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<ul class="summary-list"><li>The war in <keyword id="11985141" type="UNKNOWN" weightage="60" keywordseo="ukraine" source="Orion">Ukraine</keyword> has had a wide-ranging impact on food and <keyword id="11917806" type="UNKNOWN" weightage="100" keywordseo="energy" source="Orion">energy</keyword> supplies.</li><li>Western countries are being forced to reckon with their reliance on Russian imports.</li></ul>In the months since <keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword> ordered troops into Ukraine, a flurry of <keyword id="12754126" type="UNKNOWN" weightage="60" keywordseo="sanctions" source="Orion">sanctions</keyword> issued by Western countries has failed to curb <a href="https://www.businessinsider.com/us-spy-chief-warns-putin-is-preparing-prolonged-war-ukraine-2022-5?r=US&amp;IR=T">the military assault</a>. With a drawn-out conflict appearing more likely, the political determination to punish President Vladimir Putin's nation suggests a prolonged period of sanctions lies ahead. Some experts say that the prospect of continued disruption to food and energy supplies as a result of the war will trigger a search for long-term alternatives to Russian imports.While the price shock of the conflict is felt globally, the disruption to energy supplies is most keenly felt in the <keyword id="11907394" type="UNKNOWN" weightage="60" keywordseo="european-union" source="Orion">European Union</keyword> (EU), which sources <a href="https://ec.europa.eu/eurostat/statistics-explained/index.php?title=EU_imports_of_energy_products_-_recent_developments#Overview">a quarter of its oil imports</a> and 40% of its <a href="https://ec.europa.eu/eurostat/cache/infographs/energy/bloc-2c.html">natural gas</a> from Russia (the US, by comparison, got about 3% of its crude oil from Russia in 2021). In its sixth round of sanctions against Moscow, the <a href="https://www.businessinsider.com/ukraine-serhiy-marchenko-calls-for-immediate-energy-embargo-russia-2022-5?r=US&amp;IR=T">EU announced plans</a> for a total ban on Russian oil and refined product imports by the end of the year."Let us be clear: it will not be easy," European Union President Ursula von der Leyen said in a speech outlining the proposals. "Some member states are strongly dependent on Russian oil. But we simply have to work on it." While shifting away from Russian oil may prove difficult, Europe's reliance on Russian natural gas provides policymakers and central bankers with a much bigger headache. In a recent round of sanctions, the <a href="https://www.businessinsider.com/european-union-coal-ban-russia-oil-natural-gas-ukraine-war-2022-4?r=US&amp;IR=T">EU continued to exclude</a> any embargo on natural gas, although it has aired proposals to cut demand for Russian imports by two-thirds by the end of 2022. The EU's plan to wean itself off Russian imports is going to have profoundly negative implications on energy prices, according to David Claridge, CEO of security intelligence firm <a href="https://www.dragonflyintelligence.com/">Dragonfly</a>.The EU has invested billions of euros in pipeline projects to service its demand, and seeking alternatives will be time-consuming and costly. If European countries follow through with diversification away from Russian fossil fuels – be it through finding an alternative supply or adopting new means of energy such as renewables – they won't return, he said.Claridge added: "If and when European nations can move away from Russian fossil fuels, they will look toward a more sustainable energy mix in order to meet simultaneous climate change objectives. So in that respect, they won't return to buy Russian oil and gas – that is long term."<a href="https://www.businessinsider.com/russian-natural-gas-energy-eu-africa-european-union-commission-import-2022-5?r=US&amp;IR=T">Europe is mulling</a> Africa as a potential future source of gas but lacks the infrastructure to pipe it between the continents. Meanwhile, liquefied natural gas imports from other nations are limited in their potential to help make up the current shortfall.Benjamin Maltby, a partner at Keystone Law and an expert in yacht and luxury asset law, said: "In practical terms, switching to a new source of gas supply is neither overly difficult nor complex, given that gas can be carried by liquefied natural gas ships. But the supply of such vessels is limited, as are alternative sources of gas."That leaves the bloc without a quick fix and, while it might sponsor a more rapid shift to cleaner, more sustainable energy sources, it suggests that countries will have to absorb a higher price environment for some time to come.According to <a href="https://www.economicsobservatory.com/how-is-the-war-in-ukraine-affecting-global-food-security">Economics Observatory</a>, Ukraine is the world's largest producer of sunflower oil, and combined with Russia, it is responsible for more than half of global exports of sunflower oil. Russia, however, is the world's largest exporter of wheat, accounting for 36% of exports. <a href="https://www.businessinsider.com/millions-tons-grain-blocked-ukraines-ports-2022-5?r=US&amp;IR=T">A UN official warned</a> in early May that millions of tons of grain are stuck in Ukraine as the ongoing conflict with Russia prevents safe transit from the country's ports.Martin Frick, the Germany director of the UN World Food Programme, told German news agency DPA: "Ukraine's food is urgently needed in the world," adding that Ukrainian shipments were critical to help tackle a "global food crisis."While the heavy investment required to source new supplies suggests that any development of new supply channels could ensure a long-term shift away from Russian natural gas, trade in oil, refined products, and agricultural goods could be more fluid. But any reversion to previous trade routes would almost certainly depend on peace in Ukraine and personnel in the Kremlin."The second and more short- to medium-term consideration is tied to the conclusion of the war and the fate of Putin," Claridge said."I cannot see it being politically acceptable, or strategically sensible, to move in the direction of resumption of the same imbalanced energy relationship," he added, but also noted that trade choices may not be determined solely by Western governments. "In any case, as we can see from current developments with Bulgaria and others, Russia may also refuse to supply, either because of currency issues arising from its financial isolation or to weaponize European dependence on its energy," he said.<div type="image" title="Red paint appears on the wall of the Russian embassy in London, UK." height="1397" width="1863" msid="91580553" hostid="261"></div>Maltby said one unintended consequence could be a curtailment of globalization and a possible consolidation of the Russo-Chinese axis of autocracy. Russia and China are now closer than before: they reject the postwar economic and political order that the US and allies created, they want to regain territories they believe were separated unjustly from their homelands, and they see democracy as a threat.He added: "All other things being equal, this will limit the scope for economies within and without such axis from specializing in what their constituent businesses excel in."According to Maltby, now more than ever, businesses must plan for the possibility and consequences of the imposition of sanctions, and the impact on supply chains.This means that both businesses and governments would need to plan ahead, adapting plans and policies according to sanctions. Maltby added: "It is imperative that manufacturers not only look for alternative sources of raw materials and components but manage their customer's expectations and ensure that their sales contracts allow for non or late delivery of goods."

