News

Sep 14, 2023

Targeting Key Sectors, Evasion Efforts, and Military Supplies, Treasury Expands and Intensifies Sanctions Against Russia

Actions Taken in Coordination with G7 Metals and Mining Determination Enables Targeting of Putin Revenue Source Wide Array of Evasion-Related Targets Exposed WASHINGTON – Today, one year after the

Actions Taken in Coordination with G7

Metals and Mining Determination Enables Targeting of Putin Revenue Source

Wide Array of Evasion-Related Targets Exposed

WASHINGTON – Today, one year after the Russian Federation launched its unprovoked war against Ukraine, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is taking significant action to diminish Russia’s ability to continue its brutal war and to procure the resources used to support it.

In one of its most significant sanctions actions to date, Treasury is announcing a new determination targeting the metals and mining sector of the Russian Federation economy under Executive Order 14024 and is also imposing sanctions on 22 individuals and 83 entities. Today’s action, together with additional measures taken by the Department of State, the Department of Commerce, and the Office of the U.S. Trade Representative, in coordination with allies and G7 partners, further isolates Russia from the international economy and hinders Russia’s ability to obtain the capital, materials, technology, and support that sustain its war against Ukraine, which has killed thousands and displaced millions of people.

Additionally, as Russia searches for ways to evade sanctions and export controls, the U.S. government is ramping up efforts to counter such evasion around the world. Today’s action includes designations of over 30 third-country individuals and companies connected to Russia’s sanctions evasion efforts, including those related to arms trafficking and illicit finance. While Russian banks representing over 80 percent of total Russian banking sector assets are already subject to U.S and international sanctions, OFAC today is designating over a dozen financial institutions in Russia, including one of the top-ten largest banks by asset value. Sanctioned actors have been known to turn to smaller banks as well as wealth-management firms in an attempt to evade sanctions as Russia seeks new ways to access the international financial system.

“As the Ukrainian people continue to valiantly defend their homeland and their freedom, the United States is proud to support Ukraine through economic, security, and humanitarian assistance,” said Secretary of the Treasury Janet L. Yellen. “Over the past year, we have taken actions with a historic coalition of international partners to degrade Russia’s military-industrial complex and reduce the revenues that it uses to fund its war. Our sanctions have had both short-term and long-term impact, seen acutely in Russia’s struggle to replenish its weapons and in its isolated economy. Our actions today with our G7 partners show that we will stand with Ukraine for as long as it takes.”

Dozens of entities and individuals being sanctioned today operate in industries that ultimately support Russia’s war against Ukraine. This includes firms that produce or import specialized, high-technology equipment used by Russian defense entities and companies that make advanced materials used in Russian weapons systems.

The United States and its allies have imposed sweeping sanctions, export controls, and other measures following the start of Russia’s war against Ukraine. Since February 2022, Treasury has implemented more than 2,500 sanctions in response to Russia’s war of choice. The unprecedented costs imposed on Russia have been closely coordinated with allies and partners, with more than 30 countries having imposed sanctions or similar measures against Russia following the launch of its war.

Russia’s aggressive and unprovoked war will have significant and long-lasting consequences for Russia’s economy and defense base. Sanctions and export controls have caused Russia’s financial sector losses of hundreds of billions of dollars and created major setbacks for Russia’s technological advancement. The United States will continue to impose costs on Russia for as long as this war continues.

Imposing further sanctions against Russia’s financial services sector impedes the ability of President Vladimir Putin’s regime to raise capital in support of the war against Ukraine and further isolates Russia from the global financial system. Today, Treasury is imposing sanctions on numerous Russian banks and is also targeting wealth management-related entities and individuals that play key roles in Russia’s financial services sector.

Sanctions evasion and other illicit financial activity often involves support from accountants, investment advisors, wealth management and private equity firms, lawyers, and other financial services providers. According to an alert issued by the Financial Crimes Enforcement Network (FinCEN) in March 2022, sanctioned actors may seek to evade sanctions by using corporate vehicles to obscure ownership or sources of funds, such as shell companies or third-party proxies. FinCEN issued another alert in March 2022 underscoring sanctioned persons’ use of real estate, luxury goods, and other high-value assets, such as precious metals, stones, and jewelry (PMSJ), to store value and evade economic restrictions. In June 2022, FinCEN and the U.S. Department of Commerce’s Bureau of Industry issued an alert urging increased vigilance for export control evasion attempts.

