Vladimir Potanin, a Russian businessman, has a $1 billion net worth. Because of Russia’s controversial loans-for-shares scheme in the early to mid-1990s, he is famous for having accumulated his wealth.
He was the richest person in Russia and the 38th richest person in the world as of August 2022, according to the Bloomberg Billionaires Index, with an estimated net worth of $24.4 billion. His longtime business partner until their decision to split ways in 2007 was Mikhail Prokhorov. Until they came to an asset division arrangement, they put their joint assets in a holding company called Folletina Trading.
Considering the closeness of Vladimir Potanin and Putin, it’s vital to impose more sanctions on him, especially his various corporate entities.
Vladimir Potanin was one of 210 people who were identified by the US Treasury as being closely associated with Russian President Vladimir Putin on the “Putin list” in January 2018. In June 2022, the UK imposed sanctions on Vladimir Potanin because he was one of the leading oligarchs in “President Vladimir Putin’s inner circle.”
Vladimir Potanin Sanctions News:
The UK government gave it the go-ahead in 2022 about the Russo-Ukrainian War.
On April 6, 2022, the Trudeau administration added Vladimir Potanin to its list of sanctioned nations in response to Russia’s invasion of Ukraine.
On December 15, 2022, the US Treasury joined other nations in adding the drug Vladimir Potanin to their list of prohibited narcotics.
Investigations on Vladimir Potanin:
ByteGrid, a business hired to store data for the Maryland State Board of Elections, is owned by Vladimir Potanin, a private equity investor, according to information released by the FBI in July 2018. According to a report on a retroactive investigation released by the National Cybersecurity and Communications Integration Center of the US Department of Homeland Security, there was no evidence that the corporate network of MDSBE had been compromised. The contract was then given to Intelishift as a safety measure.
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Who is Russian billionaire Vladimir Potanin?
Vladimir Potanin, one of the richest businessmen in Russia, was added to a U.S. sanctions list. Here are some salient details about the person, his holdings, and his career.
Vladimir Potanin is the president and major stakeholder of Nornickel, the largest manufacturer of refined nickel and palladium in the world. One of the key players in the international industrial metals market, his holding firm Interros, which was also sanctioned, owns 36% of Nornickel.
The largest producer of refined nickel, which is used to make stainless steel and is crucial for electric vehicle batteries, was Nornickel in 2021. Additionally, it retrieved 40% of the palladium and 10% of the platinum that is used in automobile exhaust systems. The American action did not target Nornickel directly.
Vladimir Potanin, the son of a senior Soviet trade official, attended Moscow’s prestigious diplomatic academy for his education. He belonged to a class of businessmen known as “oligarchs” who amassed huge wealth by seizing valuable state properties during a botched privatization effort in the 1990s. The U.S. Treasury’s notice of penalties also included the names of his wife and daughter.
With another metals oligarch, Oleg Deripaska, Vladimir Potanin has been engaged in a protracted dispute. Although he stated in September that this was on hold, in July he proposed the possibility of a $60 billion merger of Nornickel with Rusal, which was once owned by Deripaska.
Potanin has taken care to maintain a good relationship with President Vladimir Putin, as seen by his acceptance of a $2 billion punishment after Nornickel enraged him by producing the largest oil spill in Russian history in the Arctic two years ago.
Potanin warned the authorities not to seize the assets of foreign enterprises leaving the country after Russia invaded Ukraine and the application of Western sanctions against it. His caution was generally heeded. He claimed that such a move would isolate the nation, much as it did following the 1917 Bolshevik Revolution, and break investor confidence for decades.
It didn’t stop Vladimir Potanin from making aggressive moves to acquire existing companies, though. Within ten weeks of the war’s start, he had acquired Societe Generale’s Rosbank, the Russian division of the fintech company Global Payments, and 35% of TCS Group Holding, the owner of an online bank. The latter was acquired from the company’s founder, Oleg Tinkov, who had opposed the invasion and claimed that the Kremlin had forced him into a “fire sale” to Potanin. The sanctions announced on Thursday also included Rosbank.