The impact on food and energy supplies amid Russia's invasion of Ukraine will be long-lasting, experts say

<ul class="summary-list"><li><keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword>'s security elites are <keyword id="13423431" type="UNKNOWN" weightage="60" keywordseo="silovarchs" source="Orion">silovarchs</keyword>, a term combining "oligarch" and "<keyword id="13586721" type="UNKNOWN" weightage="60" keywordseo="siloviki" source="Orion">siloviki</keyword>" ("people of force.")</li><li>Daniel Treisman, who coined the term, told Insider about their influence and power. </li></ul><keyword id="13281691" type="UNKNOWN" weightage="60" keywordseo="oligarchs" source="Orion">Oligarchs</keyword>, who are some of the world's wealthiest <a href="https://www.businessinsider.com/russian-oligarchs-roman-abramovich-superyachts-properties-jets-seized-2022-3">individuals</a>, have been under intense scrutiny since <keyword id="11899444" type="UNKNOWN" weightage="60" keywordseo="vladimir-putin" source="Orion">Vladimir Putin</keyword>'s invasion of <keyword id="11985141" type="UNKNOWN" weightage="60" keywordseo="ukraine" source="Orion">Ukraine</keyword> in February and faced sanctions from US and other western nations.Back in the 1990s, a new business elite, known as <a href="https://www.businessinsider.com/russian-oligarchs-sanctions-security-elite-ukraine-2022-3">silovarchs</a>, sprung up. This is an umbrella <a href="https://www.sscnet.ucla.edu/polisci/faculty/treisman/Papers/siloct06.pdf">term coined</a> in 2006 by Daniel Treisman, a professor of political science at the University of California, Los Angeles.The term combines the words oligarch and <keyword id="13586721" type="UNKNOWN" weightage="60" keywordseo="siloviki" source="Orion">siloviki</keyword>. The latter translates as "people of force" and encompasses leading officials from the security services and law enforcement. According to Treisman, <keyword id="13281691" type="UNKNOWN" weightage="60" keywordseo="oligarchs" source="Orion">oligarchs</keyword> do not hold a great deal of political influence, while <keyword id="13423431" type="UNKNOWN" weightage="60" keywordseo="silovarchs" source="Orion">silovarchs</keyword> are more powerful.Hugo Crosthwaite, a lead analyst at security intelligence firm <a href="https://www.dragonflyintelligence.com/publications/strategic-outlook-2022/eurasia">Dragonfly</a>, told Insider that siloviki are essentially part of Putin's close circle. And as a former member of the KGB, now the FSB, the argument follows that the president himself would be a silovik."I think the important point with siloviki is that they are part and partial of President Putin's regime and not a separate group aside from it," Crosthwaite added. "Siloviki are ultimately closer to the president than oligarchs are."<h2>Who are the silovarchs?</h2>Some of the most well-known silovarchs are veterans of the KGB, per Treisman and Crosthwaite.Despite not coming from a security background, Gazprom CEO <a href="https://www.businessinsider.com/who-are-the-russian-oligarchs-uk-sanctions-list-roman-abramovich-2022-3">Alexei Miller</a> is one because the state-controlled energy supplier is part of the silovarch empire.Considered the strongest influence in <keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword> after <keyword id="11899444" type="UNKNOWN" weightage="60" keywordseo="vladimir-putin" source="Orion">Vladimir Putin</keyword> and a close confidant to the president, <a href="https://www.businessinsider.com/russian-oligarch-igor-sechin-yacht-crew-sail-turkey-sanctions-report-2022-3">Igor Sechin</a> is CEO of Rosneft, an oil company used as one of Putin's key geopolitical tools. In the mid-1980s, Sechin served as a military interpreter in Mozambique and Angola.Vladimir Yakunin, a former general and one of the most ideological silovarchs, called for closer ties between the Slavic nations and a revival of Orthodox Christian values, Treisman said. He is the former president of Russian Railways and previously worked in the transport ministry. The son of FSB chief Nikolai Patrushev, FSB captain Andrei Patrushev was appointed Sechin's personal adviser at Rosneft and is now Gazprom Neft's CEO. Here's a list of all other individuals who would be considered silovarchs, determined by their previous or current involvement in the <keyword id="11981780" type="UNKNOWN" weightage="60" keywordseo="armed-forces" source="Orion">armed forces</keyword> or intelligence groups, as well as Treisman's thorough research. <table style="height: 541px; width: 640px; border-style: solid;"><tbody><tr><td style="width: 589px;" colspan="2"><h3 style="text-align: center;">Table of Silovarchs </h3></td></tr><tr style="height: 120px;"><td style="width: 278.219px; height: 120px;"><a href="https://www.spisok-putina.org/en/personas/ivanov-4/">Viktor Ivanov</a> – former chair of the board for Almaz-Antei and Aeroflot – had a career in Soviet KGB and Russian FSB. </td><td style="width: 303.781px; height: 120px;"><a href="https://www.spisok-putina.org/en/personas/fradkov-3/">Mikhail Fradkov</a> – former head of Russia's Foreign Intelligence Office and former prime minister – served as an engineer interpreter for the Soviet Union's embassy in India. </td></tr><tr style="height: 97px;"><td style="width: 278.219px; height: 97px;"><a href="https://www.theguardian.com/world/2022/mar/04/meet-the-oligarchs-sanctions-russian-billionaires">Sergei Chemezov</a> – general director of Rostec – is a former spy. </td><td style="width: 303.781px; height: 97px;"><a href="https://pantheon.world/profile/person/Rashid_Nurgaliyev/">Rashid Nurgaliev</a>– former interior minister and deputy secretary of the Security Council – is Army General and worked for the FSB. </td></tr><tr style="height: 97px;"><td style="width: 278.219px; height: 97px;"><a href="https://www.globalsecurity.org/military/world/russia/zubkov.htm">Viktor Zubkov</a> – Chair of Gazprom's board and former prime minister – is a Russian civil servant. </td><td style="width: 303.781px; height: 97px;"><a href="https://home.treasury.gov/news/press-releases/jy0610">Vladimir Kolokoltsev</a> – Interior Minister and former Moscow police commissioner – is Lieutenant-General (police). </td></tr><tr style="height: 120px;"><td style="width: 278.219px; height: 120px;"><a href="https://www.globalsecurity.org/military/world/russia/ivanov.htm">Sergei Ivanov</a>– Special Presidential Representative for Environmental Protection, Ecology, and Transport – is a former intelligence officer of the KGB.</td><td style="width: 303.781px; height: 120px;"><a href="https://imrussia.org/en/politics/572-putins-praetorian-guard">Viktor Cherkesov</a> – director of the federal anti-drug service – is Lieutenant-General. </td></tr><tr style="height: 97px;"><td style="width: 278.219px; height: 97px;"><a href="https://www.theguardian.com/world/2022/mar/04/meet-the-oligarchs-sanctions-russian-billionaires">Nikolai Tokarev</a> – president of Transneft – is a former KGB agent. </td><td style="width: 303.781px; height: 97px;"><a href="https://www.spisok-putina.org/en/personas/ivanov-4/">Viktor Ivanov </a>– former director of the Russian federal drug control service and former chairman of Almaz-Antei – is a former KGB officer.</td></tr><tr><td style="width: 589px;" colspan="2">Source: Daniel Treisman, and Open-Source Intelligence. </td></tr></tbody></table><h2>How powerful are silovarchs? </h2>The silovarchs control companies through positions in management or on supervisory boards. Treisman said the siloviki see their mission as fixing the problems the oligarchs created — to restore respect for law enforcement, enhance presidential powers, and clean up the media, and political parties. Silovarchs see themselves as protectors of the Russian state. "When we look at the overall positions that they occupy, we can say with some confidence that they clearly have a considerable amount of sway within the Russian state – and the overall system that person sits at the top of," Crosthwaite said. The system that Putin has constructed means that "proximity to him is vital to safeguard one's own interests as a member of the siloviki," he said. "Essentially, it's a very narrow, small decision-making group around the president that is ultimately the source of power."

