US Treasury Sanctions Nearly 400 Individuals and Entities for Supporting Russia’s War Machine

Today, the United States Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned nearly 400 individuals and entities in their ongoing effort to intensify pressure on Russia amidst their ongoing invasion of Ukraine. These measures aim to decrease Russia’s ability to rely on transnational networks and business operations for sanctions evasion. Today’s designation included sanctions against entities and individuals involved in Russia’s technological base, Russia’s metals and mining sector, and Russia’s financial technology sector. 

A key aspect of the designation targeted Russia’s domestic war economy, including independent and state-owned enterprises that provide materials in and services for Russia’s ongoing war effort. Included in this was Vostok Design Bureau, a Russia-based company involved in UAV development for military use. Most notably, Vostok Design Bureau manufactures the “Scalpel” UAV, which has been used as a loitering munition by Russian troops in Ukraine. Vostok Design Bureau’s website includes a section titled “Support Us,” where the crypto address in today’s designation can be seen. 

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According to, the designated address for Vostok Design Bureau has sent over $36,000 in funds to intermediary addresses which have sent and received significant volumes from global exchanges and Garantex, the Russian exchange that was sanctioned on April 5, 2022.

In addition, OFAC designated UAE-based, UK-sanctioned Paloma Precious, a precious metals trading firm that has helped move Russian gold abroad. According to Treasury, Paloma Precious and U.S.-designated Taube Precious HK Limited played a key role in numerous illicit Russian gold trading and laundering schemes, including with U.S.-designated Andrey Dmitriyevich Sudakov Sudakov. Sudakov, an employee of U.S.-designated Russian gold producer Public Joint Stock Company Polyus, and his Hong Kong-based associate Mu Xiaolu (Mu), engaged in a complex, multi-layered laundering scheme whereby payments from the sale of Russian-origin gold were converted into fiat currency and cryptocurrencies through numerous UAE and Hong Kong-based front companies.

Today’s sweeping sanctions designations are an attempt to further isolate Russia’s war economy from the international financial system and disrupt its military-industrial base. By increasing the sanctions risk for foreign financial institutions and restricting access to critical technologies, the U.S. and its allies intend to diminish Russia's capacity to sustain its aggression against Ukraine.

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