Originally Syndicated on August 12, 2023 @ 7:42 am
The United States has introduced fresh sanctions targeting 4 Russian oligarchs and one entity associated with Vladimir Putin’s administration in Russia.
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Here are the newly sanctioned four Russian oligarchs:
- Petr Aven, a Russian oligarch
- Mikhail Fridman, a Russian-Israeli businessman
- German Khan, a Russian oligarch
- Alexey Kuzmichev, a Russian businessman
The sanctioned entity is the Russian Union of Industrialists and Entrepreneurs.
This move is part of a broader trend where the US Treasury Department has been steadily expanding its roster of US sanctions on individuals and entities linked to Russia. The primary aim of these sanctions is to diminish Russia’s capability to engage in military actions against Ukraine.
Wally Adeyemo, the Deputy Secretary of the Treasury, emphasized a key point. He highlighted that wealthy Russian elites shouldn’t assume they can continue business as usual. This pertains to the current hostilities by the Kremlin against the Ukrainian populace.
At this moment, the Kremlin is actively involved in hostilities against the Ukrainian populace.
This conveys a clear message: the United States is ready to hold individuals linked to the Russian government responsible for their deeds.
Targeting 4 Russian Oligarchs involved in Russia’s responses to sanctions
The Russian Union of Industrialists and Entrepreneurs (RSPP) holds another title as the Russian Association of Employers. It stands as a significant organization within Russia’s technological landscape, firmly established.
RSPP directs its attention to the country’s economic strength. It has played a central role in different facets of the technology sector in the Russian Federation.
Its influence finds facilitation through multiple coordinating councils.
These councils focus on vital objectives, such as promoting import substitution, fostering technological autonomy, and propelling technological advancement.
Notably, the RSPP plays a pivotal role in tackling the complex challenges presented by international sanctions. These sanctions arose following Russia’s extensive involvement in Ukraine.
This engagement highlights the organization’s multifaceted commitment, extending beyond technological concerns into the geopolitical realm. Through navigating these complexities, RSPP demonstrates its commitment to advancing the nation’s interests. It adeptly responds to the changing currents of international relations.
Recognized through Executive Order (E.O.) 14024, RSPP’s designation stems from its substantial involvement in the technology sector of the Russian Federation’s economy. This acknowledgment emphasizes RSPP’s undeniable influence and impact. It positions the organization as a pivotal element in blending business, technology, and the nation’s strategic reactions to global changes.
Targeting Russian Elites: US Sanctions
Petr Olegovich Aven
He is known as Aven and holds the position of Chairman of the Board at a notable insurance company based in Russia. Moreover, he plays a pivotal role as a member of the supervisory board within the esteemed Alfa Group. Aven’s involvement has led to his designation under Executive Order (E.O.) 14024, a recognition grounded in his active participation within the financial services sector of the Russian Federation’s economy. This acknowledgment highlights his influential presence and contributions within this critical economic domain.
Mikhail Maratovich Fridman
He is the visionary behind the Alfa Group, boasts a legacy as the former Chairman of the Supervisory Board for this conglomerate, and continues to maintain a significant role within its operations. In addition to his Alfa Group affiliation, Fridman also takes on the responsibility of chairing a committee within the Russian Union of Industrialists and Entrepreneurs (RSPP). His designation under E.O. 14024 reflects his involvement in the financial services sector of Russia’s economy, as well as his connection to RSPP. This recognition underscores his profound impact on both the financial and business spheres of the country.
German Borisovich Khan
He serves as a member of the supervisory board within the Alfa Group, while simultaneously leading the board of a Russian construction-focused company. Notably, he’s also affiliated with another construction-related venture as a participant/founder. Khan’s diverse engagements have led to his dual designations under E.O. 14024. Firstly, his contributions to the financial services sector within the Russian economy are acknowledged, as is his notable involvement in the country’s construction sector. This recognition encapsulates his multi-faceted role within crucial economic domains.
Alexey Viktorovich Kuzmichev
He is a significant figure on the supervisory board of the Alfa Group and is also at the helm of a Russia-based investment company. His designation pursuant to E.O. 14024 underscores his notable role within the financial services sector of the Russian Federation’s economy. This acknowledgment highlights his contributions to the financial landscape and emphasizes his impact within this critical sector.
Sanctions Implications
Alfa Bank’s operations had already previously been targeted in a series of Treasury actions in February and March of 2022, in the immediate aftermath of Russian President Vladimir Putin’s decision to invade Ukraine. While stopping short of a full blockade, the actions against Alfa Bank included imposing debt and equity restrictions that choked its ability to obtain long-term financing.
In the same action last year, the U.S. imposed full blockades on Russia’s two largest banks, state-owned Sberbank and VTB, prohibiting them from engaging in tens of billions of dollars worth of dollar-denominated foreign exchange transactions. Sberbank was also blocked from using correspondent accounts at U.S. banks to conduct business on behalf of clients.
In light of today’s measures, all assets and interests owned by the individuals mentioned above that are situated within the United States or under the control of U.S. entities are frozen and must be reported to the Office of Foreign Assets Control (OFAC). Additionally, any entities that are owned, either directly or indirectly, by 50 per cent or more of one or more of the designated individuals are also subject to the same asset freeze.
Engaging in transactions involving the property or interests of these designated or blocked individuals is prohibited for U.S. individuals or transactions that take place within or pass through the United States. Exceptions can be made with a general or specific license issued by OFAC, or if the transactions are exempt from these prohibitions. This encompasses actions such as providing financial support, goods, or services to or from any blocked person.
The recent actions are in alignment with efforts to combat evasion of Russian sanctions, as detailed in the Global Advisory on Russian Sanctions Evasion, a document jointly released by the multilateral Russian Elites, Proxies, and Oligarchs (REPO) Task Force. International partners and the private sector are encouraged to make use of this advisory to contribute to effective enforcement and adherence to the sanctions.
It’s worth noting that the strength and legitimacy of OFAC’s sanctions are not solely derived from its capacity to designate and include individuals in the Specially Designated Nationals and Blocked Persons List (SDN List), but also from its willingness to remove individuals from this list in accordance with legal guidelines. The overarching objective of sanctions is not punitive in nature but rather seeks to stimulate positive behavioural changes.
