Latest news with #Sanctions
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-Under US pressure, Liechtenstein seeks fix for stranded Russian wealth
By John O'Donnell and Oliver Hirt VADUZ, Liechtenstein (Reuters) -Liechtenstein is examining tightening control of scores of Russian-linked trusts abandoned by their managers under pressure from Washington, according to several people familiar with the matter. The country, one of the world's smallest and richest, is home to thousands of low-tax trusts, hundreds of which have links to Russians, two of the people with direct knowledge of the matter said, putting it in the crosshairs of Western efforts to sanction Moscow. Since Russia's invasion of Ukraine, the U.S. Treasury has sanctioned several individuals and trusts in Liechtenstein it said were linked to Russian oligarchs, including Vladimir Potanin, and a long-time ally of Russian President Vladimir Putin, Gennady Timchenko. The U.S. Treasury had no immediate comment. Potanin's Interros holding company did not respond to a request for comment, while Timchenko could not be reached. That sanctioning has prompted other directors fearing such punishment to quit hundreds of Russian-linked trusts, according to several people familiar with the matter, exposing a far wider problem with Russian money in the tiny country with a population of about 40,000. The episode, in a sleepy Alpine enclave ruled by a billionaire royal family, also shows how deep and opaque Russia's business ties to Europe remain more than three years after Russia's invasion of Ukraine. It is a setback for the microstate that had long sought to shed its image as a safe haven for foreign wealth. The mass resignations have put scores of trusts in limbo, essentially freezing swathes of Russian wealth. The trusts are the linchpin for fortunes, including yachts or property, that are scattered around the globe. Their suspension puts that property beyond reach, a further potential lever over Russia, amid attempts by U.S. President Donald Trump to strike a peace deal. Reuters has spoken to several people with direct knowledge of these events, who asked not to be identified because of the sensitivity of the matter. They outlined how a push by Washington had led scores of directors to quit trusts with links to Russia and how the government was scrambling to resolve the crisis. Liechtenstein's newly elected government is seeking to fix the issue, according to people familiar with the matter, underscoring the continued pressure from Washington over Russia sanctions, despite U.S. President Donald Trump's earlier suggestions he could ease them. Liechtenstein also sees its handling of sanctions enforcement as something that could influence its government's efforts to lower newly imposed U.S. tariffs on exports, said one person with direct knowledge of the discussions. A Liechtenstein government official said 475 trusts were affected by the defections, although added that not all were linked to Russians or sanctioned individuals. That official said Liechtenstein's justice department was seeking to install new managers to 350 trusts, while 40 were being liquidated and unsuccessful attempts had been made to appoint a liquidator to further 85 trusts. This episode strikes at the trust industry, a critical pillar of Liechtenstein's roughly 770 billion franc ($930 billion) financial centre that underpins the country's economy. Local banks, the government official said, were also affected, without elaborating. Banks are particularly vulnerable because the United States has the power to throttle them by cutting off their access to the dollar, threatening a wider crisis. The episode has confronted the country with its biggest crisis since 2008, when leaked customer data at LGT Bank, owned by the country's princely family, exposed widespread tax evasion. The government is now examining options to centralise the management of the deserted trusts under its watch and tightening supervision of trusts. The Liechtenstein official also said the country's authorities were in contact with their international counterparts and that no trust assets would be released to sanctioned individuals. Liechtenstein, sandwiched between Switzerland and Austria, is dominated by its royal family, whose castle towers over the parliament. It is tied closely to Switzerland, using its franc currency, but also enjoys freedom to do business in the European Union's single market. The country, criticised for hiding the fortunes of the wealthy in the past, had reformed and joined the International Monetary Fund. Once home to roughly 80,000 tax trusts, it now hosts about 20,000, said two people familiar with the matter - equivalent to roughly one trust for two residents. Pressure on Liechtenstein follows a similar push against neighbouring Austria and Switzerland. ($1 = 0.8273 Swiss francs) (Additional reporting by Reuters Moscow bureau, editing by Elisa Martinuzzi and Tomasz Janowski)
Reuters
3 days ago
- Business
- Reuters
Exclusive: Under US pressure, Liechtenstein seeks fix for stranded Russian wealth
