The European Union’s highest court has revoked sanctions imposed on billionaires Mikhail Fridman and Petr Aven, citing a lack of sufficient proof to suggest they supported Russia’s military aggression towards Ukraine. This verdict comes as a significant setback to the EU’s sanctions procedure against Moscow, which has pinpointed over 1,700 individuals and 400 establishments, blaming them for endorsing or facilitating Ukraine’s infringement.
The EU’s General Court surmised that the EU failed to provide ample supportive elements to claim the billionaires were engaged in activities to destabilise Ukraine, potentially establishing a model for further objections. The judgement noted potential closeness between Petr Aven, Mikhail Fridman, and the circle of Vladimir Putin, however, it argued the EU did not prove the men endorsed actions or strategies that negatively impacted Ukraine, supported critical Russian personnel, or enjoyed benefits from their judgements.
Aven and Fridman stand as the most high-profile Russians to see a top court deciding against their addition to the EU’s travel prohibition and asset lockdown list. Sanctions were applied to both of them on the grounds they “endorsed activities and strategies that threatened or compromised the territorial unity, authority, and autonomy of Ukraine”.
“The General Court believes that none of the arguments presented…are sufficient and the inclusion of Mr Aven and Mr Fridman on [sanctions lists] therefore was unjustified,” as stated by the court in a media release. A high-ranking EU diplomat expressed the decision as “quite regrettable”. EU sanctions targeting hundreds of Russians were established hastily post Russia’s full-fledged invasion. Some officials in Brussels have privately conceded that evidence was often hastily compiled, including utilising media coverage.
Appeals can be made against verdicts delivered by the General Court. Sanctions were removed on three other lesser-known Russian entrepreneurs in September and the EU withdrawal restrictions against tech entrepreneur Arkady Volozh back in March. Volozh and idiosyncratic financial technology billionaire Oleg Tinkov, who successfully contested UK sanctions last year, are the only notable Russian businesspeople to voice open criticism of Moscow’s invasion.
Fridman, a Ukraine native, originally described the invasion as a “disaster”, claiming war “is not the solution”, but refrained from disapproving Putin more assertively, suggesting possible backlash for doing so.
Fridman’s return to Russia in the autumn incited speculation regarding the flawed approach taken by the West in imposing sanctions, eventually driving moguls like him towards Putin’s influence despite their reservations about the war. Fridman and Aven tactically managed to get the support of several well-known Russian anti-war activists by urging them to support the lifting of EU sanctions, instead of outwardly denouncing the war.
Leonid Volkov, who was the chief advisor to the deceased opposition leader Alexei Navalny, later expressed regret over his decision to sign the letter. He criticised the decision as “highly negative,” highlighting how it validated the ability of wealthy tycoons to dodge sanctions without having to defy the Kremlin. Volkov cited the silence maintained by Fridman and Aven on the war and their avoidance of a potential fight with Putin.
Alexandra Prokopenko, a fellow at the Carnegie Russia Eurasia Centre based in Berlin who studies Moscow’s elite, claimed that the Kremlin had prompted these magnates to legally challenge the sanctions, hoping to establish a legal deterrence.
“The sanctions regime lacked transparency,” she stated. If it wasn’t for this, the EU could have demanded public denouncement of the war from the Russian businessmen as a condition for lifting the sanctions. But, since a court decision is at hand, there’s no requirement to do so.
Fridman made a fortune in the Russian oil, telecommunications, banking, and retail sectors prior to relocating to London nearly ten years ago. Here, along with his partners, he established an investment group known as LetterOne, based in Mayfair.
In the wake of the full-scale invasion of Ukraine by Russia in 2022, the UK and the EU decided to impose sanctions on Fridman and Aven, as well as their associates German Khan and Alexei Kuzmichev. These sanctions compelled the oligarchs to give up control of LetterOne and sell their shares in Alfa-Bank, their primary Russian investment.
The restrictions confined Fridman to a monthly spending limit of around £2,000 and as a result of the ongoing investigation by the UK’s National Crime Agency, he faced difficulties maintaining his £65mn Highgate mansion, Athlone House. However, Fridman, who also carries Israeli citizenship, was able to return to Moscow once the last charge laid against him by the NCA was dismissed.
Both he and Aven, a Latvian passport holder residing in Latvia, chose not to provide any comments. This information is brought to you by The Financial Times.