Russian billionaire Aven battles UK sanctions investigation

Petr Aven (pictured), a Russian billionaire, is being investigated by Britain for allegedly violating sanctions. He allegedly used pots of money parked at British accounts to "squirrel away cash" to finance his lifestyle, a British lawyer claimed on Tuesday (27 September).

Jonathan Hall, representing National Crime Agency (NCA), stated that HSBC (HSBA.L.) and Monzo banks raised red flags regarding fund transfers during an NCA investigation into nine accounts owned by six individuals and companies related to Aven.

Hall stated that "we suspect funds received... were intended for sanctions evasion."

According to the NCA, Aven was sanctioned by Britain as well as the European Union for his actions in retaliation to the invasion of Ukraine. He intended to use two companies to manage his expenses and evade sanctions.

Aven lawyers and two companies demand that two Account Freezing Orders be overturned due to the NCA's "chaotic, unprincipled" approach. They also claim that there is no basis for any "purported suspicion" or that the agency misled the judge.

This case is the first to examine the strength of Britain's approach towards sanctions enforcement. It involves two AFOs as well as a decision by another court to allow Aven basic expenses to be paid after he claimed he didn't have the means to pay his household bills.

The NCA has created a unit called Combating Kleptocracy Cell in order to target people suspected of being part of Russian President Vladimir Putin's inner circle. It is challenging the decision by the other court.

After identifying unusual spending patterns and a payment of 200,000 pounds to a luxury car dealer, the agency frozen £1.5 million ($1.6m) in suspected criminal proceeds in May.

Helen Taylor, a Spotlight on Corruption legal researcher, stated that "this first major case of sanctions evasion will set the direction for the NCA's strategy moving forward" and that a setback now could severely hamper future efforts.

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