the US had stopped short of sanctioning Russia's telecom infrastructure. "As the Kremlin seeks ways around the expansive multilateral sanctions and export controls imposed on Russia for its war against Ukraine, the United States and our allies and partners will continue to disrupt evasion schemes that support Putin on the battlefield," said US Treasury Under Secretary Brian Nelson. Firms in ally nations targetted Additionally, Cyprus-based "financial fixers" who helped Usmanov as well as fellow Russian billionaire Roman Abramovich were also made privy to the fresh sanctions. Firms in Hong Kong, Turkey and the UAE which have been allegedly selling drones and other electronic gadgets to the Russian defence sector were also slapped with sanctions. ALSO READ | US announces new sanctions on Russian banks, defence sector, blocks semiconductor access Experts stated that sanctioning Turkish and UAE firms suggested that even partner nations were not immune from US action if they attempted to support Russia. The US Treasury in a statement added that Budapest-based International Investment Bank (IIB) which has majority-Russian ownership was also brought under the sanctions list. "IIB's presence in Budapest enables Russia to increase its intelligence presence in Europe, opens the door for the Kremlin’s malign influence activities in Central Europe and the Western Balkans, and could serve as a mechanism for corruption and illicit finance, including sanctions violations," it said. WATCH | US releases new Russia sanctions list, top energy, telecom firm prime target in list × Ever since Russia invaded Ukraine last year, the US has actively imposed sanctions on Russian companies as well as oligarchs. It has also urged countries across to impose sanctions and stop any financial dealing with Moscow. (With inputs from agencies) WATCH WION LIVE HERE:

US releases fresh sanctions list targeting firms, individuals supporting Russia's invasion of Ukraine

Italy has busted an underground banking network operated by China. This network was helping Chinese citizens, Italian mafia & Russian oligarchs launder money. Molly Gambhir reports.

Gravitas: Italy exposes China's underground banking network

The United Kingdom’s National Crime Agency (NCA), on Saturday, said that they have arrested three people including a “wealthy Russian businessman” on suspicion of money laundering. This comes amid the country’s crackdown on potential criminal activity by oligarchs. Meanwhile, Moscow’s embassy in London has reportedly demanded information on the arrests.&nbsp;

According to the NCA, more than 50 officers from its Combatting Kleptocracy Cell (CKC) were involved in the operation and arrested three men, from their “multi-million-pound residence” in London, on Thursday. The 58-year-old, “wealthy Russian businessman” has been arrested on suspicion of money laundering, conspiracy to commit perjury, and defrauding the Home Office.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/will-not-accept-this-russia-rejects-dangerous-oil-price-cap-imposed-by-eu-g7-and-australia-539785">'Will not accept this': Russia rejects 'dangerous' oil price cap imposed by EU, G7 and Australia</a>

Meanwhile, a 35-year-old man was arrested for obstructing an officer as he was about to leave with a bag containing large sums of money as well as on suspicion of money laundering. The third suspect, a 39-year-old who is said to be the ex-boyfriend of the businessman's current partner, was detained at the residence on similar charges. However, the three individuals, whose details remain undisclosed by the NCA, are out on bail.

The NCA also recovered a number of digital devices as well as a significant amount of cash after they searched the property, said the crime agency. According to the NCA Director General, Graeme Biggar, the CKC, established earlier this year, is having “significant success” in its investigations of potential crimes by oligarchs including those who are supporting, enabling and linked to the Russian government.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/oligarchs-feel-the-pinch-of-sanctions-lose-over-126-billion-457654">Oligarchs feel the pinch of sanctions, lose over $126 billion</a>

“We will continue to use all the powers and tactics available to us to disrupt this threat,” said Biggar, in a statement. The NCA said they have conducted nearly 100 such “disruptions”, a term used to describe an action of removing or reducing a criminal threat, against Russian President Vladimir Putin-linked elites and their enablers.&nbsp;

The action taken by the NCA also included account freezing orders (AFOs) over accounts held by people closely linked to sanctioned Russians, said Britain’s crime agency. Notably, the UK has sanctioned over 1,000 people and more than 120 entities, in light of the Russian invasion of Ukraine.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/russia-ukraine-war-moscow-says-vladimir-putin-will-visit-east-ukraine-in-due-time-539756">Russia-Ukraine war: Moscow says Vladimir Putin will visit east Ukraine 'in due time'</a>

Meanwhile, the Russian embassy in London asked Britain's Foreign Office to give them details about the reasons and circumstances under which the three unidentified people were held as well as the conditions they were held under, said a report by Reuters citing Russian news agencies.&nbsp;

(With inputs from agencies) 
&nbsp;

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The United Kingdom’s National Crime Agency (NCA), on Saturday, said that they have arrested three people including a “wealthy Russian businessman” on suspicion of money laundering.

The United Kingdom’s National Crime Agency (NCA), on Saturday, said that they have arrested three people including a “wealthy Russian businessman” on suspicion of money laundering. This comes amid the country’s crackdown on potential criminal activity by oligarchs. Meanwhile, Moscow’s embassy in London has reportedly demanded information on the arrests. According to the NCA, more than 50 officers from its Combatting Kleptocracy Cell (CKC) were involved in the operation and arrested three men, from their “multi-million-pound residence” in London, on Thursday. The 58-year-old, “wealthy Russian businessman” has been arrested on suspicion of money laundering, conspiracy to commit perjury, and defrauding the Home Office. ALSO READ | 'Will not accept this': Russia rejects 'dangerous' oil price cap imposed by EU, G7 and Australia Meanwhile, a 35-year-old man was arrested for obstructing an officer as he was about to leave with a bag containing large sums of money as well as on suspicion of money laundering. The third suspect, a 39-year-old who is said to be the ex-boyfriend of the businessman's current partner, was detained at the residence on similar charges. However, the three individuals, whose details remain undisclosed by the NCA, are out on bail. The NCA also recovered a number of digital devices as well as a significant amount of cash after they searched the property, said the crime agency. According to the NCA Director General, Graeme Biggar, the CKC, established earlier this year, is having “significant success” in its investigations of potential crimes by oligarchs including those who are supporting, enabling and linked to the Russian government. ALSO WATCH | Oligarchs feel the pinch of sanctions, lose over $126 billion “We will continue to use all the powers and tactics available to us to disrupt this threat,” said Biggar, in a statement. The NCA said they have conducted nearly 100 such “disruptions”, a term used to describe an action of removing or reducing a criminal threat, against Russian President Vladimir Putin-linked elites and their enablers. The action taken by the NCA also included account freezing orders (AFOs) over accounts held by people closely linked to sanctioned Russians, said Britain’s crime agency. Notably, the UK has sanctioned over 1,000 people and more than 120 entities, in light of the Russian invasion of Ukraine. ALSO READ | Russia-Ukraine war: Moscow says Vladimir Putin will visit east Ukraine 'in due time' Meanwhile, the Russian embassy in London asked Britain's Foreign Office to give them details about the reasons and circumstances under which the three unidentified people were held as well as the conditions they were held under, said a report by Reuters citing Russian news agencies. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UK: Russian businessman among three arrested over suspected money laundering

On Tuesday, jailed Kremlin critic Alexei Navalny called for a systematic crackdown on Russian oligarchs who have been backing Vladimir Putin's military campaign in Ukraine.

Calling attention to the pre-existing sanctions by the United States, European Union or the United Kingdom on some of Russia's wealthiest, Navalny pointed out that only 46 of the Forbes list of Russia's 200 richest people have been hit by western sanctions.

Watch |&nbsp;Gravitas: Putin promises to arm Russia's allies

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"That doesn't sound very much like an all-out war on Putin's oligarchs to me," he remarked.

He said that Alexei Miller, the CEO of the Russian gas giant Gazprom, was still exempt from EU sanctions.

Another name he pointed out was that of Roman Abramovich, a well-known Russian businessman and former owner of the Chelsea football club. Navalny said that despite the fact that Abramovich's enterprises supply "metal to the Russian defence ministry" has so far evaded US sanctions.

Also read |&nbsp;<a href="https://www.wionews.com/world/ukraine-nuclear-operator-reports-most-powerful-cyberattack-since-the-start-of-the-russian-invasion-507577" hreflang="en">Ukraine nuclear operator reports 'most powerful cyberattack since the start of the Russian invasion'</a>

If, despite considerable chatter, "we&nbsp;still don't use the stick against them, while allowing them to keep all their carrots", said Navalny,&nbsp;"we can't expect a split among Putin's elite on the issue of war".

"I call on all voters and legislators in the EU, UK, US and Canada to put pressure on the executive branch and force them to stop engaging in demagoguery and urgently get down to massive personal sanctions against Putin's thieves."

Also read |&nbsp;<a href="https://www.wionews.com/world/finland-limits-visas-to-russians-as-tourists-use-it-as-a-gateway-to-europe-amid-sanctions-507564" hreflang="en">Finland limits visas to Russian tourists who amid sanctions were using nation as a gateway to Europe</a>

Navalny, who is serving a nine-year prison sentence in a penal colony near the Russian town of Vladimir on embezzlement charges, also advocated for a "20-year" travel restriction on European Union, American, and British territories for anyone who backs the Russian military incursion in Ukraine.

On Tuesday, jailed Kremlin critic Alexei Navalny called for a systematic crackdown on Russian oligarchs who have been backing Vladimir Putin's military campaign in Ukraine.

