Since the start of the Russian invasion of Ukraine on Feb. 24, all eyes have turned to President Vladimir Putin, his immediate entourage, the Russian individuals and entities who have benefited from his largesse and protection.
Indeed, the United States, the European Union, the United Kingdom and their allies have deployed a strategy of financial strangulation to force Moscow to backtrack.
This tactic boils down to financial sanctions.
Russian banks have been excluded from the global financial system SWIFT, while the assets of Russian billionaires have been seized throughout the world.
By targeting the rich, Western countries hope to force them to turn against Putin.
If we are not yet witnessing a cascade of defections, we can nevertheless say that the financial offensive has shaken the rich Russians with a link to Putin. This is the case of Yuri Milner, considered one of the richest Russian financiers in Silicon Valley. He was notably an early investor in Airbnb (ABNB), Twitter (TWTR), Facebook (FB), Alibaba (BABA), Flexport and other startups.
Milner, whose personal fortune is valued by Bloomberg Billionaires Index at $3.9 billion, launched his venture capital career with the backing of Alisher Usmanov, an Uzbek-born metals magnate close to Russia’s president, Vladimir Putin. Usmanov is on sanction lists.
Billionaire's Affiliates Make Big Donations
Breakthrough Prize Foundation, a nonprofit founded by Milner, and DST Global, Milner's venture capital firm, issued several statements condemning Russia's invasion of Ukraine. At no time is there a statement attributed to Milner.
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DST Global even donated $3.5 million to stand with Ukraine.
"DST Global condemns Russia’s war against Ukraine, its sovereign neighbor. Like so many people and institutions around the world, DST Global is deeply concerned about the terrible humanitarian disaster and the desperate plight of fleeing refugees," the venture capital firm said in a statement.
The funds will go to Airbnb and Flexport to support relief effort for Ukrainian refugees. Airbnb.org is providing free, short-term housing to refugees fleeing Ukraine, while Flexport.org is organizing shipments of relief supplies to refugee sites in Poland, Romania, Hungary, Slovakia and Moldova.
In addition, Yuri Milner and his wife Julia recently committed another $2 million to the same initiative, added DST Global.
"In the light of the devastating war and tragic humanitarian catastrophe in Ukraine, the Breakthrough Prize Foundation today pledges to make an emergency donation of $3 million to help the victims of the conflict," said Pete Worden, chairman of the foundation in a statement on March 3. "The funds will go to an international relief organization."
Since then, the foundation has made another statement on the "terrible war in Ukraine" and promised an additional $3 million for the Ukrainian scientists forced to flee their country.
"The Breakthrough Prize Foundation strongly condemns Russia’s invasion of Ukraine and its unprovoked and brutal assaults against the civilian population," Worden said on March 14.
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Nothing on Putin
Foundation laureates have also signed an open letter in which they express their "solidarity with the people of Ukraine in support of their unqualified right to peace, security, and self-determination."
If his firm and his nonprofit made anti-Russian statements, Milner has not made any public comment on this war. His silence and his prudence bear witness to the balancing act in which the rich Russians play.
On the one hand they want to show their credentials to Western countries and on the other they do not want to insult Russia in case President Putin remains the strong man of Moscow.
This difficult position can be seen in an interview given to Bloomberg. On the one hand Milner seems to distance himself from the Putin regime but on the other he tries to say as little as possible about Russia's actions.
“I fully stand behind statements made by DST Global and the Breakthrough Prize Foundation,” he told Bloomberg.
Milner and his firm DST Global run the risk of alienating people in the Silicon Valley where famous CEOs like Elon Musk and Jack Dorsey have chosen sides in this Russian war.
Milner has Russian citizenship and Israeli citizenship.