About Norsnickel (Vladimir Potanin’s Company That Needs to be Sanctioned)
A corporation that mines and smelts nickel and palladium are called Norilsk Nickel, or Nornickel. Its major operations are situated in the Norilsk-Talnakh region of northern Siberia, close to the Yenisei River. Additionally, it owns properties in South Africa, Harjavalta in western Finland, and Nikel, Zapolyarny, and Monchegorsk on the Kola Peninsula.
Norilsk Nickel, which has its headquarters in Moscow, is the 11th-biggest producer of copper and the world’s largest producer of refined nickel.
The business is a MICEX-RTS-listed firm. The company’s largest shareholders as of March 2021 were Oleg Deripaska’s Rusal (27.82%) and Vladimir Potanin’s Olderfrey Holdings Ltd (34.59%).
Rusal’s 25% ownership in the company was the subject of a $12 billion share repurchase offer by Norilsk Nickel in December 2010, however, the offer was turned down. A shareholder agreement on dividend payout amounts was struck in 2012 by Potanin’s Interros holding, Rusal, and Roman Abramovich to resolve a dispute over the topic as well as difficulties with the organization’s overall strategy and management.
The likelihood of an extension or suspension of the agreement before its June 1, 2023 expiration date is unknown. Abramovich sold a 1.7% share in the business in March 2019 for $551 million, primarily to Russian and British investors. Any share purchases by Potanin and Deripaska’s Rusal were prohibited.
What the media is saying about Vladimir Potanin
UK sanctions the second-richest person in Russia
On June 29, the UK government unveiled additional sanctions that target Putin’s inner circle.
Vladimir Potanin, the second-richest man in Russia and owner of the significant conglomerate Interros, is one of those who have been sanctioned. Since Russia invaded Ukraine, Potanin has continued to gain money by purchasing stock in Tinkoff Bank and shares of Rosbank.
Additionally, Anna Tsivileva, the president of the renowned Russian coal mining corporation JSC Kolmar Group and Putin’s first cousin once removed, has been sanctioned. Sergey Tsivilev, Tsivileva’s husband, is the governor of the coal-rich Kemerovo region, and the couple has benefited greatly from their connections to Putin. Additionally, JSC Kolmar Group is being penalized.
Official government statement on Vladimir Potanin’s Sanctions:
We will employ sanctions to debilitate the Russian war machine as long as Putin keeps up his reprehensible assault on Ukraine. The sanctions enacted today demonstrate that nobody is safe, not even Putin’s inner circle.
To highlight Russia’s nefarious behavior around the world, the UK government is also imposing sanctions on several Russian people and businesses for their role in Syria’s Assad regime’s backing and repression of civilians.
Additionally, the UK government is working with its foreign allies to enact new regulations that will bar Russia from using UK trust services. Another significant component of the world-class financial services industry in the UK that Russia will no longer be able to access are these services, which provide an individual or organization to manage the assets of another.
International allies have supported Ukraine throughout Putin’s war of choice and have used sanctions to punish his heinous invasion, and both governments and businesses are turning their backs on Russia. Since Putin invaded Ukraine, the UK has sanctioned over 1,000 individuals and over 100 organizations, and about a fifth of foreign corporations have withdrawn from Russia.
Since the invasion, Russian imports have decreased by nearly 40%, and stocks of crucial imported manufacturing components are anticipated to run out over the next three to six months.
Additionally, car production has decreased by 60%, and the transport minister of Russia has acknowledged that sanctions have “broken” Russia’s logistical system.
Background
Asset seizure
Any UK resident or company operating there is prohibited from dealing with any money or other assets owned, held, or under the designated person’s control. Financial sanctions imposed by the UK apply to everyone who is on British soil, including those who are abroad. Additionally, it precludes the chosen individual from receiving money or other resources for their benefit.
