Many of these individuals are believed to participate in, or benefit from, the Russian regimes kleptocracy, along with their family members. While UniCredit has said it is evaluating all options, including an exit from Russia, Orcel has cautioned extricating the bank would take time, given obligations to staff and customers and the desire to preserve value for shareholders. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, the GoR, and for operating or having operated in the financial services sector of the Russian Federation economy. In particular, payments for energy are from production to consumption. international organizations and entities; agricultural and medical commodities and the COVID-19 pandemic; the wind down of transactions involving certain blocked persons; and. 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions (the Russia-related CAPTA Directive). 9, Prechistenskaya emb., Moscow, 119034, Russian Federation, This page was last edited on 13 July 2022, at 20:13. Turkey shares a maritime border with Ukraine and Russia in the Black Sea and has good relations with both. 14024, Prohibitions Related to New Debt and Equity of Certain Russia-related Entities (the Russia-related Entities Directive) to prohibit transactions and dealings by U.S. persons or within the United States in new debt of longer than 14 days maturity and new equity of Russian state-owned enterprises, entities that operate in the financial services sector of the Russian Federation economy, and other entities determined to be subject to the prohibitions in this directive. UniCredit had not voluntarily self-disclosed these violations to OFAC prior to the initiation of the investigation. The 12 Otkritie subsidiaries designated today include an insurance company, a bank, and other financial services companies in Russia and Cyprus. VTB Bank was designated pursuant to E.O. ZAO International Moscow Bank (IMB) was founded on 19 October 1989. 14024 for being the spouse or adult child of Soloviev, a person whose property and interests in property are blocked pursuant to E.O. Find COVID-19 vaccines near you. All entities owned 50 percent or more, directly or indirectly, by Sovcombank are subject to blocking under E.O. The payment structure fell outside of the authorization of the general license to receive legal fee payments from an SDN person. In addition, 20 VTB Bank subsidiaries were designated pursuant to E.O. According to a publication by the Directorate of Defense Trade Controls, The FAA Modernization and Reform Act of 2012 for Unmanned Aircraft Systems (http://www.hse-uav.com/faa_modernization_and_reform_act_2012.htm) creates a statutory basis for [], By Juhi Tariq Which cases have been considered egregious? 13661 for being an official of the GoR. Nikolai Platonovich Patrushev (Nikolai Patrushev) is the Secretary of the Russian Federation Security Council and is reported to be a longtime close associate of Putin. Igor Sechin was previously designated in April 2014 pursuant to E.O. cookies UniCredit is among Europe's banks with the largest exposure to Russia, where it runs the country's 14th-largest lender. [8], In 2010, the bank's share in the Russian lending market was 2.18%, in the deposit market 1.36%. the rejection of transactions involving certain blocked persons. Sergei S. Ivanov was also designated pursuant to E.O. These subsidiaries include banks, trusts, insurance companies, and other financial companies located in Russia and six other countries. Andrey Patrushev was also designated pursuant to E.O. The 22 Sovcombank subsidiaries designated today include a variety of financial services companies in Russia and Cyprus. UniCredit was found to have purposely avoided mentioning IRISL in its wired instructions through U.S. financial institutions. Mitigating factors: No prior penalty notice or Finding of Violation from OFAC in the past five years Existence of a compliance program that [], From NYT: President Trump signed legislation on Wednesday imposing sanctions onRussiaand limiting his own authority to lift them, but asserted that the measure included a number of clearly unconstitutional provisions and left open the possibility that he might choose not to enforce them