What led a wealthy Russian businessman to lease a high-end resort in Sardinia?
Since the Russian incursion into Ukraine, European nations have frozen considerable funds belonging to influential Russians. However, the system has apparent loopholes that Kremlin allies have allegedly exploited to shield their wealth from EU scrutiny. According to "Financial Times", Russian tycoon Musa Bazhaev might be among these individuals.
The focus is on an exquisite Mediterranean resort located in Sardinia, Italy. As per official records, Bazhaev owned the renowned Hotel Forte Village more than two months following EU sanctions imposed in reaction to the Russian invasion of Ukraine. This is evident from the yearly reports of the resort's owner, Retivia Investments, a Cypriot firm owned by Bazhaev. The report was submitted to the Cypriot trade registry in June 2022. Bazhaev and his nephew Deni are listed as co-owners.
Bazhaev, one of Russia's wealthiest oligarchs, was added to the EU sanctions list on April 8, 2022. Italian authorities reportedly ignored freeze requests on Bazhaev's assets in the subsequent weeks, while French authorities seized his Saint-Jean-Cap-Ferrat villa as early as late April. The peculiarity is, why? Since 2014, Bazhaev's ownership of Forte Village was public knowledge, as per "Financial Times".
Retivia Investments manages not only Forte Village but also several other assets worth over 700 million euros on the Mediterranean island. The resort, built in the 1970s, is a quintessential luxury holiday destination in the Mediterranean. During peak season, prices surpass 10,000 euros per person per week. The newspaper highlights that Bazhaev is a recognizable figure on the island. During the COVID-19 pandemic, he donated 500,000 euros to the Sardinian civil protection. The Italian financial police, Guardia di Finanza, did not comment on the case.
Inconsistent ownership declarations
A month following the Cypriot firm registry filing, another document reveals an unexpected reversal in ownership. According to this, Retivia Investments was sold to a relative of Bazhaev on February 25, 2022 - one day after the invasion. The inconsistencies in the ownership situation's description at that time raise questions about whether this was an authentic transfer of ownership.
Moreover, it wasn't the sole sale: In early 2023, Retivia Investments, including assets like Forte Village, was allegedly sold to Kazakh tycoon Shukhrat Ibragimov, as per company records. Ibragimov is the chairman of the board of Eurasian Resources Group, a prominent global cobalt and copper producer. These transactions enable sanctioned men to maintain control over substantial assets, the newspaper remarks.
Determining whether these were strategic maneuvers by Russian businessmen or whether Sardinia or Italy possibly sheltered Kremlin-affiliated persons from EU sanctions remains elusive. Neither the Cypriot trade registry nor representatives for Bazhaev and Ibragimov wished to comment on the matter.
It is known from "Spiegel" investigations in December 2023 that sanctioned Russian oligarchs have leveraged Cyprus to gain from EU's backdoor. FBI authorities have since aided local agencies in locating such loopholes. It was only in September that several Russian oligarchs on the EU sanctions list failed in their lawsuits against reporting asset obligations within the European Union - Bazhaev was not one of them. Born in Chechnya, the oligarch is active in the oil, metal, and raw material sectors, which are substantial sources of revenue for the Kremlin. As a result, he remains on the EU and UK sanctions lists.
Despite the European Union imposing sanctions on Bazhaev due to Russia's invasion of Ukraine, the economy of Sardinia, Italy, seemed to benefit from his continued involvement in the ownership of Hotel Forte Village. The exorbitant prices during peak season suggest that the resort remains a popular luxury holiday destination.
The inconsistent ownership declarations of Retivia Investments, the firm that manages Forte Village and other assets, have raised questions about whether Russian businessmen are leveraging loopholes to maintain control over significant assets, potentially avoiding EU sanctions.