On Tuesday, jailed Kremlin critic Alexei Navalny called for a systematic crackdown on Russian oligarchs who have been backing Vladimir Putin's military campaign in Ukraine. Calling attention to the pre-existing sanctions by the United States, European Union or the United Kingdom on some of Russia's wealthiest, Navalny pointed out that only 46 of the Forbes list of Russia's 200 richest people have been hit by western sanctions. Watch | Gravitas: Putin promises to arm Russia's allies "That doesn't sound very much like an all-out war on Putin's oligarchs to me," he remarked. He said that Alexei Miller, the CEO of the Russian gas giant Gazprom, was still exempt from EU sanctions. Another name he pointed out was that of Roman Abramovich, a well-known Russian businessman and former owner of the Chelsea football club. Navalny said that despite the fact that Abramovich's enterprises supply "metal to the Russian defence ministry" has so far evaded US sanctions. Also read | Ukraine nuclear operator reports 'most powerful cyberattack since the start of the Russian invasion' If, despite considerable chatter, "we still don't use the stick against them, while allowing them to keep all their carrots", said Navalny, "we can't expect a split among Putin's elite on the issue of war". "I call on all voters and legislators in the EU, UK, US and Canada to put pressure on the executive branch and force them to stop engaging in demagoguery and urgently get down to massive personal sanctions against Putin's thieves." Also read | Finland limits visas to Russian tourists who amid sanctions were using nation as a gateway to Europe Navalny, who is serving a nine-year prison sentence in a penal colony near the Russian town of Vladimir on embezzlement charges, also advocated for a "20-year" travel restriction on European Union, American, and British territories for anyone who backs the Russian military incursion in Ukraine.

Jailed Kremlin critic Alexei Navalny calls for 'an all-out war on Putin's oligarchs'

Six Russian Oligarchs have died by suicide since the beginning of this year. Those dead include 4 billionaires and two executives.

Six prominent Russian tycoons dies in mysterious circumstances this year

Dubai seems to be emerging as a haven for Russian oligarchs and billionaires who are fleeing their country to avoid the West's sanctions in the wake of President Vladimir Putin’s Ukraine war.

According to a BBC report, property purchases in Dubai by Russians surged by 67 per cent in the first three months of 2022, with many more billionaires expected to arrive UAE in the upcoming months.

The report, quoting business leaders, has estimated that hundreds of thousands of people have left Russia over the last two months, although there are no exact figures to back is number.

Apart from that, many multinational companies and Russian start-ups have also relocated their employees to the UAE.

Fuad Fatullev, co-founder of WeWay - a blockchain technology company that had offices in Russia and Ukraine, has shifted hundreds of employees to Dubai.

"The war had a massive impact on our operations. We couldn't continue [as we were] as we had to move hundreds of people outside of Ukraine and Russia," Fuad, who is a Russian citizen, told BBC.

The reason behind this sudden exodus stems from the fact that UAE has so far not condemned Russia for its invasion and that it has been issuing visas to non-sanctioned Russians, unlike many Western countries who have restricted their arrival.

A Russian economist, whose name was not divulged by the BBC, claimed that as many as 200,000 Russians had left in the first 10 days after the war began.

Virtuzone, which helps companies to set up operations in Dubai, has seen a huge surge of Russian clients.

Also read |&nbsp;<a href="https://www.wionews.com/world/to-rebuild-ukraine-win-war-against-russia-zelensky-launches-a-crowdfunding-platform-476590" hreflang="en">To rebuild Ukraine, win war against Russia, Zelensky launches a crowdfunding platform</a>

"We are receiving five times more enquiries from Russians since the war began," chief executive George Hojeige was quoted as saying.

Also read |&nbsp;<a href="https://www.wionews.com/world/despite-the-ukraine-war-russian-gas-supplies-to-china-soar-by-60-in-2022-report-476197" hreflang="en">Despite the Ukraine war, Russian gas supplies to China soar by 60% in 2022: Report</a>

"They are worried about an economic meltdown that's coming. That is why they are moving here to secure their wealth," he added.

(With inputs from agencies)

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Dubai seems to be emerging as a haven for Russian oligarchs and billionaires who are fleeing their country to avoid the West's sanctions in the wake of President Vladimir Putin’s Ukraine war.

Dubai seems to be emerging as a haven for Russian oligarchs and billionaires who are fleeing their country to avoid the West's sanctions in the wake of President Vladimir Putin’s Ukraine war. According to a BBC report, property purchases in Dubai by Russians surged by 67 per cent in the first three months of 2022, with many more billionaires expected to arrive UAE in the upcoming months. The report, quoting business leaders, has estimated that hundreds of thousands of people have left Russia over the last two months, although there are no exact figures to back is number. Apart from that, many multinational companies and Russian start-ups have also relocated their employees to the UAE. Fuad Fatullev, co-founder of WeWay - a blockchain technology company that had offices in Russia and Ukraine, has shifted hundreds of employees to Dubai. "The war had a massive impact on our operations. We couldn't continue [as we were] as we had to move hundreds of people outside of Ukraine and Russia," Fuad, who is a Russian citizen, told BBC. The reason behind this sudden exodus stems from the fact that UAE has so far not condemned Russia for its invasion and that it has been issuing visas to non-sanctioned Russians, unlike many Western countries who have restricted their arrival. A Russian economist, whose name was not divulged by the BBC, claimed that as many as 200,000 Russians had left in the first 10 days after the war began. Virtuzone, which helps companies to set up operations in Dubai, has seen a huge surge of Russian clients. Also read | To rebuild Ukraine, win war against Russia, Zelensky launches a crowdfunding platform "We are receiving five times more enquiries from Russians since the war began," chief executive George Hojeige was quoted as saying. Also read | Despite the Ukraine war, Russian gas supplies to China soar by 60% in 2022: Report "They are worried about an economic meltdown that's coming. That is why they are moving here to secure their wealth," he added. (With inputs from agencies) WATCH WION LIVE Decode the geostrategy, diplomacy, and ideologies of the world’s unending wars. Catch our special series ‘World at War’ every Saturday at 8:30 PM IST and Sunday at 10:30 PM IST only on WION.

Capital flight: Russian oligarchs, billionaires take refuge in Dubai to avoid Western sanctions

According to a report, over hundred private jets belonging to Russian oligarchs are stuck in Dubai's airports ever since the sanctions were imposed by the Western government against Putin's regime.

A report by Wall Street Journal said the jets were accumulated between mid-February to April. Dubai hasn't imposed sanctions on Russia and has kept its air traffic open for Russian planes.

<a href="https://www.wionews.com/world/european-union-adds-160-russian-oligarchs-senators-to-sanctions-blacklist-460584">Also Read:&nbsp;EU adds 160 Russian oligarchs to sanctions blacklist</a>

Last month UK authorities had impounded a private jet reportedly linked to Russian oligarch Eugene Shvidler. The UK has banned Russian aircraft from entering its airspace and airports.

The UK reportedly took control of a Bombardier Global 6500 jet which belonged to Shvidler. The UK has put stringent rules in place to detain and terminate registration of Russian-linked planes.

Britain had earlier announced a travel ban and assets freeze of billionaire businessman Alisher Usmanov and former Russian deputy prime minister Igor Shuvalov.

Watch:&nbsp;&nbsp;Is UAE a safe haven for oligarchs?

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Shvidler's jet had reportedly arrived from New Jersey in US and was due to fly to Dubai. The jet is reportedly registered with a Luxembourg company.

Last week the US had imposed further sanctions on Russian oligarchs including their family members. The ban included targeted the Russian ultra-rich from transferring their assets to their family members.

Also Read:

America has imposed travel ban on over 50 Russian oligarchs including their families and close associates.&nbsp;

Biden attacked Putin's regime saying the "oligarchs were lining their pockets with the Russian people's money while the Ukrainian people are hiding in subways from missiles."

(With inputs from Agencies) 
&nbsp;

According to a report, over hundred private jets belonging to Russian oligarchs are stuck in Dubai's airports ever since the sanctions were imposed by the Western government against Putin's regime.

According to a report, over hundred private jets belonging to Russian oligarchs are stuck in Dubai's airports ever since the sanctions were imposed by the Western government against Putin's regime. A report by Wall Street Journal said the jets were accumulated between mid-February to April. Dubai hasn't imposed sanctions on Russia and has kept its air traffic open for Russian planes. Also Read: EU adds 160 Russian oligarchs to sanctions blacklist Last month UK authorities had impounded a private jet reportedly linked to Russian oligarch Eugene Shvidler. The UK has banned Russian aircraft from entering its airspace and airports. The UK reportedly took control of a Bombardier Global 6500 jet which belonged to Shvidler. The UK has put stringent rules in place to detain and terminate registration of Russian-linked planes. Britain had earlier announced a travel ban and assets freeze of billionaire businessman Alisher Usmanov and former Russian deputy prime minister Igor Shuvalov. Watch: Is UAE a safe haven for oligarchs? Shvidler's jet had reportedly arrived from New Jersey in US and was due to fly to Dubai. The jet is reportedly registered with a Luxembourg company. Last week the US had imposed further sanctions on Russian oligarchs including their family members. The ban included targeted the Russian ultra-rich from transferring their assets to their family members. Also Read: America has imposed travel ban on over 50 Russian oligarchs including their families and close associates. Biden attacked Putin's regime saying the "oligarchs were lining their pockets with the Russian people's money while the Ukrainian people are hiding in subways from missiles." (With inputs from Agencies)

Over 100 private jets linked to Russian oligarchs stuck in Dubai: Report

Russian&nbsp;oligarchs&nbsp;are&nbsp;welcome&nbsp;in&nbsp;Turkey&nbsp;but must abide by international law in order to do any business, Turkish&nbsp;Foreign&nbsp;Minister&nbsp;Mevlut Cavusoglu said on Saturday.

