Portugal’s secret services believe that wealthy Russians may still be using the country to bypass economic sanctions imposed in 2022 following Russia’s full-scale invasion of Ukraine. These sanctions, introduced by the European Union, were designed to restrict access to European banking systems, business operations, and property markets for certain Russian individuals and entities.
According to reporting by Expresso, national authorities are currently investigating 26 cases linked to suspected violations of these economic sanctions. The investigations involve bank accounts containing millions of euros, many of which were frozen while account holders were reportedly in the process of purchasing luxury real estate in Portugal.
So far, around €25 million has been frozen and kept from account holders as part of these actions.
The Attorney General’s Office has stated that in several cases, money entered Portugal through complex business structures based in other European countries. These structures allegedly involved intermediaries who helped conceal the true origin of the funds. Authorities believe such arrangements were used to make it harder to trace the money back to sanctioned individuals.
Luxury Real Estate in Lisbon and Cascais Under Close Scrutiny
A significant part of the investigations focuses on luxury property purchases in Lisbon and in the coastal municipality of Cascais.
Kyrgyzstan threatens legal action as EU weighs country-level Russia sanctions
Cascais is known for its upscale homes, scenic coastline, and marina. In recent years, it has attracted wealthy foreign buyers, including Russian nationals willing to pay premium prices for property.
According to the report, Russians have often been prepared to pay the highest prices per square meter in Lisbon’s real estate market. In some cases, they reportedly offered double the price that buyers of other nationalities were willing to pay.
One major case under investigation was first denounced in 2022 by an anti-corruption investigator. It involved high-end property investments in Cascais that were allegedly linked to a senior Russian government official.
In another case, authorities froze the bank account of a former Russian banker who was attempting to purchase an apartment in Cascais valued at €800,000.
Investigators suspect that some of these property transactions may have been used as a way to move significant sums of money into Portugal while avoiding financial restrictions. Real estate can sometimes serve as a channel for placing large amounts of funds into stable assets.
Authorities have also identified a pattern involving intermediaries. Residents of Portugal, and in some cases Ukrainian residents, were allegedly used to distance the original source of the money from the final transactions. Officials believe this method was intended to make the financial trails more difficult to detect.
Sanctions enforced at sea as Belgian commandos board suspected Russian ‘shadow fleet’ ship
Alleged Money-Laundering Network and Tougher Legal Response
One of the most recent investigations involves a Russian businessman who lived in Lisbon for four months. Portuguese judicial police described his operation as a “money-laundering multinational.”
According to the report, he allegedly charged commissions of 2% to 3% for laundering funds from across Europe. The money reportedly flowed through several countries in the Schengen Area, with daily transactions reaching hundreds of thousands of euros. Authorities also noted suspicious links to southern Spain in connection with this case.
These findings suggest that the suspected activities were not isolated incidents but may have been part of a broader cross-border financial network.
The Portuguese government considers it essential to prevent violations of economic sanctions. Officials have stated that such activities affect Portugal’s international responsibilities and its position regarding global security.
As a result, a draft law on criminal policy currently under discussion in parliament proposes that violations of economic sanctions be treated with the same seriousness as terrorism-related crimes.
At the same time, the report acknowledges that there are tens of Russians who have lived in Portugal for many years whose bank accounts have also been frozen. Some of these residents claim that their accounts were blocked without clear justification, leading to financial difficulties.
The investigations mark a notable shift in Portugal’s enforcement of international sanctions. In the past, the country had sometimes been perceived as ambivalent in applying such measures. With dozens of cases under review and millions of euros frozen, authorities are now taking visible steps to monitor and control financial flows linked to Russia.