Confiscating the assets of Russian oligarchs is a slippery slope
Brussels on Wednesday proposed ways to make the seizure faster and easier, and Washington has suggested similar measures.
The West wants to play Robin Hood with the villas and yachts of the Russian oligarchs. Hoping to use the proceeds for Ukraine, Brussels on Wednesday proposed ways to make the seizure faster and easier. Washington has suggested similar measures. But the rule of law could be undermined.
The patchwork of EU sanctions creates big loopholes. Some States understand that violations are crimes, others do not. This divergence encourages individuals to fix their wealth on the most indulgent. The European Commission wants to make sanctions evasion a serious crime across the bloc, on the same level as money laundering.
Going further seems difficult. States have seized almost $30 billion worth of yachts, villas and cash in Russian and Belarusian bank accounts. The US has stepped up calls for countries like Fiji to go after its possessions. But the oligarchs remain the legal owners and governments often have to pay for maintenance.
The mere appropriation of assets seems tempting, but it can damage the right to property and may invite further abuse. The White House suggested in April to skip the court proceedings. Sanctions cases could also be grouped together to make them easier to prove, as is done with the mob.
Brussels faces similar obstacles. Confiscation usually requires a court conviction. But under the plan, governments could do so based on mere suspicion of links to organized crime. It needs the support of the States and the European Parliament; that of the United States, of its Congress.
That would open the door to lawsuits. Germany has already suggested that the bar must be set very high. And the EU’s record is not stellar. Some, like former Ukrainian President Viktor Yanukovych, have successfully challenged the freezing of their assets.
Using the proceeds for Ukraine creates other problems. The US argues that they would compensate for the aggression. But why don’t Georgia and other countries affected by Moscow deserve similar reparation? Taking from the super-rich Russians to give to the newly poor Ukrainians is a slippery slope.
