- Sanctions have blocked Alisher Usmanov from paying staff renovating his villas in Germany, NYT stories.
- The Russian oligarch owes native contractors round $1 million, a craftsman instructed the outlet.
- Usmanov is at present ranked the fifth richest particular person in Russia, with a internet price of $20 billion.
Sanctions are stopping Russian oligarch Alisher Usmanov from paying an estimated $1 million in wages to German staff renovating his lakeside trip houses, an area craftsman named Andreas Kitzerow instructed The New York Times.
From Cyprus to Tegernsee, the luxurious yachts and villas of sanctioned Russian billionaires are tucked away in numerous idyllic corners all over the world. This overseas funding generally is a highly effective supply of native revenue — and a few staff are annoyed that it has been abruptly reduce off.
Kitzerow, who runs a ceramics enterprise within the German resort city Tegernsee, instructed the Times that the sanctions positioned towards Usmanov are “outrageous.”
“He has always been reserved, and he has nothing to do with the war in any way, as far as I can tell,” he instructed the outlet. “But they think just because he knows Putin or because he’s Russian, they can do this. You shouldn’t pass judgment.”
Kitzerow didn’t instantly reply to Insider’s request for remark.
Usmanov, who’s at present ranked the fifth richest particular person in Russia with a
of $20 billion, made his riches within the steel and mining industries after the collapse of the Soviet Union. He is described by the EU as “one of Vladimir Putin’s favorite oligarchs” and has allowed a number of Kremlin officers to make use of his numerous residences.
The craftsman isn’t the primary of Usmanov’s workers to reportedly be reduce off from wages following Russia’s invasion of Ukraine. The crew of the oligarch’s 512-foot superyacht, which was seized by German authorities in April, was fired after sanctions prevented wages from being paid to the vessel’s workers, Forbes first reported in March.
While the ban on SWIFT’s international banking system has made it harder to maneuver funds out of Russia, consultants beforehand instructed Insider that it is nonetheless attainable for sanctioned people to pay out-of-country workers.
Vacation locations which have constructed their native economies round Russian tourism and funding have responded in another way to the sanctions. Some nations, like Turkey, have taken benefit of the altering geopolitical panorama by positioning themselves as a refuge for Russian billionaires booted from the EU.
Others, corresponding to Cyprus, have moved as far to retract the “golden passports” linked to sanctioned oligarchs, regardless of their traditionally lively function within the Mediterranean island’s economic system. Meanwhile, native residents in Germany’s Tegernsee village are divided over the oligarchs’ fates, per the New York Times report.