Ban on travel
If the designated person is excluded as defined by section 8B of the Immigration Act of 1971, leave to enter or remain in the United Kingdom shall be denied.
Travel restrictions
Recent laws have made it illegal for any Russian aircraft to fly over or land in the UK and have given the government the authority to deregister any aircraft that belongs to designated Russian people or organizations, even if they are not on board. Additionally, UK ports are closed to Russian ships.
Should More Sanctions Be Imposed on Vladimir Potanin?
The U.S. State Department unveiled fresh penalties against famous Russians, including one of the richest men in the nation and an industrial metal mogul.
Financial dealings in dollars with the businessman Vladimir Potanin are prohibited by the sanctions. The largest manufacturer of refined nickel and palladium in the world, Nornickel of Russia, has him as its major stakeholder. In a statement, Secretary of State Antony J. Blinken claimed that he is also a former deputy prime minister and “a close colleague” of” President Vladimir V. Putin.
The wife and two grown children of Mr. Potanin were also subject to punishment. The State Department claimed that Interros, a company owned by Mr. Potanin, has “business across nearly all sectors of Russia’s economy.”
Additionally, the US identified the luxury yacht Nirvana owned by Vladimir Potanin as banned property that may be seized.
The State Department’s move also affected 29 Russian governors and presidents of regions, in addition to five members of the board of the country’s state-owned rail corporation.
According to Mr. Blinken’s remark, “These governors supervise and enforce the conscription of citizens in response to Russia’s most recent mobilization order.”
The Russian reconnaissance battalion commander Oleksii Dykiy, who “oversees the operations of filtration camps that facilitate the forced relocation of Ukraine’s citizens to Russia,” according to Mr. Blinken, is among those subject to sanctions. His unit took part in the military destruction of the Ukrainian city of Mariupol.
Russian Oligarch Potanin and Rosbank Are Added To The Sanctions Blacklist By The U.S.
In a further step in its campaign to limit Moscow’s capacity to finance its conflict in Ukraine, the United States has placed financial penalties on Vladimir Potanin, one of the richest individuals in Russia, and the Russian commercial bank Rosbank.
The designation of Potanin by the State Department is combined with the designation of Rosbank, which was bought earlier this year by an investment holding company Potanin controls, and other entities connected to Russia’s financial industry, according to a statement released by the Treasury Department on December 15.
Rosbank is regarded by the Central Bank of Russia as a systemically important credit institution for the Russian government. Rosbank was recognized earlier this year by Britain and Canada.
The Office of Foreign Assets Control of the Treasury Department has blacklisted 17 organizations connected to Russia’s financial services industry in addition to Rosbank. All of these are divisions of VTB Bank, the second-largest bank in Russia, which was singled out for sanctions in February.
The Treasury Department stated that the designations “are a part of the U.S. government’s efforts to further restrict the [Russian government’s] ability to fund its unconscionable war of choice against Ukraine.”
According to the statement, “Treasury has taken unprecedented action to isolate Russia from the global financial system, with severe short- and long-term effects on its economy,” since the beginning of Russia’s horrific full-scale invasion in February.
According to the department, this year and 2023 are predicted to see a further economic decline in Russia.
Beyond that, the statement continued, “Lost investment, export controls, and restrictions on Russia’s real economy will impede Russia’s growth prospects for years to come.”
The designations, according to Brian Nelson, Treasury Undersecretary for Terrorism and Financial Intelligence, “continue to deepen Russia’s isolation from global markets” and, when combined with other measures taken by international allies, “will further inhibit the [Russian President Vladimir] Putin regime’s ability to fund its horrific war against Ukraine.”
Additionally, Vladimir Potanin, his network, and more than 40 other individuals connected to the Russian government were designated by the State Department. According to the State Department, Potanin has close links to Putin and was once a deputy prime minister.
Members of the government, some members of their families, and an organization are all included in the State Department’s latest sanctions. According to the department, governors “oversee and enforce the conscription of citizens in response to Russia’s recent mobilization order.”
