Despite sanctions, Russian oligarchs continue to earn billions from trade with the European Union, using loopholes to circumvent restrictions.
Points of attention
The largest Russian oligarchs are profiting significantly from trade with the EU, despite facing sanctions.
Oligarchs like Alisher Usmanov and Roman Abramovich are successfully evading restrictions and increasing their fortunes through clever tactics.
Many oligarchs transfer company shares to relatives or front persons to avoid sanctions, enabling them to continue trading with the EU.
Key players such as Rusal, Metalloinvest, Phosagro, and Eurochem are among the companies actively involved in these controversial practices.
The situation sheds light on the inefficiencies of sanctions and the complex strategies employed by Russian oligarchs to maintain their business ties with the EU.
How Russian oligarchs continue to profit from trade with the EU, bypassing sanctions
According to the publication's journalists, sanctions against Russian oligarchs close to Kremlin dictator Vladimir Putin do not apply to their companies if the oligarchs' share of shares in these companies does not exceed 50%.
Thus, most Russian oligarchs simply transfer some of the shares of their own companies to close relatives or front persons with the right of subsequent redemption.
Which companies of Russian oligarchs continue to profit from trade with the EU?
In particular, such actions were taken by the owner of the aluminum corporation Rusal, oligarch Oleg Deripaska, who is also the owner of a private military company participating in the criminal war unleashed by Russia against Ukraine.
Since Russia launched its criminal war against Ukraine in 2022, Deripaska's fortune has increased more than one and a half times to $2.8 billion.
The second key shareholder of Rusal, Viktor Vekselberg, is not under sanctions at all, although he regularly meets with Putin, and his companies produce missiles with which the Russian occupation army then attacks Ukraine.
Alisher Usmanov registered his company's shares in the name of nominees with the right to repurchase, reducing his own stake in USM to 49% and avoiding personal sanctions.
Putin during a meeting with Alisher Usmanov
USM includes Metaloinvest, the largest iron ore company in the Russian Federation, which exports its products to European countries.
Usmanov's partner in Metaloinvest, State Duma deputy from United Russia Andrey Skoch, is also under sanctions, and the business is registered in the name of his father Vladimir and daughter Varvara.
As of February 24, 2022, the fortunes of Usmanov and the Skocha family have increased to $13.4 billion and $6.7 billion, respectively.
Over the past 2 years, these oligarchs have become richer by $4 billion.
United Russia member Andrey Guryev and his partner Vladimir Litvinenko also continue to earn money from trade with the EU.
The Guriev family owns 48.5% of the largest producer of phosphate fertilizers in the Russian Federation, Phosagro.
Litvinenko transferred more than 20% of Phosagro shares to his wife Tatyana in 2022, allowing the company to freely export products to Europe. His fortune has doubled since 2022, to $3 billion.
Andriy Melnychenko also supplies fertilizers to Europe through his company Eurochem, but to do so he reduced his stake in the company.
The products of the large metallurgical and mining company "Evraz", owned by Roman Abramovich, also continue to supply its products to countries such as France and the Czech Republic.
In addition, he is a minority shareholder of the company "Norilsk Nickel", which not only exports its products, but also owns production in Europe.
Gennady Timchenko, who is called Putin's "wallet", owns shares in Novatek — 23.49% and Sibur — 17%.
The main owner of the companies, Leonid Mikhelson, is not subject to EU sanctions, therefore the restrictions do not apply to these companies.
The State Migration Service has developed and is implementing an algorithm for accepting certain categories of foreigners into Ukrainian citizenship. The Ministry of Internal Affairs has already published an algorithm of actions that will help to understand this issue.
Points of attention
Explore the conditions for obtaining citizenship based on military service under contract, continuous legal residence, or being awarded a state honor by Ukraine.
Discover the eligibility criteria for foreigners who provided instructional assistance to the Armed Forces of Ukraine in the ATO zone, and those who offered support during martial law.
Find out the detailed steps to follow, including submitting applications, obtaining identity documents, and applying for a Ukrainian passport.
Algorithm for accepting Ukrainian citizenship for certain categories of foreigners
How to acquire Ukrainian citizenship for a person who has outstanding services to Ukraine, or whose admission to Ukrainian citizenship is in the state interest of Ukraine. To do this, you need to:
Contact the territorial unit of the State Social Insurance Institution (SMS) at your place of residence in person.