Everything you need to know about silovarchs &mdash; Russia's security elites &mdash; and the power they wield

<ul class="summary-list"><li><keyword id="13281691" type="UNKNOWN" weightage="60" keywordseo="oligarchs" source="Orion">Oligarchs</keyword> have been the target of Western countries' sanctions amid <keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword>'s invasion of <keyword id="11985141" type="UNKNOWN" weightage="60" keywordseo="ukraine" source="Orion">Ukraine</keyword>.</li><li>Over the years, however, a new group of powerful elites have sprung up — <keyword id="13423431" type="UNKNOWN" weightage="60" keywordseo="silovarchs" source="Orion">silovarchs</keyword>.</li></ul>Russia's unprovoked invasion of Ukraine has sparked sanctions from world leaders, hitting <a href="https://www.businessinsider.com/who-are-the-russian-oligarchs-uk-sanctions-list-roman-abramovich-2022-3">the country's wealthiest businessmen</a>. The European Union recently drew up a sanctions list targeting Russian oligarchs, including Alexei Mordashov, who <a href="https://www.businessinsider.com/alexei-mordashov-russia-richest-man-property-seized-italy-oligarch-2022-3">owns property worth millions</a> and is the<a href="https://www.forbes.ru/profile/aleksei-mordashov"> richest person in Russia</a>, according to Forbes. <a href="https://www.businessinsider.com/russian-oligarch-roman-abramovich-private-jet-flies-moscow-israel-sanctions-2022-3">Roman Abramovich</a> has also been<a href="https://www.businessinsider.com/russian-oligarch-helicopter-yacht-jets-ambramovich-isle-of-man-register-2022-3"> under much scrutiny</a>, as Insider's Kate Duffy reported. The US <a href="https://www.businessinsider.com/what-are-sanctions-russia-ukraine-invasion-us-eu-uk-nato-2022-3">has also sanctioned oligarchs</a> and others, including the influencer daughter of <a href="https://www.businessinsider.com/us-sanctions-family-of-putin-spokesperson-dmitriy-peskov-2022-3">Putin's spokesperson</a> Dmitriy Peskov.Daniel Treisman, who is a professor of political science at the University of California, Los Angeles, told Insider that most of Russia's key businessmen made their billions in the early Putin period when the Russian economy recovered and the stock market soared. He said: "The original oligarchs from the early 1990s — those that have survived — are a relatively small minority. There are many who emerged after the financial crisis of 1998."However, in the space vacated by the departing oligarchs, a new business elite has sprung up: silovarchs. This is an umbrella term coined by Treisman, which combines the words oligarch and siloviki. The latter translates as "people of force" and encompasses leading officials from the security services and law enforcement. Meanwhile, the oligarch title was first given to major businessmen who emerged from privatization in Russia in the 1990s, according to Treisman. "The most notorious oligarch, Boris Berezovsky, claimed in the mid-90s that just seven big businessmen controlled half of the Russian economy," he said. It wasn't true, Treisman said, but the image stuck. He added: "They mostly accumulated initial capital through speculation and other kinds of arbitrage in the first hyperinflationary years of the post-communist collapse and then used that capital to buy stakes in the state enterprises that were being sold off."These days, Russia's most notable business figures are dependent on the Kremlin to continue making money, according to Treisman. So despite Western countries' imposing sanctions on oligarchs to pressure Putin, "none of them are in a position to put pressure on [him]," Treisman said.While we know of oligarchies — power structures dominated by oligarchs — lesser-known silovarchies, the natural home of a silovarch, are also notable. These are states in which veterans of the security services or armed forces dominate both <keyword id="11893346" type="UNKNOWN" weightage="100" keywordseo="politics" source="Orion">politics</keyword> and big businesses.<h2>Why do silovarchs matter?</h2>Treisman, <a href="https://www.sscnet.ucla.edu/polisci/faculty/treisman/Papers/siloct06.pdf">who coined the term in 2006</a>, said that in the mid-2000s, close associates of Putin's, who were mostly from the security services, began to get very rich. "They benefited from state contracts. In part, they used powers of law enforcement to intimate private businessmen and expropriate their companies," he said.Silovarchs have existed in various countries, including South Korea and Indonesia. They "can deploy intelligence networks, state prosecutors, and armed forces to intimidate or expropriate business rivals," said Treisman, who added that this differs from the powers that oligarchs have.In fact, oligarchs have always been less politically powerful than many believed, Treisman said. He noted that in the 1990s, some thought they had a strong influence over Boris Yeltsin, who served as the first president of the Russian Federation from 1991 to 1999.Treisman said: "In fact, that was an image that they cultivated, but greatly exaggerated. Since the mid-2000s, those oligarchs that survived were deferential to the Kremlin and performed jobs for Putin when asked — for instance, constructing the infrastructure for the Sochi Olympics."According to Treisman, while many benefited from state contracts and other state favors, and many also had influence over law enforcement and security service officials lower down the hierarchy, they were not allowed to play a political role of any kind without the Kremlin's permission. Questions remain as to whether silovarchs will continue to wield so much power in future. As Treisman's 2006 research paper pointed out, silovarchies often face severe succession crises. This is "because as the inner circle of silovarchs enrich themselves, they become hostages of their politicized enforcement apparatus, which rivals might use to expropriate them if they step down," Treisman stated in the paper.

