Konstantin Malofeyev, a powerful Russian businessman facing long-standing financial sanctions, has found a way to raise funds for orphanages in the heart of Russia’s controversial program of deporting Ukrainian children. Despite being cut off from Western financial systems since 2014, Malofeyev continues to utilize his charity, the St. Basil the Great Foundation, to support orphanages in the Russian-occupied Donbas and Zaporizhzhia regions. While he claims to be unaware if these orphanages host forcibly relocated Ukrainian children, he defends the resettlement efforts, which have been condemned as a war crime by prosecutors at The Hague.
However, recent records reveal that Malofeyev has managed to transfer American dollars to the foundation’s account at OTP Bank in Moscow. The exact route of these funds remains unclear, but OTP Bank states its commitment to ethical and legal practices, disassociating itself from any criminal activities. Although the charity’s website claims that international donations are routed through Bank of America and Deutsche Bank, both banks deny any current business dealings with OTP’s Moscow branch. Moreover, the Times could not independently verify claims that one of the sponsored orphanages is a “high probability” location for transferred Ukrainian children.
While the St. Basil the Great Foundation itself has not been blacklisted, U.S. and European sanctions against Malofeyev extend to entities in which he holds a majority stake. This raises questions about the foundation’s status under the Treasury Department’s rules. Sanctions against Russia often rely on enforcement by banks, leaving room for interpretation. Bank of America, Deutsche Bank, and the Treasury Department declined to comment, while European regulators emphasized the responsibility of national governments to enforce sanctions.
Since Russia’s annexation of parts of Ukraine, children in these areas have become victims of coercive tactics in a battle for control. Disturbing reports detail how these children were moved to Russia, placed in state institutions or foster homes, and subjected to re-education. In response, the International Criminal Court issued an arrest warrant for President Vladimir V. Putin and Maria Lvova-Belova, the official leading the relocation effort.
Publicly acknowledging Malofeyev’s support, Putin thanked him for his assistance with “the children of the Donbas.” Ukraine blacklisted the charity in 2015 and has renewed the designation several times, raising concerns about the foundation’s role in Russia’s foreign influence operations. Critics, such as Jelle Postma from Justice for Prosperity, argue that the St. Basil the Great Foundation serves as a back door for Malofeyev and Russia to continue these operations.
As evidence of the foundation’s donation system, Postma wired money in dollars and shared the documentation with The Times. Last year, the Justice Department indicted Malofeyev for attempting to evade sanctions, marking the first criminal case pursued by the Biden administration’s task force targeting illicit Russian money. Furthermore, the Justice Department announced that it had seized $5.3 million from Malofeyev to contribute to Ukraine’s reconstruction.
The issue surrounding Malofeyev, his foundation, and the funds being channeled to orphanages in Russia raises significant concerns about the welfare of Ukrainian children and the influence of sanctioned individuals in the charitable sector.
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