This is “an absolutely seismic development on so many different levels,” Timothy Ash, Standard Bank chief economist in London, wrote in a note to Bloomberg News. “It sends a strong message to Russia that the West is willing to go down the financial sanctions route—unless it backtracks over Crimea and over broader policy towards Ukraine.”
Bloomberg reports that Russian officials and businessmen are bracing for sanctions that may target Russian foreign reserves, banking assets and company lending.
“Historically, (Firtash) had close ties to Russia via the energy sector, and perhaps even to (Russian President Vladimir) Putin,” Ash said. “Firtash is probably in the top two of Ukrainian oligarchs in terms of wealth/influence across borders.”
According to Reuters, Firtash’s “close links to Russia and involvement in the gas, chemicals, media and banking sectors gave him substantial influence, notably during the administration of recently ousted, Moscow-backed President Victor Yanukovych.”
Nina Bussek, spokeswoman for the Vienna prosecutors, told Bloomberg the US has filed an extradition request and that city’s criminal court will decide whether Firtash will stay in custody and eventually face extradition proceedings.
The Kyiv Post quotes police spokesman Mario Hejl as saying the chemicals and energy tycoon had been under investigation since 2006, and was arrested at the request of the FBI on suspicion of involvement in the creation of an organized criminal group.
Hejl said the arrest has nothing to do with the current political turmoil in Ukraine.
“As a result of the FBI’s years’ long investigation and a warrant issued by a U.S. district court, Vienna’s district attorney issued a nationwide arrest order against the businessman,” Hejl said.
Hejl, a spokesperson for Austria’s Federal Criminal Police Office, said officers from the Organized Crime Office and EKO Cobra (Austria’s primary counter-terrorism special operations tactical unit) were involved in the operation.
The Post reported that Firtash figured prominently in WikiLeaks, the secret U.S. State Department cables that were leaked in 2010.
In a Dec. 8, 2008, meeting, then-U.S. Ambassador to Ukraine William Taylor allegedly wrote that Firtash said he need permission from alleged Russian crime boss Semyon Mogilevich to do business in Ukraine during the lawless 1990s. Firtash denied the remarks, the Post reports.
Mogilevich remains on the FBI’s 10 most wanted list of fugitives and is believed to be hiding in Moscow.
According to the Post, Dmytro Firtash’s fortune is estimated at US$2.3 billion. His Group DF controls chemical producers Ostchem and Krymsky Tytan, regional energy companies, banks Nadra and Pravex, television station Inter, the Ukrainian News information agency and several minor media outlets. Critics say he has acquired assets in questionable privatization auctions.
