Summary of “Sanctioned Kleptocracy: How Putin’s Kremligarchs Have Survived the War—and Even Prospered”
Ilya Zaslavskiy’s analysis explores the evolution and persistence of Russia’s kleptocratic regime under Vladimir Putin, particularly in light of the full-scale invasion of Ukraine in February 2022. The report contends that despite unprecedented Western sanctions, Putin’s regime—characterized by a network of “kremligarchs,” or state-aligned oligarchs—has not only survived but thrived, highlighting deep-seated issues in Western responses and strategies.
Historical Context and the Rise of Kremligarchs
The report underscores the origins of this kleptocracy, tracing its roots back to Putin’s consolidation of power in the early 2000s. Initially, Western leaders and corporations viewed engagements with Russia as beneficial, sidelining concerns over human rights abuses and authoritarian governance. Following 9/11, the U.S. war on terror further diverted attention from Eastern European security issues, allowing Putin to serve his interests unchallenged.
Putin redefined the role of Russia’s elite, transitioning from independent oligarchs of the Yeltsin era to kremligarchs—individuals whose fortunes are directly tied to the Kremlin. These figures operate as emissaries of state power, supported by organized crime and propagandistic machinery, with their assets dependent on loyalty to Putin.
Western Missteps
A key theme of Zaslavskiy’s work is the persistent underestimation of Russia’s kleptocratic network by Western powers. Historical failures in response to aggression—such as the 2008 invasion of Georgia and the 2014 annexation of Crimea—illustrated a pattern of appeasement that enabled Russian expansionism. The report highlights that Western sanctions post-Crimea were narrow and ineffective, failing to dent the Kremlin’s operational capabilities significantly.
The Kremlin’s subversive expansion into global markets, particularly energy and resources, has further complicated Western diplomatic and economic challenges. With strategic energy partnerships across Europe, the U.S., and beyond, the kremligarchs built resilience against sanctions through diverse portfolios and global networks.
Current Landscape of Russian Corruption
As of 2025, the report asserts that the sanctions regime is more extensive than those imposed on Iran and North Korea yet still insufficient to dismantle the Kremlin’s control. While oil revenue streams continue, the kremligarchs have managed to adapt, shifting operations to evade punitive measures by utilizing markets in Asia and the Middle East.
Zaslavskiy points out the dangerous normalization of violence as a diplomatic tool among the Russian elite. The Kremlin’s willingness to reject international norms demonstrates a shift towards a more overt, state-supported form of kleptocracy. The lack of defiance from kremligarchs, even amidst severe sanctions, reveals the depth of their entanglement with the Kremlin.
Policy Recommendations for the West
To counter the Kremlin’s kleptocracy, Zaslavskiy argues for a multifaceted approach:
- Enhanced Sanctions: These should target not just the elite but the systems facilitating their operations, emphasizing deeper financial networks and technological dependencies.
- Systemic Response to Shadow Fleets: Addressing the illicit oil tanker operations that facilitate evasion of sanctions is vital.
- Broader Commodity Sanctions: Expanding the list of targeted exports—including key metals—could significantly impact the Kremlin’s economic foothold.
- Comprehensive Strategy: A wider containment strategy that recognizes the intertwined nature of Russian kleptocracy with global security is essential.
The report concludes that acknowledging the kremligarchs as a security threat and implementing robust, holistic strategies against them is crucial for safeguarding Western values and countering Russian aggression. This calls for learning from past mistakes and adopting a firmer stance to effectively confront the challenges posed by Russia’s kleptocratic regime.
