US intensifies enforcement of sanctions to throttle Russian evasion

It sanctions more firms, individuals alleged to have helped Moscow bypass restrictions

- Jonathan Eyal

LONDON - The United States government has moved to sanction hundreds of what it called "enablers" who allegedly facilitate the evasion of sanctions slapped on Russia in retaliation for its all-out invasion of Ukraine.

Since that invasion started in February 2022, the US authorities have sought to tighten the economic noose imposed on Russia with repeated waves of sanctions aimed at wealthy Russian individuals - often referred to as oligarchs - and Russian enterprises.

But a sweeping new list of sanctioned individuals and companies released on Oct 30 by the Office of Foreign Assets Control (OFAC) - a financial intelligence and enforcement agency operating under the US Treasury Department - belongs to a new category. The so-called "secondary sanctions" are aimed at those who allegedly help either the Russian authorities or Russia's proxies to bypass existing sanctions.

And it also signifies a fresh determination in Washington to flex America's financial muscle.

The new OFAC list affects entities based in 17 countries, including some registered in Singapore. For the first time, it also targets lawyers based in Switzerland accused of exploiting legal loopholes to facilitate the illegal flow of Russian money.

In keeping with its usual practice, OFAC has released no factual evidence to support its accusations.

Yet there is no doubt about the grave consequences of OFAC's listing. Any company or individual engaging in any activity with those on the new sanctions list could be subject to heavy fines and criminal charges from the US authorities if they ever set foot in America or somehow fall under a US jurisdiction.