Russian oligarchs have been targeted by Western countries sanctions but Russia's elite security figures are just as powerful, if not more so

<ul class="summary-list"><li>Russia's government is allowing energy giant Gazprom to start a private security outfit. </li><li>Ukraine's Ministry of Defence drew comparisons with the notorious private army the Wagner Group. </li></ul>Russian majority state-owned energy company Gazprom has been authorized to create its own private security outfit, in a move that Ukrainian intelligence says is part of a war-fueled "arms race" to develop a mercenary army.Russia's government <a href="http://publication.pravo.gov.ru/Document/View/0001202302060031" target="_blank" rel="noopener">gave its go-ahead</a> for the energy giant to create a private security organization on February 4, under the pretext of securing the country's energy sector. The decree gives Gazprom 70% control of the resulting company, <a href="https://news.yahoo.com/russian-gazprom-creates-own-private-134430886.html" target="_blank" rel="noopener">per Ukrainska Pravda's translation</a>. Commenting on Tuesday, <a href="https://t.me/DIUkraine/1961" target="_blank" rel="noopener">Ukraine's Ministry of Defence intelligence department said</a> that the move signals intent to mimic the Wagner Group, the notoriously cruel mercenary army run by ally of President Vladimir Putin, <a href="https://www.businessinsider.com/who-is-yevgeny-prigozhin-russian-tycoon-and-vladimir-putin-confidant-2022-10">Yevgeny Prigozhin</a>.The Wagner Group has been a major player as a Russian proxy in Putin's invasion of Ukraine. Gazprom did not immediately respond to Insider's request for comment. Private military companies (PMCs) are technically outlawed in Russia, with the Russian government's decree authorizing a conventional security company — the kind that any major company would conceivably use to protect its sites.Nonetheless, experts told Insider that it's possible another Wagner-like mercenary army is in the works, as a means to leverage Gazprom's vast riches in the direction of international conflicts. "The timing is obviously curious," Dale Buckner, CEO of security firm Global Guardian, told Insider. "Following the Wagner template, everyone's drawing conclusions that there might be a tie there — which is probably a very good assumption at this point."Stepan Stepanenko, research fellow at the UK security think tank The Henry Jackson Society, told Insider it was "entirely plausible" that the Gazprom outfit could operate as a PMC. If the new entity does operate as a PMC, we can be "certain" that "Putin is behind it, or at the very least approved it, and it will have support from the army," Stepanenko added. Wagner — which has been <a href="https://www.businessinsider.com/wagner-group-transnational-criminal-organization-mercenaries-ukraine-putin-russia-2023-1">designated a "transnational criminal organization" by the US</a> — apparently operates with no legal backing other than Putin's personal say-so.The murky legal situation makes Russian PMCs particularly difficult to track.Gazprom's CEO, Alexei Miller, is considered among Russia's super-elite class of silovarchs — olicharchs with exceptional connections to Putin, <a href="https://www.businessinsider.com/russia-security-elite-oligarch-silovarch-powerful-2022-4">as Insider's Sam Tabahriti previously reported</a>. But Stepanenko said that even if the Gazprom entity does begin to operate as a PMC, the decree "is not a clear-cut move to Gazprom's direct involvement in Ukraine."To fight in Ukraine, Gazprom's would-be combatants would have to compete with the conventional army and Wagner, while production and logistics are already stretched, he said. "While the financial muscle of Gazprom is sufficiently large, it is not a bottomless pit of cash," he added.Training an elite mercenary also takes years, the use of state-supported facilities, and a lot more men, Buckner said, pointing out that <a href="https://www.businessinsider.com/ukraine-video-wagner-recruiting-mercenaries-russian-prison-2022-9">Prigozhin had already resorted to recruiting troops from Russian penal colonies</a>. "Why would it be any easier for Gazprom to recruit?" Buckner asked. Noting Russian Foreign Minister <a href="https://www.bbc.co.uk/news/world-africa-64555169" target="_blank" rel="noopener">Sergei Lavrov's recent visits to multiple African countries</a>, Stepanenko suggested that the Gazprom move could be connected to sending Russians to countries like those. "Should Ukraine be worried? No," he added. "Ukrainians are handling Wagner, they are handling the Russian army."

