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The Russian billionaire’s wife is challenging EU sanctions

Russian billionaire Andrei Melnichenko attends a session during the Russian Business Week, organized by the Russian Union of Industrialists and Entrepreneurs (RSPP), in Moscow, Russia, February 9, 2018. REUTERS / Sergei Karpukhin / File photo

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June 4 (Reuters) – The European Union’s decision to extend sanctions against Russian billionaire Andrei Melnichenko to his wife is “irrational” because she has never had Russian citizenship or resided in Russia, a spokesman for the couple said on Saturday.

Alexandra Melnichenko, who was born in Belgrade and has Serbian and Croatian citizenship, will “vigorously challenge the ill-fated decision against her,” the spokeswoman said in a statement to Reuters, declining to give a name.

Reuters reported last month that Melnichenko ceded ownership of coal company SUEK AO and fertilizer company EuroChem Group AG to his wife on March 8th, a day before the EU put him on the sanctions list. Read more

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The EU sanctioned Melnichenko’s wife on Friday as part of the sixth round of sanctions against Russia for waging war against Ukraine. The EU said Alexandra Melnichenko “makes good use of her husband’s wealth and benefits”. Read more

This step could disrupt the activities of SUEK and EuroChem, as sanctions include the freezing of its assets.

A EuroChem spokesman said that while the company is committed to strictly complying with EU sanctions legislation, it will also seek to discuss with EU authorities how it can continue to supply fertilizers to farmers.

“EuroChem will engage with the European Commission and make proposals to find solutions that will support its work and provide nutrients to its customers around the world at the most critical time of the food crisis,” the spokesman said in a statement.

EuroChem produces about 5% of the world’s fertilizer production.

A SUEK spokesman did not respond to messages requesting comment.

After sanctioning Melnichenko in March, the EU accused him of being close to Russian President Vladimir Putin.

A spokesman for the Melnichenko family said in a statement Saturday that the businessman had no political ties to Russia, calling the decision on his sanctions “reckless” and “arbitrary”.

Melnichenko challenged the sanctions, appealing to the EU’s General Court, which hears appeals against European institutions.

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Report by David Gauthier-Wheelers in Istanbul Edited by Helen Popper

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