Oligarchs close to Putin are carrying out land redistribution in occupied Crimea

Oligarchs Arkady and Boris Rotenberg, who are close to the Russian President Vladimir Putin, have seized at least ten plots of land in Balaklava Bay in occupied Crimea, according to an investigation by the Russian media outlet Verstka.

With the involvement of some local occupation authorities, law enforcement agencies and courts, the Rotenbergs took over the land and real estate of other Ukrainian and Russian entrepreneurs. They have filed lawsuits against the owners. Court documents state that they took over the land plots in violation of the laws and the Constitution of Ukraine. Crimean occupation authorities started lodging such claims against landowners in the peninsula already in the first years after the annexation, and there were lengthy disputes in the courts.

Balaklava Bay, aerial view, March 2024. Photo: Konstantin Mihalchevskiy / Sputnik / Profimedia

These processes have accelerated after the Rotenbergs began construction of a yacht marina in Balaklava Bay in 2018, and especially after the beginning of a full-scale war in 2022. In the autumn of 2022, the Russian parliament passed a special law allowing for the confiscation of property of persons “with relations with unfriendly countries”. This resulted in the property of Ukrainian businessmen being put up for public auctions, which were won, among others, by the Rotenbergs’ companies.

Land and real estate in Balaklava Bay owned by the Rotenbergs since 2023. Map: Verstka

The construction of the yacht marina in Balaklava Bay began in 2018 on Putin’s instructions. The project is being financed by the Russian state budget as part of the “federal program for the development of Crimea and Sevastopol”. The Rotenbergs’ “Stroygazmontazh” company won the bidding for the project, and their company “Mostotrest”, which constructed the Kerch Bridge, is responsible for the construction.

The construction location is about a kilometre-long narrow bay where the Tavriyska and Nazukin quays are located. By 2030, the Russians plan to create 600 yacht berths, a promenade, and recreational facilities there.

According to Verstka, the Rotenbergs continue to consolidate land in the Balaklava Bay area through auctions. In particular, they have acquired plots that previously “owned” by the Federal Security Service. In addition, the Rothenbergs’ “Port Lamos” company has purchased two more plots that were put up for sale on classifieds websites.

When the construction of the marina is completed, the land and real estate consolidated by the oligarchs will significantly increase in value, Verstka journalists suggested.