As Russia’s conflict with Ukraine enters its third month, the US Treasury is targeting companies, oligarchs, and bitcoin miners operating in Russia for the first time.
Treasury officials announced Thursday that the department is now investigating the Russian commercial bank Transkapitalbank, as well as a network of more than 40 individuals, including oligarchs such as Konstantin Malofeyev, for allegedly assisting the Kremlin in evading economic sanctions.
Treasury undersecretary for terrorism and financial intelligence, Brian Nelson, stated that:
“The Treasury has the authority and will pursue those who dodge, seek to evade, or aid in the evasion of US sanctions against Russia, as they contribute to Russian President Vladimir Putin’s barbaric war of choice.”
The sanctions were announced while Russian officials were in Washington for meetings with the Group of 20. Several officials, including Treasury Secretary Janet L. Yellen walked out of a meeting on Wednesday when Russia’s finance minister was about to speak.
British and Canadian officials also joined the boycott, emphasising the tense atmosphere at the summit intended to address global issues such as mounting debt and a potential food crisis.
The Treasury Department imposed fines on Russian entities involved in the virtual currency mining industry. Russia is the world’s third-largest bitcoin mining destination, according to Cambridge University data.
It targeted BitRiver’s holding company and ten of its Russian subsidiaries, emphasising that the US was determined to ensure that no asset became a tool for Putin to use to mitigate the impact of sanctions.
BitRiver was founded in 2017 and, as the name suggests, powers its mining farms with hydroelectric energy. The mining company employs approximately 200 full-time employees across three offices in Russia.
The US government has long accused oligarchs like Malofeyev of being major financiers of Russian separatists in Crimea. Following Russia’s annexation of Crimea in 2014, the Obama administration named him.
Meanwhile, Secretary of State Antony Blinken announced in a statement that the US State Department has placed visa restrictions on more than 600 people in an effort to promote accountability for human rights abuses and violations, prohibiting them from travelling to the US.
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