Treasury Targets Russian Entities Dodging Sanctions to Fund War in Ukraine

The US Treasury targets Russian entities dodging sanctions to fund the war in Ukraine. Thirteen entities and two individuals are in the spotlight for aiding OFAC-designated entities in evading sanctions.

Treasury Takes Aim at Russian Entities Evading Sanctions

The US Treasury Department's Office of Foreign Assets Control (OFAC) has unleashed a barrage of sanctions on Russian entities operating in the financial services and technology sectors. This move is a direct response to efforts to undermine US sanctions and continue funding the war in Ukraine.

Who's in the Spotlight?

Thirteen entities and two individuals have found themselves on OFAC's naughty list for facilitating transactions and services that aid OFAC-designated entities in evading sanctions. These include:

Fintech Powerhouses:

• B-Crypto
• Masterchain
• Laitkhaus
• Atomaiz

Technology Titans:

• Veb3 Tekhnologii
• Veb3 Integrator

Virtual Currency Exchanges:

• TOEP (Netexchange, Netex24)
• Bitpapa
• Crypto Explorer

Associated Entities:

• Companies linked to Echelon Union for Science and Technology

The Kremlin's Financial Technology Lifeline

Treasury Secretary Brian E. Nelson has made it clear: the Kremlin's attempt to tap into the financial technology sector for sanctions avoidance will be met with unwavering resolve. OFAC's actions are designed to disrupt the lifeline that these entities provide to sanctioned Russian financial institutions.

Cross-Border Transactions, Digital Assets, and Precious Metals

The designated fintech firms have allegedly partnered with sanctioned Russian banks to facilitate cross-border settlements, issue digital financial assets, and tokenize precious metals and diamonds. These actions have allowed sanctioned entities to continue accessing the global financial system.

Blockchain Solutions for Sanctioned Banks

Veb3 Tekhnologii and Veb3 Integrator have provided blockchain solutions and platforms to Sberbank and Alfa-Bank, enabling them to continue operating despite being targeted by sanctions.

Virtual Currency Exchange for Sanctioned Entities

TOEP has enabled digital payments in rubles and virtual currencies to sanctioned entities like Sberbank, Alfa-Bank, and Hydra Market.

Peer-to-Peer Exchange with Sanctioned Entities

Bitpapa has reportedly conducted millions of dollars worth of transactions with sanctioned entities like Hydra Market and Garantex.

Crypto Exchange with Cash Services

Crypto Explorer has offered conversions between virtual currencies, rubles, and UAE dirhams, as well as providing cash services at its offices in Moscow and Dubai.

Blocking Assets and Warning Foreign Financial Institutions

OFAC has blocked all property and interests in property belonging to the designated persons in the United States. Furthermore, foreign financial institutions facilitating significant transactions or providing services involving Russia's military-industrial base may face sanctions.

Treasury's Unshakable Commitment

The Treasury Department has reiterated its commitment to safeguarding the integrity of the international financial system and pressuring Russia to alter its behavior. As Russia continues to devise new sanctions evasion tactics, OFAC remains vigilant in monitoring and responding to these challenges.