Allies mull sanctions buyout for oligarchs

BERLIN — Western allies are considering whether to allow Russian oligarchs to buy their way out of sanctions and using the money to rebuild Ukraine, according to government officials familiar with the matter.

Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland proposed the idea last week at a G-7 finance ministers’ meeting in Germany.

Freeland raised the issue after oligarchs spoke to her about it, one official said. The Canadian minister knows some Russian oligarchs from her time as a journalist in Moscow.

The official said the Ukrainians were aware of the discussions. The official said it’s also in the West’s interests to have prominent oligarchs dissociate themselves with Russian President Vladimir Putin while at the same time providing funding for Ukraine.

“We would not be talking about this if there wasn’t some comfort on the part of the Ukrainians, the official said. “We need to know that it works for them, too.”

The officials spoke on condition of anonymity as they were not authorized to speak publicly about internal G-7 discussions.

The proposal was raised in the context of providing additional money to Ukraine and how the frozen funds and assets of oligarchs could be a source of funds.

At this point, it is just an idea, the official said, but Western allies have expressed interest. European Union officials have talked about the need to look at different and new avenues of confiscating assets and proving money to Ukraine.

Western countries have imposed a raft of sanctions on oligarchs in response to Russia’s invasion of Ukraine. Many of their multibillion-dollar fortunes are intertwined with investments in the West.

Former Chelsea owner Roman Abramovich, who was sanctioned over his links to Putin, has said that net proceeds from the sale of the British Premier League soccer team would be donated to victims of the war in Ukraine.