Manhattan Borough President calls to seize NYC properties of Russian oligarchs

Manhattan Borough President Mark Levine calls to start seizing properties of Russian oligarchs. He tweeted: “It's not just London. For years Manhattan has been one of the most popular safe harbors for Russian oligarchs to park their cash, especially via ultra-high end apartments. It's time to start seizing their properties. #SupportUkraine”

After Russia invaded Ukraine, the U.S. government imposed sanctions on President Vladimir Putin, Minister of foreign affairs Sergei Lavrov, and eleven members of the Russian Security Council. In addition, sanctions block four Russian banks, including two of the country’s largest lenders Sberbank and VTB, Reuters reports. 

For decades, Russian oligarchs have been hiding their assets behind shell companies and investing in luxury real estate abroad. New sanctions might make it more difficult for oligarchs to launder money in the United States. However, many of them have enough resources to bypass these restrictions.

According to the New York Post, multiple Russian oligarchs, including Roman Abramovich and Oleg Deripaska, own luxury properties in Manhattan. Both Abromovich and Deripaska are mentioned in “Navalny 35” list. The list includes names of Russian human rights abusers, who must be sanctioned by the European Union and the United States.  

Recently, Gov. Hochul signed an executive order that directs all NYC agencies and authorities to review and divest public funds from Russia.

"Russia has chosen to attack democracy and we will stand with Ukraine as we condemn these atrocities," Governor Hochul said in the statement released with the order. 

"Our state will not permit its own investment activity, whether directly or indirectly, to aid Russia as it commits these human rights violations. New York is home to the largest population of Ukrainians in the United States - they are our family and an attack on them is an attack on us all. We will make our statements and values known and show solidarity with Ukraine as we rebuke this assault on democracy."

Overall, sanctions against Russia imposed by President Joe Biden will make it more difficult for Russian citizens to buy real estate in New York City. However, according to 6 sqft, luxury property deals are often difficult to trace due to the anonymity of LLCs. 

Resources:

“Manhattan borough president calls for seizure of Russian oligarchs’ NYC properties,” by Michelle Cohen (6sqft, 2022)

“Here’s where Russian oligarchs and their families own property in NYC,” by Jennifer Gould (New York Post, 2022)

“$88 Million CPW Apartment Now Officially Belongs To Russian Billionaire's Daughter,” by Jen Chung (Gothamist, 2012)

“U.S. Treasury Imposes Sanctions on Russian Federation President Vladimir Putin and Minister of Foreign Affairs Sergei Lavrov,” (U.S. Department of the Treasury, 2022)

“Navalny 35” (Wikipedia)

“Governor Hochul Signs Executive Order Directing State Agencies and Authorities to Divest Public Funds from Russia,” (Governor Kathy Hochul, 2022)

“U.S. hits major Russian banks with sanctions over invasion of Ukraine,” by Daphne Psaledakis, Simon Lewis and Matt Spetalnick (Reuters, 2022)