Major Sanctions Developments
White House to Announce Ban on Russian Oil Imports. According to reporting from The New York Times, President Joe Biden will announce a ban on U.S. imports of Russian oil. According to the report, “it is unlikely that Mr. Biden will be joined by the leaders of European countries.”
FinCEN Issues Alert Against Russian Attempts to Evade Sanctions. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is warning financial institutions against potential Russian attempts to evade sanctions and restrictions imposed by the United States in response to the invasion of Ukraine. The FinCEN alert provides red flags to assist in identifying suspected evasion activity and reminds financial institutions of their reporting obligations under the Bank Secrecy Act. Russian attempts may occur through various means, including through currently unsanctioned Russian and Belarusian banks, or other financial institutions that retain at least some access to the international financial system.
Canada Targets Russian Media Personalities, Government Officials in New Round of Sanctions. Canada has announced additional sanctions against Russia, targeting 10 individuals on the so-called “Navalny 35” list—a list of Russia’s most senior officials and oligarchs close to Putin that imprisoned Russian opposition leader Alexey Navalny and the U.S. Congress believe are “primarily responsible for looting the Russian state and repressing human rights in Russia.” Among the Russian officials being sanctioned are Health Minister Mikhail Murashko, Kremlin spokesperson Dmitry Peskov, state television host Vladimir Solovyov, and former Justice Minister Pavel Krasheninnikov. Canada also designated Agriculture Minister Dmitry Patrushev, the son of former FSB director, current head of the Russian security council, and longtime Putin associate Nikolai Patrushev.
Australia Imposes Additional Sanctions Against Russia Over Disinformation. The Australian government announced new sanctions against 10 Russian propagandists and purveyors of disinformation who are trying to legitimatize Moscow’s invasion of Ukraine with false narratives. The country will also impose targeted financial sanctions on the Russian armed forces and targeted financial sanctions and travel bans against an additional six senior Russian military commanders responsible for implementing naval, ground, and air attacks on Ukraine. The move follows the targeted financial sanctions imposed on 11 financial institutions in Russia, including the Central Bank of Russia.
Japan Implements More Sanctions Against Russia, Belarus. Japan has implemented additional sanctions against Russia and Belarus. According to Japanese Chief Cabinet Secretary Hirokazu Matsuno, Tokyo will ban the exports of oil refining equipment to Russia and dual-use goods to Belarus. The country also added 32 Russian and Belarusian individuals and 12 entities, including military-related companies to its sanctions list. Tokyo also designated the Belarusian Ministry of Defense and a Minsk-based military semiconductor manufacturer.
Sanctions Effects and Enforcement
Multinational Corporations Continue Exodus from Russia.
On 7 March:
- The London Bullion Market Association, which oversees London’s USD 5 trillion gold market, removed six Russian refiners from its Good Delivery List.
- Jeans brand Levi Strauss announced that it will halt business in Russia.
- Tech company IBM announced that it has suspended all business in Russia.
- Proctor & Gamble will end capital investments and suspend ads in Russia.
On 8 March:
- Australian oil company Viva Energy announced that it will cease Russian crude oil purchases.
- Oil giant Shell announced that it will stop buying Russian oil and natural gas and will be shutting down its service stations, aviation fuels, and other operations in Russia.
Coinbase Blocks 25,000 Russia-Linked Digital Wallets to Guard Against Sanctions Evasion. Cryptocurrency exchange platform operator Coinbase announced that it has blocked more than 25,000 digital wallets that are linked to Russian entities to stop possible attempts to use cryptocurrency to evade sanctions imposed against Russia over its invasion of Ukraine. In a blog post, Coinbase Chief Legal Officer Paul Grewal wrote that the action was taken to support international economic sanctions that have been imposed against Russia. It also follows concerns from U.S. lawmakers and other groups about Russians’ use of digital currencies. Grewal said Coinbase shared the information about the addresses with the government to further support sanctions enforcement.
Portugal Orders Bank to Freeze Accounts of Russian Oligarchs. The Bank of Portugal ordered banks to freeze the accounts owned by people and entities associated with the Russian government. In a statement, the central bank announced that the freeze took effect on 25 February and that they are conducting continuous monitoring for new names to be added to the list. Mario Centeno, the central bank’s governor, said several sanctioned people and entities have Portuguese bank accounts but an assessment is ongoing to uncover more. Portugal’s monetary regulator did not identify those whose accounts were frozen.