Turkey&nbsp;has strongly criticized Russia's invasion of Ukraine but opposes sanctions imposed by its NATO allies on principle.

Also read |<a href="https://www.wionews.com/world/russian-army-fired-again-at-a-nuclear-research-facility-in-kharkiv-says-ukraine-465843">&nbsp;Russian army fired again at a nuclear research facility in Kharkiv, says Ukraine</a>

"If&nbsp;Russian&nbsp;oligarchs&nbsp;... or any&nbsp;Russian&nbsp;citizens want to visit&nbsp;Turkey&nbsp;of course they can," Cavusoglu said in response to a question at the Doha Forum international conference.

"If you mean whether these&nbsp;oligarchs&nbsp;can do any business in&nbsp;Turkey, then of course if it is legal and not against international law, I will consider it," he said, adding: "If it is against international law then that is another story."

Also read |&nbsp;<a href="https://www.wionews.com/world/erdogan-turkeys-position-on-russian-s-400-missile-acquisition-remains-the-same-465488">Erdogan: Turkey's position on Russian S-400 missile acquisition remains the same</a>

Two superyachts linked to&nbsp;Russian&nbsp;billionaire Roman Abramovich have docked in Turkish resorts.

Western governments have targeted Abramovich and several other&nbsp;Russian&nbsp;oligarchs&nbsp;with sanctions as they seek to isolate President Vladimir Putin and his allies over Moscow's invasion of Ukraine.

Watch |&nbsp;Gravitas: Turkey taking advantage of war in Ukraine?

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-turkey-taking-advantage-of-war-in-ukraine-461453/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Russian oligarchs are welcome in Turkey but must abide by international law in order to do any business, Turkish Foreign Minister Mevlut Cavusoglu said on Saturday.

Russian oligarchs are welcome in Turkey but must abide by international law in order to do any business, Turkish Foreign Minister Mevlut Cavusoglu said on Saturday. Turkey has strongly criticized Russia's invasion of Ukraine but opposes sanctions imposed by its NATO allies on principle. Also read | Russian army fired again at a nuclear research facility in Kharkiv, says Ukraine "If Russian oligarchs ... or any Russian citizens want to visit Turkey of course they can," Cavusoglu said in response to a question at the Doha Forum international conference. "If you mean whether these oligarchs can do any business in Turkey, then of course if it is legal and not against international law, I will consider it," he said, adding: "If it is against international law then that is another story." Also read | Erdogan: Turkey's position on Russian S-400 missile acquisition remains the same Two superyachts linked to Russian billionaire Roman Abramovich have docked in Turkish resorts. Western governments have targeted Abramovich and several other Russian oligarchs with sanctions as they seek to isolate President Vladimir Putin and his allies over Moscow's invasion of Ukraine. Watch | Gravitas: Turkey taking advantage of war in Ukraine?

Russian oligarchs welcome in Turkey, says Foreign Minister Mevlut Cavusoglu

Before he could be sanctioned in reprisal for the war on Ukraine, a millionaire in Vladimir Putin's inner circle shifted billions of dollars in cash, houses, and a yacht out of his name.

Alisher Usmanov is also linked to at least 27 Swiss bank accounts, according to reports.

The information, which was obtained by journalists working on the Russian Asset Tracker project, casts doubt on the effectiveness of Russian oligarchs' punishments since the invasion of Ukraine began.

Financial pressure has been applied to Russian President Vladimir Putin, his closest associates, and their families by the United Kingdom, the United States, and EU member states.&nbsp;

An investigation of stolen documents reveals that billions of pounds linked to Russian businessman Alisher Usmanov and his business empire were stored in hidden Swiss accounts belonging to his family.

Saodat Narzieva, Usmanov's 56-year-old sister, appears to have been the beneficial owner of at least 27 secret Credit Suisse corporate accounts, including one with approximately 1.9 billion Swiss francs (CHF) ($2.12 billion).

Sanctions against Usmanov have been imposed by the European Union.&nbsp;

Narzieva works as a gynaecologist and obstetrician in Tashkent, the capital of Uzbekistan.

Her identity is linked to Credit Suisse accounts in the Suisse Secrets Project, a data breach affecting 30,000 Credit Suisse clients.

It is not clear why her name would be linked to accounts associated with her brother’s business empire.&nbsp;

(With inputs from&nbsp;agencies)

Before he could be sanctioned in reprisal for the war on Ukraine, a millionaire in Vladimir Putin's inner circle shifted billions of dollars in cash, houses, and a yacht out of his name.

Before he could be sanctioned in reprisal for the war on Ukraine, a millionaire in Vladimir Putin's inner circle shifted billions of dollars in cash, houses, and a yacht out of his name. Alisher Usmanov is also linked to at least 27 Swiss bank accounts, according to reports. The information, which was obtained by journalists working on the Russian Asset Tracker project, casts doubt on the effectiveness of Russian oligarchs' punishments since the invasion of Ukraine began. Financial pressure has been applied to Russian President Vladimir Putin, his closest associates, and their families by the United Kingdom, the United States, and EU member states. An investigation of stolen documents reveals that billions of pounds linked to Russian businessman Alisher Usmanov and his business empire were stored in hidden Swiss accounts belonging to his family. Saodat Narzieva, Usmanov's 56-year-old sister, appears to have been the beneficial owner of at least 27 secret Credit Suisse corporate accounts, including one with approximately 1.9 billion Swiss francs (CHF) ($2.12 billion). Sanctions against Usmanov have been imposed by the European Union. Narzieva works as a gynaecologist and obstetrician in Tashkent, the capital of Uzbekistan. Her identity is linked to Credit Suisse accounts in the Suisse Secrets Project, a data breach affecting 30,000 Credit Suisse clients. It is not clear why her name would be linked to accounts associated with her brother’s business empire. (With inputs from agencies)

Russian oligarch moved wealth before sanctions in 27 Swiss accounts of sister

Britain’s foreign secretary has accused Russian President Vladimir Putin of using talks with Ukraine as a “smokescreen” while he ramps up violence against the country.

Liz Truss told the Times of London newspaper that she was “very skeptical” about Russia’s seriousness in the talks, accusing Russian forces of trying to create space to regroup and unblock their stalled campaign.

She said that “we don’t see any serious withdrawal of Russian troops or any serious proposals on the table” and said Russia would resort to “worse and worse” violence as its military campaign falters.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/ukraine-russia-war-britain-blames-russia-over-hoax-call-463726/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Truss echoed comments by British intelligence that Putin could turn to "more and more extreme actions," adding "we've seen appalling atrocities already."

"The Kremlin has so far failed to achieve its original objectives. It has been surprised by the scale and ferocity of Ukrainian resistance and has been bedevilled with problems of its own making," Chief of Defence Intelligence Jim Hockenhull said on Friday.

"Russia is now pursuing a strategy of attrition. This will involve the reckless and indiscriminate use of firepower. This will result in increased civilian casualties, destruction of Ukrainian infrastructure and intensify the humanitarian crisis," he added.

Also see |&nbsp;<a href="https://www.wionews.com/photos/all-you-need-to-know-about-kinzhal-hypersonic-missiles-that-russia-used-in-ukraine-for-the-first-time-463754" hreflang="en">All you need to know about Kinzhal hypersonic missiles that Russia 'used in Ukraine for the first time'</a>

Truss said that Britain could potentially act as a guarantor if any settlement is reached, and that Putin "didn't believe" the international community would impose the scale of sanctions that it has.

Britain has recently targeted high-profile oligarchs, including Chelsea Football Club owner Roman Abramovich.&nbsp;

UK's media regulator on Friday revoked Russian-backed television channel RT's licence to broadcast in the United Kingdom with immediate effect, citing its links to the Kremlin.

Truss suggested it was "extremely difficult" to envisage these sanctions being lifted, saying "these oligarchs have enabled Vladimir Putin to do what he's doing."

Russian troops have taken heavy losses while blasting residential areas in Ukraine to rubble, sending more than 3 million refugees fleeing.&nbsp;

Moscow denies it is targeting civilians in what it calls a "special operation" to disarm its neighbour.

(With inputs from agencies)&nbsp;

Britain’s foreign secretary has accused Russian President Vladimir Putin of using talks with Ukraine as a “smokescreen” while he ramps up violence against the country.

