Russian oligarchs on US Treasury list Facing Added Scrutiny - Bloomberg

13:52 • 07.02.18



By Saleha Mohsin  and Irina Reznik


Russia’s billionaire oligarchs are beginning to face additional scrutiny on at least some financial transactions following US publication of a list of wealthy Russians identified as allies of President Vladimir Putin.


One wealthy Russian on the list who spoke on condition of anonymity said he’s worried a deal with foreign partners expected to close in the next few months may collapse. Another said his reputation has been seriously damaged since the Treasury Department released a congressionally mandated report last week naming 210 Russian billionaires and top government officials.


The Financial Integrity Network, a Washington-based firm that advises banks and other businesses on illicit finance threats, urged clients to scrutinize transactions involving anyone on the list.

The firm suggested treating them as “politically exposed persons,” a regulatory classification for people who pose higher risk of involvement in bribery or corruption due to their position and influence.


Congress demanded the list amid a bipartisan clamor to punish Russia for meddling in the 2016 presidential election. Initial responses indicate that the list alone exerts a penalty on Kremlin elite, but it also affords Russians ample time to redeploy assets to avoid financial sanctions if they follow.


While some Russian businessmen had started taking precautions in August, when Congress passed the law requiring the list, the release of the names prompted some banks to intensify oversight of their transactions, according to four people familiar with the matter.


New Relationships

“It would be very difficult in the immediate future to have new relationships until there’s some resolution of where these sanctions are going to be,” said Bruce Marks, a Philadelphia-based lawyer who’s consulting Russians on sanctions.


Still, several Russians named on the list said they didn’t expect it to affect their businesses or personal dealings. Andrey Kostin, head of state bank VTB, told state television Monday that being on the list hadn’t changed anything for him and that he has no offshore accounts. The U.S. unit of a company owned by one of the billionaires included, Dmitry Pumpyansky, kicked off a $500 million initial public offering hours before the roster was released.

Putin called the list and accompanying reports an “unfriendly act” but said he will refrain from retaliation for now.


The report to Congress was one of three issued last month that was mandated by a law that President Donald Trump reluctantly signed in August intended to penalize the Kremlin for its election interference. The law was passed with a bipartisan veto-proof margin.


A statement released alongside the unclassified portion of the report stressed that it wasn’t a sanctions list. The report was released by the Treasury Department, rather than the Office of Foreign Assets Control within the agency which announces sanctions.

Treasury Secretary Steven Mnuchin suggested at least some of the people may be sanctioned: “There will be sanctions that come out of this report,” Mnuchin said during a Senate hearing the day after the list was released.


“If you are intending on sanctioning people on the list, you just gave them a heads up that they could be next,” said Erich Ferrari, who founded Ferrari & Associates in Washington.


Even before the list was announced, some businessmen had begun to switch money transfers to euros from dollars to avoid using US accounts, said Andrey Pozhitkov, head of business development in Moscow at UFG Wealth Management.

‘Questionable Assets’

Those expecting to be named or sanctioned “probably started divesting questionable assets in August” when the law went into effect, Ferrari said.


Democrats in Congress are unhappy with Mnuchin’s reports. Treasury met its deadline to submit three separate documents: a report on defense sector sanctions, one on the impact of sanctioning new Russian sovereign debt, and the third listing oligarchs close to Putin. But it admitted that it used a Forbes list of Russian billionaires, along with other public sources, to compile the public report on oligarchs.


Senator Ron Wyden of Oregon has requested that portions of a classified annex to the oligarch list be declassified and disclosed. “Failure to provide the report to the public can be read as an attempt to limit public interest in, and support for the sanctions that were supported overwhelmingly by the Congress,” he wrote in a letter to Mnuchin on Friday. With the CIA expecting Russians to try to interfere with the 2018 midterm elections, “the threat posed by Russia is both undisputed and urgent,” Wyden said.

 





Загрузка...