as lawmakers intended. Senior executives at state-owned banks, like Kremlin-linked elites, take advantage of their closeness to the Russian power vertical to advance the interests of the Russian state while maintaining an extravagant standard of living. In addition, 22 Sovcombank subsidiaries were designated today pursuant to E.O. The following Sberbank subsidiaries are subject to the Russia-related CAPTA Directive: The property and interests in property of the following VTB Bank subsidiaries are blocked: The property and interests in property of the following Otkritie subsidiaries are blocked: The property and interests in property of the following Sovcombank subsidiaries are blocked: U.S. Treasury Announces Unprecedented & Expansive Sanctions Against Russia, Imposing Swift and Severe Economic Costs, Budget, Financial Reporting, Planning and Performance, Financial Markets, Financial Institutions, and Fiscal Service, Treasury Coupon-Issue and Corporate Bond Yield Curve, Treasury International Capital (TIC) System, Kline-Miller Multiemployer Pension Reform Act of 2014, Treasury Applauds Appointment of Chief Lynn Malerba as Treasurer of the United States, The U.S. Economic Recovery in International Context, Statement by the Group of Creditors of Ukraine, Joint Statement on the EU U.S. Joint Financial Regulatory Forum, Treasury International Capital Data for May, Statement by Secretary of the Treasury Janet L. Yellen on Debt Service Relief by Group of Creditors of Ukraine, Remarks by Secretary of the Treasury Janet L. Yellen at LG Sciencepark, Remarks by Secretary of the Treasury Janet L. Yellen at Bilateral Meeting with Deputy Prime Minister and Minister of Economy and Finance of the Republic of Korea Choo Kyung-ho, This week at a tour of LG Sciencepark in Seoul to view cutting-edge inputs for American manufacturing like EV batte https://t.co/yNnko2ZuC7, RT @SecYellen: In Seoul today, I've had conversations with women economists and entrepreneurs all leaders in their field who described su, Form 941, employer's quarterly federal tax return. Twitter Igor Ivanovich Sechin (Igor Sechin) is the Chief Executive Officer (CEO), Chairman of the Management Board, and Deputy Chairman of the Board of Directors of Rosneft, one of the worlds largest publicly traded oil companies. Correspondent and Payable-Through Account Sanctions on Sberbank. VTB Bank is majority-owned by the GoR, which deems it to be a systemically important financial institution. used on our website in accordance with the relevant legislation. for a number of reasons, such as keeping FT Sites reliable and secure, Novikombank was designated pursuant to E.O. It holds the largest market share of savings deposits in the country, is the main creditor of the Russian economy, and is deemed by the GoR to be a systemically important financial institution. SDN list []. Pursuant to E.O. Joint Stock Commercial Bank Novikombank (Novikombank) is state-owned and among the 50 largest financial institutions in Russia. The United States consulted closely with partners to tailor the economic costs of these actions to weigh most heavily on the Government of the Russian Federation (GoR) and its economy while mitigating impacts to America and its allies. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, the GoR, and for operating or having operated in the financial services sector of the Russian Federation economy. As part of the settlement agreement with OFAC, UniCredit Bank agreed to cease the activities that were in apparent violation of U.S. sanctions and pay $553,380,758.68 to OFAC for the discharge of the violations. [10], "Transfer of CEE Division from Bank Austria to UniCredit SpA", " ", "New official name and legal form of AO UniCredit Bank", "Forbes ", " , , ", " 31 2010 2010 ", https://en.wikipedia.org/w/index.php?title=UniCredit_Bank_Russia&oldid=1098014486, Russian subsidiaries of foreign companies, Short description is different from Wikidata, Articles containing Russian-language text, Official website different in Wikidata and Wikipedia, Articles with Russian-language sources (ru), Creative Commons Attribution-ShareAlike License 3.0. Todays action pursuant to the Russia-related Entities Directive further