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Konov joins a club of other top Russian managers who have been sanctioned and have been forced to step down. Alexander Shulgin, former CEO of Russian e-commerce major Ozon (often described as Russia’s answer to Amazon), was also sanctioned, and had to step down in April. Oleg Tinkov, owner of the world’s biggest digital bank Tinkoff, has also been sanctioned by the UK in spite of his openly anti-war stance.
The stated reason for personal sanctions against Konov is that Sibur is “closely connected with the Russian government”, for which it allegedly serves as a revenue stream. But much of Sibur’s tax revenue goes not to the federal budget, but rather to the regional and local authorities in the places where it operates, in accordance with Russian law.
Although Sibur itself was not sanctioned, Konov decided to step down and pass management duties on to his team after personal sanctions were introduced against him. In the current circumstances, the company is unlikely to do an IPO in the foreseeable future. Sibur keeps exporting its products where possible, and is looking for ways to complete construction of its $10bn Amur facility.
When asked by Vedomosti about his reaction to the possibility of further sanctions against Russian businesses in retaliation for Putin’s actions in Ukraine, Konov remained phlegmatic. “We are focused on what we can influence – improving efficiency, marketing, investments, etc, and we perceive what is beyond our control as just another external challenge,” he said.
2.5 EU passes sixth package of sanctions
The European Union passed a sixth sanctions package in the first week of June, including a ban on all sea shipments of Russian oil. The EU announced the package several weeks ago, but unanimous agreement was delayed by Hungarian Prime Minister Viktor Orban.
Orban opposed a complete oil embargo due to Hungary’s reliance on Russian oil; Hungary receives 65% of its oil from Russia via the Druzhba pipeline. As a result, the final package only imposed sanctions on crude oil shipped by tanker vessels and not on oil delivered via pipeline.
Despite the compromise, this measure will still impact the Russian economy. Oil transported by sea accounts for 75% of Russian oil exports to Europe, and the EU imports 26% of its oil from Russia.
European Commission President Ursula von der Leyen stated that Europe plans to “cut around 90% of oil imports from Russia to the EU by the end of the year." As a result, Bloomberg estimates that Russia will lose $22bn in oil revenue per year. “Maximum pressure on Russia to end the war,” President of the European Council Charles Michel tweeted.
The oil embargo is only one aspect of the sanctions package. It also includes expanding the personal sanctions list, banning three Russian state media
20 RUSSIA Country Report October 2020 www.intellinews.com