LATEST NEWSAll Today news

09:24 • 19/09

Pentagon lists Russia, China as biggest threats to US

09:13 • 19/09

North and South Koreas ‘commit to era of no wars’

17:56 • 18/09

Armenian khachkar unveiled in Polish city

17:05 • 18/09

Armenian parliament official briefs PACE committee on Azerbaijani aggression against Armenian civilian settlements

16:55 • 18/09

Ucom doubles inclusions of uDaily prepay mobile internet service

16:35 • 18/09

Former Liverpool defender forced to retire with motor neurone disease just months after marrying England women's captain 

16:22 • 18/09

Armenia, China sign deal to facilitate air communication

15:40 • 18/09

Trump orders release of classified documents in Russia probe

15:24 • 18/09

Armenian government delegation conducts visit to Nagorno-Karabakh

14:51 • 18/09

Central Bank chief re-elected president of interstate bank council

14:40 • 18/09

Armenian defense minister meets with FAST foundation president

14:08 • 18/09

NASA's new spacecraft captures photo of more than a dozen celestial objects known to host exoplanets in stunning 'first light' image

13:45 • 18/09

Pakistan's austerity car auction falls short, new PM commutes by helicopter

13:25 • 18/09

Armenian family’s 400-year-old musical secret still rings true

13:17 • 18/09

Russia blames Israel for downing of plane, vows retaliation

12:45 • 18/09

Chief architect of Yerevan sacked

12:25 • 18/09

Republic Square selected as 'hot spot' of independence day events to symbolize success in ‘Velvet Revolution’

11:26 • 18/09

Libarman’s visit to Baku signals strengthening Azerbaijani-Israeli relations

11:09 • 18/09

Zhoghovurd: OSCE to turn closer spotlight on situation along Karabakh frontline

10:35 • 18/09

Russian military plane disappears during Israeli strikes on Latakia with 14 people on board

10:13 • 18/09

Zhamanak: Putin planning meeting with former presidents in Yerevan

09:56 • 18/09

SpaceX unveils first Moon Loop tourist

09:51 • 18/09

Sean Penn Calls #MeToo Movement ‘Receptacle of the Salacious’

09:44 • 18/09

Florence leaves 'monumental disaster' for North Carolina

09:31 • 18/09

Magnitude 1.9 earthquake hits Armenia’s south

09:13 • 18/09

SpaceX signs first private moon customer

09:12 • 18/09

Russia and Turkey agree to create buffer zone in Syria's Idlib

19:40 • 17/09

Facts, figures, and Results: Zvartnots International Airport reports details on its activity and not օnly

17:53 • 17/09

French actor Gerard Depardieu 'wants' to acquire Turkish citizenship

17:35 • 17/09

New head of OSCE Mission to Skopje takes office

17:23 • 17/09

Ukraine's Poroshenko terminates Treaty of Friendship with Russia

16:38 • 17/09

Samsung’s Galaxy Note 9 reportedly catches fire in user’s purse  

16:05 • 17/09

Zohrab Mnatsakanyan: Nagorno-Karabakh is not just conflict for Armenia

15:17 • 17/09

Turkish Coast Guard rescues 16 migrants as boat capsizes

14:46 • 17/09

Yerevan hosts 11th Armrobotics Championship

12:46 • 17/09

Britain’s oldest person reveals secret of longevity  

12:33 • 17/09

Arthur Abraham takes part in 45th BMW Berlin Marathon

12:02 • 17/09

Penelope Cruz dazzles in elegant one-shoulder gown as she joins husband Javier Bardem for LA screening of Loving Pablo

11:34 • 17/09

Armenian, Artsakh foreign ministers meet in Stepanakert

11:10 • 17/09

Turkey to increase troops in Turkish Cyprus

10:43 • 17/09

Elon Musk says Tesla now in 'delivery logistics hell'

10:14 • 17/09

Azerbaijan's armed forces open fire on Armenia’s south from Nakhicehvan

09:51 • 17/09

As Trump and Mattis clash in public, officials question how long he'll last at the Pentagon

09:37 • 17/09

It's not novichok, say police: 'Russian' couple fall ill at Salisbury restaurant with nerve-agent symptoms

09:15 • 17/09

New doubts emerge about US-led sanctions on North Korea

14:49 • 15/09

No more favoritism or privileged classes in Armenia - Pashinyan's interview with Le Monde

14:02 • 15/09

Kocharyan’s statements reflect level of his political understanding – Nikol Pashinyan

13:12 • 15/09

International Figure Skating Classic 2018: Armenia’s Slavik Hayrapetyan ranks fifth (video)

