Current Affairs

Issue

US President Joe Biden has announced the intention to form a taskforce to go after Russian Oligarchs.

 

Background

Many western countries are imposing sanctions on Russian companies and individuals for invasion of Ukraine.

 

Details

• Oligarchy is a form of governance in which a country is ruled by a group of few rich and powerful people. The ruler is called Oligarch.

• The term in Russia has all new different meaning. Oligarchs are businesspeople having close ties to the ruling establishment in the country. 

 

Evolution of Oligarchy in Russia

• This class of individuals arose after the collapse of the erstwhile Soviet Union in 1991. They used their connection to the ruling establishment in Russia to gain wealth.

• They were aided by the vast privatization and economic reforms in Russia immediately after the collapse of the USSR.

 

Targeted Oligarchs

• Opposition leader of Russia, Alexei Navalny, has provided a list of 35 individuals having close tie with President Putin.

• The US has used the Countering America's Adversaries Through Sanctions Act (CAATSA) law to impose sanctions on individuals and entities.

 

Impact of move

• US President Biden announced that Washington will collaborate with its European allies to seize yachts, luxury apartments and private jets of Oligarchs obtained through ill wealth.

• Following seizure of several properties, many Oligarchs are moving their yachts to countries such as Montenegro and Maldives.