Russian state energy giant Gazprom is starting its own private security force, a move Ukraine fears will lead to a new Wagner-like mercenary army

<ul class="summary-list"><li>The use of the informal <keyword id="12211604" type="UNKNOWN" weightage="60" keywordseo="hawala" source="Orion">Hawala</keyword> payment system by <keyword id="13281691" type="UNKNOWN" weightage="60" keywordseo="oligarchs" source="Orion">oligarchs</keyword> could be seen as a desperate move.</li><li>Experts have told Insider that using Hawala does not necessarily suggest illicit transactions.</li></ul>Russian oligarchs have managed to get around financial sanctions by moving money through the<a href="https://www.businessinsider.com/russian-oligarchs-sanctions-movement-money-hawala-ukraine-war-2022-4?r=US&amp;IR=T"> informal payment system known as Hawala</a>. It is a move that could be seen as desperate, experts have told Insider. In the months leading up to Vladimir Putin ordering its military troops to invade <keyword id="11985141" type="UNKNOWN" weightage="60" keywordseo="ukraine" source="Orion">Ukraine</keyword>, the president's inner circle – <a href="https://www.businessinsider.com/russian-oligarchs-sanctions-security-elite-ukraine-2022-3?r=US&amp;IR=T">oligarchs</a> and <a href="https://www.businessinsider.com/russia-security-elite-oligarch-silovarch-powerful-2022-4?r=US&amp;IR=T">silovarchs</a> – appear to have anticipated the sanctions and moved funds through trusts or shell companies. Shane Riedel, a financial crime expert and CEO of <a href="https://www.elucidate.co/">Elucidate</a>, which analyses patterns in money movement, told Insider that sanctioned individuals using Hawala or a similar payment system can be considered a desperate move. Riedel said: "If somebody is the ultimate beneficial owner of an account, and they are sanctioned then that account – or asset – is sanctioned."Therefore, any attempt to move money out of a sanctioned account – <keyword id="13856409" type="UNKNOWN" weightage="60" keywordseo="sanctions-evasion" source="Orion">sanctions evasion</keyword> – is considered a criminal offense, per Riedel's comments. Moreover, facilitating sanctions evasion is also a criminal offense and the US Department of the Treasury recently targeted some<a href="https://home.treasury.gov/news/press-releases/jy0731"> facilitators</a>. David Claridge, CEO of security intelligence firm <a href="https://www.dragonflyintelligence.com/publications/strategic-outlook-2022/eurasia">Dragonfly</a>, specified that moving money through Hawala cannot be done in huge sums but rather up to tens of thousand dollars. Claridge believes that if oligarchs were to use the underground payment system, it would involve hundreds of thousands of smaller transactions rather than a big one.When using Hawala, "one person is basically operating on the basis of trust," Claridge said. He added: "That type of arrangement could very well be used by oligarchs," who already operate on the same basis as Vladimir Putin's business empire is "entirely based on trust as he does not own anything."<h2>Is Hawala being used mainly to evade sanctions? </h2>Someone using Hawala does not necessarily mean they are making illegal transactions. Riedel said: "There are people who use Hawala for totally legitimate purposes – it is a lot cheaper." "You can't make assumptions that there is necessarily something illicit going on if you see hawaladars," he said, referring to Hawala dealers. Riedel added that because there is an element of legitimacy, it would be much harder to determine sanctioned individuals who have used the informal payment system. <keyword id="13544422" type="UNKNOWN" weightage="60" keywordseo="kleptocapture" source="Orion">KleptoCapture</keyword>, a taskforce brought together by the <a href="https://www.justice.gov/opa/pr/attorney-general-merrick-b-garland-announces-launch-task-force-kleptocapture">US Department of Justice</a> amid <keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword>'s invasion of Ukraine, targets sanctioned individuals and is dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures. One of its mission is to combat unlawful efforts to undermine restrictions, including the prosecution of those who try to "evade know-your-customer and anti-money laundering measures."Insider reported in early April that <a href="https://www.businessinsider.com/russian-oligarch-try-evade-sanctions-klepto-capture-task-force-2022-4">US investigators found evidence</a> of Russian oligarchs attempting to evade sanctions by moving "for example, moveable property in the forms of yachts, airplanes ... into jurisdictions where, I think, people have the perception that it would be more difficult to investigate and more difficult to freeze," Andrew Adams, the head of the taskforce, <a href="https://www.reuters.com/world/us-task-force-russian-oligarchs-sees-evidence-sanctions-evasion-unit-chief-2022-04-01/">told Reuters</a>. However, despite Russian tycoons' attempt to hide their assets, they still face an "all-time high" level of international cooperation. "Especially in the current context, and the current climate ... the level of shared sense of purpose I think is at an all-time high," Adams added.Claridge said that the attitude of the authorities in the West, in a post-9/11 world, is that "Hawala banking, or other forms of money transfers should be regulated." The implication being that "they should be treated as official businesses, which would be subject to sanctions – same as everybody else," he added.

