As Reuters has learned, Liechtenstein is forced to look for ways to strengthen control over dozens of Russian-linked trusts, whose managers have abandoned them due to US sanctions against Russian oligarchs.
Points of attention
- The sanctions create a new leverage for US President Donald Trump in negotiations with Russia, potentially impacting peace agreements.
- The situation highlights the complex interplay between international politics, finance, and the wealth management industry, emphasizing the global ramifications of geopolitical tensions.
Putin's henchmen face new challenges
According to media reports, dozens of trusts that were linked to oligarchs, including Vladimir Potanin and longtime Putin ally Gennady Timchenko, found themselves in an extremely precarious position.
US sanctions have de facto frozen a significant portion of Russian money.
What is important to understand is that trusts are the backbone of wealth, including yachts or real estate located in different parts of the world.
The suspension of their activities makes this property inaccessible, which is another potential lever of pressure on Russia amid US President Donald Trump's attempts to conclude a peace agreement.
Liechtenstein authorities concluded that at least 475 trusts were targeted by the United States. However, not all of them were connected to Russians.
The country's Ministry of Justice intends to appoint new administrators for 350 trusts, while 40 trusts are being liquidated.
This situation is hitting the trust industry, which is an important pillar of Liechtenstein's financial center, which is worth approximately $930 billion and is the backbone of the country's economy.
