United States: funds confiscated from a Russian oligarch donated to Ukraine

Russian businessman and media man Konstantin Malofeev is the first Russian oligarch whose funds frozen by the United States will flow to Ukraine.

© KIRILL KUDRYAVTSEV / AFP

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2 mins

In the United States, the American Minister of Justice, Merrick Garland, announced that a first transfer of Russian funds confiscated from a Russian oligarch would go directly to Ukraine.

Some 5 million euros from the frozen funds of Konstantin Malofeev, who is on Washington's sanctions list, should be sent quickly to the Ukrainian government.

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With our correspondent in the United States

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This is a first for this new instrument set up by Washington, just days after the start of the Russian invasion of Ukraine, to help kyiv with reconstruction.

Because this is the first time that Washington has shown concretely how far the sanctions put in place against the Russian oligarchs, supporters of Vladimir Putin, will extend.

In 2022, just days after the start of the war, Washington created this elite agency under the responsibility of the US Department of Justice, whose name is "KleptoCapture".

Funder of pro-Russian separatists 

Its mission, to take possession of the assets of Russian oligarchs who have been placed on the sanctions list throughout the world.

And the goal is to return these funds to Ukraine to help with reconstruction, even before the war is over - this is the other invisible front of this war, opened by Washington directly against Russia.

The first to pay the price is Konstantin Malofeev, a businessman and media man considered one of the main sources of funding for pro-Russian separatists in eastern Ukraine.

He has been in Washington's sights since 2014, and on Thursday, a New York judge set the amount he owes and which will be taken directly from his confiscated assets: 5 million euros.

The US Justice Department had frozen Malofeev's account at its Denver-based bank as it sought to transfer it to a business partner in violation of US sanctions.

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• UNITED STATES

• Russia

• Ukraine