OFAC today designated the following Russian banks pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy:

Additionally, Russia-based financial institutions OOO Zenit Finance, OOO Zenit Leasing, and OOO Zenit Factoring MSP were designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Bank Zenit.

In conjunction with this action, OFAC has issued Russia-related General License (GL) 60, authorizing the wind down and rejection of transactions involving certain financial institutions designated today through 12:01 a.m. eastern daylight time, May 25, 2023. In addition, OFAC has issued Russia-related GL 61, authorizing the wind down of certain securities and derivatives transactions involving certain of these financial institutions through 12:01 a.m. eastern daylight time, May 25, 2023. OFAC also issued amended GL 8F, adding certain of these financial institutions to the authorization to process certain energy-related transactions.

CONFIDERI Pte Ltd (CONFIDERI) is a Russian multi-family office, a type of financial services firm specializing in high-net-worth individuals, with offices in Moscow and Singapore. Its specialties include asset structuring and wealth management, including on “international projects with Russian roots.” CONFIDERI offers, among other services, PMSJ investment opportunities and investment management through the Caribbean.

CONFIDERI’s founders, Russian Federation-Israel nationals Olga Borisovna Raykes (Raykes) and Marat Maratovich Savelov (Savelov), have also been recognized as private bankers, wealth managers, and investment advisers. Raykes and Savelov own the firm Vend Ore GmbH (Vend Ore), located in Vienna, Austria.

CONFIDERI, Raykes, and Savelov were designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy. Vend Ore was designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Raykes and Savelov.

Moscow-based investment and wealth management firm IC Veles Capital LLC (IC Veles Capital) also caters to Russian high-net-worth individuals. Its leaders are Russian Federation-Cyprus nationals Dmitry Vitalyevich Bugayenko (Bugayenko) and Aleksei Dmitrievich Gnedovskii (Gnedovskii).

IC Veles Capital, Bugayenko, Gnedovskii, and related financial companies Veles Aktiv OOO, Veles Management Ltd, and Limited Liability Company Veles Trust were all designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy.

Additionally, Bugayenko’s Cyprus-based firms Veles International Limited and Hadlerco Limited, were designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Bugayenko.

Russian Federation national Ulan Vladimirovich Ilishkin (Ilishkin) is Deputy Chairman of the Management Board of U.S.-sanctioned Public Joint Stock Company Rosbank (Rosbank), which was acquired in 2022 by one of Russia’s richest men, U.S.-sanctioned Vladimir Potanin. Ilishkin also leads Rosbank’s L’Hermitage Private Banking unit.

Russian Federation national Alina Olegovna Nazarova (Nazarova) is the head of A-Club, the private banking department of U.S.-sanctioned Joint Stock Company Alfa-Bank.

Russian Federation national Evgeniya Sergeyevna Tyurikova (Tyurikova) is a long-time finance professional who leads the private banking department of U.S.-sanctioned Public Joint Stock Company Sberbank of Russia (Sberbank).

Ilishkin, Nazarova, and Tyurikova were designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy.

Due to the impact of sanctions and export controls, Russian intelligence services have been directed to find channels for evasion and backfilling. Treasury will continue to impose sanctions on actors inside and outside of Russia that circumvent sanctions and enable Russia to procure resources critical to enabling Russia’s war of aggression against Ukraine. Treasury is imposing sanctions on the following entities and individuals for their roles in sanctions evasion efforts.

Swiss-Italian businessman Walter Moretti (Moretti) and his network of associates and companies have covertly procured sensitive Western technologies and equipment for Russian intelligence services and the Russian military, including hydraulic presses, armament packages, and armor plating. Moretti and his associates have also procured equipment for Russia’s nuclear weapons laboratories.

Moretti was designated pursuant to E.O. 14024 for having acted or purported to act for or on behalf of, directly or indirectly, the Government of the Russian Federation.

German national Markus Gerhard Mueller (Mueller), Swiss nationals Ronald Eric Cosman (Cosman) and Bruno Koller (Koller), as well as the Switzerland-based company Swisstec 3D AKUS AG (Swisstec) have assisted Moretti in the procurement of sensitive Western technologies and equipment for Russian intelligence services and the Russian military.

Mueller, Cosman, Koller, and Swisstec were designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Moretti.

Moretti also used his UAE-based companies, Taerio Limited and Tamyna FZE, in his covert procurement schemes.