Submit documents:
application for admission to Ukrainian citizenship (according to the established form, formed in the territorial unit of the State Migration Service, in 2 notes);
a submission addressed to the President of Ukraine, the central executive body of Ukraine, stating that the person has outstanding services to Ukraine, or that admission to Ukrainian citizenship is in the state interest of Ukraine ( form 21, 22 )
national passport with a translation into Ukrainian, certified in accordance with the established procedure, with a note on the legality of residence in the territory of Ukraine (if available, a temporary or permanent residence permit);
obligation to pass exams on the basics of the Constitution of Ukraine, the history of Ukraine, and the level of proficiency in the state language, within two years from the moment of acquiring Ukrainian citizenship;
declaration of renunciation of foreign citizenship (in the prescribed form);
3 photos 35x45 mm;
a receipt for payment of state duty in the amount of UAH 8.50 kopecks.
When submitting an application, original documents are presented.
Obtain an identity document confirming citizenship of Ukraine.
After the issuance of the Decree of the President of Ukraine on the admission of a person to Ukrainian citizenship, obtain a certificate of registration of the person as a citizen of Ukraine and submit an application for the issuance of a passport of a citizen of Ukraine.
How to acquire Ukrainian citizenship for a person who is/was serving in military service under a contract in the Armed Forces of Ukraine, the State Special Transport Service, or the National Guard of Ukraine
persons undergoing military service — 3 years of continuous legal residence from the date the contract comes into force;
persons who have completed military service under a contract and have been discharged from military service: 5 years of continuous legal residence or being married to a citizen of Ukraine for more than 2 years.
Please note! Continuity of residence is not required for persons who have completed military service under a contract and have been discharged from military service based on a medical certificate due to unfitness for service.
You must personally contact the territorial unit of the State Social Insurance Institution at your actual place of residence/stay. Submit documents:
Application for admission to Ukrainian citizenship (according to the established form, formed in the territorial unit of the State Migration Service, in 2 notes);
3 photos 35x45 mm;
declaration of renunciation of foreign citizenship (in the prescribed form);
income certificate;
a receipt for payment of state duty in the amount of UAH 8.50 kopecks;
In case of service, the following is submitted:
service contract and certificate from the place of service, military ID card, national passport* with a translation into Ukrainian and certified in accordance with the established procedure;
obligation to pass exams within two years from the moment of acquiring Ukrainian citizenship**.
In the case of service and discharge based on a medical opinion due to unfitness for service, a certificate from the place of service on the period of military service is submitted, a copy of the order on discharge from military service, certified in accordance with the established procedure, on the grounds provided for in subparagraph "b" of paragraphs 1 — 3 of part five of Article 26 of the Law of Ukraine "On Military Duty and Military Service", a copy of the conclusion of the military medical commission on unfitness for military service, certified in accordance with the established procedure, a military ID card, a national passport* with a translation into Ukrainian, certified in accordance with the established procedure; certificates of passing exams.
When submitting an application, original documents are presented.
Obtain an identity document confirming citizenship of Ukraine.
After the issuance of the Decree of the President of Ukraine on the admission of a person to Ukrainian citizenship, obtain a certificate of registration of the person as a citizen of Ukraine and submit an application for the issuance of a passport of a citizen of Ukraine.
Citizens of Russia, the Republic of Belarus, Armenia, Bolivia, Cuba, North Korea, Nicaragua, Sudan, Syria, Zimbabwe, and Venezuela may submit an expired national passport.
Foreigners who acquired Ukrainian citizenship during martial law in Ukraine and submitted an obligation to take exams and continue to perform military service under a contract shall take exams within two years from the date of termination or cancellation of martial law in Ukraine.
How to acquire Ukrainian citizenship for a person who is/was serving in military service under a contract in the Armed Forces of Ukraine, the State Special Transport Service, the National Guard of Ukraine and has been awarded a state award of Ukraine
Contact the territorial unit of the State Social Insurance Institution in person at your actual place of residence/stay.
