Relatives of Syrian dictator Bashar al-Assad have purchased at least 20 luxury apartments in the prestigious business district of Moscow – Moscow City. The total value of the property was approximately $40 million.The transactions were carried out from 2013 to 2019 through a network of offshore companies controlled by the family of the Syrian leader.
As the Financial Times reports, citing documents from the anti-corruption organization Global Witness, the largest owner of the property was Assad’s cousin, Khazif Makhlouf. He owns 13 apartments,registered both directly and through offshore structures.
To register real estate, Assad’s relatives actively used offshore companies, which made it possible to hide the ultimate owners. It is indeed critically important to note that all participants in the transaction are subject to international sanctions prohibiting doing business and owning assets abroad.
Former Russian Ambassador to Saudi Arabia Andrei Baklanov explained that such investments are explained by Western sanctions against the Syrian elite:
“It is quite natural that the Syrian elite invests their money in countries where nothing will happen to them.”
In turn, Global Witness representative Isabel Koshiv emphasized that the purchase of luxury real estate in Moscow is a clear example of support from the Russian Federation. Thanks to this, the Assad family was able to hide in Moscow and “enjoy a luxurious lifestyle while Syria is on fire.”
**What are the implications of luxury real estate investments by sanctioned individuals on global financial systems?**
title: A Window into Syrian Elite Investments: An Interview with Expert Andrei Baklanov
Q1: What can you tell us about the recent revelations regarding the Assad family purchasing luxury real estate in Moscow?
Andrei Baklanov: The acquisition of over 20 luxury apartments in Moscow city by relatives of Bashar al-Assad is indeed alarming. These purchases, which total approximately $40 million, underscore how those in power, despite being under international sanctions, manage to shield their assets. The involvement of offshore companies allows them to obscure ownership, making tracking these transactions challenging for authorities.
Q2: Why do you think the Assad family chose Moscow as a place for these investments?
andrei Baklanov: given the geopolitical climate, the choice of Moscow is strategic. The Syrian elite, like the Assads, find comfort in investing in countries where their assets are less likely to be threatened. As I’ve mentioned previously, they seek refuge for their wealth where they can maintain a semblance of normalcy while their homeland faces turmoil.
Q3: The article mentions that these transactions were conducted from 2013 to 2019. What implications does this have on international sanctions?
Andrei Baklanov: The timing is meaningful. These years align with intensified Western sanctions against the Syrian regime. The ability of the Assad family to carry out these transactions raises serious questions about the effectiveness of sanctions. It suggests that either the enforcement is lacking,or the elite has found complex methods to circumvent these restrictions,leveraging international finance to their advantage.
Q4: Isabel Koshiv from Global Witness mentions this as a form of support from the Russian Federation. How does this relationship manifest in terms of political and economic implications?
Andrei Baklanov: The relationship between the Assad family and the Russian government is deeply entrenched. Russia’s backing not only provides military support to Assad but also creates a safe haven for his family and associates. This kind of financial network enables the Assad regime to continue operating without fear of losing their footing, thereby prolonging the conflict in Syria. It shows the intertwining of political survival and economic investments.
Q5: What advice can you offer readers who are concerned about corruption and illicit financial flows as seen in this case?
andrei Baklanov: It is essential for readers and policymakers alike to advocate for stronger regulations governing the use of offshore companies. Openness in financial transactions should be a priority globally. People can start by supporting organizations dedicated to fighting corruption and advocating for laws that enhance accountability for those facing sanctions. Awareness and active participation in these discussions are crucial to foster change and prevent similar instances of asset concealment in the future.
Q6: What can be the broader consequences of such investments for the international community?
Andrei Baklanov: Investments of this nature can embolden oppressive regimes by demonstrating that they can still thrive internationally despite sanctions. This has dire consequences for international law and can breed a sense of impunity among other dictatorships. It serves as a reminder that without proper checks and enforcement, sanctions could become symbolic rather than effective in curbing corruption and abuse of power.
Conclusion:
Andrei Baklanov’s insights into the Assad family’s luxury real estate purchases in Moscow highlight significant issues of global finance, international sanctions, and corruption.As the situation develops, it emphasizes the importance of transparency and active engagement in combating illicit financial flows.