OFAC designated Taerio Limited and Tamyna FZE pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Moretti.

The Malta-based company, Stratton Investment Group LTD, is owned by Taerio Limited. OFAC designated Stratton Investment Group LTD pursuant to E.O. 14024 for being owned or controlled by Taerio Limited.

The Swiss Italian national Frederic Pierre Villa (Villa), along with Moretti, are on the board of directors of Stratton Investment Group LTD. OFAC designated Villa pursuant to E.O. 14024 for being a leader, official, senior executive officer, or member of the board of directors of Stratton Investment Group LTD.

The Switzerland-based company Tamyna AG has sent numerous large wire transfers to Moretti’s company, Taerio Limited. Tamyna AG was designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of Moretti.

Swiss nationals Hans-Peter Bomatter (Bomatter) and Lutwin Schommer (Schommer) are the senior managers of Tamyna AG. OFAC designated Bomatter and Schommer pursuant to E.O. 14024 for being a leader, official, senior executive officer, or member of the board of directors of Tamyna AG.

The Sofia, Bulgaria-based company Taerio International LTD EOOD (Taerio International) and the Saint Petersburg, Russia-based company Interpolytrade Limited Company (Interpolytrade) are owned or controlled by Mueller. OFAC is designating Taerio International and Interpolytrade pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Mueller.

Nurmurad Kurbanov (Kurbanov) is a Russian-Turkmen arms dealer who has represented Russian and Belarusian defense firms abroad. Kurbanov has facilitated military and technical cooperation efforts between Russia and foreign countries. Kurbanov has additionally represented U.S.-sanctioned Belarusian firm OKB TSP Scientific Production Limited Liability Company (OKB TSP), which is involved in the production of a short-range air defense system, in its sales efforts abroad. Kurbanov also owns Cyprus-based firm Stella Leone Limited.

Kurbanov was designated pursuant to Belarus-related E.O. 14038 for having acted or purported to act for or on behalf of, directly or indirectly, OKB TSP. Stella Leone Limited was also designated pursuant to E.O. 14038 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Kurbanov.

Russian businessman Aleksandr Yevgenyevich Udodov (Udodov) is the former brother-in-law of Russian Prime Minister Mikhail Mishustin (Mishustin) and has been linked to business dealings with both Mishustin himself and Mishustin’s sister. Udodov has also been investigated for manipulating value-added tax revenues and money laundering.

Udodov and his Moscow-based management consulting firm, Limited Liability Company Aforra Management, were designated pursuant to E.O. 14024 for operating or having operated in the management consulting sector of the Russian Federation economy.

The following Udodov-owned, Russia-based companies were designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Udodov:

Udodov’s business interests also extend outside of Russia’s borders. Udodov owns Avrora Capital SRO (Avrora Capital), located in Prague, Czechia. Udodov also has control over Leading Capital Investment Ltd (Leading Capital), a real estate holding company registered in the British Virgin Islands, and Bahamas-based Caliber Wealth Management Ltd (Caliber Wealth Management).

Avrora Capital, Leading Capital, and Caliber Wealth Management were designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Udodov.

Treasury is taking additional steps to impose costs on and further restrict key entities that support Russia’s military capabilities. Since the start of Russia’s full-scale war, Treasury has targeted Russia’s defense industries. Treasury will continue to designate Russian Federation persons connected to Russia’s defense industries to degrade Putin’s ability to wage war against Ukraine or against any other country in the future. In October 2022, Treasury, the Department of Commerce, and the Department of State issued an alert highlighting the impact of sanctions and export controls on Russia’s military-industrial complex.

Russia’s military-industrial complex is the largest consumer in Russia of carbon fiber and other related advanced materials. Carbon fiber and related materials are critical to the development and production of Russian defense systems. They are used in almost all defense-related platforms including aircraft, ground combat vehicles, ballistic missiles, and military personal protection gear, as well as other weapons systems. Today, Treasury is designating numerous Russia-based entities involved in the production of carbon fiber and related materials.

UMATEX Joint-Stock Company (UMATEX) is Russia’s largest producer of a wide range of carbon fibers and fiber-based items. UMATEX manages a division focused on promising materials and technologies, and focuses on the production of high-technology carbon fiber and other high-technology products. UMATEX was designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.

