For Russia’s richest, will sanctions hurt? Probably not
The term Russian oligarch conjures images of posh London mansions, gold-plated Bentleys and sleek superyachts in the Mediterranean, their decks draped with partiers dripping in jewels.
But the raft of sanctions on oligarchs announced by President Joe Biden this week in response to the invasion of Ukraine may do little to dim the jet-setting lifestyles of Russia’s ultra-rich and infamous – much less force a withdrawal of tanks and troops.
U.S. sanctions target Russian President Vladmir Putin and a handful of individuals believed to be among his closest security advisers, including Foreign Minister Sergey Lavrov. But the list is just as notable for who isn’t on it — most of the top names from Forbes’ list of the richest Russians whose multi-billion-dollar fortunes are now largely intertwined with the West, from investments in Silicon Valley start-ups to British Premier League soccer teams.
Citing the concerns of European allies, the U.S. also didn’t impose what was seen as the harshest punishment at its disposal, banning Russia from SWIFT, the international financial system that banks use to move money around the world.
With no appetite for military confrontation, the U.S. and its allies are relying on sweeping economic sanctions to persuade Russian President Vladimir Putin to pull out of Ukraine.
But the effectiveness of those measures is anything but certain, relying on a host of factors that includes how much China is willing to come to Moscow’s aid.
Placing a stranglehold on Russia’s $1.5 trillion economy will not be easy, especially since it began trying to buffer itself from international sanctions after it annexed Crimea from Ukraine in 2014.
Russia has sidelined growth to pare down its debt and built up its reserves of foreign currency and gold — so much so that it reached record levels this year at over $640 billion.
The reserves help soften the financial blowback of Russia’s invasion.
The U.S. and European allies announced sweeping asset freezes and other penalties this week against Russia’s banks, state-owned enterprises and elites.
The sanctions put a new chill on what had been weeks of repeated diplomatic efforts with Russia as Putin built up forces on Ukraine’s borders.
At the same time, Ukraine refugees are fleeing their homes to take shelter or leave the country as the Russia invasion advances.
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How to talk to children about UkraineAP Photo/Andreea Alexandru
A woman holds a child's hand after crossing the border from Ukraine at the Romanian-Ukrainian border in Siret, Romania, on Friday.
AP Photo/Andreea AlexandruA woman holds a child's hand after crossing the border from Ukraine at the Romanian-Ukrainian border in Siret, Romania, on Friday.
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For Russia’s richest, will sanctions hurt? Probably notAnna Szilagyi - stringer, AP
Children play at a temporary refugee shelter in Zahony, Hungary, near to the Ukrainian border, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday.
Anna Szilagyi - stringer, APChildren play at a temporary refugee shelter in Zahony, Hungary, near to the Ukrainian border, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday.
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For Russia’s richest, will sanctions hurt? Probably notAnna Szilagyi - stringer, AP
Ukrainian people leave a train that carried 275 people, to arrive in Zahony, Hungary, a border town with Ukraine, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday.
Anna Szilagyi - stringer, APUkrainian people leave a train that carried 275 people, to arrive in Zahony, Hungary, a border town with Ukraine, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday.
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For Russia’s richest, will sanctions hurt? Probably notAnna Szilagyi - stringer, AP
Ukrainian people wait at a train station in Zahony, Hungary, a border town with Ukraine, after arriving on a train that carried 275 people, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday.
Anna Szilagyi - stringer, APUkrainian people wait at a train station in Zahony, Hungary, a border town with Ukraine, after arriving on a train that carried 275 people, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday.
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For Russia’s richest, will sanctions hurt? Probably notCzarek Sokolowski - staff, AP
A driver with her belongings fleeing the conflict from neighboring Ukraine, arrives at the border crossing in Medyka, southeastern Poland, on Friday, Feb. 25, 2022. U.N. officials said that 100,000 people were believed to have left their homes and estimated up to 4 million could flee if the fighting escalates.
