In an effort to further weaken Russia’s ability to wage war against Ukraine, the United States, along with the G7 and other international partners, has strengthened global sanctions and imposed more restrictive economic measures on the Russian Federation. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has implemented new commitments made at the G7 Leaders’ Summit to hold Russia accountable for its actions. These actions include sanctions on 22 individuals and 104 entities, targeting those attempting to evade sanctions and acquire critical technology, energy extraction capabilities, and financial services. Additionally, the U.S. Department of State has designated nearly 200 individuals, entities, vessels, and aircraft as blocked property. The U.S. Department of Commerce is also expanding export controls and adding entities to its Entity List to prevent Russia from accessing goods for its military. Treasury’s Financial Crimes Enforcement Network (FinCEN) and Commerce’s Bureau of Industry and Security (BIS) have issued a joint alert urging vigilance against potential Russian export control evasion.
To further impose economic costs on Russia, OFAC is enhancing and expanding the use of sanctions authorities, targeting various sectors of Russia’s economy that are crucial to its military-industrial base. This includes sectors such as architecture, engineering, construction, manufacturing, and transportation. OFAC is also severing Russia’s access to certain services from the United States, matching measures taken by the UK and EU. Additionally, OFAC is requiring U.S. persons to report any property in their possession or control in which Russia’s central bank, wealth fund, or finance ministry has an interest, enhancing transparency on Russia’s immobilized assets.
As the world tightens restrictions on Russian businesses, Russia has resorted to evasion and circumvention to acquire the goods it needs for its military-industrial complex. In response, the U.S. is taking measures to prevent and respond to these evasion tactics. The U.S. is targeting Walter Moretti’s covert procurement network, which has been facilitating the procurement of sensitive technologies and equipment for Russia’s intelligence services and military. Several individuals and entities associated with Moretti’s network have been designated for their involvement in these activities. Additionally, a Liechtenstein-based company, Trade Initiative Establishment (TIE), has been involved in procuring semiconductor and nanotechnology production equipment for U.S.-designated Russian entities, with the assistance of Limited Liability Company TBS and other European technology firms and banks. All of these actions are part of the international effort to hold Russia accountable for its aggression against Ukraine and to limit its ability to continue its military actions.
