With the violent war unleashed by Russia’s invasion of Ukraine, the European Union imposed punitive sanctions not only on the Russian government, but also on its wealthy and influential oligarchs, closely linked to Russian President Vladimir Putin. Among these is the billionaire Roman Abramovich. Abramovich was targeted because the British government’s Office of Financial Sanctions Implementation (OFSI) suspected that a steel company it controlled had supplied steel to the Russian military to produce tanks. He was last seen flying into Moscow in his private jet.
Abramovich is also the owner of Chelsea Football Club which is one of the best football clubs in the Premier League. Currently he is trying to sell the club as he was disqualified as manager of the club by the Premier League board but the UK government only allows him to do so by government waiver so that he does not benefit no sale. Abramovich claims he does not have close ties to Putin, but in 2012 former Welsh High Court judge Dame Elizabeth Gloster said Abramovich had “very good connections” and “privileged access to Putin, while adding that he could not “pull the presidential strings. Numerous other sanctions were decreed against six other Russian oligarchs suspected of having close ties to the president, seizing their yachts and other property from Although Oleg Deripaska, a Russian billionaire and industrialist, tweeted in February saying: “Peace is very important! Negotiations must start as soon as possible”, he was also added to the list of men powerful whose assets have been frozen.
The freezing of the assets of the Russian oligarchs is intended to encourage these influential and wealthy men to use their position to influence the events and results of the Russian invasion, and to isolate the Russian economy and bring it down in general as a consequence of their violence. actions and invasion fueled by propaganda. As many of these oligarchs deny having influence over the president, it is unclear how much of an effect this strategy will have. It is clear that because Putin was not democratically elected, it is not detrimental to his future to fall out of favor with Russian citizens, and he has made it clear that he is not swayed by public opinion international of its leaders.
War is extremely expensive, and the Center for Economic Recovery has estimated that the first five days of war would have cost Russia up to $7 billion in direct military costs. It is hoped that given all the harsh economic sanctions imposed on Russia around the world, the depreciation of the ruble and the freezing of the assets of Russian elites, Russia will run out of money and not be able to continue the invasion. Right now, that seems unlikely because a lot of Russian weaponry is made domestically, so the change in the value of the ruble won’t affect them in that area. Russian financial officers are taking steps to save money, avoid defaults, and prevent foreign investors from taking their money out of Russia, to mitigate the economic effects of sanctions and war. Many economic experts say that if the United States, the European Union and other countries want to punish Putin, they will have to take action to limit his exports of oil and gas, an industry in which Russia has gained about 63 billion in the third quarter of 2021. according to Fortune. The US has already banned all oil from Russia and hopefully Europe will follow.