russian oligarchs Friedman and Aven sell stakes in Alfa-Bank

According to the documents, Friedman and Aven transferred Alfa-Bank and Alfa Insurance to their longtime partner Andrey Kosogov last year.

The deal, concluded in 2023, valued these companies at about 240 billion rubles ($2.5 billion). The oligarchs owned 45% of the bank and 42% of the insurance company.

Kosogov, who is not under sanctions, emerged from the shadows to become the largest shareholder in Alfa-Bank and LetterOne Holding, based in London's Mayfair district, after buying out the stakes of his sanctioned partners.

The oligarchs hope that the sale of the bank and insurance company - a deal accelerated by russian authorities' interference in the ownership of “economically significant” companies - will help them challenge EU sanctions imposed in response to russia's full-scale invasion of Ukraine.

Last year, the EU's General Court partially overturned the grounds for the sanctions, finding that Brussels had not provided sufficient evidence of their involvement in actions aimed at undermining Ukraine.

This victory was the biggest blow to the EU sanctions regime against Russia since the invasion.

However, the sanctions remain in place on another ground - the EU considers Friedman and Aven “leading businessmen involved in an economic sector that is a significant source of income for the kremlin.”

The oligarchs are separately challenging this ground as well. If they succeed in winning the case, the EU countries may decide to lift the sanctions, appeal the court's decision, or impose new sanctions on a different basis. Latvia has already filed an appeal against the decision in favor of Friedman and Aven.

Source: Financial Times