The local craftsman named Kitzerow told The New York Times that Russian billionaire Alisher Usmanov was unable to pay German workers $1 million for renovations to his vacation homes because of sanctions.

Russian billionaires have villas in various idyllic corners around the world, from Cyprus to Tegernsee. This foreign investment can be a powerful source of local income, and some workers are frustrated that it has been suddenly cut off.

Kitzerow, who runs a ceramics business in the German resort town Tegernsee, told the Times that the sanctions against Usmanov are outrageous.

He told the outlet that he has nothing to do with the war in any way. You should not pass judgement.

Kitzerow did not respond to the request for comment.

After the fall of the Soviet Union, the richest person in Russia with a net worth of $20 billion was the man named Alisher Usmanov. He is described by the EU as one of Putin's favorites and has allowed several Kremlin officials to use his residences.

The shores of Lake Tegernsee
Tegernsee, a luxury resort town nestled in Germany's Bavarian Alps. Sanctioned Russian oligarch Alisher Usmanov reportedly owns three villas along the lake.
Sven Hoppe/picture alliance via Getty Images

The craftsman is not the first of the staff to have their wages cut. Forbes first reported in March that the crew of the 512-foot superyacht, which was seized by German authorities in April, was fired after sanctions prevented wages from being paid to the staff.

While the ban on the global banking system has made it more difficult to move funds out of Russia, experts previously told Insider that it is still possible for individuals to pay out-of-country staff.

The vacation destinations that have built their economies around Russian tourism have responded differently to the sanctions. Turkey has taken advantage of the changing landscape by positioning themselves as a refuge for Russians who have been kicked out of the EU.

Others, such as Cyprus, have moved as far as to withdrawgolden passports linked to sanctions, despite their historically active role in the Mediterranean island's economy. The New York Times reported that residents in Germany's Tegernsee village are divided over the fates of the wealthy.