Czarek Sokolowski - staff, APA driver with her belongings fleeing the conflict from neighboring Ukraine, arrives at the border crossing in Medyka, southeastern Poland, on Friday, Feb. 25, 2022. U.N. officials said that 100,000 people were believed to have left their homes and estimated up to 4 million could flee if the fighting escalates.
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For Russia’s richest, will sanctions hurt? Probably notAurel Obreja - stringer, AP
A child from Ukraine sleeps in a tent part of a humanitarian centre for refugees at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
Aurel Obreja - stringer, APA child from Ukraine sleeps in a tent part of a humanitarian centre for refugees at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
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For Russia’s richest, will sanctions hurt? Probably notAlexandru Dobre - stringer, AP
A woman pushes a baby stroller after crossing the border from Ukraine at the Romanian-Ukrainian border, in Siret, Romania, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
Alexandru Dobre - stringer, APA woman pushes a baby stroller after crossing the border from Ukraine at the Romanian-Ukrainian border, in Siret, Romania, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
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For Russia’s richest, will sanctions hurt? Probably notAurel Obreja - stringer, AP
A child from Ukraine sleeps in a tent part of a humanitarian center for refugees at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
Aurel Obreja - stringer, APA child from Ukraine sleeps in a tent part of a humanitarian center for refugees at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
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For Russia’s richest, will sanctions hurt? Probably notAurel Obreja - stringer, AP
Refugees from Ukraine sleep in a tent part of a humanitarian center at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help
Aurel Obreja - stringer, APRefugees from Ukraine sleep in a tent part of a humanitarian center at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help
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For Russia’s richest, will sanctions hurt? Probably notAurel Obreja - stringer, AP
A border police officer talks to refugees after crossing the border from Ukraine at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
Aurel Obreja - stringer, APA border police officer talks to refugees after crossing the border from Ukraine at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
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For Russia’s richest, will sanctions hurt? Probably notAurel Obreja - stringer, AP
A humanitarian center for refugees coming from Ukraine at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
Aurel Obreja - stringer, APA humanitarian center for refugees coming from Ukraine at the Moldovan-Ukrainian border, in Palalanca, Moldova, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
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For Russia’s richest, will sanctions hurt? Probably notCzarek Sokolowski - staff, AP
People fleeing the conflict from neighboring Ukraine, arrive at the border crossing in Medyka, southeastern Poland, on Friday, Feb. 25, 2022. U.N. officials said that 100,000 people were believed to have left their homes and estimated up to 4 million could flee if the fighting escalates.
Czarek Sokolowski - staff, APPeople fleeing the conflict from neighboring Ukraine, arrive at the border crossing in Medyka, southeastern Poland, on Friday, Feb. 25, 2022. U.N. officials said that 100,000 people were believed to have left their homes and estimated up to 4 million could flee if the fighting escalates.
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For Russia’s richest, will sanctions hurt? Probably notPaul Ursachi - stringer, AP
A woman weeps in her car after crossing the border from Ukraine at the Romanian-Ukrainian border, in Sighetu Marmatiei, Romania, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
Paul Ursachi - stringer, APA woman weeps in her car after crossing the border from Ukraine at the Romanian-Ukrainian border, in Sighetu Marmatiei, Romania, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
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For Russia’s richest, will sanctions hurt? Probably notAndreea Alexandru - stringer, AP
A woman pushes a baby stroller after crossing the border from Ukraine at the Romanian-Ukrainian border, in Siret, Romania, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
Andreea Alexandru - stringer, APA woman pushes a baby stroller after crossing the border from Ukraine at the Romanian-Ukrainian border, in Siret, Romania, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
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For Russia’s richest, will sanctions hurt? Probably notAndreea Alexandru - stringer, AP
Women push baby strollers after crossing the border from Ukraine at the Romanian-Ukrainian border, in Siret, Romania, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
Andreea Alexandru - stringer, APWomen push baby strollers after crossing the border from Ukraine at the Romanian-Ukrainian border, in Siret, Romania, Friday, Feb. 25, 2022. Thousands of Ukrainians are fleeing from war by crossing their borders to the west in search of safety. They left their country as Russia pounded their capital and other cities with airstrikes for a second day on Friday. Cars were backed up for several kilometers (miles) at some border crossings as authorities in Poland, Slovakia, Hungary, Romania and Moldova mobilized to receive them, offering them shelter, food and legal help.
