Category: Sanctions News

A federal court in the District of Columbia unsealed two indictments yesterday charging multiple defendants with violations of the Arms Export Control Act (AECA) and the International Emergency Economic Powers Act (IEEPA) for their roles in separate schemes to procure and export U.S. technology to Iran between 2005 and 2013. In connection with this announcement, the Department of Treasury’s Office of Foreign Assets Control designated three of the defendants and four entities for their involvement in the procurement of equipment that supports Iran’s ballistic missile and unmanned aerial vehicle (UAV) and weapons programs.

The United States said Tuesday it is imposing a new round of sanctions on Iranian firms and people accused of procuring equipment used for Iranian drones.

Treasury’s Office of Foreign Assets Control coordinated with the FBI to designate four firms and three people in Iran and Turkey for allegedly buying equipment, including European-made engines, to be used for Iran’s drone and weapons programs.

Those targeted for sanctions include the Iran-based Defense Technology and Science Research Center, its procurement firm Farazan Industrial Engineering Inc. and two other firms along with purchasing agents from the companies.

Russia has its own financial messaging system, SPFS, which can act as a substitute for SWIFT in the domestic market. While its coverage is still much smaller than that of SWIFT – which boasts 11,000 financial organizations globally – the spread of SPFS has been gaining speed in recent months.

When asked about a spillover effect from the collapse of US lenders, which has led to a global stock rout, Peskov said problems in the American banking system cannot affect Russia in any way. “Our banking system, of course, has, let’s say, certain connections with some segments of the international financial system, but for the most part it is under illegal restrictions,” he said.

However, Peskov added that sanctions have been “a blessing in disguise” because Russia is “to a certain extent immune to the negative impact of the crisis that is now unfolding across the ocean.” 

The International Criminal Court is expected to seek the arrest of Russian officials for forcibly deporting children from Ukraine and targeting civilian infrastructure, a source said on Monday, in what would be the first international war crimes cases arising from Moscow’s invasion.

The source said the arrest warrants could include the crime of genocide, and were expected to arrive in the “short term” if the court prosecutor’s request was approved by a pre-trial judge at the Hague-based court. It was unclear which Russian officials the prosecutor might seek warrants against.

The office of the prosecutor at the ICC declined to comment.

Russia’s defense ministry did not immediately respond to a request for comment.

Moscow would be certain to reject any arrest warrants against any of its officials. But an international war crimes prosecution could deepen Moscow’s diplomatic isolation and make it difficult for those accused to travel abroad.
The source said the arrest warrants could include the crime of genocide, and were expected to arrive in the “short term” if the court prosecutor’s request was approved by a pre-trial judge at the Hague-based court. It was unclear which Russian officials the prosecutor might seek warrants against.

According to Andrew Adams, the group has focused on identifying those who are helping Russians to avoid sanctions and export controls. “I think it can be quite effective to be sanctioning facilitators,” Adams said, calling them “professional sanctions evasion brokers.” A recent report from the Treasury Department showed that more than $58 billion worth of sanctioned Russian assets have been blocked or frozen worldwide so far. Adams pointed out that KleptoCapture aims to sell the frozen yachts and other property of sanctioned Russians, despite the legal difficulties, and use the proceeds for the benefit of Ukraine. He noted, however, that this would be done in accordance with the law.

According to the report, Fridman and Aven currently own 45% of the bank via a Luxembourg-based holding company that controls the lender’s Cyprus-based parent company ABH Financial Limited. Their shares will reportedly be sold to Alfa-Bank’s third co-owner, Andrei Kosogov, for 178 billion rubles ($2.3 billion). Kosogov, who already owns a 41% stake in the bank, confirmed to FT that the deal has been agreed, but made no further comments as to the details. Alfa-Bank’s press service also confirmed on Friday that such a deal is being prepared but noted that it is too early to speak about the particulars. The sale is expected to be finalized later this spring, once it is approved by the Russian central bank and tax authorities. Unlike Kosogov, who is not subject to the Ukraine-related sanctions against Russia, both Fridman and Aven have been targeted by Western authorities for their alleged ties to the Russian government. Both billionaires have challenged the EU sanctions against them in court, and now “want to do everything they can to get out of their Russian assets so that sanctions will be removed,” one of the sources told the news outlet.

