The Treasury sanctions elites and companies in economic sectors that generate substantial revenue for the Russian regime

The new appointments tighten the global shift of Putin’s associates and resources

WASHINGTON –– Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed a new round of sanctions targeting Kremlin-connected elites, a major multinational corporation, and a money laundering operation. penalties, as well as a yacht in accordance with the Executive. Order (EO) 14024. These elites and companies operate in economic sectors that generate substantial income for the Russian regime, including from sources outside of Russia.

Today’s OFAC designations were made jointly with the US State Department, which imposed additional sanctions on entities and individuals as well as visa restrictions. Taken together, the actions of the State and the Treasury impose serious costs on those who support President Vladimir Putin’s war.

“As innocent people suffer from Russia’s illegal war of aggression, Putin’s allies have enriched themselves and financed opulent lifestyles,” said Treasury Secretary Janet L. Yellen. “The Treasury Department will use every tool at our disposal to ensure that Russian elites and Kremlin enablers are held accountable for their complicity in a war that has cost countless lives. Together with our allies, the U.S. they will also continue to choke off the revenue and equipment that supports Russia’s unprovoked war in Ukraine.”

Elites near the Kremlin

Andrei Grigorevich Guryev (AG Guryev) is a known close associate of the President of the Russian Federation, Vladimir Putin, and previously served in the Government of the Russian Federation; he was appointed a member of the Federation Council of the Federal Assembly of the Russian Federation in 2001, where he served until 2013. AG Guryev owns the Witanhurst Estate, which is the second largest property in London after the Palace of Buckingham.

AG Guryev is the founder and former Deputy Vice President of PhosAgro, a leading Russian chemical company. AG Guryev was appointed in accordance with EO 14024 to operate or to have operated in the accounting sector and the management consulting sector of the economy of the Russian Federation. AG Guryev has also been sanctioned by the UK. OFAC has issued FAQ 1075 to clarify that PhosAgro is not designated or otherwise blocked, and to highlight the authorization for transactions involving fertilizers and other agricultural products in General License (GL) 6B.

Today, OFAC also identified Black Alpha, a Cayman Islands-flagged yacht that AG Guryev bought for $120 million in 2014, as AG Guryev’s blocked property. Alfa Nero has reportedly shut down its location tracking hardware to avoid confiscation.

Andrei Andreevich Guryev (AA Guryev), son of AG Guryev, has been designated today pursuant to EO 14024 for operating or having operated in the financial services sector of the economy of the Russian Federation. AA Guryev has also been sanctioned by Australia, Canada, the European Union, Switzerland and the United Kingdom. He was previously the CEO of PhosAgro. AA Guryev is the 100% owner of Dzhi AI Invest OOO (DAI), an investment entity located in Russia. DAI’s activities include deposit banking, insurance and financial services. DAI was designated in accordance with EO 14024 to operate or have operated in the financial services sector of the economy of the Russian Federation.

Viktor Filippovich Rashnikov (Rashnikov) is a national and businessman of the Russian Federation who is the majority owner and Chairman of the Board of Directors of Publichnoe Aktsionernoe Obschestvo Magnitogorskiy Metallurgicheskiy Kombinat (MMK). Located in Magnitogorsk, Russia, MMK is one of the largest steel producers in the world. MMK operates a large steel producing complex that spans the entire production chain, from iron ore preparation to downstream processing of rolled steel. MMK is one of Russia’s largest taxpayers and provides a significant source of revenue to the Government of the Russian Federation. MMK and Rashnikov were designated today pursuant to EO 14024 for operating or having operated in the financial services sector of the economy of the Russian Federation. Rashnikov has also been sanctioned by Australia, Canada, the EU, Switzerland and the United Kingdom.

OFAC also designated Investitsionnaya Kompaniya MMK-FINANCE (MMK-FINANCE) i MMK Indústria Metallurgica Commerce and Port Management Sociedad Anónima (MMK Metalurji), two subsidiaries of MMK. MMK-FINANS is an investment company located in Magnitogorsk, Russia, which provides a wide range of investment, financial and consulting services for the stock market for both individuals and legal entities, including its main client, MMK . MMK Metalurji is a subsidiary based in Turkey that manufactures steel products. MMK Metalurji operates and owns two steel facilities in Turkey, as well as a seaport located in Hatay, Dortyol, Turkey. MMK-FINANS was designated in accordance with EO 14024 to operate or have operated in the financial services sector of the economy of the Russian Federation. MMK Metalurji was designated under EO 14024 to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, MMK, a person whose ownership and interest in the property is blocked in accordance with EO 14024.

