German prosecutors will drop probe of Russian magnate Usmanov after he agrees to pay nearly $12M

BERLIN — German prosecutors announced they will drop an investigation into possible violations of sanctions against Russian oligarch Alisher Usmanov, a close ally of President Vladimir Putin, after he agreed to pay 10 million euros to authorities.

The Uzbekistan-born billionaire and metal magnate, who was re-elected as president of the International Fencing Federation last year, faces European Union sanctions imposed after Russia’s full-scale invasion of Ukraine in 2022.

The investigation into Usmanov, which led to police raids on dozens of properties linked to him in Germany three years ago, will be dropped once payment is received, the Munich prosecutor’s office said on Tuesday.

Some funds and assets linked to Usmanov were frozen under EU sanctions. In the statement made by the press office, it was stated that the investigation into money laundering allegations was dropped last year.

Prosecutors said Usmanov was suspected of transferring about 1.5 million euros through companies of foreign origin for the management of two properties in the lakeside town of Rottach-Egern, south of Munich, in the months after the sanctions were imposed.

It was also alleged that he did not report valuable items such as jewelry, paintings and wine to the authorities.

Usmanov’s defense team had disputed allegations about his ties to companies and valuables and the applicability of EU law in the case.

Prosecutors said stopping the investigation upon payment was allowed under German criminal law.

The prosecutor’s office said 10 million euros would be distributed among the state treasury, a Bavarian victim support foundation and the association for prisoners’ assistance and probation services.

This story has been corrected to show that the €10 million payment was not a fine and that the investigation into possible money laundering was stopped last year.

This article has been generated from an automated news agency feed without modifications to the text.