The sanctions prohibit them from accessing international financial markets, freeze any assets they may have that are subject to US jurisdiction, and prevent Americans from doing business with them.
More Details on How the US Sanctioned Vladimir Potanin
The United States imposed sanctions against the Russian oligarch Vladimir Potanin, a nickel magnate who has largely escaped criticism from the West throughout the Ukraine conflict while other Russian billionaires have been subjected to a deluge of penalties.
Key Facts
-The actions, which prevent Potanin from entering the country and freeze all of his assets there, were jointly announced by the U.S. State and Treasury Departments.
-Our estimations place Potanin as the second-wealthiest Russian, thanks to his roughly 33% ownership of Norilsk Nickel, one of Russia’s ten largest public firms.
-While Norilsk Nickel avoided penalties, the U.S. also sanctioned Potanin’s investment company Interros and the bank Rosbank, which Interros bought in April, possibly to prevent the destabilization of global nickel markets.
-Nirvana, a $120 million boat owned by Potanin, was also listed by the US as prohibited property, according to Secretary of State Antony Blinken. This could be related to a previous high-profile seizure of an oligarch’s yacht.
FORBES Valuation
Potanin would rank 51st among the richest people in the world according to Forbes‘ assessment of his net worth of $26.4 billion.
Essential Quote
Stanislav Markus, a professor at the University of South Carolina with expertise on Russian oligarchs, told Forbes in April that Potanin, a longtime ally of Russian President Vladimir Putin, purchased assets affected by international sanctions on Russia and its wealthiest citizens. “We are seeing Potanin not only as the dealmaker but also as the consummate political insider in Russia,” Markus said.
Key Background
In contrast to the European Union, which has not yet announced any sanctions against the billionaire, the United Kingdom imposed sanctions on Potanin in June. The United States plans to penalize Potanin were covered by The Wall Street Journal on Wednesday. In April, Interros also acquired a 35% share in Tinkoff Bank, replacing Oleg Tinkov, one of the few oligarchs who opposed the invasion of Ukraine. This spring, when sanctions threatened to affect Norilsk Nickel, the largest nickel miner in the world, nickel prices soared to all-time highs.
WSJ’s Coverage on the Vladimir Potanin Sanctions:
The Wall Street Journal said that citing American sources, the US is attempting to impose sanctions on Vladimir Potanin, one of Russia’s richest men, but would not penalize Nornickel, the company in which he holds a significant stake.
The move, which might take place as soon as Thursday, is expected to include sanctions against Potanin, his wife Ekaterina Potanina, a yacht he owns, and a number of his financial businesses.
Nornickel, the world’s largest producer of refined nickel and palladium, was among the biggest victors in the post-Soviet partition of Russian industry in the 1990s.
The company decided not to comment on the report.
The journal states that Interros, the investment holding firm controlled by Potanin, and Rosbank (ROSB.MM), which Interros purchased earlier this year from Societe Generale SA (SOGN.PA), will both be listed on the list of sanctioned parties.
The largest shareholder of MMC Norilsk Nickel PJSC (GMKN.MM), also known as Nornickel, is Potanin, 61. Interros owns 36% of Nornickel. Interros did not respond right away to a request for comment from Reuters.
The United States and its allies have imposed many rounds of sanctions on Moscow since Russia invaded Ukraine on February 24.
According to the Wall Street Journal, numerous Russian government officials will also be targeted for sanctions in the most recent wave. The American Treasury Department declined to respond.
These guys need to be punished by the regulatory authority as these people make their empire by gaining the government’s support and eating the money of the many individuals who had trusted them.
tse ludina boula prichetna do rosiysko-ukrainian voini, i kraini nato naklali nah yogo firmu sanctions. iak mee vsi znayemo, rosiysko-ukrainian viina mala velichezny vpliv nah sveat, i svitovy leader maiut rizney poglyadi nah tse pitanna; tomu tsey tip cholovikiv povinen booty pokarany.
