Daughters of Russian tycoon worth $18B want off Canada’s sanctions list, but minister says no

The Canadian authorities has denied a petition to assistance economical sanctions imposed connected nan daughters of a Russian billionaire and alleged “close associate” of President Vladimir Putin.

Records obtained by Global News show that Foreign Affairs Minister Mélanie Joly rejected nan appeals of Larisa and Ekaterina Fridman, whose begetter is banking tycoon Mikhail Fridman.

Wanted by nan Security Service of Ukraine, Fridman is described successful Global Affairs Canada documents arsenic a “top Russian financier,” and subordinate of Putin who “acquired authorities assets done authorities connections.”

A autochthonal of Ukraine pinch Israeli citizenship, he is nan laminitis and main shareholder of Alfa Group, which owns Alfa Bank, a awesome Russian financial institution. Forbes put his net worth astatine much than $18 billion.

Canada sanctioned Fridman successful April 2022. His family was added nan pursuing month. The daughters applied to beryllium taken disconnected nan database successful December 2022, but were rejected by Joly connected Nov. 24, 2023, records show.

Although nan women, who unrecorded successful New York and Tel Aviv, said they opposed nan warfare successful Ukraine and were financially independent, Joly wrote successful letters rejecting their pleas that sanctioning families of Russian elites was justified.

Moving money done relatives and adjacent associates is nan astir celebrated method utilized to dodge sanctions imposed successful consequence to Putin’s penetration of Ukraine, nan curate wrote.

“Maintaining constricted financial ties aliases dependence connected your begetter does not preclude him from attempting to usage you to support entree to his costs aliases circumvent sanctions prohibitions,” nan missive signed by Joly said.

“Maintaining your listing helps Canada execute its extremity of preventing sanctions evasion by eliminating options for those supporting aliases facilitating nan Russian regime.”

She said nan determination was accordant pinch Canada’s extremity of denouncing Putin’s onslaught connected Ukraine and pressuring his authorities “by imposing economical costs connected Russia for its unlawful actions.”

The minister’s missive was among respective documents revenge successful nan Federal Court by nan authorities aft nan Fridman sisters filed a case seeking to person nan sanctions against them thrown out.

Their ineligible squad wanted nan tribunal to seal nan documents, arguing nan women could look prosecution nether Russian law, but connected Friday a judge found they had not “demonstrated a superior risk.”

The tribunal has not yet ruled connected their appeal.

Canada has sanctioned much than 2,000 Russian individuals and entities to unit nan Putin authorities complete its warfare connected Ukraine, suppression of dissent and world disinformation campaign.

The Fridman lawsuit is nan latest entreaty by those taxable to nan restrictions connected their finances. Similarly, Joly denied a petition for delisting made by Igor Makarov.

An lipid and state magnate worthy $2 billion, Makarov based on he had denounced Putin, but Joly responded that he had only done truthful privately.

Both Fridman daughters were calved successful Paris and clasp French and Russian citizenship. Larisa, a dancer, painter, and integer artist who sells t-shirts pinch feline and canine designs, is besides an Israeli citizen.

Katerina has an MBA from Columbia Business School, and was a investigation head astatine Commission for Art Recovery Inc., which “works towards nan recognition and restitution of Holocaust-era looted art.”

The departmental study that recommended keeping them nether punishment said their begetter was a “top Russian financier,” and nan measures prevented him from trying to “evade sanctions via a adjacent family member.”

Canada is simply a personnel of a group of countries that launched nan Russian Elites, Proxies and Oligarchs (REPO) Task Force to seal gaps successful sanctions, nan Global Affairs Canada study said.

“The apical evasion maneuver identified by nan REPO Task Force was nan usage of family members and adjacent associates to support continued entree and power of assets,” it said.

“The Task Force identified various instances successful which Russian elites transferred their assets to their children aliases spouses, either successful nan play instantly starring up to a sanctions listing, aliases intimately thereafter.”

The Global Affairs Canada Memorandum for Action connected Fridman’s daughters noted that neither had lived successful Russia since 1999, and that they maintained they were mostly financially independent.

But nan Canadian officials based on that if sanctions against them were dropped, location was an “elevated risk” their begetter could usage them to skirt nan financial controls he faced.

Larisa Fridman received US$100,000 from her begetter successful 2021 and 2022 because she was incapable to activity arsenic a ballerina owed to pandemic restrictions, according to nan memo signed by Deputy Foreign Affairs Minister David Morrison.

Her sister, meanwhile, besides received US$100,000 during nan aforesaid period, and she “continues to person occasional monetary gifts from her father,” Morrison wrote.

The 4 Ottawa lawyers representing nan sisters declined to comment. But they wrote successful letters to nan authorities that nan women were powerfully opposed to nan Russian war, and were proud of their Jewish Ukrainian culture.

Their grandparents are Ukrainian citizens, and their grandfather was still moving successful Lviv erstwhile nan Russian penetration commenced, nan lawyers wrote.

Global Affairs Canada ignored grounds showing nan Fridman women were not being utilized by their begetter to evade sanctions, and that he had “provided very constricted financial support to his children passim their big life,” nan lawyers argued.

In their tribunal appeal, they based on nan authorities was punishing nan women solely because of their “parental lineage,” and location was not a “sufficient nexus” betwixt them and Russia to warrant sanctions.

“Where big children supply nonsubjective and reliable grounds that they are not being utilized to circumvent sanctions, location are reasonable grounds for their contiguous delisting from Canada’s Sanctions List.”

Ottawa lifted sanctions against Fridman’s ex-wife Olga Ayziman successful February. The mates divided successful 2005. The authorities said only that “the Minister wished that nan individual does not meet nan criteria to beryllium listed.”

Global Affairs Canada declined to remark connected nan case.

“We are committed to effective implementation of sanctions against overseas states, individuals and entities whose actions lead to sedate breaches of world bid and security,” a spokesperson said.

Stewart.Bell@globalnews.ca