The US Treasury Broadens Sanctions on Russia’s Financial and Tech Sectors
The US Treasury’s Office of Foreign Assets Control (OFAC) has expanded its sanctions, targeting entities and individuals within Russia’s financial and technology industries. This move affects thirteen entities and two individuals involved in virtual assets that could evade US sanctions. Notably, five of these entities have connections to individuals previously sanctioned by OFAC.
Treasury Targets Firms Aiding Russian Sanctions Evasion
- OFAC’s recent actions are a continuation of efforts from February 23, 2024, aimed at restricting Russia’s access to crucial financial infrastructure to impede its military actions in Ukraine.
- Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson, highlighted Russia’s adoption of alternative payment methods to circumvent US sanctions and continue the conflict with Ukraine.
- Nelson emphasized the Treasury’s commitment to identifying and disrupting companies aiding sanctioned Russian financial institutions in reconnecting with the global financial system.
“As the Kremlin seeks to leverage entities in the financial technology space, Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system.” – Nelson
Consequently, the US has frozen all assets and property interests of the designated entities and individuals, with mandatory reporting to OFAC. Entities where sanctioned parties own at least 50% are also subject to these restrictions. US persons are prohibited from engaging in transactions involving the property or interests of the designated parties, barring specific exemptions.
Russia Considers Crypto Regulation Amid Growing Sanctions Pressure
- In Russia, discussions around using cryptocurrencies for transactions are gaining traction, with Finance Minister Siluanov advocating for a balanced approach to crypto market regulation over prohibition.
- Meanwhile, CommEx, a leading crypto exchange considered Russia’s equivalent to Binance, is shutting down following its takeover of Binance’s operations in Russia, raising concerns about the future of the nation’s crypto market.
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