You’re going to see Trump at his batshit craziest in just a few days when Russia’s oligarchs & Putin react to H.R. 3364, the “Countering America’s Adversaries Through Sanctions Act.”
Or maybe Putin and his pals will have nothing to react to:
Is there a chance sanctions will not be applied?
Last week, Trump began designating various government agencies and executive bodies to implement the law, although none has yet been charged with carrying out the provision regarding oligarchs.Two senators – Ben Cardin and John McCain – simultaneously appealed to Trump and his administration to “implement the law to the full extent.”
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"Who’s at Risk?
We spoke with dozens of Russians on the Forbes list. Almost all of them were aware of this provision of the law and admitted that they were doing everything possible to keep their names off the list. One individual said that it had been necessary to fly to Washington to get a clearer picture of the situation. But, the person said, the journey had not been fruitful.
“Nothing is clear: no one is working on these sanctions and no one is drawing up the list of who will be included,” he said, adding that even local lobbyists were unable to uncover anything more about the process.
“The sanctions will not be based on any particular criteria or sources of information.”
Although the Act does not mention any specific names, Russia’s business community agrees that metals tycoon Oleg Deripaska is most at risk.
His name has come up repeatedly with the U.S. authorities, especially concerning his communications with former Trump campaign manager Paul Manafort. Deripaska’s representatives did not respond to inquiries from journalists.
The Alfa Group headed by Mikhail Fridman is also at risk. That business is mentioned in the scandalous dossier of former British intelligence officer Christopher Steele that was published in BuzzFeed last year.
It states that the Alfa Group allegedly carried out Putin’s orders and helped interfere in U.S. elections. Alfa Group is currently suing BuzzFeed and the parties that ordered the dossier, demanding that they refute the inaccuracies it contains.
The media have often pointed to Alisher Usmanov and Roman Abramovich as the two businessmen with the closest ties to Vladimir Putin. Their representatives declined to comment.
An assistant to one Russian businessman explained that not only are the people on the Forbes Top Ten are at risk, even those whose names have appeared only a single time in medias rankings of major government contractors will have trouble sleeping easily...
Preparing for sanctions
“This is not something you can prepare for,” sighed one Russian member of the Forbes list, although several other businesspeople said they were working closely with their lawyers.
Law firms are even making the rounds with workshops on how to prepare for the event. However, at least one person who has attended such sessions reports that the lawyers have nothing to offer that could be of any comfort. Their best advice is for businessmen to divorce their wives and register all their assets in the names of their former spouses.
The most high-profile example of this is the divorce of Roman Abramovich and Daria Zhukova. The pair made an official announcement of the move on Aug. 7, just five days after the signing of the U.S. law, but sources close to Abramovich claim that the couple had made the decision much earlier.
It recently emerged that Oleg Deripaska’s wife, Polina, became the owner this month of an almost 7-percent share of Deripaska’s En+ holding company – owned by UC Rusal and energy assets – valued at $500 million to $600 million. That transaction also has no connection to sanctions, according to one Deripaska associate. It remains unknown whether it was connected with the pair’s marital status, or what that status is.
Businesspeople also have the option of selling off their assets, as Onexim owner Mikhail Prokhorov has been doing since last year. He sold a seven-percent stake in UC RusAl in August — eight days after Trump signed the sanctions act — and recently decided to prune it back a little more. Prokhorov did not respond to a request for comment.
Is there a chance sanctions will not be applied?
Last week, Trump began designating various government agencies and executive bodies to implement the law, although none has yet been charged with carrying out the provision regarding oligarchs.
Two senators – Ben Cardin and John McCain – simultaneously appealed to Trump and his administration to 'implement the law to the full extent.”
MORE AT:
The Moscow Times
Russia’s wealthiest individuals are busy hiring lawyers and searching for lobbyists in Washington
Oct 27, 2017
By Irina Malkova and Svetlana Reiter
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“Congress hit a nerve in Moscow last summer when it passed (and President Donald Trump signed) H.R. 3364, the “Countering America’s Adversaries Through Sanctions Act.” Beyond the law’s many sanctions, its Section 241 requires the administration to submit to Congress a detailed report identifying “the most significant senior foreign political figures and oligarchs in the Russian Federation, as determined by their closeness to the Russian regime and their net worth” within 180 days. (Underline JP)
Judging by the decibel level in Moscow, and intense activity by Washington lobbyists on behalf of Russian clients, many in the Russian elite would hate to be fingered as being creatures of Russian President Vladimir Putin. It’s clear why: Being named in this report could lead to future U.S. sanctions, and the threat of being cut off from the dollar and American banking system can be crippling; even without sanctions, being listed would make it harder to do business in the West. In their anxiety lies our opportunity, if we use it wisely.
The purpose of sanctions is to change behavior. First, the prospect of being named in the “Kremlin Report” (as we have called it) can incentivize the more independent of the Russian elite to keep some distance from Putin. Second, it can suggest to the elite that Putin’s aggression — against his neighbors and the West — can have bad consequences for them personally and should be avoided. Finally, the report may subject those named to increased scrutiny by the administration for corrupt behavior such as money laundering, helping the U.S. protect the American financial system from bad actors. The Kremlin Report thus can drive a wedge between the Kremlin and some in the wider Russian elite.
How can the U.S. get this Kremlin Report right? In an Atlantic Council policy brief we wrote with our Russian colleagues Andrei Illarionov and Andrei Piontkovsky, we urged the U.S. government to apply three criteria: a person’s closeness to the Russian regime, whether the person made a fortune through corrupt commercial operations with the Putin regime or whether the person held or channeled assets for the Russian leader in a seemingly corrupt fashion.
The Kremlin Report should not just list Russia’s wealthy in an indiscriminate fashion.
Applying these criteria, we identified seven categories of people and enterprises for inclusion in the report: (1) those responsible for aggressive, corrupt or criminal operations within or outside the Russia; (2) Putin’s close circle of contemporary friends from St. Petersburg, with whom he has done business since the early 1990s, known as his “cronies;” (3) “golden children” of the rich who have become very wealthy top executives at a tender age; (4) personal friends of Putin who, to shield the president from scrutiny, hold considerable wealth for him; (5) so-called oligarchs: Big businessmen profiting greatly from direct business with the Kremlin; (6) corrupt state enterprise managers who owe their positions to their close personal relations with Putin and utilize their positions for gross larceny; and; (7) the relevant companies owned by these people.”
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The list that’s freaking out everyone in Moscow
Congress ordered the Trump administration to submit a roster of Russians tied closely to the Kremlin. Used wisely, it can be a powerful tool.
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ALSO SEE:
'Trump is ours again!' Russian TV host celebrates after White House refuses to enforce new sanctions
ReplyDeleteRussia’s state television channel seems to be happy with President Donald Trump’s decision to not enforce sanctions against Russia that were overwhelmingly approved by both houses of Congress.
Julia Davis, who runs the Russian Media Monitor website, reports via Twitter that Russian TV show host Olga Skabeeva on Tuesday was positively gushing about the White House’s decision to not enforce new sanctions against her country.
“Seemingly, Trump is ours again,” said Skabeeva, according to Davis’ translation. “So far, he’s being quiet and not supporting the sanctions.”
MORE AT:
https://www.rawstory.com/2018/01/trump-russian-tv-host-celebrates-white-house-refuses-enforce-new-sanctions/