Sanctions and Investigations: Igor Makarov’s Legal Challenges in Focus

Originally Syndicated on February 22, 2024 @ 6:05 am

Igor Makarov: Is He a Money Laundering Entity? The Unveiled Truth (2024)

Igor Makarov, who made his fortune from selling Russian gas, was listed among the oligarchs and politicians with connections to the Russian government on a list that the US Department of Treasury put together in 2017.  But before we can continue with his investigation, let’s review some of Igor Makarov’s past.

Igor Makarov: A Brief Overview

A well-known and multifaceted figure, Igor Makarov has a wide range of expertise spanning the professional cycling scene, the global cycling community, and the business sector. 

All of these areas have been covered during his career. On April 5, 1962, Makarov was born in Ashkhabad, which at the time was a member of both the Soviet Union and the Turkmen SSR. ARETI International Group, formerly known as ITERA International Group, is currently led by him as president.

Makarov was a member of the Soviet Union’s national cycling team and had a stellar career as an experienced rider before making his successful entry into the corporate sector. In addition to making him a respected person in the sports world, his cycling achievements have helped him establish a strong reputation for himself. 

Igor Makarov accepted a new role in the sports sector following the conclusion of his professional cycling career.

Igor Makarov is well-known for his sponsorship of international cycling competitions and events. His work has improved and boosted cycling throughout the world. Makarov has been on the UCI Management Committee since 2011 in recognition of his contributions. His involvement with the UCI, the world governing body of cycling, has influenced the sport’s expansion.

Makarov is well-known for his achievements in both cycling and business. In March 2023, Forbes estimated his net worth to be $2.2 billion, indicating his impressive financial success. This suggests that he was a prosperous businessman who owned multiple companies.

Igor Makarov gave up his Russian citizenship in the summer of 2023 to become a Cypriot. A change in citizenship is a matter of personal choice that can be either positive or negative.

Makarov was sanctioned by the UK on September 26, 2022. These limitations were brought forth by the Russo-Ukrainian War. Although the reasons for the sanctions were not stated in the material, they had an impact on Makarov’s personal and professional life.

Igor Makarov led a distinguished life overall. His public persona is defined by his business success, professional riding accomplishments, and involvement in the global cycling community. Although they shouldn’t be interpreted negatively, his move from Russia to Cyprus and the sanctions imposed by the UK government—possibly as a result of the Russo-Ukrainian War—are significant events in his life.

Igor Makarov: Claims Showing Him to Be a Con Artist

The Investigation of the Pandora Papers

Legislators from all parties submitted a bill in the House of Representatives in October that would require registered agents to investigate the backgrounds of their clients and report any questionable financial transactions. 

The Enablers Act was designed by politicians in response to the publication of the Pandora Papers, which are the findings of an international investigation by the International Consortium of Investigative Journalists (ICIJ), The Washington Post, and other media partners. 

This action was taken in reaction to the investigation’s findings, which showed how the world’s wealthiest people hide their assets from tax officials, law enforcement, and the general public.

The issue has gained international attention since Russia launched its invasion of Ukraine, compelling countries to look into and freeze the assets of billionaires connected to Russian President Vladimir Putin. 

Shortly after the war began on February 24, a group of experts called on Congress to enact the Enablers Act and take other necessary actions. They cited revelations from the Pandora Papers indicating that Russian millionaire Igor Makarov, through an LLC and trust in Wyoming, had covert ownership of real estate and a 13-seat private aircraft. 

Igor Makarov has already stressed—through his lawyer—that he has no personal ties to Putin and that the confidence was duly expressed.

“A number of these states haven’t done enough to take steps to make sure that the United States of America is not the biggest destination for illicit funds in the world,” said. 

New Jersey Representative Tom Malinowski (D) is one of the bill’s main supporters. “If they had been performing what they did, we wouldn’t have had to act in this area.”

Attorneys in a tourist-heavy Western town famed for its honky-tonk bars offer unique financing arrangements called the “Cowboy Cocktail.” Based on a combination of a secretly owned private company and a Wyoming trust, this unique financial plan takes advantage of the state’s strict privacy laws and minimal governmental oversight.

Millionaires and billionaires from throughout the world are interested in this specific financial structure. Rich families from Venezuela, Italy, and India have moved their financial assets from major international financial centers to the state’s mining towns and ski resorts, making Wyoming one of the most well-known tax havens in the world.

