Russian oligarch held stake in Musk's SpaceX through trust despite sanctions, Bloomberg reports
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Russian billionaire and politician Suleyman Kerimov held at least a 1% stake in SpaceX through a trust, even after the U.S. sanctioned him in 2018 for aiding President Vladimir Putin's policies, Bloomberg reported on Jan. 30, citing undisclosed sources.
Kerimov, whose estimated fortune is $9.84 billion, ranks 290th on Bloomberg's Billionaires Index and 17th among Russian billionaires. The Dagestani senator was subject to additional EU sanctions for allegedly supporting Russian actions that violated Ukraine's sovereignty.
Kerimov's investment in SpaceX reportedly began in 2017 through Heritage Trust, a financial structure managed by Citigroup. SpaceX was valued at $21 billion at the time, meaning his 1% stake could have been worth around $210 million.
Elon Musk, the richest person in the world and a close associate of U.S. President Donald Trump, is the founder and CEO of SpaceX.
Despite the sanctions imposed on Kerimov by the first Trump administration, Citigroup continued managing Heritage Trust, reportedly seeking the Treasury Department's guidance and concluding there was no requirement to block the trust.
Following the outbreak of Russia's full-scale invasion of Ukraine, the U.S. seized Kerimov's $300 million superyacht Amadea in April 2022 and sanctioned his family and associates later that year. The Treasury, at the time run by the Biden administration, froze the trust in June 2022 after investigators found it was structured to obscure Kerimov as its primary beneficiary.
By December 2024, SpaceX's valuation had surged to $350 billion, meaning the lost stake would be worth approximately $3.5 billion today.
In November 2024, reports emerged that the U.S. Justice Department, the Federal Investigation Bureau (FBI), and the Internal Revenue Service (IRS) were investigating Citigroup's handling of Heritage Trust.
Musk, who is estimated to be worth $421 billion, traveled to Russia in 2017 to explore potential partnerships with the space agency Roscosmos but did not reach a deal. While initially supportive of Ukraine after the start of the full-scale war, Musk has made progressively controversial remarks about Ukraine and the conflict.