Britain’s foreign secretary has accused Russian President Vladimir Putin of using talks with Ukraine as a “smokescreen” while he ramps up violence against the country. Liz Truss told the Times of London newspaper that she was “very skeptical” about Russia’s seriousness in the talks, accusing Russian forces of trying to create space to regroup and unblock their stalled campaign. She said that “we don’t see any serious withdrawal of Russian troops or any serious proposals on the table” and said Russia would resort to “worse and worse” violence as its military campaign falters. Truss echoed comments by British intelligence that Putin could turn to "more and more extreme actions," adding "we've seen appalling atrocities already." "The Kremlin has so far failed to achieve its original objectives. It has been surprised by the scale and ferocity of Ukrainian resistance and has been bedevilled with problems of its own making," Chief of Defence Intelligence Jim Hockenhull said on Friday. "Russia is now pursuing a strategy of attrition. This will involve the reckless and indiscriminate use of firepower. This will result in increased civilian casualties, destruction of Ukrainian infrastructure and intensify the humanitarian crisis," he added. Also see | All you need to know about Kinzhal hypersonic missiles that Russia 'used in Ukraine for the first time' Truss said that Britain could potentially act as a guarantor if any settlement is reached, and that Putin "didn't believe" the international community would impose the scale of sanctions that it has. Britain has recently targeted high-profile oligarchs, including Chelsea Football Club owner Roman Abramovich. UK's media regulator on Friday revoked Russian-backed television channel RT's licence to broadcast in the United Kingdom with immediate effect, citing its links to the Kremlin. Truss suggested it was "extremely difficult" to envisage these sanctions being lifted, saying "these oligarchs have enabled Vladimir Putin to do what he's doing." Russian troops have taken heavy losses while blasting residential areas in Ukraine to rubble, sending more than 3 million refugees fleeing. Moscow denies it is targeting civilians in what it calls a "special operation" to disarm its neighbour. (With inputs from agencies)

Putin uses Ukraine talks as 'smokescreen' to increase violence, says UK

Behind a set of imposing metal doors in an easy-to-miss office building in a New York City suburb, a small team manages billions of dollars for a Russian oligarch.

For years, a group of wealthy Russians have used Concord Management LLC, a financial advisory company in Tarrytown, New York, to secretly invest money in large U.S. hedge funds and private equity firms, according to people familiar with the matter.

A web of offshore shell companies makes it hard to know for sure whose money Concord manages. But several of the people said the bulk of the funds belong to Roman Abramovich, a close ally of President Vladimir Putin of Russia.

Concord is part of a constellation of American and European advisers — including some of the world’s largest law firms — that have long helped Russian oligarchs navigate the Western financial, legal, political and media landscapes.

Now, with U.S. and European sanctions targeting those close to Putin, firms are wrestling with what to do with these lucrative but controversial clients.

Many are ditching them. Some appear to be sticking with them. Others will not say what they are doing.

In the meantime, lawyers and investment advisers are coming under intense scrutiny for work that weeks earlier was occurring almost entirely below the public radar.

Concord, whose representatives declined to comment, has attracted the attention of congressional investigators. On Wednesday, a lawmaker wrote to the Biden administration requesting a freeze on Abramovich’s funds at Concord.

In Britain, which has a thriving industry of attorneys who specialize in hiding assets, lawmakers have taken to the floor of Parliament to denounce lawyers and law firms that are continuing to work with oligarchs.

Legally speaking, at least, there is nothing wrong with working for sanctioned companies, individuals or governments, so long as certain rules are followed.

In the United States, lawyers are allowed to represent sanctioned clients in court or before government agencies, and they also can advise them on complying with sanctions. Lobbyists and public relations firms must obtain licenses from the Treasury Department to represent sanctioned entities.

As a result of the bureaucratic hurdles and reputational risks, the going rate for law and lobbying firms representing sanctioned oligarchs has soared into the millions of dollars, according to people familiar with the industry.

For many firms, the paydays are not enough to make up for the potential reputational damage of working for Kremlin-linked oligarchs. A flurry of Western lobbying, law and public relations firms recently dropped their Russian clients or operations.

A spokesperson for the law firm Skadden Arps said it is “in the process of ending our representations of Alfa Bank,” a sanctioned, oligarch-controlled company. (Skadden has also represented Abramovich, the billionaire owner of England’s Chelsea Football Club, but she would not say whether that work continues.)

International law firms Linklaters and Norton Rose Fulbright both said they were leaving Russia. A spokesperson for another large firm, Debevoise &amp;amp; Plimpton, said it is terminating several client relationships and will not take any new clients in Moscow. Ashurst, a large London-based law firm, said it would not “act for any new or existing Russian clients, whether or not they are subject to sanctions.”

Accounting giants PWC, KPMG, Deloitte and EY — which have provided extensive services to oligarchs and their networks of offshore shell companies — also said they were leaving Russia or severing ties with their local affiliates.

Some firms parted ways with Russian clients whose praises they had been singing in the days leading up to the invasion.

Last month, a former Treasury official turned lobbyist wrote a letter to the White House arguing that Russia’s Sovcombank should not face sanctions, citing the bank’s commitment to gender equity, environmental and social responsibility.

Sovcombank had agreed to pay the lobbyist’s firm, Mercury Public Affairs, $90,000 a month for its work.

The Biden administration recently sanctioned Sovcombank. Within hours of the announcement, Mercury filed paperwork with the Justice Department indicating that it was terminating its contract with Sovcombank.

As recently as mid-February, the British law firm Schillings represented Russian oligarch Alisher Usmanov, a longtime ally of Putin.

Two weeks later, the European Union and the U.S. Treasury sanctioned Usmanov. Nigel Higgins, a spokesperson for Schillings, said the firm is “not acting for any sanctioned individuals or entities.”

Another lawyer, Thomas Clare, has written threatening letters to news organizations on behalf of clients, including Russian oligarch Oleg Deripaska. In 2019, for example, he warned that he might try to hold The New York Times “liable for the catastrophic economic damages” facing Deripaska, who at the time was under sanctions.

Clare said this week that his firm, Clare Locke LLP, has not worked for Deripaska since September, “and we do not foresee doing so again in the future.”

Russian companies like Rosneft, VTB, Alfa Bank, Gazprom and Sberbank, which are now under sanctions, have been represented by leading U.S. law firms including White &amp;amp; Case, DLA Piper, Dechert, Latham &amp;amp; Watkins and Baker Botts.

None of those firms would say whether they are still working with the Russian companies.

Baker McKenzie, one of the world’s largest law firms, continues to say on its website that it represents “some of Russia’s largest companies,” including Gazprom and VTB. The firm said it is “reviewing and adjusting our Russia-related operations and client work” to comply with sanctions.

In Washington, Erich Ferrari, a leading sanctions lawyer, is suing the U.S. Treasury on behalf of Deripaska, who is seeking to overturn sanctions imposed on him in 2018 that he claims have cost him billions of dollars and made him “radioactive” in international business circles.

And lobbyist Robert Stryk said he has recently had conversations about representing several sanctioned Russian oligarchs and companies. He has previously represented clients targeted by sanctions, including the administrations of President Nicolás Maduro of Venezuela and former president Joseph Kabila of the Congo.

Stryk said he would consider taking the work if the Treasury Department provided him with the necessary licenses and if the prospective clients opposed Russia’s aggression in Ukraine.

Concord Management, whose representatives declined to comment, appears to be devoted almost entirely to managing the money of a small handful of ultrawealthy Russians.

The unregistered investment firm has been operating since 1999 with a staff of about two dozen. It specializes in investing in hedge funds and real estate funds run by private equity firms, according to online profiles of current and former Concord employees.

Wall Street bankers and hedge fund managers who have interacted with Concord and its founder, Michael Matlin, said it oversees between $4 billion and $8 billion.

It is not clear how much of that belongs to Abramovich, whose fortune is estimated at $13 billion.

Abramovich has not been sanctioned. His spokesperson, Rola Brentlin, declined to comment on Concord.

Over the years, Concord has steered its clients’ money into marquee financial institutions: global money manager BlackRock, private equity firm Carlyle Group and a fund run by John Paulson, who famously anticipated the collapse of the U.S. housing market. Concord also invested with Bernard Madoff, who died in prison after being convicted of a vast Ponzi scheme.

Another recipient of Concord money was Brevan Howard, a multibillion-dollar European hedge fund company. A person familiar with the matter said Brevan Howard is preparing to return the funds to Concord, which will no longer be a client.

In a letter sent Wednesday to Attorney General Merrick Garland, Rep. Steve Cohen, D-Tenn., wrote that he had “recently received information from credible sources in the financial industry” that Concord oversees billions of dollars for Abramovich.

Cohen, co-chair of a panel focused on European security, requested that the U.S. government impose sanctions on Abramovich and seize the assets at Concord, “as this blood money presents a flight risk.”

The work performed by law, lobbying and public relations firms often plays out in public or is disclosed in legal or foreign agent filings, but that is rarely the case in the financial arena.

While Russian oligarchs make tabloid headlines for shelling out for extravagant superyachts and palatial homes, their bigger investments often occur out of public view, thanks to a largely invisible network of financial advisory firms like Concord.

Hedge fund managers and their advisers said they are starting to examine their investor lists to see if any clients are under sanctions. If so, their money needs to be segregated and disclosed to the Treasury Department.

Some hedge funds also are considering returning money to oligarchs who have not been sanctioned, fearful that Russians might soon be targeted by U.S. and European authorities.

“The implication of sanctions being imposed on Russia and its oligarchs is just rippling through the private fund community,” said Ron Geffner, a lawyer who advises hedge funds.

While firms prefer to keep their work for unsavory clients under wraps, a leak in 2017 provided a glimpse into how Western firms helped Russian oligarchs hide assets — and what happened when those clients were targeted by sanctions.

