Sanctions Against Oligarchs

Startling Sanctions On Vadym Novinsky 2022

Ukraine Sanction Measures Against Vadim Novinsky

Sanctions On Vadym Novinsky [ Vadim Novinsky ] , a Ukrainian businessman, are imposed for alleged support of Russia’s actions in Crimea.

Sanctions imposed by Ukraine target Novinsky’s wealth, including freezing assets and seizing corporate rights of associated companies.

  • Vadim Novinsky has been accused of having connections with Russia and faces restrictions due to his alleged involvement in actions against Ukraine’s interests.

Despite the sanctions, Vadym Novinsky has publicly condemned the Russian assault on Ukraine.

  • His company, Smart Holdings Group, has donated over $20 million to support Ukraine.
  • Novinsky remains a controversial figure, with some Ukrainians believing that he is still loyal to Russia.

Sanctions On Vadym Novinsky By Ukraine

The National Security and Defense Council introduced personal sanctions against ex-Deputy of Ukraine Vadym Novinsky, Vicar of the Holy Dormition Kyiv-Pechersk Lavra of the UOC Petro Lebed and a number of other priests of the Ukrainian Orthodox Church of the Moscow Patriarchate.

This is stated in the decree of the President of Ukraine Volodymyr Zelenskyi.

Smart Holding Group, one of the largest investment companies in Ukraine, specializes in metals, mining, oil, gas, agriculture, retail, shipbuilding, and real estate. In addition to its capital, Smart Holding also has a 24% stake in Rinat Akhmetov’s Metinvest, a large mining and iron ore producer, which owns Azovstal Iron and Steel Works in Mariupol. Smart Holding Group was founded in 2006 by Vadim Novinsky, a former lawmaker and oligarch with a present net worth of $1.4 billion, according to Forbes. As Novinsky is now a full-time priest in the Moscow-linked Ukrainian Orthodox Church and has his wife and children residing in St. Petersburg, Smart Holding Group has been sanctioned for its alleged aid to Russia.

Vadim Novinsky in his church in Zurich
Vadim Novinsky in his church in Zurich

The details emerging from the history of Smart Holding Group make clear that the accusations leveled against it are allegedly fabricated. The company’s founder, Vadim Novinsky, has publicly condemned the Russian assault on Ukraine. Smart Holdings Group has also donated over $20 million to war-related humanitarian causes. Even more telling is that Novinsky has not been associated with the company since 2013. There are documents in the Ukraine corporate registry stating that he is neither an owner nor director of the company. Nor does he receive a salary at Smart Holding Group. However, such documents have recently been forged to highlight the company’s ties to the Russian Federation.

Vadym Novinsky Transferred Smart Holding Assets to the Trust

On January 16, 2023 , Vadym Novinskyi decided to transfer his companyʼs assets to a trust. It is the Smart Holding investment and industrial group.

This was reported by the companyʼs press service.

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At the beginning of December 2022, the National Security and Defense Council imposed sanctions against Novinsky.

The respective Smart Trust and Step Trust agreements were concluded in November 2022. They have already been registered by the Cyprus Securities and Exchange Commission. The proxies were highly qualified fiduciary administrators appointed in accordance with the licensing conditions of Cyprus legislation.

Therefore, trustees (trusts) currently entirely own, control and manage the assets of the group.

Now Vadym Novinsky has no beneficial participation in the group and does not control the activities of the group and its processes.

They noted that Novinsky, who has not been involved in the management of the company since 2013, decided to “concentrate his activity on private interests.”

Restructuring of Smart Holding – Change of Owner

Kyiv, January 16, 2023 – Smart Holding, a large Ukrainian investment and industrial group and international investor, today announces the completion of another round of ongoing restructuring.

As part of the restructuring, the founder of Smart Holding, Vadym Novinsky, decided to transfer assets to a trust. The respective Smart Trust and Step Trust agreements were entered into in November 2022 and registered with the Cyprus Securities and Exchange Commission. Trustees are highly qualified fiduciary administrators appointed in accordance with the licensing conditions of Cyprus law. Accordingly, the trustees (trusts) currently fully own, control and manage the assets of the Group.

In accordance with the above, as of the current date, Vadym Novinsky does not have a beneficial interest in the Group and does not exercise any control over the Group’s activities or processes. Vadym Novinsky, who has not been involved in the management of Smart Holding since 2013, decided to concentrate his activity on private interests.

The Smart Holding Group continues to operate as usual, managed by a professional management team that conducts business in the context of the economic and civil crisis caused by the war with Russia. The trustees continue the process of reorganization of the Smart group of companies.

Yulia Kiryanova, CEO of Smart Holding, noted:

“Smart Holding’s mission is to support the Ukrainian economy so that it can withstand the destruction caused by the war. The group will take an active part in the post-war reconstruction of the country. We also have ambitious investment targets as part of our international development strategy. We believe that with the talent and experience we have accumulated in the management team, the company will rebuild its assets and become stronger.”

Representatives of the Trust, as a beneficial owner, together with the management of Smart Holding, are currently finalizing the development of a new corporate governance structure and the management structure of Smart Holding in accordance with the best international practices, and are also in the process of selecting new members of the Board of Directors.

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