What is Friedman accused of in Ukraine?
The Prosecutor General’s Office and the Security Service of Ukraine accuse Russian businessman Mikhail Fridman of financing a special military operation. The authorities allege that Fridman was involved in shaping both domestic and foreign policy for the Russian leadership and in financing the Russian military industrial complex. From 2014 to 2022, investigators say he directed leaders of his subsidiaries to fund actions aimed at altering Ukraine’s borders.
According to the SBU, since the start of the military operation Fridman allegedly invested about 2 billion rubles into Russia’s defense industry, including the Tula Cartridge Plant and the Ural Optical-Mechanical Plant named after Yalamov. Ukrainian officials say his resources were used to distribute Russian Army branded products from the front line and to participate with the Russian Ministry of Defense in opening Voentorg-Pyaterochka stores. Profits from these ventures were reportedly directed to support the military campaign and aid distribution.
Prosecutors claim Fridman’s companies provided military equipment, life and health insurance for Russian troops involved in the operation and helped establish mobile communications in areas under Russian control. He is currently informed of possible charges related to financing actions that aimed to seize power in Ukraine or redraw its borders and faces a potential prison sentence of up to eight years along with asset confiscation. Fridman was born in Lviv and now resides in England.
First lawsuit against Friedman
After Russia’s special operation began, Fridman expressed a personal stance emphasizing a deep affection for both Ukrainians and Russians, describing the conflict as a tragedy for both peoples. In early 2022, he was placed on sanctions lists by the European Union, Canada and the United Kingdom, which led him to relinquish roles on corporate boards. At Alfa Bank he previously controlled about one third of the shares.
British media later reported a possible move to sell his stake in Alfa Bank along with partner Pyotr Aven, who held about 12 percent of Alfa Bank shares, to Andrei Kosogov, one of Alfa Group’s founders. Ukrainian authorities announced the arrest of Fridman’s assets valued over several hundred million dollars. There were discussions about citizenship changes to bypass sanctions, though Alfa Group denied these plans. Reports at the end of 2022 suggested talks about transferring Alfa Bank Ukraine shares to state control for free.
In mid-2023 the Ukrainian government approved the nationalization of Alfa Bank Ukraine, later known as Sense Bank. An August 2023 criminal case opened in Ukraine over the withdrawal of bank assets in what authorities described as royalty-related transactions.
Sanctions and counterpoints
Recently, the entrepreneur faced U.S. sanctions, while Alfa Bank asserted that the restrictions would not disrupt the organization’s operations. Fridman publicly criticized sanctions, arguing that the decision makers do not understand Russia’s functioning. Some reports indicate the actor faced financial strains due to the restrictions, with media noting personal expenses and basic costs during the restricted period.
Fridman has challenged the sanctions, filing a complaint in the European Court of Justice in Luxembourg. A well-known business outlet cited his legal team denying the accusations of collaboration with the Russian authorities or direct benefit from Russia’s actions in Ukraine.