The United States has escalated its financial defensive measures by imposing restrictions on cryptocurrency operators, which have been exploited by Russia to circumvent the sanctions levied in response to its ongoing military actions against Ukraine. The Treasury's Office of Foreign Assets Control (OFAC) has announced sanctions targeting a total of 15 entities—13 corporations and 2 individuals—identified as instrumental in supporting the financial and technological sectors of the Russian economy.
These sanctions are a continuation of the OFAC's efforts from February 23, 2024, aimed at severing Russia's access to the international financial system, thereby inhibiting its ability to sustain its military aggression. The entities listed have been involved in creating or utilizing blockchain-based services or facilitating virtual currency payments within Russia's financial sector, directly contributing to the evasion of sanctions.
Among those sanctioned are five legal entities owned or controlled by individuals previously designated by OFAC. This move reflects the U.S. government's commitment to preventing Russia from leveraging international financial systems for its war efforts.
Deputy Treasury Secretary for Terrorism and Financial Intelligence, Brian Nelson, emphasized the increasing reliance of Russia on alternative payment mechanisms to bypass U.S. sanctions and continue financing its war against Ukraine. He assured that the Treasury will persist in exposing companies attempting to reconnect sanctioned Russian financial institutions with the global financial system.
The sanctioned list includes Moscow-based fintech companies B-Crypto, "Distributed Ledger Systems", "Lighthouse", "Electronic Payment Development Center", and "Atomize", known for their collaboration with sanctioned Russian banks. Also listed is the platform operator "Masterchain" ("Distributed Ledger System"), founded by entities including VTB Bank, Gazprombank, the Moscow Exchange, Promsvyazbank, the National Payment Card System (NSPK), and the "Fintech" Association, many of which are already under U.S. sanctions.
Further, Russian entities "Web3 Technologies" and "Web3 Integrator", engaged with blockchain technology, along with Estonia's Bitfingroup OÜ and Cyprus's Tokentrust Holdings, linked to Russia, have been sanctioned. Individuals Igor Kaigorodov, a shareholder of "Web3 Technologies", and Timur Bukanov, owner and director of the "Electronic Payment Development Center", have also been targeted.
Additionally, the U.S. Treasury has sanctioned three Russian companies involved in assisting Russia to acquire technological equipment, including for its defense sector, bypassing existing sanctions.
This action follows the United States' imposition of export restrictions against 93 companies (63 of which are Russian), including against Russian banks "Avangard", SPB Bank, "Bystrobank", "Maritime Bank", and the operator of the Russian payment system "Mir". This robust response illustrates the U.S.'s unwavering stance against entities aiding Russia in evading international sanctions, reinforcing the global effort to uphold financial stability and peace.
