The term Russian oligarch conjures images of posh London mansions, gold-plated Bentleys and sleek superyachts in the Mediterranean, their decks draped with partiers dripping in jewels.
But the raft of sanctions on oligarchs announced by US President Joe Biden this week in response to the invasion of Ukraine may do little to dim the jet-setting lifestyles of Russia’s ultra-rich and infamous — much less force a withdrawal of tanks and troops.
US sanctions target Russian President Vladmir Putin and a handful of individuals believed to be among his closest security advisers, including Foreign Minister Sergey Lavrov.
But the list is just as notable for who isn't on it — most of the top names from Forbes' list of the richest Russians whose multi-billion dollar fortunes are now largely intertwined with the West, from investments in Silicon Valley start-ups to British Premier League football teams.
Citing the concerns of European allies, the US also didn’t impose what was seen as the harshest punishment at its disposal, banning Russia from Swift, the international financial system that banks use to move money around the world.
Mr Biden said on Thursday the new US sanctions would nonetheless cripple Russia’s financial system and stymie its economic growth by targeting Russia’s biggest banks, which the Treasury Department said holds nearly 80 per cent of all the country’s banking assets.
But much of the wealth of Russia’s richest isn’t held in the sanctioned Russian banks. Mr Putin and the oligarchs aligned with him have had decades to stash assets overseas, much of it hidden in ways specifically designed to avoid sanctions.
Although the Kremlin officially reports Putin’s income at $131,900 annually, the Russian president is believed to benefit from many billions in cash and overseas assets held by trusted friends and relatives, many of whom are from his home city of St Petersburg.
A 2017 study of Russian oligarchs published by the US-based National Economic Bureau estimated that as much as $800 billion is held by wealthy Russians in the United Kingdom, Switzerland, Cyprus and similar offshore banking centres.
That vast fortune, held by a few hundred ultra-rich individuals, is roughly equal to the wealth of the entire rest of the Russian population of 144 million people.
Some oligarchs have also obtained dual citizenship in Britain and other western countries, adding legal complications to attempts to unilaterally seize their assets.
An example is Roman Abramovich, a former Russian provincial governor and Mr Putin's ally who became a steel and metals magnate. Now a dual Israeli citizen with a net worth estimated at more than $13bn, Mr Abramovich used his fortune to buy the British football club Chelsea and has homes in London and New York.
He and his now ex-wife frequently socialised with Ivanka Trump and Jared Kushner, the daughter and son-in-law of former president Donald Trump.
Mr Abramovich also owns what is purported to be the world’s most expensive superyacht, the 455-foot Solaris, which features a helicopter hangar, tennis court, pool and berths for about 100 guests and crew.
Also not on the sanctions list is Alisher Usmanov, another Russian metals tycoon who was an early investor in Facebook. His fortune is estimated at more than $14bn.
Mr Usmanov recently sold his stake in the British football club Arsenal for a reported $700 million and, according to Forbes, owns two sprawling estates in London worth a combined $300m. Mr Usmanov’s superyacht, Dilbar, measures 512 feet, even longer than Mr Abramovich’s.
Daniel Fried, a former US official under both Democratic and Republican administrations who helped craft US sanctions against Moscow in the wake of Mr Putin’s 2014 invasion of the Crimean Peninsula, said he was surprised Mr Abramovich and Mr Usmanov weren’t on the sanctions list announced on Thursday, given their long ties to Mr Putin and visible assets in the West.
But, Mr Fried said, sanctioning Russian oligarchs would probably have limited impact on persuading Mr Putin to change course in Ukraine.
“He owns them absolutely. He crushed them and they exist only by his sufferance,” said Mr Fried. “He can jail them and the notion that the oligarchs can assert influence over Putin is foolish.”
Sanctioning Russian oligarchs would likely have limited impact on persuading Putin to change course in Ukraine
Daniel Fried,
a former US government official
Still, he said the opinion of wealthy, educated elites carries some intangible weight that Mr Putin defies at his own risk. While sanctions are unlikely to drive the oligarchs away from Mr Putin, they do raise for them the cost of their continued support.