The leak, part of the Paradise Papers project, involved the files of the Appleby law firm in Bermuda. At least four clients owned private jets through shell companies managed by Appleby.

When companies and individuals linked to Putin were sanctioned in 2014, Appleby jettisoned clients it believed were affected.

The Russians found other Western firms, including Credit Suisse, to help fill the void.

Ben Freeman, who tracks foreign influence for the Quincy Institute for Responsible Statecraft, said Russians will likely to find new firms this time, too.

“There is that initial backlash, where these clients are too toxic,” Freeman said. “But when these lucrative contracts are out there, it gets to be too much for some people, and they can turn a blind eye to any atrocity.”

Behind a set of imposing metal doors in an easy-to-miss office building in a New York City suburb, a small team manages billions of dollars for a Russian oligarch.

Behind a set of imposing metal doors in an easy-to-miss office building in a New York City suburb, a small team manages billions of dollars for a Russian oligarch. For years, a group of wealthy Russians have used Concord Management LLC, a financial advisory company in Tarrytown, New York, to secretly invest money in large U.S. hedge funds and private equity firms, according to people familiar with the matter. A web of offshore shell companies makes it hard to know for sure whose money Concord manages. But several of the people said the bulk of the funds belong to Roman Abramovich, a close ally of President Vladimir Putin of Russia. Concord is part of a constellation of American and European advisers — including some of the world’s largest law firms — that have long helped Russian oligarchs navigate the Western financial, legal, political and media landscapes. Now, with U.S. and European sanctions targeting those close to Putin, firms are wrestling with what to do with these lucrative but controversial clients. Many are ditching them. Some appear to be sticking with them. Others will not say what they are doing. In the meantime, lawyers and investment advisers are coming under intense scrutiny for work that weeks earlier was occurring almost entirely below the public radar. Concord, whose representatives declined to comment, has attracted the attention of congressional investigators. On Wednesday, a lawmaker wrote to the Biden administration requesting a freeze on Abramovich’s funds at Concord. In Britain, which has a thriving industry of attorneys who specialize in hiding assets, lawmakers have taken to the floor of Parliament to denounce lawyers and law firms that are continuing to work with oligarchs. Legally speaking, at least, there is nothing wrong with working for sanctioned companies, individuals or governments, so long as certain rules are followed. In the United States, lawyers are allowed to represent sanctioned clients in court or before government agencies, and they also can advise them on complying with sanctions. Lobbyists and public relations firms must obtain licenses from the Treasury Department to represent sanctioned entities. As a result of the bureaucratic hurdles and reputational risks, the going rate for law and lobbying firms representing sanctioned oligarchs has soared into the millions of dollars, according to people familiar with the industry. For many firms, the paydays are not enough to make up for the potential reputational damage of working for Kremlin-linked oligarchs. A flurry of Western lobbying, law and public relations firms recently dropped their Russian clients or operations. A spokesperson for the law firm Skadden Arps said it is “in the process of ending our representations of Alfa Bank,” a sanctioned, oligarch-controlled company. (Skadden has also represented Abramovich, the billionaire owner of England’s Chelsea Football Club, but she would not say whether that work continues.) International law firms Linklaters and Norton Rose Fulbright both said they were leaving Russia. A spokesperson for another large firm, Debevoise &amp; Plimpton, said it is terminating several client relationships and will not take any new clients in Moscow. Ashurst, a large London-based law firm, said it would not “act for any new or existing Russian clients, whether or not they are subject to sanctions.” Accounting giants PWC, KPMG, Deloitte and EY — which have provided extensive services to oligarchs and their networks of offshore shell companies — also said they were leaving Russia or severing ties with their local affiliates. Some firms parted ways with Russian clients whose praises they had been singing in the days leading up to the invasion. Last month, a former Treasury official turned lobbyist wrote a letter to the White House arguing that Russia’s Sovcombank should not face sanctions, citing the bank’s commitment to gender equity, environmental and social responsibility. Sovcombank had agreed to pay the lobbyist’s firm, Mercury Public Affairs, $90,000 a month for its work. The Biden administration recently sanctioned Sovcombank. Within hours of the announcement, Mercury filed paperwork with the Justice Department indicating that it was terminating its contract with Sovcombank. As recently as mid-February, the British law firm Schillings represented Russian oligarch Alisher Usmanov, a longtime ally of Putin. Two weeks later, the European Union and the U.S. Treasury sanctioned Usmanov. Nigel Higgins, a spokesperson for Schillings, said the firm is “not acting for any sanctioned individuals or entities.” Another lawyer, Thomas Clare, has written threatening letters to news organizations on behalf of clients, including Russian oligarch Oleg Deripaska. In 2019, for example, he warned that he might try to hold The New York Times “liable for the catastrophic economic damages” facing Deripaska, who at the time was under sanctions. Clare said this week that his firm, Clare Locke LLP, has not worked for Deripaska since September, “and we do not foresee doing so again in the future.” Russian companies like Rosneft, VTB, Alfa Bank, Gazprom and Sberbank, which are now under sanctions, have been represented by leading U.S. law firms including White &amp; Case, DLA Piper, Dechert, Latham &amp; Watkins and Baker Botts. None of those firms would say whether they are still working with the Russian companies. Baker McKenzie, one of the world’s largest law firms, continues to say on its website that it represents “some of Russia’s largest companies,” including Gazprom and VTB. The firm said it is “reviewing and adjusting our Russia-related operations and client work” to comply with sanctions. In Washington, Erich Ferrari, a leading sanctions lawyer, is suing the U.S. Treasury on behalf of Deripaska, who is seeking to overturn sanctions imposed on him in 2018 that he claims have cost him billions of dollars and made him “radioactive” in international business circles. And lobbyist Robert Stryk said he has recently had conversations about representing several sanctioned Russian oligarchs and companies. He has previously represented clients targeted by sanctions, including the administrations of President Nicolás Maduro of Venezuela and former president Joseph Kabila of the Congo. Stryk said he would consider taking the work if the Treasury Department provided him with the necessary licenses and if the prospective clients opposed Russia’s aggression in Ukraine. Concord Management, whose representatives declined to comment, appears to be devoted almost entirely to managing the money of a small handful of ultrawealthy Russians. The unregistered investment firm has been operating since 1999 with a staff of about two dozen. It specializes in investing in hedge funds and real estate funds run by private equity firms, according to online profiles of current and former Concord employees. Wall Street bankers and hedge fund managers who have interacted with Concord and its founder, Michael Matlin, said it oversees between $4 billion and $8 billion. It is not clear how much of that belongs to Abramovich, whose fortune is estimated at $13 billion. Abramovich has not been sanctioned. His spokesperson, Rola Brentlin, declined to comment on Concord. Over the years, Concord has steered its clients’ money into marquee financial institutions: global money manager BlackRock, private equity firm Carlyle Group and a fund run by John Paulson, who famously anticipated the collapse of the U.S. housing market. Concord also invested with Bernard Madoff, who died in prison after being convicted of a vast Ponzi scheme. Another recipient of Concord money was Brevan Howard, a multibillion-dollar European hedge fund company. A person familiar with the matter said Brevan Howard is preparing to return the funds to Concord, which will no longer be a client. In a letter sent Wednesday to Attorney General Merrick Garland, Rep. Steve Cohen, D-Tenn., wrote that he had “recently received information from credible sources in the financial industry” that Concord oversees billions of dollars for Abramovich. Cohen, co-chair of a panel focused on European security, requested that the U.S. government impose sanctions on Abramovich and seize the assets at Concord, “as this blood money presents a flight risk.” The work performed by law, lobbying and public relations firms often plays out in public or is disclosed in legal or foreign agent filings, but that is rarely the case in the financial arena. While Russian oligarchs make tabloid headlines for shelling out for extravagant superyachts and palatial homes, their bigger investments often occur out of public view, thanks to a largely invisible network of financial advisory firms like Concord. Hedge fund managers and their advisers said they are starting to examine their investor lists to see if any clients are under sanctions. If so, their money needs to be segregated and disclosed to the Treasury Department. Some hedge funds also are considering returning money to oligarchs who have not been sanctioned, fearful that Russians might soon be targeted by U.S. and European authorities. “The implication of sanctions being imposed on Russia and its oligarchs is just rippling through the private fund community,” said Ron Geffner, a lawyer who advises hedge funds. While firms prefer to keep their work for unsavory clients under wraps, a leak in 2017 provided a glimpse into how Western firms helped Russian oligarchs hide assets — and what happened when those clients were targeted by sanctions. The leak, part of the Paradise Papers project, involved the files of the Appleby law firm in Bermuda. At least four clients owned private jets through shell companies managed by Appleby. When companies and individuals linked to Putin were sanctioned in 2014, Appleby jettisoned clients it believed were affected. The Russians found other Western firms, including Credit Suisse, to help fill the void. Ben Freeman, who tracks foreign influence for the Quincy Institute for Responsible Statecraft, said Russians will likely to find new firms this time, too. “There is that initial backlash, where these clients are too toxic,” Freeman said. “But when these lucrative contracts are out there, it gets to be too much for some people, and they can turn a blind eye to any atrocity.”

