The Munich II Public Prosecutor’s Office has concluded its investigation into Russian oligarch Alisher Usmanov following a €10 million settlement. This decision, announced on October 3, 2023, resolves allegations of money laundering and breaches of sanctions, which had placed significant legal pressure on Usmanov since he was sanctioned by the European Union in February 2022 due to the ongoing conflict in Ukraine.
Under the terms of the settlement, the funds will be allocated as follows: €8.5 million will go to the state treasury, while €1.5 million will be directed towards German charities. The investigation had centered on claims that Usmanov failed to declare his assets as required by the Foreign Trade and Payments Act and that he attempted to evade sanctions by transferring assets to foreign entities. Two properties linked to Usmanov were also subject to scrutiny, specifically regarding payments of €1.5 million for security services.
Usmanov’s legal representatives firmly denied these allegations, maintaining that he has no connection to the companies involved and does not own the properties in question. They characterized the prosecution as unconstitutional, emphasizing that the obligation to self-report should not infringe on the right against self-incrimination. As stated by his legal team, “Mr. Usmanov remains presumed innocent, and the payment is not considered a fine or punishment.”
The investigation had its origins in a series of searches conducted by German authorities in 2022, which were later deemed unlawful by the Frankfurt Regional Court. This ruling followed Usmanov’s designation as a sanctioned individual in both the European Union and the United States, which imposed severe restrictions on his travel and business activities, including asset freezes. In April 2023, further sanctions targeted affiliates of Usmanov, intensifying the scrutiny around his financial dealings.
The framework for concluding criminal investigations in Germany allows for settlements under specific conditions, as outlined in section 153a of the German Code of Criminal Procedure. This provision enables the public prosecution office to terminate investigations with the accused’s consent, contingent on certain payments to non-profit organizations or the treasury. Once such a settlement is reached, the prosecution cannot reopen investigations based on the same circumstances.
In November 2024, the Frankfurt Public Prosecutor’s Office had also closed another money laundering case involving Usmanov after he made a payout of €4 million. This pattern reflects both the complexities of legal proceedings involving high-profile individuals and the negotiation dynamics that can influence the outcomes of such cases.
The conclusion of this investigation allows Usmanov to move forward without the shadow of legal proceedings looming over him, although he remains under the restrictions imposed by his sanctioned status. As developments continue in the geopolitical landscape, the implications of such settlements will likely be scrutinized by legal experts and political analysts alike.
