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Luxembourg freezes almost €4.3 bn after sanctions
frozen assets

Luxembourg freezes almost €4.3 bn after sanctions

by Emery P. DALESIO 07.06.2022
Banks and other financial institutions identify hundreds of sanctioned persons and other entities
Luxembourg Finance Minister Yuriko Backes
Luxembourg Finance Minister Yuriko Backes
Photo credit: Foto: Marc Wilwert/Luxemburger Wort

(Corrects an error by the ministry on the numbers of persons and other entities sanctioned.)

Luxembourg banks and other financial institutions have frozen almost €4.3 billion in assets of sanctioned persons and companies since Russia's February invasion of Ukraine unleashed a series of financial punishments from the EU, US, UK and other countries, the government said on Tuesday.

The assets include bank deposits and securities of more than 1,100 persons and 90 legal entities identified through Luxembourg's business and companies registers, the finance ministry said in a statement.

Luxembourg estimated two months ago that the value of frozen Russian assets was worth €2.5 billion. Opposition politicians soon thereafter expressed doubt Luxembourg had blocked all wealth Russian oligarchs hold in the country.

By comparison, Switzerland has €5.8 billion worth of Russian assets frozen in after the money-centre country released €3.26 billion more that had been provisionally blocked assets, the Swiss government said last month.

A parliamentary committee met with Finance Minister Yuriko Backes on Tuesday to review the Luxembourg's implementation of sanctions and their possible impact on the country's financial sector.

Luxembourg law directs the finance and justice ministries, supervisory authorities including the CSSF, and self-regulating organizations to monitor compliance with the sanctions.

Also facing sanctions is at least one Luxembourg-registered jet owned by Russian oligarch Roman Abramovich. The Gulfstream G650ER jet bearing tail number LX-RAY believed to be worth approximately $60 million is operated by Global Jet Luxembourg, based in the village of Hesperange. A second Abramovich jet, a Boeing 787-8 worth about $350 million, also was ordered impounded by an American judge, the US Justice Department said on Monday.

That seems unlikely since the Boeing is now in the United Arab Emirates and the Gulfstream was flown to Russia, authorities said.


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