How Western firms quietly enabled Russian oligarchs

The European Union agreed Wednesday to add 146 members of Russia's upper house of parliament and 14 Kremlin-linked oligarchs and relatives to its sanctions list over Moscow's war in Ukraine, officials said.&nbsp;

"We are further tightening the net of sanctions responding to Russia's military aggression against Ukraine," European Commission head Ursula von der Leyen wrote in a tweet.&nbsp;

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet">
We are further tightening the net of sanctions responding to Russia’s military aggression against Ukraine 
 
•Listing 160 individuals: oligarchs, Russian Federation Council members 
•Belarus banking sector 
•Export of maritime navigation technology to Russia 
•Adding crypto-assets
— Ursula von der Leyen (@vonderleyen) <a href="https://twitter.com/vonderleyen/status/1501521959821225984?ref_src=twsrc%5Etfw">March 9, 2022</a></blockquote>
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So far EU sanctions had hit hundreds of members of the lower house, the Duma, who voted in favour of Russia's recognition of the self-proclaimed people's republics of Donetsk and Luhansk in eastern Ukraine.

The bloc has assigned 500 million euros ($547 million) for humanitarian aid to Ukraine, saying it had taken in two million refugees fleeing the Russian invasion so far and expected millions more.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-will-europe-still-bankroll-russias-ukraine-invasion-460383/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The euro and other European currencies edged up on Wednesday ahead of this week's central bank meeting and supported by reports that the European Union was discussing joint bond issuance to finance energy and defence spending.

After touching a 22-month low on Monday sliding to as much as $1.0806, the euro rose 0.5 per cent&nbsp;on the day to $1.0946 helped by a report citing unnamed officials that said the European Union was discussing joint bond issuance.

Sterling rose 0.3 per cent against the dollar to $1.3134.

Russian forces have subjected some Ukrainian cities and towns to devastating bombardment and left places like the port of Mariupol without power or water for days.

Also see |&nbsp;<a href="https://www.wionews.com/photos/russias-rocket-launchers-target-ukraines-cities-460535" hreflang="en">Russia's rocket launchers target Ukraine's cities</a>

The Ukrainian military is building up defences in cities in the north, south and east, and forces around Kyiv are “holding the line” against the Russian offensive.

Thousands of people are thought to have been killed, both civilians and soldiers, in two weeks of fighting since President Vladimir Putin’s forces invaded.&nbsp;

Kyiv regional administration head Oleksiy Kuleba said the crisis for civilians was growing in the capital, with the situation particularly critical in the city’s suburbs.

Also read |&nbsp;<a href="https://www.wionews.com/world/from-intermittent-alerts-to-blaring-air-raid-sirens-russian-pressure-keeps-kyiv-on-edge-460544" hreflang="en">From intermittent alerts to blaring air raid sirens: Russian pressure keeps Kyiv on edge</a>

“Russia is artificially creating a humanitarian crisis in the Kyiv region, frustrating the evacuation of people and continuing shelling and bombing small communities,” he said.

In addition to material support for Ukraine, Western countries have sought to pressure Russia through a series of punishing sanctions.&nbsp;

Ukraine’s president has pleaded repeatedly for warplanes to counter Russia’s significant air power, but Western countries have disagreed over how best to do that amid concerns it could raise the risk of the war expanding beyond Ukraine.

Moscow calls its action a "special military operation" to disarm its neighbour and dislodge leaders it calls "neo-Nazis."

Kyiv and its Western allies dismiss that as a baseless pretext for an unprovoked war against a democratic country of 44 million people.

(With inputs from agencies)

The European Union agreed Wednesday to add 146 members of Russia's upper house of parliament and 14 Kremlin-linked oligarchs and relatives to its sanctions list over Moscow's war in Ukraine, officials said.

The European Union agreed Wednesday to add 146 members of Russia's upper house of parliament and 14 Kremlin-linked oligarchs and relatives to its sanctions list over Moscow's war in Ukraine, officials said. "We are further tightening the net of sanctions responding to Russia's military aggression against Ukraine," European Commission head Ursula von der Leyen wrote in a tweet. We are further tightening the net of sanctions responding to Russia’s military aggression against Ukraine •Listing 160 individuals: oligarchs, Russian Federation Council members •Belarus banking sector •Export of maritime navigation technology to Russia •Adding crypto-assets — Ursula von der Leyen (@vonderleyen) March 9, 2022 × So far EU sanctions had hit hundreds of members of the lower house, the Duma, who voted in favour of Russia's recognition of the self-proclaimed people's republics of Donetsk and Luhansk in eastern Ukraine. The bloc has assigned 500 million euros ($547 million) for humanitarian aid to Ukraine, saying it had taken in two million refugees fleeing the Russian invasion so far and expected millions more. The euro and other European currencies edged up on Wednesday ahead of this week's central bank meeting and supported by reports that the European Union was discussing joint bond issuance to finance energy and defence spending. After touching a 22-month low on Monday sliding to as much as $1.0806, the euro rose 0.5 per cent on the day to $1.0946 helped by a report citing unnamed officials that said the European Union was discussing joint bond issuance. Sterling rose 0.3 per cent against the dollar to $1.3134. Russian forces have subjected some Ukrainian cities and towns to devastating bombardment and left places like the port of Mariupol without power or water for days. Also see | Russia's rocket launchers target Ukraine's cities The Ukrainian military is building up defences in cities in the north, south and east, and forces around Kyiv are “holding the line” against the Russian offensive. Thousands of people are thought to have been killed, both civilians and soldiers, in two weeks of fighting since President Vladimir Putin’s forces invaded. Kyiv regional administration head Oleksiy Kuleba said the crisis for civilians was growing in the capital, with the situation particularly critical in the city’s suburbs. Also read | From intermittent alerts to blaring air raid sirens: Russian pressure keeps Kyiv on edge “Russia is artificially creating a humanitarian crisis in the Kyiv region, frustrating the evacuation of people and continuing shelling and bombing small communities,” he said. In addition to material support for Ukraine, Western countries have sought to pressure Russia through a series of punishing sanctions. Ukraine’s president has pleaded repeatedly for warplanes to counter Russia’s significant air power, but Western countries have disagreed over how best to do that amid concerns it could raise the risk of the war expanding beyond Ukraine. Moscow calls its action a "special military operation" to disarm its neighbour and dislodge leaders it calls "neo-Nazis." Kyiv and its Western allies dismiss that as a baseless pretext for an unprovoked war against a democratic country of 44 million people. (With inputs from agencies)

European Union adds 160 Russian oligarchs, senators to sanctions blacklist

Italian police have seized villas and yachts worth at least 140 million euros ($153 million) from four high-profile Russians who were placed on an EU sanctions list following Moscow's attack on Ukraine, sources said on Saturday.

A police source said a villa owned by billionaire businessman Alisher Usmanov on the Mediterranean island of Sardinia, and a villa on Lake Como owned by state TV host Vladimir Soloviev, had both been seized.

In addition, sources confirmed that yachts belonging to Russia's richest man, Alexey Mordashov, and Gennady Timchenko, who has close tied with Russian President Vladimir Putin, were impounded overnight in northern Italian ports. [L5N2V75YZ]

Russian oligarchs are believed to have bought numerous villas in choice Italian locations over the past 20 years and sources said more assets were expected to be seized in coming days as Western states implement massive sanctions to try to force Russia to withdraw from Ukraine.

Also read |&nbsp;<a href="https://www.wionews.com/world/washington-state-advances-landmark-deal-on-gig-drivers-job-status-459285">Washington State advances landmark deal on gig drivers’ job status</a>

Italian banks were instructed by the Bank of Italy's financial intelligence division on Friday to urgently let it know of all measures taken to freeze the assets of people and entities placed on the EU list.

Uzbekistan-born metals and telecoms tycoon Usmanov is well known in Italy for owning multiple properties on Sardinia, while Italian media say Mordashov owned a villa worth some 66 million euros ($72 million) on the same island.

Taking into account the assets of his whole family, Forbes magazine estimates that Mordashov had an estimated net worth of $29.1 billion before sanctions hit.

His 65 metre (215 ft) yacht the "Lady M" had a price tag of 65 million euros and was impounded in the northwest port of Imperia, while Timchenko's boat Lena was worth some 50 million euros and was seized in nearby Sanremo, a judicial source said.

Timchenko made a fortune in oil trading and has been described by Putin as one of his closest associates.

Soloviev reportedly complained&nbsp;on Russian television when he found out last month that he risked losing his Italian villa.

Also read |&nbsp;<a href="https://www.wionews.com/world/japanese-scientists-to-probe-origins-of-mummified-mermaid-said-to-grant-immortality-459277">Japanese scientists to probe origins of mummified mermaid said to grant immortality</a>

"Suddenly someone makes a decision that this journalist is now on the list of sanctions. And right away it affects your real estate. Wait a minute. But you told us that Europe has sacred property rights," he was quoted saying by The Daily Beast.

While the European Union has moved quickly against individuals seen as close to the Russian government, Britain has moved more slowly.

However British Prime Minister Boris Johnson was quoted as saying on Saturday that amendments to Britain's economic crimes legislation would be presented to parliament on Monday to help the government act with more speed.

Italian police have seized villas and yachts worth at least 140 million euros ($153 million) from four high-profile Russians who were placed on an EU sanctions list following Moscow's attack on Ukraine, sources said on Saturday.