expands the number of Russian entities subject to prohibitions related to new debt and equity. Ivan Igorevich Sechin, son of Igor Ivanovich Sechin. Many serve in leadership roles of companies designated or identified today. tklaynz. Investors in China, India, or Turkey countries that have not backed sanctions against Russia could be interested in assets whose price has been lowered by the flight of Western firms following the war in Ukraine. The main focus is on lending to small and medium-sized enterprises; the retail services sector is developing less actively. The actions also target nearly 80 percent of all banking assets in Russia and will have a deep and long-lasting effect on the Russian economy and financial system. read more. Whats Going to Happen with Exports of Commercial Drones? 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The sanctions the United States is imposing today cut off major parts of the Russian financial system and economy from access to this important financial infrastructure and the U.S. dollar more broadly. The GoR identifies it as a systemically important Russian financial institution. These actions are specifically designed to impose immediate costs and disrupt and degrade future economic activity, isolate Russia from international finance and commerce, and degrade the Kremlins future ability to project power. UniCredit held talks with local bidders, but escalating Western sanctions have hampered those efforts, prompting an extension of the search to include countries such as China, Turkey and India, where one of the sources said buyers could be open to a bargain. 13662. Puchkov also has other business interests beyond VTB, including Moscow-based real estate companies Limited Liability Company Atlant S and Limited Liability Company Inspira Invest A. Solovievs wife, Galina Olegovna Ulyutina (Ulyutina), was previously implicated in a golden passport scheme. Sanctioned oligarchs and powerful Russian elites have used family members to move assets and to conceal their immense wealth. Accordingly, U.S. financial institutions must reject such transactions unless exempt or authorized by OFAC. Public Joint Stock Company Bank Financial Corporation Otkritie (Otkritie) is deemed by the GoR to be a systemically important Russian state-owned credit institution and is Russias seventh largest financial institution. OFAC has imposed full blocking sanctions on VTB Bank, Russias second-largest financial institution, which holds nearly 20 percent of banking assets in Russia. Treasurys sustained financial diplomacy over several months, on a near daily basis with partners and allies and at every level, has strengthened a unity of purpose, resolve, and technical coordination to deliver a broad array of impactful measures that will be felt deeply in Russia. The clients name resembled a person on the SDN list and the funds were blocked due to a lack of timely [], The OFAC Law Group was granted an OFAC specific license to obtain payment from an SDN client. It was a wholly owned subsidiary of Italy-based UniCredit Group. 14024 for being or having been leaders, officials, senior executive officers, or members of the board of directors of the GoR. Targeting Russias Two Largest Financial Institutions. This will sever a critical artery of Russias financial system. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Sovcombank. To implement this action, OFAC issued Directive 3 under E.O. 6698 sayl Kiisel Verilerin Korunmas Kanunu uyarnca hazrlanm aydnlatma metnimizi okumak ve sitemizde ilgili mevzuata uygun olarak kullanlan, Europe's banks brace for bumpy ride after cheap money decade, Turkey deports thousands of foreigners who disrupt public order, Turkey launches construction of last reactor of its 1st nuclear plant, Guterres travels to Istanbul for finalizing Ukraine grain deal, 'Greece's violation of Turkey's airspace unacceptable', Turkey builds thousands of homes for displaced in Syria's Idlib. 13661. Limited Liability Company Atlant S and Limited Liability Company Inspira Invest A were designated pursuant to E.O. click These three financial institutions play significant roles in the Russian economy, holding combined assets worth $80 billion.

