Chelsea owner Roman Abramovich with Eugene Shvidler. Getty
Chelsea owner Roman Abramovich with Eugene Shvidler. Getty
Chelsea owner Roman Abramovich with Eugene Shvidler. Getty
Chelsea owner Roman Abramovich with Eugene Shvidler. Getty

Two private jets of sanctioned oligarch held indefinitely


Simon Rushton
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Two private jets belonging to a Russian oligarch hit with sanctions are being indefinitely detained, the UK Government has said.

The planes are owned by Eugene Shvidler, a friend of Chelsea owner Roman Abramovich, who has been placed under sanctions by the UK and EU. The measures are aimed at helping to end the war in Ukraine.

Mr Shvidler was included in the UK’s expanded list, released on Thursday, of oligarchs hit with sanctions.

His two planes are at Biggin Hill and Farnborough airfields, both south of London.

“Since [President Vladimir] Putin began his illegal assault, I’ve held jets belonging to Eugene Shvidler under investigation for three weeks,” Transport Secretary Grant Shapps said on Saturday.

“Now, I am using my powers to detain them indefinitely. Putin’s friends who made millions out of his regime will not enjoy luxuries while innocent people die.”

The two seized jets were a $45 million (£34m) Bombardier Global 6500 jet and a $13m Cessna Citation Latitude jet, The Times reported.

The oligarchs targetted have alleged links to Mr Putin or the Russian government.

It means their assets, businesses and playthings — from Chelsea Football Club to luxury yachts and homes — can be seized.