Twelve foreign clients who had set up trusts in Wyoming were exposed financially by the more than 11.9 million papers known as the Pandora Papers. Notable instances include the late Kalil Haché Malkn of the Dominican Republic, the Baggio family of Argentina, and the wealthy Igor Makarov of Moscow.

Rich people can move and use their money with an unmatched level of secrecy thanks to the combination of these Wyoming trusts and tiers of private corporations. A trust’s owners appoint independent administrators to administer its assets; these managers, for greater discretion, typically work for unlicensed private trust companies.

Wyoming has led the way for many years in the development and expansion of its trust industry. Legislators in the state have responded by passing numerous laws designed to make this growth easier. 

Nevertheless, the anticipated tax revenue from this enterprise has not materialized since lawmakers failed to account for the potential inflow of funds from foreign sources, including foreign billionaires and dictators.

The foundation of Wyoming’s trust industry is the notion of trusts, which enable individuals to protect their assets from creditors and lower their taxable income. One feature that sets Wyoming apart from other states is the ability to place a private corporation under a trust. 

A level of confidentiality is added to the process because these businesses are frequently run by family members. It is challenging to find the same degree of secrecy in other tax havens as this so-called “Cowboy Cocktail” tactic.

Residents of Wyoming can choose to cooperate with private trust companies that are licensed or unregulated; the latter offer even higher levels of anonymity. The unregulated alternative is not subject to government oversight, in contrast to the regulated option. The controlled alternative is meant to help families steer clear of unanticipated tax issues and attention.

In Wyoming, the trust industry has expanded significantly in recent years, despite calls for increased openness and regulation. Wyoming’s asset management business currently manages more than $31.5 billion in assets, making it one of the most sought-after trust jurisdictions in the world. 

Due to the state’s financial incentives and privacy laws, Wyoming has drawn clients from all over the world; in fact, international trust companies have started marketing Wyoming as a top tax haven location.

The deals that are disclosed in the Pandora Papers are largely from 2016 to 2019. Igor Makarov and other celebrities managed their wealth through Wyoming trusts, sometimes with assistance from offshore firms for concealment.

The European Parliament lists Wyoming, South Dakota, Alaska, Delaware, and Nevada as centers of corporate and economic secrecy. Lawmakers are considering significant changes to anti-money laundering regulations to prevent suspicious payments from entering the American banking system.

Legislators in Wyoming want a clean industry that protects the privacy of honorable clients, but the state’s privacy laws often keep authorities in the dark. Increasingly, the primary sources of reliable industry client knowledge are media reports and infrequent tips.

Lastly, Wyoming has become a global tax haven for wealthy foreigners due to its distinctive banking architecture and stringent privacy laws. The state’s economy has not profited from the expansion of the trust industry, prompting calls for increased regulation and oversight.

Penalties in the US for Igor Makarov

2018 saw reports of impending US sanctions against businessman Makarov. Makarov became a member of Putin’s business delegation following Russia’s 2007 invasion of Ukraine. Clifford Karchmer was brought in to assess Makarov’s likelihood of facing a fine and look into his financial dealings.

Karchmer’s 2018 report identifies Makarov, a Russian national, as a leader in the energy industry. Following its rapid expansion across the former Soviet Union, ITERA referred to Makarov as a “oligarch of the Putin era.” The examination found factual concerns regarding possibly contentious ties and business activity, while also acknowledging that some attacks on Makarov’s image may have been motivated by political or commercial issues.

Makarov brought in Karchmer after the U.S. Treasury identified him as one of 96 Russian oligarchs in 2018. It proved to be a clone of the billionaire list published by Forbes Magazine in 2017. Following a check of his financial and public records by Karchmer’s team, which revealed no wrongdoing, Makarov was not barred from entering the country.

After Russia invaded Ukraine in April 2022, Makarov was subject to penalties from Canada and Australia. Karchmer believed that while Makarov was unlikely to face sanctions in the United States, many other wealthy individuals may. In light of the paucity of evidence, he proposed that Canada punish Makarov in opposition to the billionaires involved in the incursion into Ukraine.

When the I-TEAM brought up the issue of Russia’s invasion of Ukraine, Makarov declined to speak with his representatives.