Sanctioned oligarchs' use of the Hawala payment system is a desperate move but not necessarily illegal, experts say

<ul class="summary-list"><li>Russian troops invaded <keyword id="11985141" type="UNKNOWN" weightage="60" keywordseo="ukraine" source="Orion">Ukraine</keyword> in the early hours of February 24. </li><li>A series of sweeping global sanctions targeted Russian billionaires, known as oligarchs. </li></ul><keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword> invaded Ukraine on February 24, launching the large-scale and unprovoked attack that had been feared for weeks. Insider has extensively reported on the <keyword id="12593853" type="UNKNOWN" weightage="60" keywordseo="conflict" source="Orion">conflict</keyword>, from the debunked claims <a href="https://www.businessinsider.com/why-russia-is-attacking-ukraine-putin-justification-for-invasion-2022-2">Russian President Vladimir Putin used to try and justify</a> his decision to invade Ukraine to the <a href="https://www.businessinsider.com/us-accuses-russia-war-crimes-attacks-on-civilians-ukraine-2022-3">US accusing Russia of war crimes </a>for "indiscriminate attacks" on civilians and "other atrocities." The crisis has led to <keyword id="11932022" type="UNKNOWN" weightage="60" keywordseo="small-business" source="Orion">small business</keyword> owners across Ukraine fleeing<a href="https://www.businessinsider.com/ukrainian-business-owners-flee-their-search-for-safety-2022-2"> their homes to seek safety,</a> while Russian oligarchs have been targeted by Western countries' sanctions in a bid to put pressure on Putin. Insider reflects on the implications this has had for citizens in both countries, as well as their businesses.<h2>The human cost</h2><a href="https://www.businessinsider.com/photos-ukrainian-families-flee-their-homes-as-russia-invades-2022-2">Thousands of Ukrainians</a> have escaped to neighboring countries after navigating packed train stations and hours-long traffic jams.Agnès Callamard, Amnesty International's secretary-general, <a href="https://www.amnesty.org/en/latest/news/2022/02/soaring-concern-for-human-rights-and-human-lives-as-russia-invades-ukraine/">said in a statement</a> on the day of attack: "After weeks of escalation, a Russian invasion that is likely to lead to the most horrific consequences for human lives and <keyword id="11941416" type="UNKNOWN" weightage="60" keywordseo="human-rights" source="Orion">human rights</keyword> has begun."Families took <a href="https://www.businessinsider.com/kyiv-ukraine-mayor-city-use-subway-bomb-shelter-russia-invasion-2022-1">shelter in subway stations</a>, some fled taking their most precious belongings, including <a href="https://www.insider.com/ukraine-russia-invasion-photos-people-fleeing-with-pets-2022-2">pets, in some cases. Meanwhile, </a><a href="https://www.businessinsider.com/african-students-ukrainians-first-policy-preventing-them-leaving-war-zone-2022-2">African students fleeing the conflict</a> encountered resistance and were prevented from crossing to Poland due to an apparent "Ukrainians first" policy. <a href="https://www.businessinsider.com/ukraine-how-a-transgender-man-escaped-russias-invasion-2022-3">A transgender man escaped</a> Russia's invasion and painted his nails "violet and wore Mom's shirt to look more girly," he told Insider's Bethany Dawson. <a href="https://www.businessinsider.com/russia-arrests-anti-war-protesters-ukraine-invasion-2022-2">Videos of anti-war protests in Russia</a> taking place in St. Petersburg, Novosibirsk, and other cities emerged a day after the attack. <a href="https://www.businessinsider.com/the-insider-oksana-baulina-died-rocket-strike-kyiv-shopping-center-2022-3">Russian journalist Oksana Baulina</a> died after a rocket strike on a shopping center in Kyiv, while an <a href="https://www.businessinsider.com/new-york-times-reporter-shot-ukrainian-police-say-2022-3">American journalist</a> was shot while covering the conflict. Consequences such as higher <a href="https://www.businessinsider.com/what-russias-invasion-ukraine-means-global-food-supplies-2022-3">foods prices</a>, <a href="https://www.businessinsider.com/russia-invasion-ukraine-predicted-increase-gas-prices-2022-2">gas