Vladimir Potanin attends a session of the St Petersburg International Economic Forum in Russia in 2019. Reuters
Vladimir Potanin attends a session of the St Petersburg International Economic Forum in Russia in 2019. Reuters
Vladimir Potanin attends a session of the St Petersburg International Economic Forum in Russia in 2019. Reuters
Vladimir Potanin attends a session of the St Petersburg International Economic Forum in Russia in 2019. Reuters

New US sanctions hit one of Russia's richest men Vladimir Potanin


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The US has issued financial sanctions against one of Russia's wealthiest men, Vladimir Potanin, the Treasury and State departments said on Thursday.

The action comes after similar moves were made against Mr Potanin and his network by Britain and Canada, the State Department said.

"Our actions today are a clear message that the United States will not hesitate to continue to use the tools at our disposal to promote an end to, and accountability for, President [Vladimir] Putin’s unconscionable war" in Ukraine, US Secretary of State Antony Blinken said in a statement.

Among those being sanctioned are 29 Russian governors and regional heads as well as two of the leaders' family members. Also being sanctioned is an entity owned by one of the family members.

"These governors oversee and enforce the conscription of citizens in response to Russia’s recent mobilisation order," the Secretary of State said.

Treasury is sanctioning 18 entities related to Russia's financial services sector, while the State Department is designating Mr Potanin, his network and more than 40 more people linked to the government in Moscow.

US sanctions more Russian oligarchs - in pictures

  • Witanhurst is located in Highgate Village above Hampstead Heath, London. Photo: Keith Newformula
    Witanhurst is located in Highgate Village above Hampstead Heath, London. Photo: Keith Newformula
  • London neighbourhoods favoured by Russian owners are Belgravia, Knightsbridge, Chelsea, Hampstead and Highgate, the wealthiest areas of the capital. Getty Images
    London neighbourhoods favoured by Russian owners are Belgravia, Knightsbridge, Chelsea, Hampstead and Highgate, the wealthiest areas of the capital. Getty Images
  • The Russian billionaire Andrey Guryev owns Witanhurst, the second largest private residence in London after Buckingham Palace, and has 65 rooms, 25 bedrooms and a ballroom. Getty Images
    The Russian billionaire Andrey Guryev owns Witanhurst, the second largest private residence in London after Buckingham Palace, and has 65 rooms, 25 bedrooms and a ballroom. Getty Images
  • Witanhurst was bought by the Guryev family through an offshore company called Safran Holdings, located in the tax haven of the British Virgin Islands, for £50 million in 2008. Getty Images
    Witanhurst was bought by the Guryev family through an offshore company called Safran Holdings, located in the tax haven of the British Virgin Islands, for £50 million in 2008. Getty Images
  • Russian billionaire Andrey Melnichenko in Moscow, Russia, in February 9, 2018. Reuters
    Russian billionaire Andrey Melnichenko in Moscow, Russia, in February 9, 2018. Reuters
  • The 118-metre superyacht belonging to Mr Melnichenko anchored in the port of Ras Al Khaimah. AP
    The 118-metre superyacht belonging to Mr Melnichenko anchored in the port of Ras Al Khaimah. AP
  • Mr Melnichenko was slapped with sanctions by the US Treasury Department on Tuesday. AP
    Mr Melnichenko was slapped with sanctions by the US Treasury Department on Tuesday. AP
  • 'Motor Yacht A' is seen moored on the River Thames beside the 'HMS Belfast' in London in 2016. Reuters
    'Motor Yacht A' is seen moored on the River Thames beside the 'HMS Belfast' in London in 2016. Reuters
  • 'Motor Yacht A' is seen near the harbour in Monaco on May 4, 2017. Reuters
    'Motor Yacht A' is seen near the harbour in Monaco on May 4, 2017. Reuters
  • The superyacht belonging to Russian billionaire Andrey Melnichenko, which has been sequestered by Italian police, is seen at the port of Trieste, Italy, on March 12, 2022. Reuters
    The superyacht belonging to Russian billionaire Andrey Melnichenko, which has been sequestered by Italian police, is seen at the port of Trieste, Italy, on March 12, 2022. Reuters
  • Mr Melnichenko's sailing yacht in Trieste, Italy, on March 10, 2022. It is the largest private sail-assisted motor yacht in the world. AFP
    Mr Melnichenko's sailing yacht in Trieste, Italy, on March 10, 2022. It is the largest private sail-assisted motor yacht in the world. AFP
  • Russian oligarch Dmitry Pumpyanskiy. Photo: Kremlin.ru
    Russian oligarch Dmitry Pumpyanskiy. Photo: Kremlin.ru
  • Russian President Vladimir Putin with Mr Pumpyanskiy in July 2014. Photo: Kremlin.ru
    Russian President Vladimir Putin with Mr Pumpyanskiy in July 2014. Photo: Kremlin.ru
  • The superyacht 'Alfa Nero' is owned by Andrey Guryev. Photo: Schnippchen
    The superyacht 'Alfa Nero' is owned by Andrey Guryev. Photo: Schnippchen
  • The 'Alfa Nero' in the Port of Antibes on the French Riviera. Photo: Wikipedia
    The 'Alfa Nero' in the Port of Antibes on the French Riviera. Photo: Wikipedia

Corporate leaders of Russian state-owned companies are also named in the latest addition to Washington's sanctions regime.

The State Department said it is also designating five individuals serving on the board of directors of Russian Railways, including Russian Deputy Prime Ministers Andrey Belousov and Dmitriy Chernyshenko.

“By sanctioning additional major Russian banks, we continue to deepen Russia’s isolation from global markets,” said Brian Nelson, Treasury under secretary for terrorism and financial intelligence .

Faced with sweeping international sanctions since its February invasion of Ukraine, there is some evidence that economic conditions in Russia are starting to deteriorate at a faster rate, a December report from Washington's Congressional Research Service showed.

In November, the Russian central bank estimated a faster economic contraction in the fourth quarter of 2022, at a little more than 7 per cent compared to previous quarters, which sat at about 4 per cent.

Sanctions may be a contributing factor, the report said, "but other factors are likely contributing ... most notably, the war effort itself".

That additional economic strain includes factors such as the mobilisation of civilian production for military purposes, workers drafted into military service and deferred domestic infrastructure projects.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal. 

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.” 

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

Updated: December 16, 2022, 8:58 AM