The US sanctions on Russia are having serious reverberations in the British Virgin Islands. Earlier this week a “Bloomberg Business” news report disclosed that Russia will retaliate after the United States imposes more sanctions by targeting Russian companies, including subsidiaries of state oil company OAO Rosneft and those controlled by Putin’s close ally Gennady Timchenko.
Last June, “theconversation.com” informed that “British tax havens such as the British Virgin Islands, Jersey and Guernsey are used by Russian business owners (some of whom are on the sanctions list) to bypass the restrictions. The workings of these complex financial networks produce interesting outcomes. For instance, Guernsey was the largest foreign investor in Crimea in 2014, accounting for 80% of capital inflows into the region.”
Bloomberg noted that “the U.S. in its latest measure targeted 29 entities in Crimea, Cyprus, Finland, Romania, Russia, Switzerland, Ukraine and the British Virgin Islands. They include companies controlled by billionaire Putin ally Gennady Timchenko, Rosneft, units of sanctioned Russian defense corporations and corporations active in Crimea.”
“Kyiv Post” reports that Russia plans retaliatory measures as the U.S. widens sanctions. Russia’s relations with the U.S. and the European Union plummeted to their lowest since the Cold War following Putin’s annexation of Crimea after Kremlin-backed Ukrainian President Viktor Yanukovych was ousted from office last year.
Russia didn’t retaliate in July, the last time the U.S. tightened sanctions, by adding the son of another billionaire ally of Putin and a sovereign wealth fund in what it said was a fight against efforts to circumvent the restrictions.
On 28 June, “The Japan Times” reported that Russia received only $21 billion in net foreign direct investment last year, compared with $69.2 billion in 2013. Most of the money came from offshore havens such as Cyprus, the Bahamas and the British Virgin Islands.