prices spikes</a>, and <a href="https://www.businessinsider.com/war-in-ukraine-will-exacerbate-home-price-inflation-2022-3">higher inflation, </a>which is affecting interest rates on mortgages and credit cards, are other global consequences resulting from the conflict. Citizens previously told Insider they would not hesitate to take up arms. Taras Ivanyshyn, the owner of a construction <keyword id="6355515" type="UNKNOWN" weightage="60" keywordseo="business" source="Orion">business</keyword> in a town near Kyiv, said that his family were armed with rifles for self-defense purposes. <h2>Isolating Russia</h2><h3>Corporations pull out</h3>Western countries have imposed sanctions on Russia in a bid to stop Putin's war. The sanctions have forced businesses to <a href="https://www.businessinsider.com/list-all-the-companies-pulling-out-of-russia-ukraine-war-2022-3#1-the-este-lauder-companies-1">pull out operations</a> from Russia, including airlines, retailers, and tech giants. Companies like H&amp;M Group, Adidas, ExxonMobil, Spotify, and Apple have all suspended operations in the country. In some cases, like McDonald's, <a href="https://www.businessinsider.com/mcdonalds-franchisee-owned-restaurants-remain-open-in-russia-2022-3">the company announced it was suspending</a> its operations there, but legal agreements make it hard for the company to enforce closures at franchise stores.Another significant sanction was the <a href="https://www.businessinsider.com/european-union-ban-russian-flights-airspace-fresh-sanctions-report-2022-2">closure of airspace to Russian flights</a>, to which Putin responded with <a href="https://www.businessinsider.com/map-shows-countries-that-closed-airspace-russia-over-ukraine-war-2022-3">retaliatory action</a>. The move has prolonged flight times for several destinations, such as British Airways, adding one hour of flight time to the India to London route, while <a href="https://www.businessinsider.com/delta-suspending-partnership-with-russian-carrier-aeroflot-over-ukraine-2022-2">Aeroflot</a> added three hours from Serbia to Moscow.<h3>Sanctioning oligarchs</h3>Russia's richest men, known as oligarchs, have been targeted by Western sanctions. Authorities have sanctioned some of the wealthiest oligarchs including <a href="https://www.insider.com/slideshow-russian-oligarchs-in-soccer-affected-by-sanctions-2022-3">Roman Abramovich</a>, <a href="https://www.businessinsider.com/alexei-mordashov-russia-richest-man-property-seized-italy-oligarch-2022-3">Alexei Mordashov</a>, and <a href="https://www.businessinsider.com/sanction-russian-oligarch-alisher-usmanov-ownership-assets-mansions-trust-transfer-2022-3">Alisher Usmanov</a>. <a href="https://www.insider.com/report-barclays-freezes-chelsea-fc-bank-account-2022-3">Abramovich is the owner of Chelsea FC</a> and owns two superyachts worth more than $1 billion combined. Mordashov is thought to be Russia's third-richest person, <a href="https://www.bloomberg.com/billionaires/profiles/alexey-a-mordashov/?sref=lAVQtUwz">according to Bloomberg's Billionaires Index</a>. Usmanov reportedly <a href="https://www.businessinsider.com/sanction-russian-oligarch-alisher-usmanov-ownership-assets-mansions-trust-transfer-2022-3">transferred his assets to trusts</a> before sanctions hit him, and doesn't own them any more. The UK government said on March 3 that Usmanov owns mansions worth tens of millions of dollars in the country.Per Daniel Treisman, a professor of political science at the University of California, Russian oligarchs have been targeted by sanctions but other influential individuals are also of concern.<a href="https://www.businessinsider.com/russian-oligarchs-sanctions-security-elite-ukraine-2022-3">The country's elite security figures</a> "are called the siloviki," so he coined the term silovarch to refer to these oligarchs who were siloviki. "Since then, they have become more and more dominant in Russian big business."Meanwhile, some of the world's most expensive superyachts hang in the balance. While the Russian oligarchs are still technically responsible for the yachts, if European authorities do not take responsibility for the yachts' care they will quickly waste away.

