Russian oligarch sues US over sanctions

WASHINGTON: Russian oligarch Oleg Deripaska filed suit against the US Treasury on Friday, accusing it of illegally targeting him for sanctions and victimising him as part of the Russia meddling investigation.

The suit, which named the US Treasury, Treasury Secretary Steven Mnuchin, and Andrea Gacki, the head of the Treasury’s sanctions unit, said Deripaska had seen his net worth drop by $7.5 billion after sanctions were imposed on him and six other Russian oligarchs on April 6, 2018.

Shares of his Rusal metals group plunged and, to keep Rusal, EN+, and other companies in business, Deripaska was forced to transfer his shares to others.

The Russian billionaire was included in the 2018 sanctions action because he was seen as a close backer of Russian President Vladimir Putin and was also formerly involved in business with Paul Manafort, President Donald Trump’s ex campaign chairman who has been sentenced to seven and a half years in prison for financial and other crimes.

The sanctions can effectively lock those targeted out of the global financial system.

Treasury applied the penalties to punish Putin’s inner circle for Moscow’s alleged interference in the politics of Western democracies.

But Deripaska said he was “the latest victim of this country’s (the US) political infighting and ongoing reaction to Russia’s purported interference in the 2016 presidential elections.” The sanctions were implemented illegally and based only on “false rumour and innuendo and... decades-old defamatory attacks originated by his business competitors,” he said in a court filing.

“The effect of these unlawful actions has been the wholesale devastation of Deripaska’s wealth, reputation and economic livelihood.” He asked a federal judge to order the Treasury to remove the sanctions on him.

The lawsuit objects to the US allegation that Deripaska is close to Putin and questions the use of the sweeping term “oligarch” for Russian tycoons targeted by Washington.