In conjunction with these actions, Treasury has issued a Russia-related GL 47, which authorizes transactions that are usually incidental and necessary to settle any transaction involving MMK or any entity in which MMK directly or indirectly owns a 50 percent or further, through the 12. :01 am daylight saving time of September 1, 2022 and GL 48 related to Russia, which authorizes the divestiture or transfer of debt or equity of MMK and the settlement of related derivative contracts until at 12:01 am 2022 DST on October 3, 2022. OFAC has also issued Russia-related GL 49, which authorizes transactions that are routinely incident and necessary to settle any transaction involving MMK Metalurji or any entity in which MMK Metalurji owns, directly or indirectly, a 50 percent or more interest, until 12:01 am Eastern. standard time, January 31, 2023.

Russia’s elites

Alina Maratovna Kabaeva (Kabaeva) is a former member of the State Duma. Kabaeva was designated today pursuant to EO 14024 for being or having been a leader, official, senior executive or board member of the Government of the Russian Federation. Kabaeva has a close relationship with Putin and is the current head of the National Media Group, a pro-Kremlin empire of television, radio and print organizations. It has also been sanctioned by the EU and the United Kingdom.

Natalia Valerievna Popova (Popova) is the first deputy director of the Non-State Development Institute Innopraktika, a technology company in Russia. Popova was designated today pursuant to EO 14024 for operating or having operated in the technology sector of the economy of the Russian Federation, and for being or having been a leader, official, senior executive or member of the board of directors of LLC VEB Ventures, an entity designated pursuant to EO 14024. Popova was also designated as a spouse or adult child of Kirill Aleksandrovich Dmitriev, a person whose assets and property interests are blocked pursuant to the section 1(a)(iii)(A) ​​of EO 14024. .

Attempts to evade sanctions

Sociedad Anónima Promesa Industrial and Infrastructure Technologies (JSC PPIT) is a financial institution owned by the Russian Federal Agency for State Property Management. JSC PPIT attempted to facilitate the circumvention of sanctions imposed on the Russian Direct Investment Fund (RDIF). At the end of February 2022, RDIF Deputy General Director Anatoly Alexandrovich Braverman indicated his plans to transfer all assets and cash of RDIF to JSC PPIT. The proposal was related to the early addition of RDIF to OFAC’s list of Specially Designated Nationals and Blocked Persons.

JSC PPIT has been designated today pursuant to EO 14024 to be owned or controlled by the government of the Russian Federation or to have acted or purported to act on behalf of or on behalf of, directly or indirectly, and to operate or have operated in the financial services. sector of the economy of the Russian Federation.

The transfer of assets and cash was thought to be a viable method of circumventing the restrictions on RDIF. With today’s action, OFAC has sent a clear message that those who facilitate the evasion of US sanctions will themselves be penalized.

Relative, Anton Sergeevich Urusov (Urusov), CEO of JSC PPIT, has been designated today pursuant to EO 14024 to be or have been a leader, officer, senior executive or member of the board of directors of JSC PPIT, an entity owned and ownership interests are blocked pursuant to EO 14024 and for being or having been a leader, official, senior executive or board member of the Government of the Russian Federation.

IMPLICATIONS OF SANCTIONS

As a result of today’s action, all assets and interests owned by the above persons located in the United States or under the possession or control of US persons are frozen and must be reported to OFAC . In addition, entities that are owned, directly or indirectly, by 50% or more by one or more blocked persons are also blocked. All transactions by persons in or within (or in transit to) the United States involving property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include making any contribution or provision of funds, goods or services by, or for the benefit of, a blocked person and receiving any contribution or provision of funds, goods or services from such person.

For information on the process for requesting removal from any OFAC list, including OFAC’s list of Specially Designated Nationals and Blocked Persons, see OFAC FAQ 897. Additional information about the sanctions programs administered by OFAC.

Identification information of the persons and entities sanctioned or assets identified today.

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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!