A U.S. trust linked to sanctioned Russian senator and billionaire Suleiman Kerimov held a 1% stake in Elon Musk’s SpaceX before authorities blocked the trust, Bloomberg reported Wednesday, citing anonymous sources familiar with the matter.
Delaware-based Heritage Trust reportedly acquired the SpaceX stake in 2017, a year before the Trump administration’s Treasury Department sanctioned Kerimov along with dozens of other Kremlin-linked oligarchs.
Heritage Trust later “disposed of” its SpaceX holding before the U.S. Treasury blocked the trust in June 2022. The Biden administration argued that Kerimov had retained an obscured interest in Heritage Trust and continued to invest in unidentified “large” public and private U.S. companies.
Defense contractors with security clearance, such as SpaceX, are required to report any foreign ownership, control or influence of at least 5%.
It was not immediately clear whether SpaceX was aware that Heritage Trust or any associated entities held the stake.
Bloomberg noted that the case underscores “the hurdles that tangled financial networks present to U.S. attempts to uphold sanctions and the challenges closely held companies such as SpaceX… must confront in order to determine the identity of investors.”
According to the publication, Heritage Trust’s administrative trustee, Citigroup, inquired with the Treasury Department about the trust after the 2018 sanctions against Kerimov and other oligarchs. Citigroup ultimately determined that the trust was not subject to blocking.
The Justice Department, FBI and IRS are now reportedly investigating Citigroup over its handling of Heritage Trust.
Kerimov is among Russia’s wealthiest individuals, with a net worth of $9.84 billion and a seat in the country’s upper-house Federation Council. His trust’s 1% stake in SpaceX would be valued at $3.5 billion today.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
