The Munich II Public Prosecutor’s Office has decided to terminate an investigation into Russian oligarch Alisher Usmanov, who faced allegations of money laundering and sanctions violations, after reaching a settlement of €10 million. This settlement will be apportioned between the state treasury (€8.5 million) and German charities (€1.5 million) as reported by JURIST.
Alisher Usmanov was under suspicion for failing to declare his assets in compliance with Article 18 of the Foreign Trade and Payments Act. Additionally, he was accused of circumventing sanctions by transferring assets to foreign entities and arranging for those companies to cover €1.5 million in security services for his properties. Usmanov’s legal team firmly denied these allegations, asserting no affiliation with the companies nor ownership of the properties involved. They argued that his prosecution was unconstitutional by challenging the “obligation to self-report” with the potential for criminal penalties as a breach of the right against self-incrimination.
Usmanov, an Uzbek-born billionaire with ties to Vladimir Putin, was designated a sanctioned individual in the European Union in February 2022, following Russia’s incursion into Ukraine, which was echoed by the United States in the subsequent month. This status involved stringent restrictions on his travels and business activities, the freezing of assets, and the potential for criminal charges if violated. In 2022, German authorities conducted raids on properties allegedly linked to Usmanov. However, these actions were later deemed unlawful by the Frankfurt Regional Court.
The oligarch encountered further restrictions in April 2023 when his affiliates appeared in a second wave of sanctions. It was not the first time Usmanov reached a financial settlement to avoid prosecution; in November 2024, he resolved another money laundering probe in Frankfurt with a €4 million payout.
The legal framework enabling this settlement comes from section 153a of Germany’s Code of Criminal Procedure, allowing public prosecutors to close investigations while stipulating conditions like monetary payments to non-profits or the treasury, contingent upon the accused’s consent. Once agreed upon and paid, the investigation cannot be reopened based on the same facts.
This development illustrates ongoing complexities in holding sanctioned individuals accountable amidst geopolitical tensions and raises questions about the efficacy of financial settlements in curbing unlawful financial conduct associated with international sanctions.