- Sanctions have blocked Alisher Usmanov from paying salaries to workers repairing villas in Germany. NYT report.
- One father-in-law said the Russian conglomerate owes about $1 million to a local contractor.
- Usmanov is now ranking With a net worth of $20 billion, he is the fifth richest man in Russia.
Sanctions are preventing Russian tycoon Alisher Usmanov from paying around $1 million in wages to German workers repairing lakeside villas. said New York Times.
From Cyprus to Tegernsee, the luxury yachts and villas of licensed Russian billionaires are dotted in various idyllic corners of the world. This foreign investment can be a strong local source of income, and some workers are frustrated by the sudden halt.
Kicherov, who runs a ceramics business in the German resort town of Tegernsee, told the Times that sanctions against Usmanov were “absurd”.
“He’s always been reserved and as far as I can tell he has nothing to do with the war in any way,” he told the outlet. “But they think he can do this because he knows Putin or is Russian. You shouldn’t judge.”
Kitzrow did not immediately respond to Insider’s request for comment.
Currently, Usmanov ranking 5th richest man in Russia
After the collapse of the Soviet Union at $20 billion, he accumulated wealth in metals and mining. He is described in the EU as “Vladimir Putin’s favorite oligarch” and has allowed several Kremlin officials to use his various residences.
The craftsman isn’t the first Usmanov’s employee who has been known to have had wages cut after Russia’s invasion of Ukraine. The crew of a 512-foot superyacht confiscated by German authorities in April have been fired for failing to pay the ship’s staff as a result of sanctions, Forbes reported on the 1st (local time). report in March.
While SWIFT’s ban on its global banking system has made moving funds out of Russia more difficult, experts say it’s still possible for individuals previously sanctioned by Insiders to pay their employees abroad.
Resorts that have built their local economies around Russian tourism and investment have responded differently to the sanctions. Some countries, such as Turkey, have taken advantage of the changing geopolitical environment by establishing themselves as havens for Russian billionaires expelled from the EU.
Other countries, such as Cyprus, have moved far to withdraw “golden passports” associated with sanctioned oligarchs despite their historically active role in the Mediterranean island’s economy. Meanwhile, locals in the German town of Tegernsee are divided over the fate of the oligarch, the New York Times reported.