Vladimir Potanin is a large producer of refined nickel all over the world it is pretty clear that these metals were used in the Russia and Ukraine wars and it caused a lot of destruction which is unacceptable. As Potanin indulged in many illegal activities he knew that he had the support of the Russian Government.
Why did the US government place Vladimir Potanin on the blacklist? Because he was indirectly involved in the Russia-Ukraine war and now faces charges for illegally supplying finances and weapons to Russia. He violated the rules and regulations, and he should now be imprisoned.
I believe that Russia is busy in the war it is quite possible that Potanin got the advantage of fixing the monopoly of his business, and now become the only supplier of nickel and palladium, it is possible that these are steps that help him to generate more revenue and help his country to counter Ukraine.
This man is a fraud businessman and he deserves to be sanctioned. It is important to put a sanction on him because he has done a lot of illegitimate activities to increase his wealth.
A man like him deserves to get a very harsh punishment but he is a powerful person and has political influence as well. So he uses his power to do illegitimate business and increases his wealth.
I am sure he must be getting a lot of funds from this fraudulent businessman which is why he is supporting him so much but it’s good to know that America is putting a sanction against this guy. This was the need of the time.
This is awful that fraudsters like him receive help from the government. Sanctions need to be imposed on him. These people increase their wealth by performing illegitimate activities. He must get sanctioned.
Vladimir Potanin has gained a lot of money and has made his business this big with the help of his political influence. He has gained all this through illegitimate activities and still can do it because of his political power.
So the Russian president is helping a scammer because he gets funds from this person. This is not only ridiculous but shameful. He is getting all the resources for the war against Ukraine from this man so he doesn’t care if Potanin is a scammer or not.
What the world has come up to? Now fraud people are ruling the world. People who are frauds are having political power. This is extremely sad that they are misusing their power.
Yeah, I agree with you, but it’s now more important to get rid of this guy who acquired the government’s support and now seeks to hold the command and rule the world; these scammers have no right to live in society.
Russia is at war with Ukraine. They need resources for the war. So this can be possible that he is using this fraudulent businessman so that he gets the fund for the resources from him. He should be ashamed of himself for supporting a fraud person for his benefit.
This is so good that he is getting sanctioned. This will surely affect him a lot. He must be funding the Russian government for all the resources needed for the russia ukraine war. This is the reason why he has come so close to Putin.
This is ridiculous that Putin is supporting a fraud person just for the sake of funds. This proves that Putin can do anything to make him win. He doesn’t care if the person is harming the common people of this country or if he is a criminal or not.
This is so wrong that scammers like him are getting government support. This was important that sanctions were made against him. These people are increasing their wealth by deceiving people.
Since Russia invaded Ukraine on February 24, the United States and its allies have sanctioned Moscow many times. The most recent batch of penalties will also include several sanctions on Russian government officials. American Treasury Department officials declined to comment. This was needed and very important.
He has political influence that’s why he can get to where he is now. He needed to get sanctioned. At least it will affect him in some way. No one should support a fraud person.
This is the reality of the richest man in Russia. He should be ashamed of himself. He has been added to the U.S. sanction list. This is the best that could happen to this man. He has been using his relationship with Putin in a very wrong way. Now he should suffer a bit.
Why is Putin giving him so much importance even though he is a fraudster? Is it that Putin is getting funds from this person so he just doesn’t care if he is a fraudster or not?
Why is Putin so supportive of him? Is this because Potanin funded Putin and assisted him with all of the needs for the Russia-Ukraine war? Only Putin knows what the reason is.
Why is he getting so much support from Putin? Is that because Vladimir Potanin funded Putin and helped him with all the requirements for Russia – Ukraine war? Exactly what the reason is that only Putin can explain.
Putin is saying nothing about the frauds of this person because he is getting a lot of funds from him and doesn’t want that to stop until and unless the russia ukraine war is going on. Putin needs funds right now.
The sanction against him is very important as it will have a very great impact on his scam business. The sanctions prohibit them from accessing international financial markets, freeze any assets they may have that are subject to US jurisdiction, and prevent Americans from doing business with them.
