US' KleptoCapture task force targets sanction evasion networks fuelling Russia-Ukraine war

US Department of the Treasury’s Office of Foreign Assets Control (OFAC) is targeting Russia’s Sanctions Evasion Networks and the operators in the Russian technology sector to deter the entities from evading unprecedented multilateral sanctions imposed to counter the war on Ukraine. Increasing evidence has emerged in the finding reports of Washington’s top Justice Department prosecutor, the KleptoCapture task force, that Russian Oligarchs, sanctioned entities of the Kremlin, and Russian firms have been attempting to work around the US and allied nations' sanctions measures by relocating their assets. 

In a statement published on April 1, OFAC informed that it is designating 21 entities and 13 Russian entities as part of its crackdown on the Kremlin’s sanctions evasion networks that have been instrumental to the Russian Federation’s war machine.  The move is a part of the comprehensive response to Russia’s act of aggression and to restrict Kremlin’s access to resources fuelling Putin’s war. US President Joe Biden, earlier at a briefing, stated that Russian oligarchs and “corrupt leaders” have bilked billions of dollars to fund the violent regime of Putin. “No More,” he asserted, stressing that Washington will “go after the crimes of Russian oligarchs.” 

US crackdowns on Moscow's 'ill-begotten gains' to counter war atrocities in Ukraine 

Biden, along with EU allies, seized yachts, luxury apartments, private jets, and properties belonging to Russian Oligarchs to crackdown on Moscow’s what he describes as “ill-begotten gains.” The US drafted a unit known as Task Force KleptoCapture, to investigate and prosecute sanctions and investigate the evasions or any illegal efforts to undermine the West’s financial restrictions using the criminal asset forfeiture authority. 

“Russia not only continues to violate the sovereignty of Ukraine with its unprovoked aggression but also has escalated its attacks striking civilians and population centers,” said Secretary of the Treasury Janet L. Yellen. “We will continue to target Putin’s war machine with sanctions from every angle, until this senseless war of choice is over.”

One of the leading companies, Russia’s largest chipmaker, designated on the sanctions list banning the exports of more than 50 percent of Russian microelectronics, was investigated by the task force. Russia’s defence-industrial base, asserted the US Treasury, has been directly supporting Putin’s unjustified war against the people of Ukraine and exploiting their jurisdictions for its destructive aims. It added that the US government remains committed to countering the evasion of sanctions that the United States and its allies and partners have put in place to deter Moscow from its continuing military assaults in Ukraine. 

“The Treasury Department will use all authorities at its disposal to enforce sanctions against the Russian government and its proxies,” the statement from the US Treasury read on Friday. 

Russian procurement network engaged in proliferation activities, sanction evasion

Washington cracked down on the Moscow-based OOO Serniya Engineering (Serniya) that it alleged has been at the centre of a procurement network engaged in proliferation activities at the direction of Russian Intelligence Services. The network operates across multiple countries to obfuscate the Russian military and intelligence agency end-users that rely on critical western technology. Russia-based OOO Robin Treid, United Kingdom-based Majory LLP, United Kingdom-based Photon Pro LLP, and Spain-based Invention Bridge SL are front companies utilized by Serniya to facilitate its procurement of key equipment for the Government of the Russian Federation (GoR), it further informed. Another Singapore-based Alexsong Pte Ltd facilitated transactions supporting sanctions evasion by the Serniya network.

“To evade sanctions and carry out their procurement of sensitive technology, Serniya and Sertal employed a network of individuals to structure transactions and deceive counterparties,” the US Treasury informed. 

KleptoCapture task force also cracked down on key Russian technology companies that the Russian military is reliant on for its defence-industrial base to function.

Image: AP