Why Are Russian Oligarchs Having Their Assets Seized?

Recently, news about the seizure of assets belonging to Russian oligarchs has gained momentum. This move is primarily due to the ongoing conflict, which has drawn significant international attention. Unlike the false narratives propagated by Russian media, the reality is that these oligarchs do not deserve their current situation.

The seizure of assets serves as a means to sever a vital source of funding for a regime that has raised global alarm with its aggression. While an all-out war might seem a practical approach, it carries immense risks that could exacerbate the situation rather than resolve it. Instead, the international community seeks a diplomatic solution to de-escalate the conflict and find a neutral ground.

Understanding the Context

From the outset of the Ukrainian war, I have been closely following the events, taking into account Russia's historical security concerns. These concerns, rooted in the Cold War era, were valid and deserving of attention. The reluctance of the current establishment in Washington DC, often preoccupied with social media and image-building, has limited the effectiveness of diplomatic efforts. Diplomacy, in this context, should encompass a deep understanding of historical agreements and the concerns of both parties.

The Oligarchs’ Role

It is important to acknowledge that the Russian oligarchs themselves bear a significant portion of the blame for the current situation. When natural resources are exported to enrich individuals and benefit foreign economies while neglecting domestic issues, such actions align one with a side in conflict, often against their nation. Their wealth accumulation in Western countries, tantamount to stashing assets in the enemy's backyard, indicates a lack of loyalty and trust in their own country.

Lessons from Asset Seizure

The aggressive and merciless actions taken by European countries, which have frozen Russian-owned properties, are a stark reminder of the consequences of such decisions. This instance presents a valuable lesson: investing in your country is crucial, and understanding who your allies and potential foes are is essential.

Investment in Aviation: A Case Study

Furthermore, the over-reliance on foreign assets, such as aerospace equipment, raises questions about the wisdom and long-term strategic interests of a sovereign nation. According to Ch-aviation, Russia's fleet of approximately 980 passenger planes includes 777 planes that are leased, with a significant portion (515) from foreign aviation firms. AerCap, a multinational aircraft leasing company based in Dublin, leases 149 planes to Russian airlines, while SMBC leases another 34 planes.

AerCap, in particular, stands out, with each plane in Russia accounting for billions of dollars in value, amounting to around 5% of the company's total fleet, as reported by AirFinance Journal. This dependency on foreign leasing companies for a substantial portion of their fleet is concerning and could leave Russia vulnerable in the event of geopolitical tensions.

Conclusion

In conclusion, the seizure of assets for Russian oligarchs is a direct consequence of their role in funding and supporting a regime that has brought international condemnation. The lessons from the ongoing conflict and international responses should serve as a guide for future investment and national security policies. Diplomacy, rooted in historical context and mutual respect, remains the most viable pathway to resolve the current conflict and prevent further tragedy.