- Last year, the British government sanctioned many Russian oligarchs as a result of the war.
- But many of them are allowed to spend a fortune on living expenses, The New York Times reported.
The British government granted sanctions exemptions to Russian oligarchs living in the UK, allowing them to pay for services like private chefs and drivers, The New York Times reported on Thursday.
Last year, officials granted at least 82 exemptions — known as licenses — to oligarchs who were affected by UK sanctions imposed as a result of Russia's invasion of Ukraine, the report said.
This includes Russian banking tycoon Mikhail Fridman, who last year was granted a license of £300,000 to pay for 19 members of staff, including drivers, private chefs, and housekeepers, The Times reported, citing licensing documents.
Fridman, who lives in London, received a roughly £7,000 monthly allowance to cover his family's basic needs, it added. It is unclear how the British government decided whether or not it should approve the transactions.
Fridman has a net worth of $12.2 billion according to Bloomberg's Billionaires Index and was sanctioned by the UK in March 2022. The EU called Fridman "a top Russian financier and enabler of Putin's inner circle" in February when it placed him on its sanctions list.
In an interview with Bloomberg last year, Fridman described sanctions as "groundless and unfair" and said he doesn't "know how to live."
The Treasury has also allowed Russian oligarch Petr Aven, who has links to President Vladimir Putin, to spend £60,000 a month to maintain his lifestyle, The Times reported. Aven was the president of Russia's largest privately held bank, Alfa-Ban.
A big chunk of that money went into a security company that has been under investigation for likely helping Aven evade sanctions, The Times reported, citing court records.
Law enforcement agents, who spoke on condition of anonymity, told The Times that the British licensing system, which was put together after Brexit, is undermining the sanctions.
A spokesperson for the UK Treasury told The Times that licenses to allow payments for "basic needs" are "strictly monitored." The Treasury did not immediately respond to Insider's request for comment.
Last week, Russian businessman Oleg Tinkov was removed from the sanctions blacklist after he successfully argued that he was an outspoken critic of Putin and was not in support of the war.