JERSEY is on the ‘front line of the world economic conflict against Russia’, the External Relations Minister has said as he defended the government’s actions on oligarch assets held in the Island.
In a letter to the JEP, Senator Ian Gorst said Jersey was ‘one of the few places in the world’ to obtain a court order to seize financial assets linked to the Russian Federation.
His comments come after more than $7 billion worth of assets suspected to be connected to Russian oligarch and former Chelsea Football Club owner Roman Abramovich were frozen by the Royal Court last week. The formal freezing order, known as a saisie judiciaire, was imposed on assets either located in Jersey or owned by Jersey incorporated entities that are suspected to be linked to Mr Abramovich. Last week, the police carried out a raid at Jersey premises suspected to be connected to the business activities of Mr Abramovich.
‘Co-ordinated efforts’ between Jersey and the UK also led to the assets of Mr Abramovich’s associates Eugene Tenenbaum and David Davidovich being frozen last week, said Senator Gorst.
Mr Tenenbaum – a financier and director at Chelsea FC who was granted high-net-worth residency status to live in Jersey – owns two flats near St Aubin’s Village worth a combined £3.5m.
Meanwhile, Mr Davidovich reportedly told UK media this week that he was the director of MHC Jersey Ltd and the owner of one of Mr Abramovich’s super-yachts.
Senator Gorst said: ‘As with all new UK sanctions, they were immediately and automatically in force in Jersey. Both men’s names were published by the Government of Jersey, and notifications automatically emailed.
‘These actions demonstrate that Jersey is playing its part, and that our sanctions are not only working but are on the front line of the world economic conflict against Russia.’
In his letter, Senator Gorst refuted comments from leading anti-Putin campaigner Bill Browder that more anti-money-laundering experts needed to be brought in to speed up asset freezes.
Senator Gorst said there were ‘severe consequences’ for those who failed to adhere to Jersey’s sanctions regime, adding that Jersey’s regulators had invested ‘substantial resource in financial crime mitigation in recent years, and we will invest further if required’.
He said it was ‘simply incorrect’ to suggest that the court freeze ‘indicated a delay by the authorities to freeze assets under the sanction regime’.
Senator Gorst added that there was ‘evident confusion between asset freezes under the sanctions regime and court freezes. Under Jersey’s sanctions regime, it immediately becomes a criminal offence to make any funds, economic resources or financial services available to anyone named. Their assets must be frozen by financial institutions (and other entities), not by the regulatory authorities’.
‘When Jersey’s Royal Court freezes assets, such as happened last week, control of the assets moves from the designated person to the Viscount. The two processes are distinct,’ Senator Gorst added.
Last month, the JEP exclusively revealed that company and financial records showed that a St Helier-registered firm loaned £1.5 billion to one of the former Chelsea FC owner’s companies.
Jersey-based finance firm ZEDRA Trust confirmed to the JEP last week that its offices were not searched as a result of the saisie judiciaire, issuing a statement to say it ‘stands firmly with the people of Ukraine and we completely and utterly condemn any acts of aggression that violate international law’.
Senator Gorst said: ‘We are a responsible and internationally co-operative jurisdiction, and stand ready to take further actions, in lockstep with the UK and the wider international community.’
– The JEP reported incorrectly on Saturday 16 April that confirmation that Jersey would issue the same sanctions against Mr Tenenbaum and Mr Davidovich as the UK had not yet been given. In fact, the government published a notification on Thursday in the Jersey Gazette.