Submit documents:
Application for admission to Ukrainian citizenship (according to the established form, formed in the territorial unit of the State Migration Service, in 2 notes);
3 photos 35x45 mm;
a declaration of renunciation of a person's foreign citizenship (in the prescribed form);
a receipt for payment of state duty in the amount of UAH 8.50 kopecks;
In case of military service, the following documents are submitted: a service contract and a certificate from the place of service, a military ID card, a national passport* with a translation into Ukrainian certified in accordance with the established procedure, a document confirming the awarding of a state award;
obligation to pass exams within two years from the moment of acquiring Ukrainian citizenship**;
In the case of service and discharge based on a medical opinion due to unfitness for service, the following shall be submitted: a certificate from the place of service on the period of military service, a duly certified copy of the order on discharge from military service on the grounds provided for in subparagraph "b" of paragraphs 1 — 3 of part five of Article 26 of the Law of Ukraine "On Military Duty and Military Service", a duly certified copy of the conclusion of the military medical commission on unfitness for military service, a document on awarding a state award, a military ID card, a national passport* with a translation into Ukrainian certified in the prescribed manner;
When submitting an application, original documents are presented.
Obtain an identity document confirming citizenship of Ukraine.
After the issuance of the Decree of the President of Ukraine on the admission of a person to Ukrainian citizenship, obtain a certificate of registration of the person as a citizen of Ukraine and submit an application for the issuance of a passport of a citizen of Ukraine.
Citizens of Russia, the Republic of Belarus, Armenia, Bolivia, Cuba, North Korea, Nicaragua, Sudan, Syria, Zimbabwe, and Venezuela may submit an expired national passport.
Foreigners who acquired Ukrainian citizenship during martial law in Ukraine and submitted an obligation to take exams and continue to perform military service under a contract shall take exams within two years from the date of termination or cancellation of martial law in Ukraine.
How to acquire Ukrainian citizenship for foreigners from among the persons specified in part twenty of Article 4 of the Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons", namely foreigners who provided instructional (shooting, tactical, and other) assistance to units of the Armed Forces of Ukraine, other military formations formed in accordance with the laws of Ukraine in the ATO zone:
Apply in person to the territorial unit of the State Medical Service at the actual place of residence/stay. Submit documents:
Application for admission to Ukrainian citizenship (according to the established form, formed in the territorial unit of the State Migration Service, in 2 notes)
3 photos 35x45 mm.
declaration of renunciation of foreign citizenship (in the prescribed form)
temporary residence permit
national passport* with a translation into Ukrainian certified in accordance with the established procedure
obligation to pass exams on the basics of the Constitution of Ukraine, the history of Ukraine and the level of proficiency in the state language within two years from the moment of acquiring Ukrainian citizenship
Receipt for payment of state duty in the amount of UAH 8.50 kopecks.
When submitting an application, original documents are presented.
Obtain an identity document confirming citizenship of Ukraine.
How to acquire citizenship of Ukraine for foreigners from among the persons specified in part twenty-four of Article 4 of the Law of Ukraine "On the Legal Status of Foreigners and Stateless Persons", namely, foreigners who, during the period of martial law in Ukraine, provide/provided rifle, tactical, radio, explosive, medical and other assistance to units of the Armed Forces of Ukraine, the National Guard, including territorial defense units, volunteer formations of territorial communities, while being directly in the areas of hostilities
Conditions for acquiring Ukrainian citizenship:
three years of continuous legal residence after obtaining a temporary residence permit.
Apply in person to the territorial unit of the State Medical Service at the actual place of residence/stay. Submit documents:
Application for admission to Ukrainian citizenship (according to the established form, formed in the territorial unit of the State Migration Service, in 2 notes)
3 photos 35x45 mm.
declaration of renunciation of foreign citizenship (in the prescribed form)
temporary residence permit
national passport* with a translation into Ukrainian certified in accordance with the established procedure
certificates of passing exams on the basics of the Constitution of Ukraine, the history of Ukraine and the level of proficiency in the state language
income certificate
a receipt for payment of state duty in the amount of UAH 8.50 kopecks.
Original documents are presented when submitting an application.
Obtain an identity document confirming citizenship of Ukraine.
After the issuance of the Decree of the President of Ukraine on the admission of a person to Ukrainian citizenship, obtain a certificate of registration of the person as a citizen of Ukraine and submit an application for the issuance of a passport of a citizen of Ukraine.
Citizens of Russia, the Republic of Belarus, Armenia, Bolivia, Cuba, North Korea, Nicaragua, Sudan, Syria, Zimbabwe, and Venezuela can submit an expired national passport.
