Russian oligarchs continue to profit from trade with Europe, according to The Insider.

Close associates of Putin continue to profit from the export of goods to the West, circumventing sanctions.

This is reported by The Insider.

They exploit a loophole that allows companies to operate in EU markets if the shareholding of sanctioned businessmen is less than 50%. Notably, the most notorious Russian oligarchs—Gennady Timchenko, Alisher Usmanov, and Oleg Deripaska—are reaping billion-dollar profits from trade with the EU.

The publication points out that when a businessman is sanctioned, it does not automatically mean that restrictions apply to his assets. For this to occur, he must control at least 50% of the company. Alternatively, if there are multiple sanctioned co-owners, they must collectively own half of the shares.

As a result, some oligarchs simply reduce their stake in projects to bypass sanctions. For instance, Oleg Deripaska has decreased his stake in En+ and Rusal, which allows him to use funds from the West to maintain his private military company that operates in Ukraine. Since the onset of the full-scale war, from 2022 to 2024, Deripaska's wealth has increased by more than one and a half times, now totaling $2.8 billion.

Another major shareholder of Rusal, Viktor Vekselberg, also avoids EU sanctions and remains unpunished, despite openly meeting with Putin during the war, while his companies are involved in manufacturing missiles used in the bombing of Ukrainian territory.

Another method to shield one's business from sanctions is to transfer shares to company managers (or alternatively, with a buyback option), relatives, or other controlled individuals. Alisher Usmanov opted for such a scheme: he reduced his stake in USM, so after Usmanov was listed in the EU sanctions list, USM stated that the holding companies would not be affected.

Usmanov's partner in Metalloinvest, State Duma Deputy from United Russia Andrey Skoch, is under sanctions, but the business is registered under his father Vladimir and daughter Varvara, who are not subject to EU restrictions. Since the beginning of the major war, the fortunes of Usmanov and the Skoch family have increased to $13.4 billion and $6.7 billion, respectively. Over two years, their combined wealth has grown by nearly $4 billion.

Roman Abramovich also continues to profit from trade with Europe. Abramovich owns 28.64% of Evraz, a large metallurgical and mining company. The enterprise exports products to France and the Czech Republic. Additionally, Abramovich is a minority shareholder in Norilsk Nickel: he not only exports his products but also owns production facilities in Europe.

Background. Earlier, Mind reported that investment company LetterOne, partially owned by Russian billionaires Mikhail Friedman and Petr Aven, acquired 15% of shares in Harbour Energy, the largest oil producer in the UK.