The Biden administration has recently taken action against 15 companies and individuals involved in the development of digital services within Russia’s financial sector. These entities have been accused of facilitating the circumvention of sanctions imposed on Russia due to its involvement in the conflict in Ukraine.
The U.S. Treasury imposed sanctions on thirteen companies and two individuals on Monday. According to the Treasury, many of these targets were involved in the development or operation of blockchain-based services that facilitated the evasion of U.S. sanctions. Additionally, five of the targets were penalized for their ownership or control by individuals who had been previously designated.
“According to Brian Nelson, the under secretary of the Treasury for Terrorism and Financial Intelligence, Russia is resorting to alternative payment methods in order to evade U.S. sanctions and sustain its war against Ukraine.”
The Russian government is actively trying to use entities in the financial technology sector to its advantage. However, the U.S. Treasury Department remains committed to uncovering and thwarting any attempts by these companies to assist Russian financial institutions that have been sanctioned in reconnecting with the global financial system.
The G7 leaders pledged on February 23 to increase the costs borne by Russia in its war against Ukraine, leading to the imposition of these sanctions.
The Treasury has announced that the sanctions imposed on Monday are an extension of the numerous sanctions previously placed on Russia’s financial system. These actions come in response to the promises made to hold Russia accountable.
“We are committed to taking all necessary measures to hold accountable those who support or benefit from Russia’s unlawful conflict,” stated Matthew Miller, a spokesperson for the State Department on Monday.
Sanctions have the power to freeze all assets held by the individuals or entities that are targeted. Additionally, they prohibit any U.S. persons from engaging in business transactions with these sanctioned individuals or entities.