Treasury is also sanctioning additional Russian elites and their family members and imposing additional new prohibitions related to new debt and equity of major Russian state-owned enterprises and large privately owned financial institutions. to read our informative text prepared pursuant to the Law on the Protection of Personal Data No. 14024 for operating or having operated in the financial services sector of the Russian Federation economy. In 2015, many believed to have seen an announcement by the Department of State relaxing drone exports, but a close look at the announcement suggests otherwise. 6698 and to get information about the He is also a permanent member of the Security Council of the Russian Federation. Otkritie was designated pursuant to E.O. Sberbank and other affiliated entities determined to be subject to the Russia-related CAPTA Directive have been added to OFACs List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions (CAPTA List), a reference tool that provides actual notice of OFAC actions with respect to foreign financial institutions for which the opening or maintaining of a correspondent account or a payable-through account in the United States is prohibited or subject to one or more strict conditions. The vast majority of those transactions will now be disrupted. personalising content and ads, providing social media features and to analyse how our Sites are used. List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions (CAPTA List), Directive 3 under E.O. UniCredit had processed transactions in violation of Iran, Sudan, Cuban, Myanmar, and Syria sanctions regimes. All entities owned 50 percent or more, directly or indirectly, by VTB Bank are subject to blocking, even if not identified by OFAC. 14024 for being owned or controlled by, directly or indirectly, VTB Bank. OFAC redesignated Igor Sechin pursuant to E.O. Sovcombank was designated pursuant to E.O. They are now heavily restricted from raising money through the U.S. market a key source of capital and revenue generation, which limits the Kremlins ability to raise money for its malign activity including to support the further invasion of Ukraine. Within 30 days, OFAC is requiring all U.S. financial institutions to close any Sberbank correspondent or payable-through accounts and to reject any future transactions involving Sberbank or its foreign financial institution subsidiaries. Italian bank UniCredit has widened its search for a buyer for its Russian business beyond local investors, as it steps up efforts to leave the country, two people with knowledge of the matter said. Sergei B. Ivanov is reportedly one of Putins closest allies and previously served as the Chief of Staff of the Presidential Executive Office, Deputy Prime Minister, and Defense Minister of Russia. The U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC) today imposed expansive economic measures, in partnership with allies and partners, that target the core infrastructure of the Russian financial system including all of Russias largest financial institutions and the ability of state-owned and private entities to raise capital and further bars Russia from the global financial system. Andrey Sergeyevich Puchkov (Puchkov) and Yuriy Alekseyevich Soloviev (Soloviev) are two high-ranking VTB Bank executives who work closely with VTB Bank chief executive Andrei Kostin, whom OFAC designated in April 2018 pursuant to E.O. 14024, OFAC identified the following 11 Russian entities as being owned or controlled by, or having acted or purposed to act for or on behalf of, directly or indirectly, the GoR: Pursuant to E.O. Orcel, a former investment banker, has used asset swaps, switching, for example, a loan to a Russian company with a Russian bank's loan to a European borrower, to cut its exposure to Russia.

Sergei Borisovich Ivanov (Sergei B. Ivanov) is the Special Presidential Representative for Environmental Protection, Ecology, and Transport. Sberbank is uniquely important to the Russian economy, holding about a third of all bank assets in Russia. We are united in our efforts to hold Russia accountable for its further invasion of Ukraine while mitigating impacts to Americans and our partners. journalists in 50+ countries covering politics, business, innovation, trends and more. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of the GoR. This will fundamentally imperil Russias ability to raise capital key to its acts of aggression. UniCredit in November exercised an option to sell its 10% in ABH Holdings, the owner of Alfa-Bank, expecting the deal to close by March, according to filings. Sberbank is the largest financial institution in Russia and is majority-owned by the GoR. Try full digital access and see why over 1 million readers subscribe to the FT, FT print edition delivered Monday - Saturday along with ePaper access, Premium FT.com access for multiple users, with integrations & admin tools, UniCredit chief says bank considering Russia exit, Purchase a Trial subscription for $1 for 4 weeks, You will be billed $69 per month after