The EU’s contradictory stance on the Russian oligarch Mikhail Fridman reveals a troubling inconsistency between political actions and legal orders. Despite the annulment of his sanctions by the EU’s own courts, Fridman remains sanctioned, and his assets frozen. This is more than a legal anomaly—it is a reflection of the deeper politicization of the sanctions process. Fridman filed a $16B lawsuit against Luxemburg.
A proxy war is taking place in Ukraine between the NATO states led by the US and Russia. Western sanctions are playing a decisive role in this. Recent European Court of Justice (ECJ) rulings have annulled sanctions against prominent Russian oligarchs, including Dmitry Pumpyansky, Mikhail Fridman, and Petr Aven. These decisions highlight significant legal and procedural issues associated with these economic sanctions.
Mikhail Fridman, the Russian oligarch and founder of Alfa Group, is initiating legal action against Luxembourg in European arbitration courts, seeking $15.8 billion in compensation. He claims that a Soviet-era investment agreement protects him from what he describes as "indirect expropriation" of his Luxembourg-registered assets. Fridman is the first Russian billionaire to challenge EU sanctions and seek compensation for frozen assets.
The European Court of Justice has handed down a verdict favoring two prominent Russian oligarchs, Petr Aven and Mikhail Fridman, against the EU's sanctions. The General Court annulled their inclusion in the sanctions list. These sanctions were imposed in response to Russia's aggressive actions against Ukraine, casting a shadow of controversy over the EU's measures to penalize those deemed to be undermining Ukraine's sovereignty.
Russia’s ultra-rich have seen their wealth swell over the past year despite punishing Western sanctions against Moscow over its invasion of Ukraine. CEO Magazine has published a new ranking of the richest Russians. The ranking is headed by Andrey Melnichenko, with an estimated net worth of $24.4 billion, followed by Vladimir Potanin, with a net worth of $23.7 billion, and Vladimir Lisin, with $22.1 billion.
It's not easy to be a Russian oligarch at this time. According to a New York Times report, some Russian oligarchs have used Concord Management LLC, a financial advisory company in Tarrytown, New York, to secretly invest money in large US hedge funds and private equity firms. Allegedly, the bulk of the funds belonged to Roman Abramovich, a close ally of Russian President Vladimir Putin. Concord and its founder, Michael Matlin, said it oversaw between $4 billion and $8 billion.