Several western companies still operating in Russia are worried that paying rent on their Moscow offices will breach sanctions, because of links to Roman Abramovich.
Banks Credit Suisse and Morgan Stanley, tobacco groups Imperial Brands and British American Tobacco, and law firms Baker McKenzie and Dentons are some of the tenants at Moscow properties that form part of the portfolio of Abramovich’s Millhouse investment group.
The uncertainty over rent payments highlights the practical challenges faced by international companies continuing to operate in Russia or still trying to extricate themselves from the country following its invasion of Ukraine.
Abramovich, owner of Chelsea Football Club, has been placed on UK and EU sanctions lists, barring companies from these jurisdictions making payments to him or his businesses.
But refusing to pay rent to comply with sanctions could result in companies being evicted from their premises. “Contractual obligations don’t necessarily evaporate because of sanctions,” said Jason Hungerford, a sanctions lawyer at Mayer Brown.