Karchmer disputes that Makarov went looking for Putin, claiming that the Russian president asked him to go on a trade mission. According to Karchmer, Makarov joined Putin on the operation before Russia being sanctioned to keep his job since those who lost favor with Putin were afraid of facing criminal charges or death penalties.

Additional Charges Against Igor Makarov

https://globalnews.ca/news/9055869/canadian-oil-co-russian-oligarch-kickbacks-us-accusations/

Russian energy millionaire Igor Makarov acquired a majority stake in Spartan Delta, a Canadian oil and gas company, without first undergoing the necessary regulatory scrutiny. 

This purchase demonstrated the deficiencies in the regulatory oversight that occurs in Canada between federal and local government agencies. 

Since it was structured as an exempt take-over offer, potential bidders were not obliged to disclose their dealings. Makarov’s organization was able to consolidate Spartan Delta with northern Alberta-based oil sands company Inception Exploration as a result.

The Alberta Securities Commission (ASC) did not prosecute Makarov for violating any regulations, even though he was involved in a protracted dispute involving payments, money laundering, and a former Ukrainian prime minister in a federal court in the United States. In the lawsuit initiated by the United States, Makarov was charged with providing bribes to Pavel Lazarenko, the former prime minister of Ukraine, in return for the exclusive right to sell gas in that country. Makarov was accused of being involved in complex money-laundering activities, and the lawsuit sought to seize over $250 million that had been hidden away in offshore bank accounts.

Although Makarov was not included as a defendant in the action that was filed in the United States, it was alleged that he and other people had benefited personally from these money-laundering activities. 

Before being sentenced to nine years in jail in the United States, Lazarenko was the prime minister of Ukraine until 1997. He had been imprisoned in Switzerland due to suspicions of money laundering. Following his nine-year term in the United States, Lazarenko was found guilty. Due to Canada’s lax regulations that allow money laundering to occur there, worries have been raised in light of this case.

Just hours before he was sanctioned by the Canadian government for his involvement in the invasion, Makarov sold more than half of his Spartan Delta shares to an unidentified third party for $121 million following Russia’s invasion of Ukraine in 2022. Federal authorities, including the Royal Canadian Mounted Police, were unable to provide any explanations regarding Makarov’s penalty and the transactions involving Spartan Delta.

This case highlights the perceived regulatory laxity in Canada regarding offshore investments, which many people have, as well as the attraction of the nation to individuals seeking to clean up their financial affairs. 

In the Spartan Delta deal, Makarov employed companies formed in Cyprus, which was in line with dubious investment methods. The gas empire of Makarov, a former Soviet cycling champion, was first established in Turkmenistan in 1992 and has since spread throughout the globe.

A significant portion of Gazprom’s business in Ukraine and other former Soviet areas was acquired by Makarov’s company, Itera International. This information made people wonder why Gazprom gave Itera International this benefit. 

The legal representatives of Gazprom argued that the American political environment was the driving force behind the civil forfeiture lawsuit. In response to inquiries regarding the matter, neither the Russian nor the Ukrainian governments responded.

Makarov’s oil and gas deposits in Alberta were consolidated through the use of an exempt take-over offer, a type of ownership acquisition method. Significant disclosure from the investors was not required for this strategy. The Alberta Securities Commission had the choice to decline participation in these transactions and was not obligated to do so.

Makarov and several other executives were appointed directors of the small oil sands company Inception Exploration in 2016. This marked the start of Makarov’s involvement with the oil business in Alberta. Thanks to a deal arranged by private investors, Makarov was able to purchase a 21% stake in Spartan Delta in 2021. Inception Exploration had the Montney property, which Spartan Delta acquired through a share exchange.

The sum of the cash and share transactions that led to Makarov’s ownership position in Spartan Delta was $148 million. In July 2021, the stakes of Makarov and Areti in Spartan Delta were transferred to the Cyprus-based Areti International Group. 

Organizations related to the ongoing civil forfeiture lawsuit in the United States were involved in this transaction. In the same month, Spartan Delta acquired Velvet Energy, propelling the latter to the top of the Montney oil sands production hierarchy. 

When asked if the ASC was concerned about directors who were reportedly connected to allegations of bribery and money laundering, they responded that issues about money laundering fell under the purview of the federal government. This case highlights the urgency of increased monitoring as well as the intricacy of overseeing foreign investments in Canada.