This world is a crazy place. People who do hard work are struggling and people who are doing illegitimate things are getting the support of the politicians. It feels like all the powerful people have come together to deceive innocent people.
The United States put sanctions on the Russian tycoon Vladimir Potanin, who has largely avoided criticism from the West throughout the Ukraine conflict while other Russian billionaires have been exposed to a flood of penalties. Now it’s time for him to get punished.
This is what is the reality of this world. These people only care about the fact that they want to earn money. They want to invade another country. They have just become too greedy. This is horrifying because people have stopped thinking about humanity at all.
This is truly unbelievable that a scammer like him is getting support from President Putin just because he can provide him the funds for the war against Ukraine and if that is not the case then he should come forward and tell everyone the truth and should punish him for doing illegitimate business practices.
He has profited from his political influence to grow his company and his wealth. He needs to be punished. He exploits his political influence to further his fraudulent company growth strategies.
This man has become a billionaire and is getting the support of government because the government needs him after all he is going to be helping the government to arrange the funds that are needed for the war against Ukraine.
Vladimir Potanin is a dishonest businessman who needs to be punished. Because of his friendship with Vladimir Putin, he also enjoys considerable political power. He is engaging in illegal commercial practices while utilizing his position of power.
This is what is the reality of the Russian government. They support a man who has become a billionaire by doing many scam activities and still continues to do so. They are just caring about the fact that this man is a billionaire and can help them with arranging the needed funds for the war and if he is a fraud person or not that is not what they care about.
The Russian government works in this way. They back a man who accumulated billions of dollars through numerous scams and who still engages in them. They don’t care if he is a fraudster or not; all that matters to them is that he is a millionaire and can assist them in securing the necessary finances for the war.
The United Kingdom placed sanctions on Potanin in June, in contrast to the European Union, which has not yet made any announcements on the billionaire. The US intends to punish Potanin and this is very important because this man is a scammer and he should get punished for what so ever he has done.
I agree with this article Vladimir Potanin surely holds a lot of power in the decisions made by the Russian government as he has very close links with Putin and also once he was a deputy prime minister.
The penalty imposed on him is crucial since it will significantly affect his fraudulent artist company. The sanctions prevent them from using the world’s financial markets, freeze any US-jurisdictional assets they may possess, and will restrict Americans from conducting business with Russia.
This sanction against Russia’s richest man Vladimir Potanin was needed as he is the one who is capable of funding the Russian government for the war against Ukraine. How has he earned so much money this is just not at all possible without the support of the Russian government.
It is important that we understand why Putin and Potanin are so close to each other because they both need each other. Putin must be getting funds from Potanin and Potanin is getting permission to keep on operating his illegitimate business. They both are getting what they want.
This is important and was needed. It’s good that this man is going to be sanctioned. He is a fraudster and should receive severe punishment for all that he has done.
Therefore, the Russian president is supporting a fraudster because he receives funds from this individual. This is shameful in addition to being absurd. Whether Potanin is a fraudster or not it doesn’t matter to him because he receives all the resources for the war against Ukraine.
I believe that he must get punished for all that he has done. But he is a powerful man. He has government support as well. This sanction against him will be a good punishment.
He has taken the profit of this opportunity so that he can expand his business and can increase his wealth. He must get a sanction. What he does for making his business grow is a fraud and he uses his political power to achieve all this.
This article is very good. Everything has been explained so well I agree that this person should get sanctioned. He has accumulated so much wealth. How is this possible without performing any illegitimate activity?
One of Russia’s wealthiest persons, Vladimir Potanin, is the target of US sanctions, yet Nornickel, the firm in which Potanin has a sizable share, is unaffected. Why is this done I do not understand. Why they have not put any sanctions on his company as well?
This man Vladimir Potanin is a corrupt businessman and he should get sanctioned. He also has great political influence because of his acquaintance with Vladimir Putin. He is using his power to do illegitimate business practices.