As the Russian invasion of Ukraine continues, U.S and European sanctions on Russia are starting to have an effect on the Russian economy and the sanctioned oligarchs. The Ruble is collapsing while company after company is stopping its operations in Russia or withdrawing altogether.
These measures will mostly affect the ordinary Russian citizen, who is not to blame for Russian President Vladimir Putin’s decision to invade Ukraine.
But the sanctions were aimed at Putin and his close circle of oligarchs. And to make sure they are effective, the U.S. has set up a special financial task force.
KleptoCapture Task Force
A few days ago, the U.S. Department of Justice set up the KleptoCapture Task Force to hunt down the assets of Putin and the sanctioned Russian oligarchs. The financial task force has four primary goals.
First, to investigate and prosecute violations of current and future sanctions that the U.S. and E.U. have imposed on Russian entities and individuals over the invasion of Ukraine. The task force will also ensure that older sanctions that were imposed in the past—primarily over the Russian interference in the 2016 U.S. presidential election and the 2014 invasion and annexation of Crimea—are enforced.
Second, to combat unlawful attempts to undermine or bypass the restrictions placed on the Russian financial institutions that have been sanctioned over the invasion of Ukraine.
Third, to monitor the crypto market and target efforts to use cryptocurrency to evade U.S. sanctions or to launder proceeds earned from foreign corruption.
And finally, to seize the assets of sanctioned individuals by using civil and criminal asset forfeiture authorities.
“The Justice Department will use all of its authorities to seize the assets of individuals and entities who violate these sanctions. We will leave no stone unturned in our efforts to investigate, arrest, and prosecute those whose criminal acts enable the Russian government to continue this unjust war. Let me be clear: if you violate our laws, we will hold you accountable,” U.S. Attorney General Merrick B. Garland said in a press release.
The KleptoCapture Task Force will complement the efforts of the joint, multinational task force that the U.S. and European Union had announced immediately after the first sanctions.
“To those bolstering the Russian regime through corruption and sanctions evasion: we will deprive you of safe haven and hold you accountable. Oligarchs be warned: we will use every tool to freeze and seize your criminal proceeds,” U.S. Deputy Attorney General Lisa O. Monaco said.
Yachts, Superyachts, and Real Estate
U.S. and European authorities have also been seizing the yachts, superyachts, and properties of the sanctioned Russian oligarchs.
Some of the seizures American and European officials have made thus far include Igor Sechin’s “Amore Vero” yacht (worth $116 million), Alisher Usmanov’s “Dilbar” superyacht (worth $600), Alexei Mordashov’s “Lady M” yacht (worth $70 million), Gennady Timchenko’s “The Lena” yacht (worth $54 million), Alisher Usmanov’s villa in Sardinia, Italy (worth $18 million), and Vladimir Soloviev’s real estate in Lake Como, Italy (worth $8 million).
1945’s New Defense and National Security Columnist, Stavros Atlamazoglou is a seasoned defense journalist specializing in special operations, a Hellenic Army veteran (national service with the 575th Marine Battalion and Army HQ), and a Johns Hopkins University graduate. His work has been featured in Business Insider, Sandboxx, and SOFREP.