Russia’s illegal referendum collaborators are sanctioned by the UK

The United Kingdom has imposed a series of fines in response to the illegal phony referendums conducted in Ukraine by the Russian authorities. In addition to senior Russian officials who carried out the illegitimate voting in four regions of Ukraine, sanctions have been imposed on “Putin’s favorite PR agency”. 

Sanctions extended to oligarchs with a combined estimated global wealth of £6.3 billion as well as board directors of sizable state-owned enterprises. United Kingdom’s Secretary of State for Foreign and Commonwealth Affairs announced 92 penalties against Russia today (September 26) in response to the Russian regime’s imposition of phony referendums in four different areas of Ukraine, a flagrant violation of international law and the UN charter.

In an attempt to take control of the territory and justify their illegitimate war, the Russian government has orchestrated these fake referendums. This process reflects exactly their plan, which included a combination of intimidation, disinformation, and manufactured results in Crimea in 2014. 

Both the country’s political independence and its geographical integrity have been seriously violated by the aforementioned referendums, which do not represent the expressed will of the Ukrainian people.

James Cleverly, the Foreign Secretary, declared as much:

The results of phony referendums held under duress can never be accepted by us because they will never be free or equitable. Russia currently controls parts of Ukraine, and in those areas, they follow a well-established pattern of utilizing force, intimidation, torture, and deportations without trial.

The persons who are accountable for these fake votes and those who support the aggressive war waged by the Russian state will be the targets of today’s penalties. For as long as it takes for the people of Ukraine to regain their independence, we will stand in solidarity with them.

33 of the individuals whom the Russian government deployed to each of these temporarily under control areas, along with collaborators, are currently under sanctions for staging these fictitious referendums. These consist of the following:

of addition to his position as Head of the Government of Kherson, Sergei Yeliseyev is currently a Vice Admiral in the Russian Navy. The Russian government recently established this post. After Yeliseyev abandoned the Ukrainian Navy in 2014, he has been attempting to weaken Ukraine’s sovereignty.

The purported Luhansk People’s Republic’s Minister of Science and Education is Ivan Kusov. Kusov has been tasked by LPR chief Pasechnik with “assisting our educational institutions to seamlessly blend in the educational system of Russia.” “Minister of Education and Science” is Kusov’s official title.

The leader of Zaporizhzhia’s “government,” Yevhen Balytskyi, was imposed by Russia. He first expressed his approval of the Russian invasion of Ukraine in March, and he has been publicly endorsing it ever since. IMA Consulting, dubbed “Putin’s favorite PR firm,” has also been sanctioned. Evgeniy Solntsev is the deputy chairman of the so-called Donetsk People’s Republic. 

Balytskyi is thought to have signed an order in August authorizing a vote on Zaporizhzhia’s membership in the Russian Federation. Reportedly, IMA has been tasked with coordinating the public outreach for these fraudulent referendums. This will enable IMA to support the referendums’ fictitious validity in Russia and make it easier for them to be implemented inside the four regions that are currently governed by Russia.

Sanctions have also been imposed on Goznak, a security papers company infamous for having a monopoly on producing “tens of millions” of official documents, including expedited passports, in the temporarily seized zone. There is a blacklist for Goznak.

Putin still gets his war funding from a select group of oligarchs and elites in his inner circle. Many other wealthy individuals were conducting business in sectors of the economy that have strategic importance for the Russian government during the period that Russia was trying to destabilize Ukraine. 

Four more people—including oligarchs and wealthy individuals—have been sanctioned today for their involvement in vital sectors and for supporting or benefiting from the Russian government. These four people are estimated to have a combined net worth of 6.3 billion pounds globally. They are as follows:

The “Kings of Russian real estate,” God Nisanov and Zarakh Iliev, have a combined global net worth of two billion dollars. They jointly control and run the major construction company Kievskaya Ploshchad Group, which conducts business all throughout Russia.

The founder and current president of Ural Mining and Metallurgic Company is Iskander Makhmudov. Makhmudov is a prominent metals magnate whose estimated global net worth is £2.7 billion.

The owner and president of ARETI International Group, a well-known investor in the oil and gas industry, is Igor Makarov. In addition, he founded Itera, the first privately held gas company in Russia until the government-owned Rosneft acquired it. Makarov’s estimated net worth is 1.6 billion pounds.