The United States has imposed sanctions on 39 entities, including many based in the United Arab Emirates and Hong Kong, that Washington said facilitate Iran’s access to the global financial system, describing them as a “shadow banking” network that moves billions of dollars.

The US Treasury Department said in a statement on Thursday that those included in the sanctions had granted companies previously slapped with Iran-related sanctions – such as Persian Gulf Petrochemical Industry Commercial Co (PGPICC) and Triliance Petrochemical Co Ltd – access to the international financial system and helped them hide their trade with foreign customers.

The company attributed the decision to the latest round of Western sanctions against Russia, saying that transactions in dollars and euros will be unavailable to any individuals residing in Russia regardless of nationality.  

The exchange also banned users based in the EU from making transfers in Russian rubles via the platform, according to media reports. When trying to make a transaction in rubles, the platform prompts users to select a ‘local currency’ for P2P.

“In order to continue using Binance P2P, users can choose other available fiat currencies,” a representative of the exchange told Forbes Russia. 

A cellist is accused of helping Vladimir Putin channel $50 million into Swiss accounts. 4 bankers are also accused of not having checked the real source of the money. Putin is believed by some to have accrued vast wealth during his time as Russian leader. Four bankers have been accused of helping Vladimir Putin’s cellist best friend channel millions of…

U.S. officials have unveiled the latest round of sanctions on Iran over its government’s violence toward women and girls amid the anti-regime protests happening around the country. In a news release, Secretary of State Antony Blinken said the Treasury Department has implemented sanctions on multiple Iranian officials, company presidents, security leaders and companies for their role in the crackdown on…

The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license. 

“The introduction of independent settlement mechanisms is being successfully carried out, which will help protect cooperation with Cuba from the negative impact of the US trade, economic and financial blockade, as well as establish ties bypassing the financial organizations of unfriendly states,” the Russian diplomat said. In January, the chairman of the Russia-Cuba Business Council, Boris Titov, said that in order to mitigate the effect of Western sanctions, the countries are considering new mechanisms for mutual settlements, including in ruble and cryptocurrencies, as well as clearing schemes.

Moscow has been also promoting its SPFS interbank messaging system as an alternative to SWIFT as the West has ramped up economic restrictions. Nearly 470 participants, including foreign entities from 14 countries, have already joined the SPFS. Russia has also accelerated efforts to move away from the US dollar and euro towards settlements in national currencies.

According to the report, the alternatives encompass “non-specialized financial messaging services” such as phone, fax, or email. Banks that are not on the EU sanctions list can use these channels to conduct business with European financial institutions if the transactions are also not subject to sanctions, the document states. It specifies payments for imports and exports of non-sanctioned goods as…

The United States has imposed a new round of Iran sanctions, targeting the country’s oil and petrochemical sales, as diplomacy between Washington and Tehran continues to stall. The measures announced on Thursday come weeks after US media reports said Washington and Tehran were working on a prisoner exchange deal. Meanwhile, Iran has accused the US of showing “bad faith” in the talks to negotiate a prisoner swap.

On March 2, 2023, the Department of Justice announced several new initiatives that prioritize the investigation and enforcement of economic sanctions evasion, export control violations, and similar economic crimes.  Deputy Attorney General Lisa Monaco announced a “surge of resources to address a troubling trend: the intersection of corporate crime and national security.” 

The United States is sounding out close allies about the possibility of imposing new sanctions on China if Beijing provides military support to Russia for its war in Ukraine, according to four U.S. officials and other sources. The consultations, which are still at a preliminary stage, are intended to drum up support from a range of countries, especially those in the wealthy Group of 7 (G7), to coordinate support for any possible restrictions. It was not clear what specific sanctions Washington will propose. The conversations have not been previously disclosed.