the trial ends, Purchase a Digital subscription for $7.22 per week, You will be billed $40 per month after the trial ends, Purchase a Print subscription for $5.75 per week, You will be billed $50 per month after the trial ends, Purchase a Team or Enterprise subscription for per week, You will be billed per month after the trial ends, Donald Trump was glued to Fox News as January 6 riot unfolded, committee hears, MI6 chief says Russia about to run out of steam in Ukraine, EU solidarity frays as some member states question plan to slash gas use, Captured nuclear plant doubles as launch pad for relentless Russian rocket attacks, Draghi walked into a trap: leaders ultimatum shatters Italys stability, The semiconductor chip pendulum is slowly swinging west, Snap shares plummet as advertising demand slumps, US charges former Coinbase employee with insider trading, Joe Biden has contracted Covid, White House says, Tata threatens to close Port Talbot steelworks without 1.5bn of aid, The rising risk of audit orphans in a dysfunctional UK market, Barcelona seals further 300mn from US group Sixth Street, HSBC installs Communist party committee in Chinese investment bank, Kuwait sovereign wealth fund fires head of London office, China reckons with its first overseas debt crisis, Pakistans rupee falls fast as default fears intensify, Live news updates: Port of Dover declares critical incident as UK summer getaway kicks off, Live news updates from July 21: ECB ends 11-year interest rate freeze, Mario Draghi resigns, Italian bonds sell off after Draghi resigns and ECB boosts rates, Chronic illness makes UK workforce the sickest in developed world, The world isnt prepared for a wave of sovereign debt defaults, Planting trees is not a panacea we need to save existing forests, Why ending favouritism is the key to building a diverse workforce, Why an executive coach is now a must-have for CEOs, Corinne Le Qur: Could we just adapt to climate change? Building off of President Bidens initial sanctions announcement this week, today Treasury is taking action against Russias top financial institutions, including sanctioning by far Russias two largest banks and almost 90 financial institution subsidiaries around the world. Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service. 14024 for being the spouse or adult child of Igor Sechin, a person whose property or interests in property are blocked for being or having been a leader, official, senior executive officer, or member of the board of directors of the GoR. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of the GoR. The prohibitions of the Russia-related CAPTA Directive take effect beginning at 12:01 a.m. eastern daylight time on March 26, 2022. Elites close to Putin continue to leverage their proximity to the Russian President to pillage the Russian state, enrich themselves, and elevate their family members into some of the highest positions of power in the country at the expense of the Russian people. [6], Until October 2016, 100% of the bank's voting shares belonged to UniCredit Bank Austria AG (Vienna, Austria), which is part of the Italian group UniCredit. In April 2019, UniCredit Bank entered into a settlement agreement with the Department of Treasury Office of Foreign Assets Control (OFAC). 14024. Payments that Sberbank attempts to process in U.S. dollars for its clients with examples ranging from to technology to transportation will be disrupted and rejected once the payment hits a U.S. financial institution. Alcohol and Tobacco Tax and Trade Bureau (TTB), Financial Crimes Enforcement Network (FinCEN), Office of the Comptroller of the Currency (OCC), Treasury Inspector General for Tax Administration (TIGTA), Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Special Inspector General for Pandemic Recovery (SIGPR), Budget Request/Annual Performance Plan and Reports, Inspector General Audits and Investigative Reports, Foreign Account Tax Compliance Act (FATCA), The Community Development Financial Institution (CDFI) Fund, Specially Designated Nationals List (SDN List), Sanctions Programs and Country Information, Financial Literacy and Education Commission, The Committee on Foreign Investment in the United States (CFIUS), Macroeconomic and Foreign Exchange Policies of Major Trading Partners, U.S.-China Comprehensive Strategic Economic Dialogue (CED), Small and Disadvantaged Business Utilization, Daily Treasury Par Real Yield Curve Rates, Debt Management Overview and Quarterly Refunding Process, U.S International Portfolio Investment Statistics, Report Fraud Related to Government Contracts, Cashing Savings Bonds in Disaster-Declared Areas, Community Development Financial Institution (CDFI) Fund, Electronic Federal BenefitPayments - GoDirect, General Property, Vehicles, Vessels & Aircraft, United States Acts in Tandem with Partners and Allies to Maximize Consequences for Russia, and in Show of Unity Against Invasion of a Sovereign State, Top Ten Russian Financial Institutions Now Under U.S Restrictions; U.S. Ready to Impose Additional Major Costs.