Furthermore, 55 board members from state-affiliated entities that still provide funding to the Russian military apparatus are included in today’s package. This includes board members from organizations that continue to fund the Russian military machine and serves as a stark reminder of the price of supporting Putin’s operation. The following individuals have been sanctioned:

The Gazprombank Management Board and Board of Directors consist of twenty-three members.

10 representatives of Sovcombank, including the bank’s deputy chairman, members of the supervision board, and members of the management board, in addition to 16 directors from Sberbank’s executive, supervisory, and other boards.

The United Kingdom would never recognize the outcome of any phony referendums or attempts to acquire the sovereign territory of Ukraine. Ukraine’s voters decisively supported their country’s independence from the Soviet Union in 1991. Since then, they have persistently opposed Russian invasion, which indicates indisputably that they desire to maintain their existence as an independent sovereign nation.

The United States and our other international friends are vehemently denouncing the unacceptable actions carried out by the Russian government. We are committed to keeping up the political and economic pressure on Russia, and we will keep pushing for targeted sanctions on it alongside our friends.

More than 120 companies and more than 1,200 individuals, including more than 120 oligarchs who are thought to have a combined global net worth of more than £130 billion, are currently under sanctions imposed by the UK.

Russian billionaire Igor Makarov has renounced his Ukrainian citizenship.

Russia’s millionaire, Igor Makarov, gave up his citizenship amid the crisis in Ukraine and the debate over the “golden passport.”

During Russia’s invasion of Ukraine, rich Russian Igor Makarov made the critical decision to renounce his Russian citizenship. When Russia was engulfed in its invasion of Ukraine, this decision was made. 

The decision was initially reported by Forbes earlier this year and resulted from the growing tensions between the two nations. His name was appended to the increasing roster of individuals who have cut their ties to Russia.

It has just come to light that Makarov took part in the “golden passport” ruse over ten years ago in order to obtain Cypriot citizenship. Because it expedites the process of applying for citizenship for wealthy individuals, this project aims to target wealthy corporations as its major audience.

By expediting the application process and offering a quicker route to citizenship, Cyprus’s “golden passport” initiative aims to attract wealthy investors. This program is sometimes referred to as the “golden visa.” 

Nonetheless, worries have been expressed regarding the potential for this program to allow candidates to evade strict monitoring and due diligence requirements. Program criticism has resulted from these concerns.

By no means is Igor Makarov’s decision to renounce his Russian citizenship an isolated instance. Canada had imposed restrictions on him a year earlier, designating him as one of 14 “close associates of the Russian regime” who were thought to have participated in Russia’s illegal invasion of Ukraine. 

Based on the notion that Russia unlawfully invaded Ukraine, this belief was formed. The aforementioned allegations were associated with the 2014 Ukrainian conflict, which attracted global attention and led to the imposition of several sanctions on individuals connected to the Russian administration.

Several nations around the world, including the UK, Canada, and Australia, have imposed sanctions on Igor Makarov. This demonstrates the global scope of the accusations leveled against Makarov concerning the events that transpired in Ukraine. 

These sanctions are part of a broader international response to the crisis that aims to hold individuals accountable for their participation in actions deemed disturbing and undesired.

The decision made by Makarov to renounce his Russian citizenship and his involvement in the “golden passport” program shed light on the complicated dynamics that surround wealthy individuals who wish to become citizens of other nations, some of which may be problematic. Furthermore, they underscore the endeavors undertaken by the global community to mitigate the consequences of geopolitical conflicts.

Conclusion

Russian oligarch Igor Makarov recently renounced his Russian citizenship due to his involvement in the infamous “golden passport” fraud in Cyprus and the situation in Ukraine. 

To put it succinctly, the conflict led to this choice. This move fits into a longer-term trend in which more people are severing their ties to Russia. The “golden passport” mechanism has drawn criticism for its ability to avoid the need to exercise due diligence. 

The United Kingdom, Canada, and Australia imposed sanctions on Makarov due to his alleged involvement in Russia’s invasion of Ukraine. Makarov’s action was therefore not unusual. 

These projects are illustrative of the reaction that has been made on a worldwide basis to the crisis. The Makarov case shows the international efforts being made to lessen the effects of geopolitical crises and throws light on the intricate relationships surrounding wealthy individuals seeking citizenship in other nations.