REUTERS
Russian oligarchs hit by American sanctions have transferred significant assets to their family members, an investigation by The Times reveals.
It also shows how those from Russian President Vladimir Putin's inner circle have given plum jobs to one another's children.
Boris Rotenberg, who with his brother Arkadiy, owns SMP Bank, being subject to the U.S. sanctions, has sold a 50% stake in his Finnish business, Arena Events Oy company, to his son Roman. A representative of Boris Rotenberg called the deal a "generational change."
This is not the only example. Such transactions are not against the law, but analysts say it illustrates a weakness of any sanction policy, as sanctioned individuals' money remains mobile.
The Times describes several of such examples.
Gennady Timchenko has sold a 17% stake in Sibur, the largest petrochemical company in Russia, to Kirill Shamalov for $500 million. Shamalov's father, Nikolai, is on the EU blacklist as is Timchenko while Kirill Shamalov is not.
Timchenko sold his 30% stake in the Russian Sea Group, valued at about $40 million, to his son-in-law Gleb Frank.
Arkadiy Rotenberg sold his stake in Gazprom Drilling, one of Russia's well-known drilling companies, as well as his stakes in TPS Real Estate Holdings and Mostotrest, to his son Igor Rotenberg. The deal with Gazprom Drilling is estimated at $330 million. Last month Igor sold his stake in Mostotrest for $198 million, claiming he would invest part of the money in Gazprom Drilling.
Gennady Timchenko sold a 0.5% stake in Arena Events Oy to Roman Rotenberg.
Such social bonding between the children of the Moscow elite helps to consolidate Putin's inner circle as it comes under scrutiny and criticism from abroad, according to The Times.
Analysts forecast that if Putin's regime falls, the oligarchs' children will be forced to flee abroad. "For now, it seems that there is no business like family business," the article by Roger Boyes and Katerina Kravtsova concludes.