The Potanin Foundation was registered in 2006 and is a grant-making charity supporting its sister charity in Russia, the Vladimir Potanin Foundation. It has broad charitable objects which include advancing the education of the public in Russia and elsewhere.
Mr Potanin is the charity's only member and has controlling rights, including trustee appointment and removal.
On 29 June 2022 the Foreign, Commonwealth and Development Office sanctioned Mr Potanin under the UK's Russia (Sanctions) (EU Exit) Regulations 2019. Mr Potanin is now subject to a full asset freeze and his name appears on the 'UK Sanctions List' as a designated person.
The Commission's position is that individuals subject to UK financial sanctions cannot control a charity.
The Commission opened an inquiry on 29 June 2022 to:
- Consider the viability of the charity and how to safeguard its assets;
- Examine the management and administration of the charity by its trustees including the role of Mr Potanin, as the charity's founder, if any, in decision-making;
- Review the relationship between the charity and the Vladimir Potanin Foundation in Russia and the management of grants awarded and associated risks.
The regulator has issued orders restricting certain actions without its prior consent, including restricting the charity's bank account, preventing the charity's trustees from parting with the charity's assets, and restricting Mr Potanin's ability to use his powers as the charity's founder.. According to the charity's most recently filed accounts, it has assets in excess of £95million.
The Commission may extend the scope of the inquiry if additional issues emerge.
