In a significant development, German authorities have decided to close a high-profile investigation into Russian billionaire and close Vladimir Putin ally, Alisher Usmanov, after he agreed to make a substantial payment of 10 million euros. The probe, centred on potential breaches of European Union sanctions imposed after Russia's invasion of Ukraine, will be formally discontinued upon receipt of the funds.
The Core of the German Investigation
The Munich prosecutor's office announced the decision on Tuesday. The investigation, which had led to police raids on dozens of properties across Germany linked to Usmanov three years ago, focused on suspected violations in the months following the imposition of EU sanctions in 2022.
Prosecutors alleged that Usmanov, an Uzbekistan-born metals magnate and president of the International Fencing Federation, was involved in transferring approximately 1.5 million euros through companies based outside Germany. These funds were reportedly used for managing two luxury properties in the Bavarian lakeside town of Rottach-Egern, located south of Munich.
Furthermore, the oligarch was accused of failing to declare a collection of valuables to the relevant authorities. This undeclared inventory allegedly included high-value items such as jewellery, paintings, and fine wines.
Legal Resolution and Distribution of Funds
It is crucial to note that the 10-million-euro payment is not classified as a fine. Instead, prosecutors stated that the discontinuation of the case upon payment is a provision allowed under German criminal law. Usmanov's legal team had previously contested the allegations regarding his connections to the companies and the valuables, as well as the applicability of EU law in this specific instance.
According to the prosecutor's office, the 10 million euros will be allocated to three entities: the state treasury, a Bavarian foundation for victim support, and an association dedicated to prisoner welfare and probation services. This case follows the dropping of a separate money laundering investigation against Usmanov last year, as confirmed by his press office.
Context and Broader Implications
Alisher Usmanov has been a prominent figure under Western sanctions since Russia's full-scale invasion of Ukraine. The EU measures led to the freezing of some of his funds and assets within the bloc. This resolution in Germany marks a notable conclusion to one of the legal challenges he has faced in Europe, though he remains under sanctions.
The outcome demonstrates the complex legal pathways available in such high-stakes international cases involving sanctions enforcement. While the investigation is set to be closed, it underscores the continued scrutiny faced by Russian oligarchs with close ties to the Kremlin in the wake of the ongoing Ukraine conflict.
