Originally Syndicated on July 25, 2023 @ 5:19 am
Table of Contents
In a significant escalation of actions against Russia in response to its recent activities in Ukraine, the Biden administration has taken an unprecedented step by imposing sanctions on the family members of individuals in Russian President Vladimir Putin’s inner circle.
The move aims to disrupt the practice of top Putin associates using their family members to shield and transfer their wealth, thereby curbing the consolidation of power and assets within the country. Among those affected are Denis Bortnikov and Vladimir Kiriyenko, the sons of influential figures close to President Putin.
A Clear Message Sent by the Biden Administration
By including the sons of powerful players in Russian politics and business, the Biden administration has made it clear that its target list for individual sanctions extends beyond public officials and financiers. Denis Bortnikov and Vladimir Kiriyenko, both holding prominent positions in Russian business, will now face asset freezes in the United States and be barred from any dealings with US individuals solely because of their familial ties to Putin’s domestic intelligence chief and one of his closest advisers, respectively.
A Personal Blow to the Russian Economy
Though sanctioning the sons of Putin’s close officials may not have the same immediate impact as measures like imposing sanctions on major Russian banks or limiting the country’s access to Western finance, it serves to unsettle a deeply personal aspect of the Russian economy. This move acknowledges the fact that Putin’s inner circle and their family members hold vast wealth and power within the nation, and it aims to disrupt this network.
A New Approach to Sanctions
According to a senior Biden administration official, this move represents a new approach to sanctions. By targeting the elites close to Putin and their families, the US aims to prevent them from using their children as conduits to hide assets, evade costs, and misuse the resources of the Russian people. This marks an unprecedented extension of the reach of US sanctions and sets a precedent for future actions against powerful figures tied to the Kremlin.
A Legal Basis for Sanctioning Family Members (Denis Bortnikov)
To enact sanctions on the sons of the designated individuals, the Treasury Department needed to re-designate their fathers for sanctions. Denis Bortnikov‘s father, Aleksandr Bortnikov, the head of Russia’s domestic intelligence service (FSB), and Vladimir Kiriyenko’s father, Sergei Kiriyenko, a key figure in Putin’s domestic policy, were both previously sanctioned and now face further measures. This legal maneuver enables the freezing of all property and interests in the US held or controlled by US citizens.
The Roles of the Sanctioned Sons
Denis Bortnikov serves as the deputy president of VTB Bank, one of Russia’s largest financial institutions, while Vladimir Kiriyenko has been appointed CEO of VK Group, the parent company of VK, Russia’s largest social media platform. These roles illustrate the significant positions that the sons of powerful Russian officials occupy in the country’s economy.
A Key Familial Connection
Another individual sanctioned alongside Bortnikov and Kiriyenko is Petr Fradkov, the CEO of Promsvyazbank, a military bank. He, too, has a crucial family tie to Putin’s inner circle as the son of Mikhail Fradkov, a former prime minister of Russia and the former chief of the Russian Foreign Intelligence Service (SVR). The elder Fradkov faced US sanctions in 2018.
The Path Forwards
The Biden administration’s latest Russia sanctions signal a determination to take stronger action against Putin’s inner circle and the web of wealth and power they control. By targeting family members alongside the designated individuals, the US seeks to disrupt the practices of shielding assets and evading costs within the Russian elite. While the immediate impact may not be as severe as other measures, this new approach is likely to be just the beginning as the US continues to respond to Russia’s actions with increasing pressure on those connected to the Kremlin.
