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British bank to service Putin's close oligarch's fund in London

British bank to service Putin's close oligarch's fund in London A British bank will service the foundation of an oligarch close to Putin (photo: Getty Images)

One of the largest banks in the United Kingdom will serve the fund of oligarch Vladimir Potanin in London. He is closely associated with the Russian dictator Vladimir Putin, according to Bloomberg.

British creditor is now listed as the banking services provider for the London branch of Vladimir Potanin's fund.

Barclays received approval from the UK sanctions watchdog to provide banking services to Gai Hollander, who worked at the accounting firm Mazars LLP and was appointed by the British regulator for charity as an independent temporary manager of Potanin's fund.

"HM Treasury's sanctions office granted license for Mr. Hollander to open an account to manage assets of the charity and Barclays opened the account for Mr. Hollander as the interim manager in accordance with this license," said a representative of Barclays.

Banks fear independently violating sanctions against Russia

The agency writes that Barclays began providing the license more than a year after JPMorgan severed ties with Potanin's fund. The bank liquidated the investment portfolio it managed for charitable purposes and paid income to an independent fund manager.

"The back-and-forth puts on display the tightrope banks must walk when dealing with sanctions compliance. Banks that run afoul of these rules can face steep penalties, so they often adopt extreme caution toward anyone who could be considered a sanctions risk. But a growing number of governments around the world have begun to warn banks against overcomplying and cutting off legitimate customers from services because of those fears," Bloomberg writes.

Vladimir Potanin

Russian entrepreneur, state, and political figure.

Owner and president of the management company "Interros," one of the largest in Russia, president of MMC "Norilsk Nickel," founder of the Potanin Charitable Foundation.

Sanctions against Potanin

In December of last year, the US Department of the Treasury and the State Department announced the imposition of sanctions against the financial companies of oligarch Vladimir Potanin and his family members, as well as the network of his enterprises and institutions.

Already in January 2023, the head of "Nornickel" Vladimir Potanin, one of the wealthiest people in Russia, stated that the metallurgical giant is reviewing its strategy and establishing closer ties with countries such as China, Turkey, and Morocco due to Western sanctions against the Russian economy.