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For Russia’s richest, will sanctions hurt? Probably notEfrem Lukatsky - staff, AP
People rest in the Kyiv subway, using it as a shelter in Kyiv, Ukraine, Friday, Feb. 25, 2022. Russia is pressing its invasion of Ukraine to the outskirts of the capital after unleashing airstrikes on cities and military bases and sending in troops and tanks from three sides.
Efrem Lukatsky - staff, APPeople rest in the Kyiv subway, using it as a shelter in Kyiv, Ukraine, Friday, Feb. 25, 2022. Russia is pressing its invasion of Ukraine to the outskirts of the capital after unleashing airstrikes on cities and military bases and sending in troops and tanks from three sides.
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For Russia’s richest, will sanctions hurt? Probably notEfrem Lukatsky - staff, AP
People gather in the Kyiv subway, using it as a bomb shelter in Kyiv, Ukraine, Friday, Feb. 25, 2022. Russia is pressing its invasion of Ukraine to the outskirts of the capital after unleashing airstrikes on cities and military bases and sending in troops and tanks from three sides.
Efrem Lukatsky - staff, APPeople gather in the Kyiv subway, using it as a bomb shelter in Kyiv, Ukraine, Friday, Feb. 25, 2022. Russia is pressing its invasion of Ukraine to the outskirts of the capital after unleashing airstrikes on cities and military bases and sending in troops and tanks from three sides.
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For Russia’s richest, will sanctions hurt? Probably notEfrem Lukatsky - staff, AP
People gather in the Kyiv subway, using it as a bomb shelter in Kyiv, Ukraine, Friday, Feb. 25, 2022. Russia is pressing its invasion of Ukraine to the outskirts of the capital after unleashing airstrikes on cities and military bases and sending in troops and tanks from three sides.
Efrem Lukatsky - staff, APPeople gather in the Kyiv subway, using it as a bomb shelter in Kyiv, Ukraine, Friday, Feb. 25, 2022. Russia is pressing its invasion of Ukraine to the outskirts of the capital after unleashing airstrikes on cities and military bases and sending in troops and tanks from three sides.
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For Russia’s richest, will sanctions hurt? Probably notPetr David Josek - staff, AP
People fleeing the conflict from neighboring Ukraine arrive to Przemysl train station in Przemysl, Poland, on Friday, Feb. 25, 2022.
Petr David Josek - staff, APPeople fleeing the conflict from neighboring Ukraine arrive to Przemysl train station in Przemysl, Poland, on Friday, Feb. 25, 2022.
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For Russia’s richest, will sanctions hurt? Probably notPetr David Josek - staff, AP
People fleeing the conflict from neighboring Ukraine arrive to Przemysl train station in Przemysl, Poland, on Friday, Feb. 25, 2022.
Petr David Josek - staff, APPeople fleeing the conflict from neighboring Ukraine arrive to Przemysl train station in Przemysl, Poland, on Friday, Feb. 25, 2022.
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For Russia’s richest, will sanctions hurt? Probably notPetr David Josek - staff, AP
People fleeing the conflict from neighboring Ukraine arrive to Przemysl train station in Przemysl, Poland, on Friday, Feb. 25, 2022.
Petr David Josek - staff, APPeople fleeing the conflict from neighboring Ukraine arrive to Przemysl train station in Przemysl, Poland, on Friday, Feb. 25, 2022.
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For Russia’s richest, will sanctions hurt? Probably notPetr David Josek - staff, AP
People fleeing the conflict from neighboring Ukraine arrive to Przemysl train station in Przemysl, Poland, on Friday, Feb. 25, 2022.
Petr David Josek - staff, APPeople fleeing the conflict from neighboring Ukraine arrive to Przemysl train station in Przemysl, Poland, on Friday, Feb. 25, 2022.
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