Sanctioned oligarchs, families fleeing, small business owners taking up arms &mdash; a month on from Russia's invasion of Ukraine, here's a look at what has happened so far

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The impact on food and energy supplies amid Russia's invasion of Ukraine will be long-lasting, experts say

Sam Tabahriti

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Russian oligarchs have been targeted by Western countries sanctions but Russia's elite security figures are just as powerful, if not more so

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Sanctioned oligarchs' use of the Hawala payment system is a desperate move but not necessarily illegal, experts say

Sam Tabahriti

Sanctioned oligarchs, families fleeing, small business owners taking up arms a month on from Russia's invasion of Ukraine, here's a look at what has happened so far

Sam Tabahriti

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You Searched For "silovarchs" and got 6 results

The impact on food and energy supplies amid Russia's invasion of Ukraine will be long-lasting, experts say

Sam Tabahriti

Everything you need to know about silovarchs Russia's security elites &mdash; and the power they wield

Sam Tabahriti

Russian oligarchs have been targeted by Western countries sanctions but Russia's elite security figures are just as powerful, if not more so

Sam Tabahriti

Russian state energy giant Gazprom is starting its own private security force, a move Ukraine fears will lead to a new Wagner-like mercenary army

Mia Jankowicz

Sanctioned oligarchs' use of the Hawala payment system is a desperate move but not necessarily illegal, experts say

Sam Tabahriti

Sanctioned oligarchs, families fleeing, small business owners taking up arms a month on from Russia's invasion of Ukraine, here's a look at what has happened so far

Sam Tabahriti

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Everything you need to know about silovarchs Russia's security elites — and the power they wield