As the war between Russia and Ukraine intensifies, western countries look to choke Russia. The US banned Russian oil and natural gas, and the EU (which heavily relies on Russian energy) said that it will switch completely before 2030. The effects of this are obvious, as seen with the skyrocketing gas prices. Western countries have also gone after Russian oligarchs, a select group of super-wealthy individuals who are very close to Putin. For example, billionaire Alisher Usmanov's yacht (the largest in the planet by gross tonnage), which boasts a pool that turns into a helipad, was seized by German authorities. Perhaps the most high-profile of these sanctions is on Roman Abramovich. Abramovich is a special case. Of all the oligarchs, he is known for being the "nice guy". He even received support from leaders of various cultural and medical institutions, including a chief rabbi, who all implored the US not to push sanctions onto him. However, soon after those pleas, Britain prevented Abramovich from entering or doing business, which meant that his soccer team (Chelsea football club) could no longer sell tickets or sign players. Canada followed suit soon after, but the US is yet to sanction Abramovich.
When Putin rose to power and was inaugurated in 2000, he imprisoned the richest oligarch, but kept Abramovich free. Abramovich has remained loyal to Putin, even governing a northeastern region for seven years. Knowing how Putin can quickly sweep an oligarch's rug out from under them, he began to look elsewhere for business ventures, and tried to gain western credibility. That's where he settled on purchasing a soccer team (for $180 million dollars) and brought Chelsea its most successful spell in the history of the club. When Russia won the rights to host the 2018 World Cup, Putin publicly praised Abramovich for bringing sports to Russia. After buying the highest quality property and art around the world, Abramovich used his status as a Jew to to buy homes in tel Aviv. He then donated tens of millions to Universities in the region, and hundreds of millions to Israeli charities. He became a voice for antisemitism, but then after the British imposed sanctions, the Israeli Holocaust memorial (that he flew to London to help inaugurate) announced it was cutting ties with him. The reputation of these oligarchs, not just Abramovich, have been tarnished because of Russia's invasion of Ukraine, and hopefully this will be an effective method to slow the war.
Questions:
How do you think that punishing those close to Putin will play out?
How should we view oligarchs?
Are these sanctions too light/extreme or not forceful enough?
Sources:
https://www.washingtonpost.com/lifestyle/2022/03/12/russian-oligarch-yachts/
https://www.bbc.com/news/world-europe-60125659
https://www.nytimes.com/2022/03/11/world/europe/roman-abramovich-russian-oligarch-sanctions.html
3 comments:
I think that specifically targeting the Russian Oligarchs is a great idea. I think that in many nations which are heavily targeted by US sanctions, such as North Korea, the upper elite can continue to enrich themselves excessively and ignore the worsening conditions of the rest of their nation. This means they are not as directly affected by sanctions and can continue their despotism unabated. But, when targeted directly by sanctions, their effect will be much harder to ignore when their own businesses overseas are attacked and they are cut off from the West. This affects their personal life and their personal goals and aspirations outside of ruling over Russia; when Alisher Usmanov loses his beloved yacht he is likely more upset than if the Russian working class was living in poverty. Putin and his buddies will start to take the sanctions more seriously, and Putin might start feeling pressure from the inside to stop this war.
Although I respect the work Abramovich has done fighting antisemitism and his charitable ventures, we must remember that his immense riches all came from the oppression of the Russian people and from corruption. This money is stolen. For him and all of the oligarchs, their money is not rightfully obtained and I have no qualms with the West seizing it. We should see these oligarchs as corrupt thieves, not as legitimate businessmen who got rich through their own bootstraps. And if it leads to additionally internal pressures to end the war, I am all for it.
I also find it ironic that the Russian elites search outside of the nation for business and thus form a reliance on the West because of Putin's despotism. They are attracted to the West because of its free market and liberty and distance themselves from their own country because of its authoritarianism, which they themselves are creating and maintaining.
Alisher Usmanov was actually also the president of the FIE ( the international fencing organization). He recently stepped down due to the EU regulations. The amount of reach that these oligarchs have over different countries and corporations is concerning, especially when considering how close to Putin some of them are, I think that punishing those close to Putin is something that should be done, but I'm not entirely sure of its effects on Putin himself and I do not think this will change his actions.
https://www.insidethegames.biz/articles/1119924/usmanov-stands-aside-fie-president
Response to Julien:
Hey Julien, thanks for the thoughtful comment. It's eye opening to think about how even though Abramovich might've enriched himself in the public eye (unlike other oligarchs) he still became wealthy off the backs of Russian laborers, even though his money may appear legitimate, it isn't. It makes me wonder the extent that these people could've continued to prosper and profit if nothing with Ukraine had occurred, and if a new generation of corrupt businesspeople would've blossomed in a few decades to take their places. How do you think that "system" of Russian political leaders turning a blind eye to the wrongdoings of the ultra-wealthy will change in the future? So far, oligarchs have lost a combined $80 billion, and when Putin threatened to seize the assets of exiting companies, many urged him not to do so, making it evident that they're still trying to save face.
https://www.msn.com/en-us/news/world/russian-oligarch-criticises-putin-s-plans-to-seize-assets-of-foreign-companies-saying-it-will-take-the-country-back-to-the-turbulent-days-of-the-russian-revolution/ar-AAUYlof
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