  • Two superyachts linked to Russian billionaire Roman Abramovich were spotted on the Turkish coast on Tuesday, 'Eclipse' and 'My Solaris'. Mr Abramovich is among several wealthy Russians added to an EU blacklist as governments act to seize their yachts and other luxury assets. AP
    Two superyachts linked to Russian billionaire Roman Abramovich were spotted on the Turkish coast on Tuesday, 'Eclipse' and 'My Solaris'. Mr Abramovich is among several wealthy Russians added to an EU blacklist as governments act to seize their yachts and other luxury assets. AP
  • 'My Solaris', a superyacht linked to sanctioned Russian oligarch Roman Abramovich, is pictured in Bodrum, south-west Turkey. Reuters
    'My Solaris', a superyacht linked to sanctioned Russian oligarch Roman Abramovich, is pictured in Bodrum, south-west Turkey. Reuters
  • A 68-metre luxury yacht called 'Ragnar', owned by a former KGB officer Vladimir Strzhalkovsky, is pictured at the quay in Narvik, north Norway. AFP
    A 68-metre luxury yacht called 'Ragnar', owned by a former KGB officer Vladimir Strzhalkovsky, is pictured at the quay in Narvik, north Norway. AFP
  • The 'Axioma' superyacht belonging to Russian oligarch Dmitrievich Pumpyansky at a port in Gibraltar. Reuters
    The 'Axioma' superyacht belonging to Russian oligarch Dmitrievich Pumpyansky at a port in Gibraltar. Reuters
  • 'Crescent', which is believed to belong to Russian oligarch Igor Sechin, is seen docked at Marina Port Tarraco in Tarragona, Spain. Reuters
    'Crescent', which is believed to belong to Russian oligarch Igor Sechin, is seen docked at Marina Port Tarraco in Tarragona, Spain. Reuters
  • The yacht 'Tango', owned by Russian billionaire Viktor Vekselberg, at Palma de Mallorca Yacht Club on the Spanish island of Mallorca. Reuters
    The yacht 'Tango', owned by Russian billionaire Viktor Vekselberg, at Palma de Mallorca Yacht Club on the Spanish island of Mallorca. Reuters
  • The 48m long, St Vincent and the Grenadines-flagged yacht 'Lady Anastasia', owned by Alexander Mijeev, moored at a dock in Mallorca. AFP
    The 48m long, St Vincent and the Grenadines-flagged yacht 'Lady Anastasia', owned by Alexander Mijeev, moored at a dock in Mallorca. AFP
  • Superyacht 'Valerie', linked to chief of Russian state aerospace and defence conglomerate Rostec Sergei Chemezov, at Barcelona Port in Spain. Reuters
    Superyacht 'Valerie', linked to chief of Russian state aerospace and defence conglomerate Rostec Sergei Chemezov, at Barcelona Port in Spain. Reuters
  • The 142.81m sail-assisted motor yacht 'Sailing Yacht A', owned by Russian tycoon Andrey Melnichenko, in front of Monaco harbour. Reuters
    The 142.81m sail-assisted motor yacht 'Sailing Yacht A', owned by Russian tycoon Andrey Melnichenko, in front of Monaco harbour. Reuters
  • 'Dilbar', a luxury yacht owned by Russian billionaire Alisher Usmanov, sails in the Bosphorus in Istanbul, Turkey. Reuters
    'Dilbar', a luxury yacht owned by Russian billionaire Alisher Usmanov, sails in the Bosphorus in Istanbul, Turkey. Reuters
  • 'La Datcha', owned by Russian businessman Oleg Tinkov, docked at the port in Ensenada, Mexico. Reuters
    'La Datcha', owned by Russian businessman Oleg Tinkov, docked at the port in Ensenada, Mexico. Reuters
  • 'Lady M', owned by Russian oligarch Alexei Mordashov, docked at Imperia's harbour. AFP
    'Lady M', owned by Russian oligarch Alexei Mordashov, docked at Imperia's harbour. AFP
  • Superyatch 'Amore Vero,' which French authorities have said is linked to Rosneft's CEO Igor Sechin, is seen at La Ciotat Port near Marseille in France. Reuters
    Superyatch 'Amore Vero,' which French authorities have said is linked to Rosneft's CEO Igor Sechin, is seen at La Ciotat Port near Marseille in France. Reuters
  • 'Quantum Blue', Russian billionaire Sergei Galitsky's yacht, docked in the port of Monaco. AFP
    'Quantum Blue', Russian billionaire Sergei Galitsky's yacht, docked in the port of Monaco. AFP
  • The world's largest expedition yacht, 'Luna', owned by Roman Abramovich, at the port of Sibenik in Croatia. Shutterstock
    The world's largest expedition yacht, 'Luna', owned by Roman Abramovich, at the port of Sibenik in Croatia. Shutterstock
  • The luxury 68m superyacht 'Triple Seven,' owned by Alexander Abramov, on the River Thames in London. EPA
    The luxury 68m superyacht 'Triple Seven,' owned by Alexander Abramov, on the River Thames in London. EPA

Superyachts worth hundreds of millions of dollars belonging to some of Russia's wealthiest people have been seized or detained.

Chelsea is up for sale and four bidders have been told they must come up with at least £1 billion to buy the Premier League club.

Mr Shvidler, a businessman with an estimated net worth of £1.2 billion ($1.58bn), has close business links to Chelsea FC owner Mr Abramovich, the UK Government said.

Also on the latest list of people placed under sanctions in Britain is the London-based daughter of Russian politician Sergey Lavrov.

Polina Kovaleva, the daughter of the Russian foreign minister, is a 26-year-old Imperial College London graduate, who reportedly owns a £4.4-million mansion in Kensington, west London, which she bought without a mortgage in 2016.

Others on the sanctions list include:

  • Russian diamond-mining company Alrosa
  • Alfa-Bank, the largest private bank in Russia
  • Oleg Tinkov, founder of Tinkoff Bank
  • Herman Gref, chief executive of Sberbank, the country’s largest bank
  • Oleg E Aksyutin, deputy chairman of the management board at Gazprom
  • Didier Casimiro, first vice president of Russian state oil company Rosneft
  • Zeljko Runje, another leading figure at Gazprom
  • Galina Danilchenko, the woman Moscow installed as "mayor" of the Ukrainian city of Melitopol after Russian troops abducted the elected mayor
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: October 13, 2022, 12:09 PM