The U.S. Department of the Treasury announced new Russia-related sanctions targeting sanctions evasion through cross-border payments, designating entities tied to a Russia–People’s Republic of China regional clearing platform arrangement for paying for sensitive goods and designating Kyrgyz Republic-based OJSC Keremet Bank for facilitating transactions linked to Russia’s military-industrial base. The release also noted that the U.S. Department of State is sanctioning more than 150 entities and individuals pursuant to Executive Order 14024. Fifteen regional clearing platform entities in Russia and China and Russian national Andrei Valeryevich Prikhodko were designated under Executive Orders 14024 and 13662 for operating in Russia’s financial services sector; the scheme reportedly involves U.S.-designated Russian banks including Sberbank of Russia, Alfa-Bank, Sovcombank, T-Bank and Bank Tochka. Keremet Bank was designated under Executive Order 14024, as amended by Executive Order 14114, after coordinating with Russian officials and Promsvyazbank to facilitate cross-border transfers, with the announcement also referencing Ilan Mironovich Shor’s involvement in related discussions. Treasury additionally re-designated almost 100 entities already designated under Executive Order 14024 under Executive Order 13662 across the financial services, energy, and defense and related materiel sectors, increasing exposure to mandatory secondary sanctions for foreign persons, including foreign financial institutions, that knowingly facilitate significant transactions for or on behalf of any of the Executive Order 13662-designated entities. All property and interests in property of designated persons within U.S. jurisdiction are blocked, and the blocking extends to entities owned 50 percent or more by one or more blocked persons, with the release pointing to updated OFAC guidance and related FAQs for foreign financial institutions.
U.S. Department of the Treasury 2025-01-15
U.S. Department of the Treasury sanctions Russia–PRC clearing platform network and Kyrgyzstani Keremet Bank and redesignates almost 100 entities under Executive Order 13662
The U.S. Department of the Treasury announced new sanctions targeting Russia-related evasion, designating entities linked to a Russia–China clearing platform and Kyrgyz Republic-based OJSC Keremet Bank. The U.S. Department of State is sanctioning over 150 entities and individuals under Executive Order 14024, including Russian and Chinese entities, Russian national Andrei Valeryevich Prikhodko, and U.S.-designated Russian banks, with increased exposure to secondary sanctions for foreign entities facilitating significant transactions.