Italian police have seized villas and yachts worth at least 140 million euros ($153 million) from four high-profile Russians who were placed on an EU sanctions list following Moscow's attack on Ukraine, sources said on Saturday. A police source said a villa owned by billionaire businessman Alisher Usmanov on the Mediterranean island of Sardinia, and a villa on Lake Como owned by state TV host Vladimir Soloviev, had both been seized. In addition, sources confirmed that yachts belonging to Russia's richest man, Alexey Mordashov, and Gennady Timchenko, who has close tied with Russian President Vladimir Putin, were impounded overnight in northern Italian ports. [L5N2V75YZ] Russian oligarchs are believed to have bought numerous villas in choice Italian locations over the past 20 years and sources said more assets were expected to be seized in coming days as Western states implement massive sanctions to try to force Russia to withdraw from Ukraine. Also read | Washington State advances landmark deal on gig drivers’ job status Italian banks were instructed by the Bank of Italy's financial intelligence division on Friday to urgently let it know of all measures taken to freeze the assets of people and entities placed on the EU list. Uzbekistan-born metals and telecoms tycoon Usmanov is well known in Italy for owning multiple properties on Sardinia, while Italian media say Mordashov owned a villa worth some 66 million euros ($72 million) on the same island. Taking into account the assets of his whole family, Forbes magazine estimates that Mordashov had an estimated net worth of $29.1 billion before sanctions hit. His 65 metre (215 ft) yacht the "Lady M" had a price tag of 65 million euros and was impounded in the northwest port of Imperia, while Timchenko's boat Lena was worth some 50 million euros and was seized in nearby Sanremo, a judicial source said. Timchenko made a fortune in oil trading and has been described by Putin as one of his closest associates. Soloviev reportedly complained on Russian television when he found out last month that he risked losing his Italian villa. Also read | Japanese scientists to probe origins of mummified mermaid said to grant immortality "Suddenly someone makes a decision that this journalist is now on the list of sanctions. And right away it affects your real estate. Wait a minute. But you told us that Europe has sacred property rights," he was quoted saying by The Daily Beast. While the European Union has moved quickly against individuals seen as close to the Russian government, Britain has moved more slowly. However British Prime Minister Boris Johnson was quoted as saying on Saturday that amendments to Britain's economic crimes legislation would be presented to parliament on Monday to help the government act with more speed.

Italy seizes oligarchs' villas and yachts in initial swoop

Ukraine-Russia conflict: Here are the top Russian oligarchs hit with EU sanctions

After reports claimed a Russian billionaire's luxury yacht was seized by German authorities, reports said French officials have immobilized a yacht owned by a company linked to Russia's Rosneft Chief Executive Officer Igor Sechin amid sanctions imposed by the European Union against Russians.

The yacht was reportedly seized by French customs officials near Marseille.

<a href="https://www.wionews.com/photos/how-russias-sarmat-intercontinental-ballistic-missile-can-change-battlefield-dynamic-458549">Also Read in Pics:&nbsp;How Russia's Sarmat ICBM&nbsp;can change battlefield dynamic</a>

French finance minister Bruno Le Marie was quick&nbsp;to thank French customs officials after it was prevented from leaving the Mediterranean port. Earlier reports said German authorities had seized a super luxury yacht owned by Russian billionaire Alisher Usmanov.

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French customs seize yacht of Igor Sechin, Rosneft boss, former KGB agent and Russian deputy prime minister, the closest fo close Putin cronies <a href="https://t.co/XQgx6sG05W">pic.twitter.com/XQgx6sG05W</a>
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Disclaimer: WION cannot independently verify the authenticity of photos and videos shared on social media.

The yacht was reportedly taken to Hamburg after it had undergone refitting at a different location. The European Union imposed sanctions on Russian tycoons and prominent people after&nbsp;Russia's invasion against Ukraine.

Watch:&nbsp;‘Go home’: Ukrainians yell at armed Russian soldiers invasion

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/go-home-president-zelensky-to-russia-ukrainians-yell-at-armed-russian-soldiers-invasion-458550/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The French government had said earlier that it was drawing up a list of assets of ultra-rich Russians&nbsp;with some billionaires believed to be close to Putin's regime.

Rosneft chief Igor Sechin is also reportedly also close to Putin. In another related development, well known Russian billionaire Roman Abramovich who owned the Chelsea football team in England announced that he would be selling the Premier League club. Abramovich declared that the money from the deal would be sent to victims of the Ukraine war.

<a href="https://www.wionews.com/photos/ukraine-unleashes-turkeys-bayraktar-tb2-drones-on-russia-is-it-a-gamechanger-458271">Also Read in Pics:&nbsp;Ukraine unleashes Turkey's Bayraktar TB2 drones on Russia</a>

The United States and EU announced a slew of sanctions against Russia after President Putin declared on February 24 that his forces had begun conducting military operations in neighbouring Ukraine.

The US and EU sanctions have targeted Russia's financial and airline sector even as US President said targeting Russian oil was "not off the table".

(With inputs from Agencies)

After reports claimed a Russian billionaire's luxury yacht was seized by German authorities, reports said French officials have immobilized a yacht owned by a company linked to Russia's Rosneft Chief Executive Officer Igor Sechin amid sanctions imposed by the European Union against Russians.

After reports claimed a Russian billionaire's luxury yacht was seized by German authorities, reports said French officials have immobilized a yacht owned by a company linked to Russia's Rosneft Chief Executive Officer Igor Sechin amid sanctions imposed by the European Union against Russians. The yacht was reportedly seized by French customs officials near Marseille. Also Read in Pics: How Russia's Sarmat ICBM can change battlefield dynamic French finance minister Bruno Le Marie was quick to thank French customs officials after it was prevented from leaving the Mediterranean port. Earlier reports said German authorities had seized a super luxury yacht owned by Russian billionaire Alisher Usmanov. French customs seize yacht of Igor Sechin, Rosneft boss, former KGB agent and Russian deputy prime minister, the closest fo close Putin cronies pic.twitter.com/XQgx6sG05W — Pierre Briançon (@pierrebri) March 3, 2022 × Disclaimer: WION cannot independently verify the authenticity of photos and videos shared on social media. The yacht was reportedly taken to Hamburg after it had undergone refitting at a different location. The European Union imposed sanctions on Russian tycoons and prominent people after Russia's invasion against Ukraine. Watch: ‘Go home’: Ukrainians yell at armed Russian soldiers invasion The French government had said earlier that it was drawing up a list of assets of ultra-rich Russians with some billionaires believed to be close to Putin's regime. Rosneft chief Igor Sechin is also reportedly also close to Putin. In another related development, well known Russian billionaire Roman Abramovich who owned the Chelsea football team in England announced that he would be selling the Premier League club. Abramovich declared that the money from the deal would be sent to victims of the Ukraine war. Also Read in Pics: Ukraine unleashes Turkey's Bayraktar TB2 drones on Russia The United States and EU announced a slew of sanctions against Russia after President Putin declared on February 24 that his forces had begun conducting military operations in neighbouring Ukraine. The US and EU sanctions have targeted Russia's financial and airline sector even as US President said targeting Russian oil was "not off the table". (With inputs from Agencies)

Now, France targets superyacht linked to Russia's Rosneft chief

Some of Russia&#39;s super-rich have given up residency to escape a 2014 law requiring them to disclose offshore assets, wealthy businessmen told Reuters, a practice that could keep billions of dollars hidden from Moscow&#39;s tax authorities.

Interviews with more than a dozen people familiar with the practice -- including prominent tycoons, wealth managers, lawyers and current and former officials -- suggest a swathe of Russia&#39;s national wealth is now in the hands of a new class of semi-exiled oligarchs, who keep bases in their homeland but escape its tax net by spending fewer than 183 days a year there.

&quot;You can scold them, call them unpatriotic, but the fact remains: the budget has lost out,&quot; Vladimir Potanin, one of Russia&#39;s ten richest men, told Reuters about the practice.

Potanin, co-owner of Arctic mining giant Norilsk Nickel, said he has remained a tax resident of Russia but watched as many of his peers moved out in response to the 2014 law.

Two other people on Forbes Magazine&#39;s list of the 100 richest Russians told Reuters they had given up Russian residency to escape the law, speaking on condition that they not be identified to avoid hurting their Russian business dealings.

Two more declined to say whether they had done so, but, like Potanin, said they also knew many fellow oligarchs who had.

No official data has been made public on how many people have given up Russian residency to escape the law, or the overall size of the assets they have shielded from Russian tax jurisdiction through the practice.

But Russian law firm Egorov, Puginsky, Afanasiev and Partners said it had conducted a survey of around 300 wealthy Russians and found as many as 40 per cent of those with offshore companies had given up residency in Russia. Another 9 per cent transferred the assets to relatives who are not tax residents.

The law, popularly known in Russia as &quot;de-offshorizatsia&quot;, requires all Russian taxpayers to declare their interest in offshore companies they control, on which they can then become liable to paying tax in Russia. It is similar to the standard practice in most western countries, but represented a change for Russia, where previously taxpayers could hold interests in companies abroad without declaring them.

The change was a high-profile initiative of President Vladimir Putin, widely interpreted as a way to force Russians to do their patriotic duty by investing in their homeland. While there is no suggestion that it is illegal to avoid the law&#39;s requirements by giving up Russian residency, those who have done so told Reuters they accepted they were thwarting the law&#39;s aim.

