Liechtenstein's Trusts in Turmoil: The Russian Connection
Tiny yet affluent Liechtenstein is dealing with the fallout from deserted Russian-linked trusts, impacted by Western sanctions on Moscow. The country, famed for low-tax trusts, faces resignations from trust directors fearing U.S. sanctions. Government efforts to manage this crisis could reshape Liechtenstein’s financial landscape.
Liechtenstein is grappling with a significant challenge, as hundreds of Russian-linked trusts have been abandoned by their managers due to pressure from the United States, according to sources close to the proceedings.
This small yet wealthy nation, often regarded as a financial haven, now finds itself at the heart of Western efforts to sanction Russia, following its invasion of Ukraine. The situation is exacerbated by U.S. sanctions on certain individuals and structures tied to powerful Russian figures.
The departures of directors from the trusts underscore a broader issue of Russian financial entanglement within Europe, thrusting Liechtenstein into the limelight as it seeks to navigate this crisis. The government's proactive steps to resolve the deadlock may have far-reaching implications for its financial sector.
(With inputs from agencies.)
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