US Treasury Sanctions Heads of Russian Conglomerate & Business Group

Published: 16 August 2023

Mikhail FridmanAmong the sanctioned individuals, Alfa Group’s founder Mikhail Fridman, ranks 140 on the Forbes 2023 World’s richest billionaire list. (Photo: LetterOne Group, Flickr, License)

By Erika Di Benedetto

The U.S. Treasury sanctioned on Friday four members of Russia's financial elite and a Russian business association, as part of its efforts to exert greater pressure in response to Moscow’s full-scale invasion of Ukraine.

The individuals affected by these sanctions have previously served on the supervisory board of Alfa Group Consortium, a major Russian financial and investment conglomerate with interests spanning oil, gas, investments, and banking.

Mikhail Maratovich Fridman founded Alfa Group and is the former chairman of its supervisory board. Petr Olegovich Aven currently chairs a Russian insurance company and serves on Alfa Group's supervisory board. He holds a position within a committee of the Russian Union of Industrialists and Entrepreneurs (RSPP).

German Borisovich Khan, a Ukrainian native and member of Alfa Group's supervisory board, chairs a Russian construction company and is engaged in another construction-related venture.

Alexey Viktorovich Kuzmichev is a member of Alfa Group's supervisory board and leader of a Russian investment company.

The four were designated under the Executive Order 14024 “for operating or having operated in the financial services sector of the Russian Federation economy.”

Furthermore, the sanctions targeted the Russian Association of Employers, also known as the Russian Union of Industrialists and Entrepreneurs (RSPP).

The RSPP operates within the technology sector of the Russian economy, focusing on activities related to import substitution, technology independence, and technology development.

Additionally, the association has been actively involved in addressing the sanctions imposed on Putin's regime in the wake of Russia's invasion of Ukraine.

“Wealthy Russian elites should dispel the notion that they can continue business as usual while the Kremlin is engaged in a war against the Ukrainian people,” said Deputy Secretary of the Treasury Wally Adeyemo. “Our international coalition will persist in holding accountable those facilitating the unjustified and unprovoked invasion of Ukraine."

These sanctions carry significant implications. All properties or assets owned by the designated individuals, whether within the United States or under the control of U.S. entities, are now frozen and must be reported to the Office of Foreign Assets Control (OFAC). Entities that are directly or indirectly owned by these sanctioned individuals, with a stake of 50% or more, are also subject to the same sanctions.

Any transactions involving the sanctioned individuals or their blocked assets are strictly prohibited for U.S. individuals and within the United States, unless explicitly authorized by OFAC. This prohibition includes contributions, funds, goods, or services provided by or received from the sanctioned individuals.

The individuals sanctioned by the United States have already faced sanctions from Australia, Canada, the European Union, New Zealand, and the United Kingdom.