Russian real estate seizures in US virtually nonexistent

When Russia invaded Ukraine last year, one of the first responses from the United States government was to freeze assets of the wealthiest Russians. Some politicians called for the further step of seizure. But so far, forfeiture has been limited.

The Department of Justice is still looking to seize assets from Russian magnates connected to Vladimir Putin’s regime, and by proxy, the invasion of Ukraine, The Messenger reported. Results have been a mixed bag, however, and won’t make even a scratch in the effort to rebuild the besieged nation.

Outside of real estate, other assets in the DOJ’s crosshairs include yachts and private jets. The value of the two-dozen properties the department is looking into are estimated to be worth more than a combined $1 billion.

Most of the seizures or intended seizures are centered on those luxury vehicles. Only two Russian figures have been subject to a real estate asset seizure as of June 13.

Rusal founder Oleg Deripaska has been barred from entering the United States and has had a pair of properties targeted by federal officials, including a mansion in Washington, D.C.’s Georgetown neighborhood and a townhouse in Manhattan’s Greenwich Village.

Medallion Inc. owner Viktor Vekselberg allegedly owns a $13 million estate at 19 Duck Pond Lane in Southampton through a shell company, which has drawn DOJ interest. The nine-bedroom home includes a wine room and a tennis court. He allegedly bought the property in 2008.

Vekselberg also has a $30 million penthouse on Miami’s Fisher Island and a couple of apartments on Park Avenue in Manhattan’s Upper East Side. Altogether, his six properties under the microscope are worth $75 million.

Sanctions against Vekselberg predate the war, but since they were imposed in 2018, he was still able to snake $4 million into the United States to maintain his properties, prosecutors said. Three years ago, he tried to sell the Park Avenue apartments and Southampton home for $14.6 million each before the feds closed in.

A lawyer for Medallion has disputed that it is controlled by Vekselberg, despite being identified as the owner multiple times, according to prosecutors.

Other Russians targeted by the Justice Department include Roman Abramovich, Suleiman Kermov and Andrei Skoch.

— Holden Walter-Warner

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