Oligarchs make yourself comfortable in Kitzbühel-EU sanctions ignored!

Oligarchs make yourself comfortable in Kitzbühel-EU sanctions ignored!

The bypass of EU sanctions by Russian oligarchs continues to cause excitement, especially in the alpine towns of Austria. After the annexation of Crimea by Russia in 2014, extensive sanctions were imposed against Russian business people and politicians. These measures were extended on February 24, 2022 after Russia's invasion into Ukraine. Despite the sanctions, many oligarchs live and invest unabashedly in Europe.

An outstanding example is Eduard Chudainatow, a close confidant of President Vladimir Putin and former manager of a larger oil company. Chudainatow has access to a luxurious property in Kitzbühel, which consists of four villas and was acquired for 26 million euros, through his partner, Cypriot Svetlana E. This is possible because Cyprus is an EU member and thus Svetlana E. is considered an EU citizen. The villas were acquired in 2017, 2018 and 2021, although Svetlana E. was not working after reports and looked after their children.

Litigation and authority system

The Tyrolean member of the state parliament Markus Sint revealed the situation after documenting and criticizing the real estate transactions that the authorities did not act against Svetlana E. The reason for the inactivity could be that the real estate land register noted that they are officially sanctioned. Despite these clear clues, Svetlana E. complained to the Innsbruck regional court and received right because family connections were not considered a sufficient reason for sanctions.

In addition, another case shows that Arkadi Rotenberg, another oligarch, is also the owner of a property that is officially called a “Putin-Villa” property that is officially a Cypriot mailbox company. Local residents in Kitzbühel report that Vladimir Putin's daughters are often seen in the region, which increases the assumption that the oligarchs move unabashedly in Europe.

EU sanctions and their effectiveness

The EU has so far frozen almost 30 billion euros in assets from Russian and Belarusian oligarchs. The EU Commission announced that more than half of the Member States have sent information about these frozen assets. These measures are part of the extensive sanctions against oligarchs, which were decided by the European Union and various partners worldwide.

The newly founded Taskforce "Freeze and Seize" is intended to improve the coordination of the sanctions against Russian and Belarusian actors. Despite these efforts, some politicians, such as Markus Sint, express concerns about the effectiveness of the measures and demand more intensive investigations to check whether blocked assets, such as those in Kitzbühel, can actually be legally enforced.