“They can’t stop or vote him out of office. But he’s only in total control until he isn’t,” said Mr Fried.
The family fortunes of many in Russia’s billionaires date back to the 1990s, the turbulent decade after the fall of the Soviet Union. Under the notoriously corrupt presidency of Boris Yeltsin, such key state-controlled assets as oil refineries, steel mills, aluminum smelters and tractor factories were gobbled up by the politically influential, often purchased with the aid of government-backed loans.
Then, in 1999, Mr Yeltsin unexpectedly resigned and the then-relatively unknown Mr Putin was appointed as acting president.
A former KGB agent, Mr Putin had earlier been appointed by Mr Yeltsin as the head of Russia’s FSB, among the country’s most powerful spying and security agencies.
Mr Putin has ruled Russia for the past 22 years, crushing those who have dared challenge him.
Mikhail Khodorkovsky, an oil baron once believed to be the wealthiest man in Russia, ran afoul of Mr Putin when he more fully embraced the free market and began criticising the vestiges of Soviet central planning.
Mr Khodorkovsky was arrested by Russian authorities in 2003 and charged with fraud, money laundering and embezzlement. After spending a decade in jail, he was released in 2013 and fled to London, where he now leads a foundation, the Dossier Centre, dedicated to exposing criminal activity by Kremlin insiders.
Boris Berezovsky, a mathematician turned Mercedes-Benz dealer who amassed a fortune by acquiring the country’s main television channel at the end of the Soviet era, was tried in absentia on charges of fraud and embezzlement after fleeing to London in 2000.
He was found dead on the bathroom floor of his home in southern England in 2013. His daughter said he feared he had been poisoned after losing a major court battle against Mr Abramovich, his former business partner. Originally believed to be a suicide, a coroner recorded the cause of death as inconclusive.
“Every oligarch owes the preservation of their wealth to the Kremlin,” said Max Bergmann, a senior fellow at American Progress, who also served at the State Department during the Obama administration.
“The oligarch class is an important pillar of the Putin regime and is heavily exposed because their assets are held in the West — in villas in the South of France, condos in Trump properties and in sports teams.”
Every oligarch owes the preservation of their wealth to the Kremlin
Max Bergmann,
a senior fellow at American Progress
Maria Shagina, a sanctions expert at the Helsinki-based Finnish Institute of International Affairs, said European countries are seeking to insulate their own economic interests from the effects of sanctions, whether that’s natural gas piped to Germany, diamonds imported from Siberian mines or Italian luxury cars and designer handbags sold in Moscow or St Petersburg.
“We see that Europeans don’t want to bear any sanctions cost,” Ms Shagina said. “It is painful for everyone.”
But, the experts said, the sanctions announced this week will cause pain and eventually force the Kremlin to make hard budgetary choices by weakening the Russian economy.
Most Russians are significantly poorer than their Western counterparts. The Russian Federation ranks 83rd in per capita gross domestic product, at a little under $11,000 per person, according to 2020 data compiled by the World Bank. That’s less than a third of the average for the European Union and about one-sixth of per-capita GDP for the United States.
"Putin will have to choose between putting money into his military or paying pensioners,” Mr Bergmann said. “So sanctions serve to degrade Putin’s power and strength over the long term."
In the meantime, wealthy Russians are investing in cryptocurrencies and using other emerging strategies to protect their fortunes.
“Sanctions enforcement is inherently a cat-and-mouse game,” said Marhsall Billingslea, who helped set sanctions policy for the Trump administration, “and they’ve had eight years, ever since Crimea, to set up alternative mechanisms to keep hard currency flowing to the regime.”
