The UK’s National Crime Agency (NCA) has confirmed that it has dropped its investigation into the alleged evasion of sanctions by Russian billionaire Mikhail Fridman. Last year, more than 50 officers conducted a raid on Fridman’s north London home, during which he was arrested and several items, including digital devices and a significant sum of cash, were seized. However, the NCA has now stated that it will not pursue further action against Fridman, although inquiries into associated suspects continue.
Fridman, who made his fortune in banking, oil, and retail, is one of Russia’s most prominent businessmen. He was the focus of a new unit established to target wealthy Russians following the invasion of Ukraine. The raid on his home, which took place in December 2022, attracted attention on social media due to a statement and photo released by the NCA.
The NCA’s combating kleptocracy cell was set up to investigate individuals with connections to Russian President Vladimir Putin and his regime. The agency had been looking into allegations that Fridman made a loan payment from his Alfa Bank to his executive assistant prior to being sanctioned. It had already acknowledged that the search warrant used in the raid had contained technical errors.
During a court hearing in July, Fridman claimed that the raid was illegal and relied on compromising material, including a 15-year-old report containing unproven criminal allegations. Despite the asset freezes imposed on over 130 oligarchs with a combined net worth of more than £145 billion since Russia’s invasion of Ukraine, Fridman was granted a license by Britain to employ staff, including private chefs.
The granting of this license and the discontinuation of the investigation into Fridman have attracted attention, particularly in light of the tough sanctions implemented by the British government. It has been stated that Britain has imposed the harshest package of sanctions ever placed on a major economy. However, Fridman, described by the UK government as a pro-Kremlin oligarch, was permitted to make payments to staff, totaling £300,000 over a 10-month period, and receive a monthly allowance of around £7,000 to cover his family’s basic needs.
While the reasons behind the NCA’s decision to drop the investigation have not been disclosed, it highlights the challenges faced by authorities when dealing with high-profile individuals accused of sanctions evasion. The case has sparked debate over the effectiveness of these measures and the need for further scrutiny in such matters.
It remains to be seen what impact this development will have on the wider investigation into individuals associated with Fridman and whether any further action will be taken. The NCA’s decision has undoubtedly raised questions and may prompt calls for greater oversight and accountability in dealing with wealthy Russians and their potential involvement in sanction evasion.
