OFAC Sanctions 300 Entities For Supporting Russia's War Effort

Today, the Department of the Treasury’ Office of Foreign Assets Control (OFAC)  and the U.S State Department took action against Russia’s ability to execute its continued war on Ukraine by targeting companies, individuals and foreign partners that support Russia’s military-industrial complex. Specifically, OFAC and State sanctioned targets associated with Russia’s UAV, biological and chemical weapons programs. 

In addition, Treasury and State targeted procurement networks and international partners, including entities based in China, that “provide critical inputs to Russia’s military-industrial base.”

In addition to the 80 entities and individuals designated today, OFAC Included cryptocurrency addresses connected to the Russian entity Oko Design Bureau, which develops cheap, multifunctional unmanned aerial vehicles (UAVs). Oko design solicited cryptocurrency donations via a Telegram channel. The addresses, however, have received an insignificant amount of funds - under $1000 - and appear to be inactive.

While, according to TRM, Oko Design’s crypto use was insignificant, TRM Labs has identified pro-Russian paramilitary groups, including Task Force Rusich, a paramilitary group sanctioned by OFAC in September 2022, collecting cryptocurrency donations to support Russian military operations.

Today’s designations, are another move by OFAC to “disrupt and degrade Russia’s war efforts,” and “throw sand in the gears of Russia’s war machine.” They are part of OFAC’s continued effort to cut off Russia’s financial system, military, and leadership from the global financial system. While crypto did not play a significant role in today's designations, OFAC has, in the past, targeted non-compliant exchanges, fintechs, and facilitators of sanctions evasion. TRM will continue to work with Treasury and other authorities to understand and mitigate the risk of crypto being used to support Russia’s war in Ukraine.