In response to Russia’s war of aggression against Ukraine, the West has imposed sanctions on more than 1,000 people. They are accused of belonging to the ruling circle of Vladimir Putin (70).
But some of his powerful followers were spared the restrictions. So is Vladimir Potanin (61), one of the richest Russians ever, with a fortune of $26 billion. Putin’s longtime friend, who stood out as an investor at the 2014 Winter Olympics in Sochi, was not bothered by either the US or the EU – and therefore Switzerland, which has taken on European sanctions.
Potanin benefits from the Ukrainian war
Only Australia and Canada put Potanin on the sanction list from the start. Great Britain did the same in the summer, justifying the move as follows: “Potanin is expanding his fortune while supporting the Putin regime.”
In fact, Potanin benefited like nothing else from the Ukrainian war: In May, he bought the Rosbank financial institution from the French bank Société Générale, which wanted to leave Russia because of the war. Almost simultaneously, the digital bank bought Tinkoff at a very affordable price. Company founder Oleg Tinkov (54) had to sell because he dared to criticize Putin’s Ukraine campaign.
There is no official explanation as to why the US, EU and Switzerland gave up on Potanin. An EU official said the “detailed procedure” that decided to include it on the sanctions list was “not publicly available”. The Secretariat of State for Economic Affairs (Seco) also does not want to comment on individual cases or debates in the EU. The US Treasury Department left a request unanswered.
It’s about economic interests
Despite this lack of transparency, the reasons for Potanin’s special treatment are clear: It has to do with economic interests. Potanin controls the Russian mining company Norilsk Nickel, one of the world’s largest producers of key platinum metals such as nickel and palladium. They are indispensable for Western industrial companies, almost no technological product can do without them.
“Because the West does not want to jeopardize the supply of platinum metals, it is reasonable to assume that Potanin will be pardoned,” says Oliver Classen, spokesman for the nonprofit Public Eye. And also: “If you were to judge all oligarchs by the same criteria, Potanin should have been at the top of the sanctions list.”
For Hans-Peter Portmann (59, ZH), FDP National Assembly Member and Deputy Chairman of the Foreign Policy Commission, the Potanin case proves that the EU sanctions list is partially arbitrary. “Switzerland should therefore not accept the list without checking it, but better boycott individual products and raw materials from Russia.”
Potanin as a precedent
The case of Potanin also proves that such Swiss measures can make a difference: raw materials from the Norilsk Nickel mines are sold to Europe, Asia and America through Metal Trade Overseas SA, a subsidiary based in the canton of Zug.
Not pardoning Potanin could also be a boon to the oligarchs who are being sanctioned. Some are trying to take legal action against sanctions. Their main argument: sanctions are arbitrary and illegitimate. “The Potanin sample for this argument is certainly worth its weight in gold,” Classen says.
The EU sanctions list itself provides oligarch lawyers with valuable ammunition. On this list, Andrei Melnichenko (50), the richest Russian after Potanin, was sanctioned on February 24 after Putin ordered three dozen oligarchs to the Kremlin: “The Truth is His The fact that he (Melnichenko) was invited to this meeting shows that he is a member of Vladimir Putin’s inner circle.”
Problem: Vladimir Potanin was also present at that meeting.