Paris Investigating LVMH Chief Arnault’s Russian Oligarch Dealings, 2023.
The Paris public prosecutor’s office has initiated an investigation into Bernard Arnault, the CEO of LVMH, regarding financial transactions involving Russian oligarch Nikolai Sarkisov.
According to a report in the French newspaper Le Monde, Sarkisov purchased real estate at an Alpine resort with the assistance of a loan from Arnault.
Confirming the ongoing investigation, the Paris prosecutor’s office disclosed that a preliminary investigation has been underway since 2022. Additionally, a report from France’s Tracfin financial intelligence unit, which raised concerns about operations involving Arnault and Sarkisov potentially constituting acts of money laundering, has been attached to the procedure.
It’s important to note that a preliminary investigation does not necessarily imply any wrongdoing, and a source close to Arnault mentioned to Le Monde that the transaction was conducted in accordance with French law.
Bernard Arnault, who serves as the founder, CEO, and chairman of the world’s largest luxury goods company, has consistently ranked among the world’s wealthiest individuals.
However, in February, he faced a setback when he lost a high court case against French tax investigators regarding the legality of a 2019 raid on LVMH’s headquarters. This raid was linked to a tax fraud investigation connected to activities in Belgium.
Nikolai Sarkisov holds a prominent position at RESO-Garantia, a Russian insurance company owned by his brother Sergey. In response to the investigation, RESO-Garantia Deputy CEO Igor Ivanov clarified that neither the company nor Nikolai Sarkisov himself were directly involved in the transaction, and Sarkisov had never met Arnault.
Ivanov explained that the transaction in question was managed by a small investment unit specializing in European real estate. The unit’s objective was to acquire flats in an old building in Courchevel from various private owners with the intention of later selling them to a developer once the entire building had been purchased.
Importantly, all transactions were conducted through French companies, involving French notaries and lawyers on all sides, making it a standard real estate deal.
Furthermore, Ivanov stated that neither the company nor Sarkisov had received any request for documents from French authorities, indicating their willingness to cooperate with any inquiries that may arise during the investigation.
In summary, the Paris public prosecutor’s office is conducting a preliminary investigation into Bernard Arnault’s financial transactions with Russian oligarch Nikolai Sarkisov.
The investigation was prompted by a report from France’s Tracfin financial intelligence unit, which raised concerns about potential money laundering. However, it’s important to note that this preliminary investigation does not imply wrongdoing.
Arnault, a prominent figure in the luxury goods industry, had previously faced legal challenges related to a tax fraud probe linked to activities in Belgium.
Sarkisov’s company, RESO-Garantia, clarified that they were not directly involved in the transaction and that it was a standard real estate deal carried out in compliance with French law. Neither the company nor Sarkisov had received any document requests from French authorities at the time of this report.
