Hired US Attorneys
Abramovich wants to fight for his luxury jets
07/08/2022, 6:25 p.m
The Russian oligarch Abramovich wants to avert the confiscation of two jets in the USA. Machines value: $400 million. The US authorities accuse the billionaire of violating sanctions. It is unclear where the machines are.
Russian billionaire Roman Abramovich wants to take legal action against a confiscation of his luxury jets ordered by US authorities. As the “Wall Street Journal” (WSJ) reports, he commissioned the US law firm Kobre & Kim to do this. Commenting on the mandate, co-founder Michael Kim said, “Kobre & Kim is pleased to offer its assistance on matters of legal importance to ensure the law is fairly applied.”
A US law firm taking over an oligarch’s affairs has become somewhat of an exception since Russia’s invasion of Ukraine in February. Business connections with “Kremlin buddies” are considered reputation-damaging. Many law firms and consulting firms have terminated their Russian clients.
Abramovich is a long-time employee of Kremlin boss Vladimir Putin and also one of the richest people in Russia with an estimated fortune of 11.9 billion US dollars. He himself denies having any financial ties to the Kremlin.
After the Russian invasion of Ukraine by Great Britain and the EU, Abramovich was sanctioned in Great Britain in the EU – like many oligarchs – in March, but the 55-year-old was spared in the USA. The reason for this is that he is trying to mediate between Russia and Ukraine, at the express request of Ukrainian President Volodymyr Zelenskyy.
“As our client is recognized for both his involvement in the peace negotiations and his humanitarian efforts, due process and due process in relation to any legal or administrative matter is essential to ensure that his efforts are not obstructed,” the firm said .
$400 million luxury jets
In June, the US authorities – regardless of his peacekeeping mission – ordered the confiscation of two luxury jets owned by Abramovich. The leverage used was not the sanctions against oligarchs, but the US export controls imposed because of the war, which also affect aircraft mostly manufactured in the USA. The reason given was that Abramovich violated US sanctions because the machines flew to Russia in February without the required US export license.
The timing is striking: Russia began its attack on Ukraine on February 24 this year. According to FBI information, Abramovich also made some or all of his seven children beneficiaries of the Cyprus-based Europa Settlement Trust just days before Putin’s invasion. On paper, the trust owned its jets, yachts, a helicopter and other assets.
The former owner of British football club Chelsea has four daughters and three sons aged between 8 and 30, all of whom have dual nationality. Either they have a Russian and British passport or they have Russian and American citizenship.
The Abramovich aircraft are a customized Gulfstream G650ERa valued at approximately $60 million and a customized Boeing 787-8 Dreamliner valued at $350 million – one of the most expensive private jets in the world. It is unclear where the planes are currently located – but probably not in the USA. In June, the US Department of Justice said the Boeing was in Dubai, United Arab Emirates, and the Gulfstream plane was in the Russian capital, Moscow.
It is unclear whether and when the US authorities could get hold of the aircraft. At the same time, it is difficult for Abramovich to use these machines internationally. Apparently he is now building on brilliant lawyers. According to information from the WSJ, the hourly wages of the top lawyers range from US$875 to US$1900. The effort could be worthwhile.