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
At a glance - Zayed Sustainability Prize 2020
Launched: 2008
Categories: Health, energy, water, food, global high schools
Prize: Dh2.2 million (Dh360,000 for global high schools category)
Winners’ announcement: Monday, January 13
Impact in numbers
335 million people positively impacted by projects
430,000 jobs created
10 million people given access to clean and affordable drinking water
50 million homes powered by renewable energy
6.5 billion litres of water saved
26 million school children given solar lighting
UAE%20Warriors%2045%20Results
%3Cp%3E%3Cstrong%3E%0DMain%20Event%0D%3A%20Lightweight%20Title%3C%2Fstrong%3E%0D%3Cbr%3EAmru%20Magomedov%20def%20Jakhongir%20Jumaev%20-%20Round%201%20(submission)%0D%3Cbr%3E%3Cstrong%3ECo-Main%20Event%0D%3A%20Bantamweight%3C%2Fstrong%3E%0D%3Cbr%3ERany%20Saadeh%20def%20Genil%20Franciso%20-%20Round%202%20(submission)%0D%3Cbr%3E%3Cstrong%3ECatchweight%20150%20lbs%3C%2Fstrong%3E%0D%3Cbr%3EWalter%20Cogliandro%20def%20Ali%20Al%20Qaisi%20-%20Round%201%20(TKO)%0D%3Cbr%3E%3Cstrong%3EBantamweight%3C%2Fstrong%3E%0D%3Cbr%3ERenat%20Khavalov%20def%20Hikaru%20Yoshino%20-%20Round%202%20(TKO)%0D%3Cbr%3E%3Cstrong%3EFlyweight%3C%2Fstrong%3E%0D%3Cbr%3EVictor%20Nunes%20def%20Nawras%20Abzakh%20-%20Round%201%20(TKO)%0D%3Cbr%3E%3Cstrong%3EFlyweight%3C%2Fstrong%3E%0D%3Cbr%3EYamato%20Fujita%20def%20Sanzhar%20Adilov%20-%20Round%201%20(submission)%0D%3Cbr%3E%3Cstrong%3ELightweight%3C%2Fstrong%3E%0D%3Cbr%3EAbdullo%20Khodzhaev%20def%20Petru%20Buzdugen%20-%20Round%201%20(TKO)%0D%3Cbr%3E%3Cstrong%3ECatchweight%20139%20lbs%3C%2Fstrong%3E%0D%3Cbr%3ERazhabali%20Shaydullaev%20def%20Magomed%20Al-Abdullah%20-%20Round%202%20(submission)%0D%3Cbr%3E%3Cstrong%3EFlyweight%3C%2Fstrong%3E%0D%3Cbr%3ECong%20Wang%20def%20Amena%20Hadaya%20-%20Points%20(unanimous%20decision)%0D%3Cbr%3E%3Cstrong%3EMiddleweight%3C%2Fstrong%3E%0D%3Cbr%3EKhabib%20Nabiev%20def%20Adis%20Taalaybek%20Uulu%20-%20Round%202%20(submission)%0D%3Cbr%3E%3Cstrong%3ELight%20Heavyweight%3C%2Fstrong%3E%0D%3Cbr%3EBartosz%20Szewczyk%20def%20Artem%20Zemlyakov%20-%20Round%202%20(TKO)%3C%2Fp%3E%0A
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Asia Cup Qualifier
Venue: Kuala Lumpur
Result: Winners play at Asia Cup in Dubai and Abu Dhabi in September
Fixtures:
Wed Aug 29: Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore
Thu Aug 30: UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman
Sat Sep 1: UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal
Sun Sep 2: Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore
Tue Sep 4: Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong
Thu Sep 6: Final
Asia Cup
Venue: Dubai and Abu Dhabi
Schedule: Sep 15-28
Teams: Afghanistan, Bangladesh, India, Pakistan, Sri Lanka, plus the winner of the Qualifier
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
THE SPECS
Aston Martin Rapide AMR
Engine: 6.0-litre V12
Transmission: Touchtronic III eight-speed automatic
Power: 595bhp
Torque: 630Nm
Price: Dh999,563
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
UAE currency: the story behind the money in your pockets
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
CONCRETE COWBOY
Directed by: Ricky Staub
Starring: Idris Elba, Caleb McLaughlin, Jharrel Jerome
3.5/5 stars