12:48 • 15/09

Erdogan travels to Baku  

12:07 • 15/09

Russian Orthodox church cuts ties with Constantinople over Ukraine

11:23 • 15/09

Zhamanak: Gyumri mayor 'to quit' over 'failure to work effectively' with Pashinyan's cabinet

10:49 • 15/09

Turkey demands release of 16-year-old boy held in Armenia

09:50 • 15/09

Jean-Claude Van Damme arrives in Armenia  

09:42 • 15/09

Nebraska doctor to face execution for killing four people

09:32 • 15/09

Azerbaijan shells border village in Armenia’s Tavush region

17:43 • 14/09

Jean-Claude Van Damme to visit Armenia

17:37 • 14/09

Apple criticized for new iPhones 'too big for women to hold'

16:27 • 14/09

French, Armenian leaders start working meeting in Paris

16:10 • 14/09

Armenian Genocide museum elects new director

15:26 • 14/09

Animals snapped enjoying surprise snowfall in South Africa

15:00 • 14/09

Armenian biker named double winner in Astana championship  

14:21 • 14/09

‘Velvet Revolution’ marked also revolution of values in Armenia – Nikol Pashinyan

12:49 • 14/09

Azerbaijan braces for military drills 'in response' to Armenia

12:05 • 14/09

Ucom to start pre-registration of iPhone XS and XS Max purchase

12:03 • 14/09

Amazon's Jeff Bezos commits $2 billion to help homeless, pre-schools

11:54 • 14/09

Hurricane Florence: Life threatening storm lashes US

11:09 • 14/09

Armenia 'important role-player' in global politics, prime minister says in France

10:01 • 14/09

US congressman raises call for Armenian Genocide recognition

09:31 • 14/09

Saroyan world premiere adds dates in Fresno and OC, announces encore L A performance

09:19 • 14/09

Gas explosions hit homes in Massachusetts

18:08 • 13/09

Mbappe better than Ronaldo, says De Vrij

17:42 • 13/09

We understand Armenian government’s desire to help compatriots in Syria - US Embassy

17:23 • 13/09

Meghan Markle pregnant? Bookies expecting baby announcement soon

17:06 • 13/09

US government encourages open labs in Armenia – embassy statement

16:36 • 13/09

Edward Nalbandian: Prime minister misleadingly accused former government of failure over Karabakh

15:01 • 13/09

Pashinyan vows to 'lock up' masterminds behind March 1 events  

14:09 • 13/09

Six killed in California shooting

13:55 • 13/09

Apple ends iPhone X and iPhoe SE sale

13:09 • 13/09

Trump signs order to punish US meddlers

12:55 • 13/09

Turkey to use national currency in property transactions

12:37 • 13/09

Pashinyan will regret messing with me – Robert Kocharyan

12:13 • 13/09

Pashinyan holds phone conversation with Kyrgyzstan's leader

11:11 • 13/09

Drake, Cardi B lead American Music Awards

10:52 • 13/09

Zhamanak: CSTO secretary general to step down over March 2008 coup charges

09:58 • 13/09

Putin to conduct official visit to Armenia - Russian paper

09:30 • 13/09

Turkey 'boosts arms to Syrian rebels' as Idlib attack looms

09:13 • 13/09

Apple unveils iPhone XS and fall-detecting watch

18:15 • 12/09

United Airlines passengers stunned as pilot changes out of uniform and takes a nap in first class

17:51 • 12/09

New iPhone models confirmed in Apple’s products site map

17:45 • 12/09

Armenian parliament vice speaker hosts CSTO official

17:13 • 12/09

iPhone X, 8 and four iPads face ‘likely’ ban in South Korea

17:06 • 12/09

Mammadyarov: Azerbaijan ready for substantive talks over Karabakh  

16:43 • 12/09

Backstreet Boys' singer Nick Carter not to be charged in sex case  

16:29 • 12/09

UK and EU plan special summit to sign Brexit deal

15:57 • 12/09

Ardshinbank receives Asian Development Banks FP Momentum Award

15:48 • 12/09

Aliyev slams Armenian prime minister over Karabakh remark

15:28 • 12/09

La Francophonie opens 11th NGO forum in Yerevan

14:29 • 12/09

Tanzanian president calls for end to birth control

13:46 • 12/09

‘No specific dates agreed’ for Armenian-Azerbaijani summit

12:26 • 12/09

Armenian troops will not accomplish combat tasks in Syria, says defense minister