OFAC also designated three UMATEX subsidiaries pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, UMATEX:

Treasury also designated UVICOM LTD, a Russia-based company that produces carbon fibrous materials and that develops technologies for carbon fiber materials. UVICOM LTD was designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.

OFAC today designated the following entities pursuant to E.O. 14024 for operating or having operated in the aerospace sector of the Russian Federation economy:

OFAC today designated the following entities pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy:

Russia’s defense industry is reliant on imported microelectronics and other technology both produced domestically and imported from abroad. Today, Treasury continues to target firms and individuals in Russia’s technology and electronics sectors, including persons who produce or import specialized or high-tech equipment used by Russia’s defense entities.

OFAC today designated the following persons pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy:

Joint Stock Company Vakuum.ru (Vakuum.ru), a Russia-based company specializing in the sale of manufacturing and technological equipment to Russia-based customers. Continuing at least through 2021, Vakuum.ru worked with the Russian intelligence-linked procurement network of U.S.-sanctioned Malberg Ltd. (Malberg) to obtain advanced equipment with applications in the microelectronics and quantum industries. On April 15, 2021, OFAC designated Malberg pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purporting to act for or on behalf of, directly or indirectly, the Government of the Russian Federation.

By Trade OU (By Trade) facilitated hundreds of thousands of dollars of shipments by Malberg to Russia, continuing at least through 2020. In 2019, By Trade attempted to illegally ship a U.S.-made precision jig grinder with nuclear applications to a Russian entity.

Vakuum.ru was designated pursuant to E.O.14024 for operating or having operated in the technology sector of the Russian Federation economy. By Trade was designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Malberg.

OOO Lavina Puls (Lavina Puls) and AO Inforus (Inforus) have provided technical support to malign influence operations conducted by the GRU, including the management of false social media personas. The Kremlin has used these tools of malign covert influence to attack democracy in the United States, Ukraine, and around the world. Andrey Igorevich Masalovich (Masalovich), the head of Lavina Puls and Inforus, has worked to sell the internet monitoring and influence technology he designed for the GRU internationally. The United States and its allies will continue to take action to ensure that those who seek to export the Russian government’s brand of authoritarianism cannot do so with impunity. Lavina Puls, Inforus, and Masalovich were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.

Russia-based Open Joint Stock Company Ilyenko Elara Research and Production Complex (AO Elara) is a manufacturer of electronic equipment and devices. AO Elara produces such electronic instruments for Russian amphibious and military aircraft, and has additionally worked with one or more sanctioned Russian firms. AO Elara was designated pursuant to E.O. 14024 for operating or having operated in the electronics sector of the Russian Federation economy. Treasury also designated AO Elara’s General Director, Andrey Aleksandrovich Uglov (Uglov), a former Government of Russia official. Uglov was designated pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of AO Elara.

UVICOM LTD was also designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.

Treasury designated Federal State Unitary Enterprise Central Scientific Research Institute of Economics, Informatics and Management Systems (TsNII EISU), a Russia-based enterprise that performs a system-forming role in the further development of the command and control systems of the Armed Forces of the Russian Federation. TsNII EISU was designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation.

Treasury designated Independent Insurance Group LTD (IIG) pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy. IIG provides insurances services to companies in Russia’s defense sector.

Treasury also designated Private Military Company Redut (PMC Redut), a Russian mercenary force fighting in Ukraine that purports to provide security services. PMC Redut is linked to the GRU as well as the broader Russian Ministry of Defense. PMC Redut was designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, the Government of the Russian Federation.

OFAC is enhancing and expanding its use of Russia-related sanctions authorities by issuing a determination that identifies the metals and mining sector of the Russian Federation economy pursuant to section 1(a)(i) of Executive Order (E.O.) 14024. This determination allows for sanctions to be imposed on any individual or entity determined to operate or have operated in that sector and expands the United States’ ability to swiftly impose additional economic costs on Russia for its war of choice in Ukraine. This action complements existing provisions for sanctions against those that operate or have operated in the quantum computing, accounting, trust and corporate formation, management consulting, aerospace, marine, electronics, financial services, technology, and defense and related materiel sectors of the Russian Federation economy.

Pursuant to today’s determination, OFAC designated four entities for operating or having operated in the metals and mining sector of the Russian Federation economy:

For Frequently Asked Questions (FAQs) related to this determination, click here.

As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.

For identifying information on the individuals and entities sanctioned or property identified today, click here.

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