In response to Reuters questions, Russia&#39;s economy ministry said the de-offshorisation law was in line with global practice.

It said improving the investment climate was a government priority, with positive results, as demonstrated by Russia&#39;s improved ranking in the World Bank&#39;s ease of Doing Business index. Russia is now ranked 40th, up from 92nd in 2014.

The Kremlin declined to comment. The finance ministry did not reply to a request for comment by the time of publication. In response to a list of questions, the tax service said the number of tax cases it was pursuing against Russians with foreign tax exposure was rising, but it did not directly address the questions.

The impact of tax exiles giving up Russian residency is heightened because so much of the country&#39;s wealth is concentrated in the hands of relatively few people. According to Forbes, the 200 richest Russians have $460 billion in wealth, equivalent to nearly a third of Russia&#39;s nominal GDP.

&quot;People are forced to decide: do they keep their business in Russia or become citizens of the world and take their assets offshore,&quot; said Konstantin Korishchenko, a former deputy head of the Russian central bank.

A former official who has kept close ties to the Kremlin and talks often to Russian oligarchs said that by his estimate a third of Russia&#39;s top 500 businesspeople had left the country over the past three years, in part because of the new law.

&nbsp;

&quot;IT&#39;S IMPOSSIBLE NOW&quot;

Some familiar with the practice said wealthy Russians were giving up their residency because they feared that disclosing their offshore companies would open them to the risk of the information being leaked to business rivals, or even abused by corrupt officials for spurious prosecutions or blackmail.

&quot;The first thing that entrepreneurs say is that there is a big sense of mistrust: mistrust toward each other, mistrust towards the state,&quot; said Andrei Sharonov, dean of the Moscow School of Management, Skolkovo, which offers an MBA programme.

Sitting on the leather sofa in his office in one of Moscow&#39;s most prestigious commercial addresses, one of the tycoons who gave up his residency told Reuters he made the move reluctantly.

Leaving his homeland for most of the year was a wrench. But because of the investment climate in Russia, he and his partners were looking for buyers for their Russian businesses and focusing instead on international holdings, he said.

&quot;I would stay here and would continue paying taxes here if it was not for this law,&quot; the businessman told Reuters. &quot;It&#39;s impossible now.&quot;

He now spends his time mostly in a European Union country where his family has settled some time ago, or travelling to meetings around the world. Such a lifestyle, he said, has become common among his peers since the law was passed: &quot;Lots of people lived here and paid tax. Now they don&#39;t.&quot;

Another Russian businessman, a billionaire who also gave up his Russian residency over the de-offshorisation law, told Reuters he and fellow tycoons were worried that it could be followed by further measures, tougher on businesspeople.

After three years of deep recession, Russia&#39;s economy is stabilising but has not yet returned to the steady growth needed to begin making up lost ground.

The de-offshorisation law is one of several factors discouraging investment in Russia, said Chris Weafer a senior partner at Russia-focussed consultancy Macro-Advisory Ltd.

&quot;It&rsquo;s completely unrealistic to talk about raising growth rates to four&nbsp;per cent, as Russian officials hope, without a sharp increase in inward investment,&quot; he said.

Businesspeople who spoke to Reuters said complying with the new rules meant they incurred hefty fees to lawyers and accountants to audit their offshore assets and prepare tax returns, they had to deal with a mountain of paperwork, and at the end risked having to pay&nbsp;more tax.

Several said privacy was also an issue, in a country where vendors at flea markets sell CDs purported to contain leaked information from the tax authorities&#39; databases.

In the law firm&#39;s survey, almost two third of respondents said that they or their clients had encountered problems with leaks of confidential information from state services.

Ultimately, people do not trust the authorities to keep their information safe, said the businessman on the Forbes list of 100 richest Russians who did not reveal whether he had given up his residency.

&quot;No one wants to show the money.&quot;

(Reuters)

Some of Russia's super-rich have given up residency to escape a 2014 law requiring them to disclose offshore assets, wealthy businessmen told Reuters, a practice that could keep billions of dollars hidden from Moscow's tax authorities. Interviews with more than a dozen people familiar with the practice -- including prominent tycoons, wealth managers, lawyers and current and former officials -- suggest a swathe of Russia's national wealth is now in the hands of a new class of semi-exiled oligarchs, who keep bases in their homeland but escape its tax net by spending fewer than 183 days a year there. "You can scold them, call them unpatriotic, but the fact remains: the budget has lost out," Vladimir Potanin, one of Russia's ten richest men, told Reuters about the practice. Potanin, co-owner of Arctic mining giant Norilsk Nickel, said he has remained a tax resident of Russia but watched as many of his peers moved out in response to the 2014 law. Two other people on Forbes Magazine's list of the 100 richest Russians told Reuters they had given up Russian residency to escape the law, speaking on condition that they not be identified to avoid hurting their Russian business dealings. Two more declined to say whether they had done so, but, like Potanin, said they also knew many fellow oligarchs who had. No official data has been made public on how many people have given up Russian residency to escape the law, or the overall size of the assets they have shielded from Russian tax jurisdiction through the practice. But Russian law firm Egorov, Puginsky, Afanasiev and Partners said it had conducted a survey of around 300 wealthy Russians and found as many as 40 per cent of those with offshore companies had given up residency in Russia. Another 9 per cent transferred the assets to relatives who are not tax residents. The law, popularly known in Russia as "de-offshorizatsia", requires all Russian taxpayers to declare their interest in offshore companies they control, on which they can then become liable to paying tax in Russia. It is similar to the standard practice in most western countries, but represented a change for Russia, where previously taxpayers could hold interests in companies abroad without declaring them. The change was a high-profile initiative of President Vladimir Putin, widely interpreted as a way to force Russians to do their patriotic duty by investing in their homeland. While there is no suggestion that it is illegal to avoid the law's requirements by giving up Russian residency, those who have done so told Reuters they accepted they were thwarting the law's aim. In response to Reuters questions, Russia's economy ministry said the de-offshorisation law was in line with global practice. It said improving the investment climate was a government priority, with positive results, as demonstrated by Russia's improved ranking in the World Bank's ease of Doing Business index. Russia is now ranked 40th, up from 92nd in 2014. The Kremlin declined to comment. The finance ministry did not reply to a request for comment by the time of publication. In response to a list of questions, the tax service said the number of tax cases it was pursuing against Russians with foreign tax exposure was rising, but it did not directly address the questions. The impact of tax exiles giving up Russian residency is heightened because so much of the country's wealth is concentrated in the hands of relatively few people. According to Forbes, the 200 richest Russians have $460 billion in wealth, equivalent to nearly a third of Russia's nominal GDP. "People are forced to decide: do they keep their business in Russia or become citizens of the world and take their assets offshore," said Konstantin Korishchenko, a former deputy head of the Russian central bank. A former official who has kept close ties to the Kremlin and talks often to Russian oligarchs said that by his estimate a third of Russia's top 500 businesspeople had left the country over the past three years, in part because of the new law. "IT'S IMPOSSIBLE NOW" Some familiar with the practice said wealthy Russians were giving up their residency because they feared that disclosing their offshore companies would open them to the risk of the information being leaked to business rivals, or even abused by corrupt officials for spurious prosecutions or blackmail. "The first thing that entrepreneurs say is that there is a big sense of mistrust: mistrust toward each other, mistrust towards the state," said Andrei Sharonov, dean of the Moscow School of Management, Skolkovo, which offers an MBA programme. Sitting on the leather sofa in his office in one of Moscow's most prestigious commercial addresses, one of the tycoons who gave up his residency told Reuters he made the move reluctantly. Leaving his homeland for most of the year was a wrench. But because of the investment climate in Russia, he and his partners were looking for buyers for their Russian businesses and focusing instead on international holdings, he said. "I would stay here and would continue paying taxes here if it was not for this law," the businessman told Reuters. "It's impossible now." He now spends his time mostly in a European Union country where his family has settled some time ago, or travelling to meetings around the world. Such a lifestyle, he said, has become common among his peers since the law was passed: "Lots of people lived here and paid tax. Now they don't." Another Russian businessman, a billionaire who also gave up his Russian residency over the de-offshorisation law, told Reuters he and fellow tycoons were worried that it could be followed by further measures, tougher on businesspeople. After three years of deep recession, Russia's economy is stabilising but has not yet returned to the steady growth needed to begin making up lost ground. The de-offshorisation law is one of several factors discouraging investment in Russia, said Chris Weafer a senior partner at Russia-focussed consultancy Macro-Advisory Ltd. "It’s completely unrealistic to talk about raising growth rates to four per cent, as Russian officials hope, without a sharp increase in inward investment," he said. Businesspeople who spoke to Reuters said complying with the new rules meant they incurred hefty fees to lawyers and accountants to audit their offshore assets and prepare tax returns, they had to deal with a mountain of paperwork, and at the end risked having to pay more tax. Several said privacy was also an issue, in a country where vendors at flea markets sell CDs purported to contain leaked information from the tax authorities' databases. In the law firm's survey, almost two third of respondents said that they or their clients had encountered problems with leaks of confidential information from state services. Ultimately, people do not trust the authorities to keep their information safe, said the businessman on the Forbes list of 100 richest Russians who did not reveal whether he had given up his residency. "No one wants to show the money." (Reuters)

Declare offshore wealth? Russian tycoons would rather leave country than show their assets

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