Mikhail Fridman seeks $21 billion compensation from Luxembourg

Russian businessman Mikhail Fridman believes that Luxembourg's freezing of his assets as part of the implementation of EU sanctions is equivalent to illegal expropriation. He is demanding compensation for his assets from the Luxembourg government.

Russian billionaire Mikhail Fridman, through his representatives, has reached out to the Luxembourg government with a proposal to enter negotiations aimed at an amicable resolution of the dispute over compensation for assets that he claims were "confiscated" by that country, reports the "Vedomosti" daily.

If the Luxembourg government refuses, Fridman is prepared to file a claim with international arbitration.

Two sources who had access to the notice conveyed information on this matter to Vedomosti. Fridman's legal team sent the notice to the Luxembourg authorities back in February, but so far, they have not received a response. The billionaire believes that Luxembourg's freezing of his assets as part of the implementation of EU sanctions is equivalent to illegal expropriation.

Fridman demands that Luxembourg pay compensation of CAD 21 billion (1.4 trillion rubles). This figure is based on his estimates of the total value of frozen assets in that country.

This is an approximate value because Fridman cannot use valuation experts from the European Union due to the sanctions. Additionally, his Luxembourg-based companies are prohibited from providing him with financial information.

In April, the EU Court ruled that Russian oligarchs Peter Aven and Mikhail Fridman were unjustly placed on the sanctions list by the Council following Russia's invasion of Ukraine, and their names should be removed from the list. Both are shareholders of Alfa Group, which owns Alfa Bank, one of the largest banks in Russia.

The Council decided to place both businessmen on the list right after Russia invaded Ukraine, considering them to be linked with Vladimir Putin and circles close to the Russian dictator. According to the Council, they provided material or financial support to Russian decision-makers and supported Kremlin actions directed at Ukraine.

The financial assets of Aven and Fridman were frozen after they were placed on the sanctions list.