German authorities have reached a settlement with Russian billionaire Alisher Usmanov, a prominent ally of President Vladimir Putin, concluding a high-profile investigation into alleged sanctions violations and money laundering. The Munich prosecutor’s office announced Tuesday that the case will be formally discontinued upon receipt of a €10 million (approximately $11.8 million) payment from the sanctioned oligarch.
The investigation, which prompted extensive police raids across dozens of German properties connected to Usmanov three years ago, centered on allegations that the metals magnate circumvented EU sanctions imposed following Russia’s 2022 invasion of Ukraine. Prosecutors alleged that Usmanov orchestrated approximately €1.5 million in transactions through foreign-based companies to maintain two luxury properties in the Bavarian lakeside town of Rottach-Egern, located south of Munich.
Additional accusations included failure to properly declare valuable assets to German authorities, including jewelry, fine art collections, and premium wines. Usmanov’s legal representatives had contested both the factual basis of these allegations and the jurisdictional applicability of EU regulations in this matter.
The resolution follows the framework of German criminal procedure law, which permits termination of investigations through alternative settlements in certain circumstances. This development occurs against the backdrop of continued EU sanctions that have frozen substantial assets and funds connected to the Russian billionaire.
Usmanov, who maintains presidency of the International Fencing Federation despite sanctions, continues to navigate the complex landscape of international restrictions targeting Putin’s inner circle. The case exemplifies the challenges Western nations face in enforcing sanctions against powerful Russian figures with global business interests.