The United States, in coordination with the G7 and other international partners, has announced over 300 sanctions and restrictive economic measures targeting Russia. These actions are aimed at degrading Russia’s capacity to wage war against Ukraine. The sanctions are implemented by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and focus on individuals, entities, and sectors that attempt to circumvent or evade sanctions.
The sanctions target various sectors of the Russian economy, including architecture, engineering, construction, manufacturing, transportation, financial services, and future energy extraction capabilities. The U.S. Department of State and the U.S. Department of Commerce have also designated or identified as blocked property numerous individuals, entities, vessels, and aircraft. Export controls have been expanded to prevent Russia from accessing goods needed for the battlefield.
Furthermore, the Financial Crimes Enforcement Network (FinCEN) and the Bureau of Industry and Security (BIS) issued a joint supplemental alert urging financial institutions to remain vigilant against potential Russian export control evasion. The alert provides additional information and red flags to assist financial institutions in detecting and preventing such evasion.
The U.S. is also enhancing transparency on Russia’s immobilized assets by amending Directive 4 under Executive Order 14024. This amendment requires U.S. persons to report any property in their possession or control in which the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation has an interest.
The sanctions aim to prevent and respond to global evasion and circumvention by targeting networks involved in covert procurement for Russia’s intelligence services and military. Several individuals and entities, including Swiss-Italian businessman Walter Moretti and his network, Liechtenstein-based Trade Initiative Establishment (TIE), Netherlands-based Ronin Management B.V., and Russia’s Radioavtomatika LLC, have been designated for their involvement in procuring sensitive technologies and equipment for Russia.
The U.S. is also taking steps to prevent Russia from acquiring advanced materials, technology, and military and industrial equipment. OFAC is disrupting Russia’s access to foreign-made semiconductors and microelectronics necessary for its military-industrial complex. The actions align with the G7 Leaders’ commitment to restrict Russia’s access to technology, industrial equipment, and services supporting its war machine.
Overall, these sanctions and measures aim to tighten the vise on Russia’s ability to wage war and evade sanctions, while advancing global efforts to isolate Russia and support Ukraine.