SHARE
COPY LINK
For members

UKRAINE

Why France is leading the EU in seizing Russian assets

Of the Russian assets seized in the EU under post-Ukraine sanctions rules, almost 60 percent of them are in France. Here's why the French government is leading Europe when it comes to enforcing sanctions on the Russian state and its oligarchs.

Why France is leading the EU in seizing Russian assets
The yacht belonging to Russian oligarch Alexei Kuzmichev, which was frozen by French authorities. (Photo by Valery HACHE / AFP)

According to a European Commission assessment (dated April 5th), France has seized or frozen almost €24 billion in Russian assets – making up more than 60 percent of the total assets seized or frozen in the EU (about €35 billion).

So why has France seized so much more than its neighbours?

Assets

Part of the explanation lies in the simple fact that France has a lot of areas that appeal to the super-rich, of all nationalities.

The “Bay of Billionaires,” located near Antibes along the Mediterranean, has been a playground for rich Russians since the fall of the Soviet Union. On the Atlantic coast, Biarritz is also a popular spot to buy a vacation home for Russian elites, including members of the Putin family.

And then of course there is Paris.

The capital city is a hot spot for tourism and real estate investment, and the wealthy from across the world enjoy buying property in the beautiful and historic city centre – especially the four central arrondissements. In 2018, so many of these properties remained vacant that these four districts merged into a single one for electoral purposes, as not enough people lived there at the time and local elections had become too small. 

Cash reserves

But the seized €24 billion isn’t all made up of holiday homes, helicopters and yachts – a significant chunk of that is Russian central bank assets.

French finance minister Bruno Le Maire said that of the total, around €2 billion is made up of private assets such as mansions, yachts and helicopters, and the remaining €22 billion is Russian Central Bank reserves.

Russia’s central bank stores a large amount of its reserve abroad as an insurance policy, should it need to prop up the ruble or avert inflation. Roughly 12 percent of the Russian central bank’s assets are with France. 

READ ALSO: Côte d’Azur mansions, jets, yachts: What is France likely to seize from Russian oligarchs?

Financial assets are also represented in other countries’ seizure totals – for example, Belgium has reportedly frozen €10 billion in Russian assets, a significant chunk being frozen transactions normally made via the SWIFT international payment system, which is located in La Hulpe, outside Brussels.

Taskforce

But as well as having a lot of Russian assets in the country, France has also demonstrated strong political will when it comes to enforcing sanctions.

The government has created a taskforce – largely made up of customs officers and tax inspectors – to enforce sanctions. Before seizing property, the officers on the taskforce need to pick through the complicated web of shell companies and proxy ownership in order to establish what assets the oligarchs have.

The French Ministry of the Economy published a list of 41 properties owned by Russian oligarchs, and that list is expected to grow as more assets are discovered.

Currently, the majority of the properties on the list belong to just eight sanctioned billionaires.

Roman Abramovich is among the billionaires to make the naughty list – specifically via his €230 million Château de la Croë in Antibes on the French Riviera, where the former king Edward VIII lived after his abdication of the British crown and contentious marriage to Wallis Simpson.

Jérôme Fournel, the director general of public finance, told French daily The Parisian, that the taskforce does this via the several different files at its disposal, including the Ficoba registry (national file of bank and similar accounts), which lists in great detail all current accounts, savings accounts, securities accounts and safety deposit boxes opened in France.

The taskforce also works to map oligarchs’ assets and untangle sometimes complex financial arrangements.

Then, they access real estate dossiers, and as soon as an apartment or a villa belonging to one of the people on the list is identified, they instantly update the list. They quickly alert notaries to flag properties that cannot be sold or rented. For the moment however, the total number of oligarchs with property in France, as well as the total value of such properties has not been published.

The sanctions list continues to grow: now almost 900 people are on the list following the “atrocities committed in Bucha.” As the list expands, so too will the workload of the French taskforce.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

FRENCH POLITICS

French minister investigated after rape allegations

A junior minister in President Emmanuel Macron's government is under investigation after two allegations of rape were brought against her, French prosecutors have said.

French minister investigated after rape allegations

The allegations go back to when Chrysoula Zacharopoulou – who is now state secretary for development, Francophonie and international partnerships – worked as a gynaecologist, according to French magazine Marianne.

One complaint was lodged on May 25th and the investigation opened two days later, the prosecutors said. The second complaint was filed on June 16th.

Greece-born Zacharopoulou, 46, joined the government of Prime Minister Elisabeth Borne in May, having been a member of the European Parliament for the previous three years. She reports to Foreign Minister Catherine Colonna.

She gained prominence in 2015 by campaigning for greater public awareness of endometriosis together with actress Julie Gayet, who this year married former French president Francois Hollande.

Zacharopoulou was strongly involved in the UN’s COVAX coronavirus vaccine rollout effort, and has spoken out in favour of women’s reproductive rights.

These are not the first rape allegations to overshadow Macron’s government and come at a time of political difficulty for the president after he failed to retain a majority in parliamentary elections.

Prosecutors investigated Interior Minister Gerald Darmanin over an allegation for rape filed in 2017. He denied any wrongdoing and prosecutors in
January asked for the case to be dropped.

Rape allegations were also made against Solidarities minister Damien Abad last month but French prosecutors have said they were not currently opening an investigation.

SHOW COMMENTS