VADUZ, Liechtenstein, May 30 (Reuters) - Liechtenstein is examining tightening control of scores of Russian-linked trusts abandoned by their managers under pressure from Washington, according to several people familiar with the matter. The country, one of the world's smallest and richest, is home to thousands of low-tax trusts, hundreds of which have links to Russians, two of the people with direct knowledge of the matter said, putting it in the crosshairs of Western efforts to sanction Moscow. Since Russia's invasion of Ukraine, the U.S. Treasury has sanctioned several individuals and trusts, opens new tab in Liechtenstein it said, opens new tab were linked, opens new tab to Russian oligarchs, including Vladimir Potanin, and a long-time ally of Russian President Vladimir Putin, Gennady Timchenko, opens new tab. The U.S. Treasury had no immediate comment. Potanin's Interros holding company did not respond to a request for comment, while Timchenko could not be reached. That sanctioning has prompted other directors fearing such punishment to quit hundreds of Russian-linked trusts, according to several people familiar with the matter, exposing a far wider problem with Russian money in the tiny country with a population of about 40,000. The episode, in a sleepy Alpine enclave ruled by a billionaire royal family, also shows how deep and opaque Russia's business ties to Europe remain more than three years after Russia's invasion of Ukraine. It is a setback for the microstate that had long sought to shed its image as a safe haven for foreign wealth. The mass resignations have put scores of trusts in limbo, essentially freezing swathes of Russian wealth. The trusts are the linchpin for fortunes, including yachts or property, that are scattered around the globe. Their suspension puts that property beyond reach, a further potential lever over Russia, amid attempts by U.S. President Donald Trump to strike a peace deal. Reuters has spoken to several people with direct knowledge of these events, who asked not to be identified because of the sensitivity of the matter. They outlined how a push by Washington had led scores of directors to quit trusts with links to Russia and how the government was scrambling to resolve the crisis. Liechtenstein's newly elected government is seeking to fix the issue, according to people familiar with the matter, underscoring the continued pressure from Washington over Russia sanctions, despite U.S. President Donald Trump's earlier suggestions he could ease them. Liechtenstein also sees its handling of sanctions enforcement as something that could influence its government's efforts to lower newly imposed U.S. tariffs on exports, said one person with direct knowledge of the discussions. A Liechtenstein government official said 475 trusts were affected by the defections, although added that not all were linked to Russians or sanctioned individuals. That official said Liechtenstein's justice department was seeking to install new managers to 350 trusts, while 40 were being liquidated and unsuccessful attempts had been made to appoint a liquidator to further 85 trusts. This episode strikes at the trust industry, a critical pillar of Liechtenstein's roughly 770 billion franc ($930 billion) financial centre that underpins the country's economy. Local banks, the government official said, were also affected, without elaborating. Banks are particularly vulnerable because the United States has the power to throttle them by cutting off their access to the dollar, threatening a wider crisis. The episode has confronted the country with its biggest crisis since 2008, when leaked customer data at LGT Bank, owned by the country's princely family, exposed widespread tax evasion. The government is now examining options to centralise the management of the deserted trusts under its watch and tightening supervision of trusts. The Liechtenstein official also said the country's authorities were in contact with their international counterparts and that no trust assets would be released to sanctioned individuals. Liechtenstein, sandwiched between Switzerland and Austria, is dominated by its royal family, whose castle towers over the parliament. It is tied closely to Switzerland, using its franc currency, but also enjoys freedom to do business in the European Union's single market. The country, criticised for hiding the fortunes of the wealthy in the past, had reformed and joined the International Monetary Fund. Once home to roughly 80,000 tax trusts, it now hosts about 20,000, said two people familiar with the matter - equivalent to roughly one trust for two residents. Pressure on Liechtenstein follows a similar push against neighbouring Austria and Switzerland. ($1 = 0.8273 Swiss francs)
Al Jazeera
5 days ago
- Business
- Al Jazeera
Putin is 'testing the waters' in Trump relationship
Mark Storella, former US deputy assistant secretary of state, analyses Trump's reaction to Russia's Ukraine attack, his relationship with Putin – and asks if sanctions are coming.
