A sanctioned Russian banker, Sergey Khotimskiy, co-owner of Sovcombank, allegedly invested millions of dollars in U.S. real estate, potentially evading sanctions. An investigation reveals a complex web of property purchases in Atlanta and South Carolina, raising questions about transparency and financial oversight.
Atlanta's Anonymous Landlord
Khotimskiy's foray into Atlanta real estate began in 2015, with investments totaling over $37 million across various commercial properties. These included a well-known pub in Virginia-Highland, a nightclub space in Buckhead, a church sanctuary, a health food store location, and a shopping center in Alpharetta. Interestingly, several sellers of these properties claimed they never met Khotimskiy directly, adding to the mystery surrounding his investments.
Palmetto Bluff Paradise: A Sanctioned Sanctuary?
The investigation further uncovered that Khotimskiy and other Sovcombank executives owned properties worth over $22 million in Palmetto Bluff, a luxury resort in South Carolina. Following Russia's invasion of Ukraine, the U.S. Treasury Department froze four of these properties. However, just days before Khotimskiy was sanctioned, he transferred a $6 million home to his ex-wife, Elena Baskina. He also transferred $37 million in Atlanta commercial real estate to her. This transfer effectively shielded these assets from sanctions.
Questions of Oversight and Evasion
The timing of the property transfers raises serious concerns about potential sanctions evasion. The U.S. Treasury Department has declined to comment specifically on these findings, but stated that it takes allegations of sanctions violations extremely seriously. It remains unclear whether the Treasury Department was aware of these real estate transactions prior to Khotimskiy being added to the sanctions list.
The Implications
- The case highlights the challenges in tracking and enforcing sanctions against individuals with complex financial holdings.
- It raises questions about the due diligence processes of real estate transactions involving foreign nationals.
- The investigation underscores the importance of international cooperation in combating financial crime and sanctions evasion.
This investigation, a collaboration between The Post and Courier, The Atlanta Journal-Constitution, and iStories, sheds light on the hidden financial activities of sanctioned individuals and the potential loopholes in the enforcement of international sanctions. The full implications of these findings are yet to be seen, but they undoubtedly add fuel to the ongoing debate about financial transparency and accountability.