US official warns Israel not to be 'last haven for dirty money' funding Russian invasion of Ukraine

‘We have to squeeze the regime, we have to deny it the income that it needs’

Amid the ongoing invasion of Ukraine, the US is urging Israel to take a harder line against Russia and cease accepting its “dirty money.”

“What we are asking among other things is for every democracy around the world to join us in the financial and export control sanctions that we have put on Putin. We have to squeeze the regime, we have to deny it the income that it needs,” US under secretary of state for political affairs Victoria Nuland – a former UN ambassador to Nato – told Israel’s Channel 12 News on Friday.

“You don’t want to become the last haven for dirty money that’s fueling Putin’s wars,” she added.

Thus far, Israel hasn’t joined the US and the EU in levying tough sanctions against Vladimir Putin and his cronies, or in giving military aid to Ukraine.

Instead, the country has sought to balance its relations with Ukraine and Russia.

People wave Ukrainian and Israeli flags during a protest against Russia's military invasion of Ukraine, in Israel's Mediterranean coastal city of Tel Aviv on March 12, 2022 (AFP via Getty Images)

It has received thousands of refugees from Ukraine and sent humanitarian aid like medical equipment to the former Soviet republic, while Israeli prime minister Naftali Bennett became the first foreign leader to meet with Vladimir Putin since the war began during a visit to Moscow on Saturday.

Mr Bennett has also reportedly urged Ukrainian president Volodymyr Zelensky, who is Jewish and an admirer of Israel, to accept Russian terms for a ceasefire, which would likely include formally ceding eastern regions of Ukraine to Russian influence and backing away from a goal of joining Nato.

High-net worth individuals already appear to be heading from Russia to Israel, with 14 private jets taking off from St Petersburg and landing in Tel Aviv in the last 11 days.

Roman Abramovich, right, with Chelsea Women head coach Emma Hayes, left, on a club trip to Israel (Shahar Azran/Chelsea Football Club) (PA Media)

Russian-Israeli oligarch Roman Abramovich, known for his past ties to Putin, has been a particular target of sanctions in other countries including the UK and Canada.

Earlier this month, a number of prominent Israeli leaders including those from Yad Vashem, the country’s official Holocaust memorial and museum, urged the US to avoid sanctioning Mr Abramovich, given his prolific financial support of Jewish causes.

The memorial later announced on Thursday it would suspend ties with Mr Abramovich, despite a recently announced “eight-digit” donation he made to the institution.