Al Arabiya
5 days ago
- Business
- Al Arabiya
Zelenskyy proposes three-way meeting with Trump, Putin
Ukrainian President Volodymyr Zelenskyy has called for a three-way summit with Donald Trump and Vladimir Putin as he seeks to force Moscow to halt its three-year invasion. Russian President Putin rejected calls to meet Zelenskyy in Turkey earlier this month and the Kremlin has said a meeting between the two leaders would only happen after some kind of 'agreement' is reached. The US president, meanwhile, has expressed frustration at both Putin and Zelenskyy for not yet striking a deal to end the war. 'If Putin is not comfortable with a bilateral meeting, or if everyone wants it to be a trilateral meeting, I don't mind. I am ready for any format,' Zelenskyy said in comments to journalists on Tuesday that were published on Wednesday. The Ukrainian leader said he was 'ready' for a 'Trump-Putin-me' meeting, and also urged Washington to hit Moscow with a package of hard-hitting sanctions on its banking and energy sector. 'We are waiting for sanctions from the United States of America,' Zelenskyy said. 'Trump confirmed that if Russia does not stop, sanctions will be imposed. We discussed two main aspects with him -- energy and the banking system. Will the US be able to impose sanctions on these two sectors? I would very much like that.' The Ukrainian leader had previously appeared to express frustration at Washington for not having announced fresh sanctions on Moscow after Russia rejected a coordinated Western appeal for an immediate ceasefire. Hours after Zelenskyy spoke, Ukraine unleashed one of its largest ever drone barrages on Russia, firing almost 300 drones at the country, according to the defence ministry in Moscow. Russian officials reported only minimal damage from the attacks. On the battlefield, Zelenskyy said that Russia was 'amassing' more than 50,000 troops on the front line around the northeastern Sumy border region, where Moscow's army has captured a number of settlements as it seeks to establish what Putin has called a 'buffer zone' inside Ukrainian territory. Zelenskyy also said that Ukraine is yet to receive a promised 'memorandum' from Russia on its demands for a peace deal.
Russia Today
5 days ago
- Business
- Russia Today
US blocks tougher G7 sanctions wording on Russia
US Treasury Secretary Scott Bessent requested the omission of 'explicit language' on lowering the price cap for Russian oil from the joint statement of G7 finance ministers last week, the Financial Times has reported, citing officials briefed on the meeting. During the gathering in the Canadian town of Banff, rotating chair Canada reportedly proposed including clear wording on tightening the oil price restrictions. The move was backed by France, Germany, Italy, the UK, and the EU. However, it was dropped at the request of Bessent, the FT claimed on Tuesday. The final communiqué pledged only to 'continue to explore all possible options, including options to maximize pressure such as further ramping up sanctions' if no ceasefire in the Ukraine conflict is reached. Brussels is currently drafting its 18th sanctions package against Russia since the escalation of hostilities in 2022. The European Commission has reportedly proposed reducing the current $60 per-barrel cap on Russian crude to $45 – a change that would require unanimous EU approval and coordination with G7 partners. The New York Times reported on Monday that US President Donald Trump is reluctant to tighten sanctions against Russia after holding a phone call with President Vladimir Putin last week. Meanwhile, the paper claimed, citing sources, that Trump is considering a complete withdrawal from the Ukraine peace process due to a lack of progress. According to Axios, the US president told European leaders that he believes 'Putin wants a deal' and that diplomacy remains possible. Kiev and its European backers have called for additional restrictions after Moscow rejected a Ukrainian demand for an unconditional 30-day ceasefire earlier this month, an idea viewed in Russia as an attempt by Kiev to gain a military advantage. Russian officials are currently working on a peace framework that could set the stage for an eventual halt to the fighting. Russia has repeatedly dismissed EU sanctions as ineffective and illegal. Following the announcement of the bloc's 17th package last week, Russian state defense conglomerate Rostec condemned the bloc as 'a champion of meaningless measures.'
