November 27, 2018

Yalta Getaways: Luxury and Sanctions in Crimea

The US Department of the Treasury’s designation of the Mriya Resort & Spa on November 8, 2018 for operating in Crimea highlights the sanctions risk of luxury hotels in the region. Mriya Resort & Spa is ultimately owned by Sberbank, which is subject to sectoral sanctions.

Other Russian companies subject to sectoral sanctions own Crimea-based luxury resorts. For example, energy giant Gazprom wholly owns ETTs v Parkovom OOO, which operates under the brand name Crimea Breeze Residence, through two intermediate holding vehicles. The resort advertises Gazprom as one of its “partners.”

Kharon research

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