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Russian arms dealer’s crypto wallets targeted by US Treasury sanctions

The US Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed full blocking sanctions on 22 individuals and entities in several countries, including Russia and Cyprus, as part of its sanctions busting network that supports the Russian military-industrial complex.

The sanctions were imposed under Executive Order 14024 and are part of the United States’ strategy to target global sanctions evasion, shut down key channels and limit Russian access to income from his war in Ukraine.

US Treasury Goes After Cryptos From Russian Arms Dealer

The US Treasury sanctions were imposed by the Russian Task Force on Elites, Proxies and Oligarchs (REPO), a multilateral effort to identify, freeze and seize the assets of sanctioned Russians around the world. This task force leverages information from international REPO partners and key data from the Treasury Financial Crimes Enforcement Network (FinCEN) to share information, track Russian assets, and separate Russian proxies from the international financial system.

The REPO working group aims to maximize the impact of multilateral sanctions while preventing Russia from evading or circumventing U.S. and partner sanctions.

The main sanctions target is a Russian sanctions busting network run by Russia and Cyprus-based arms dealer Igor Zimenkov and his son Jonatan Zimenkov. The Zimenkov network has been involved in projects related to Russia’s defense capabilities, including supplying a Russian company with high-tech devices after Russia’s large-scale invasion of Ukraine. They have also backed state-owned Russian defense entities Rosoboroneksport OAO and State Corporation Rostec, which are key components of Russia’s military-industrial complex.

Igor and Jonatan Zimenkov worked closely to enable sales of Russian defense equipment to third-party governments and engaged directly with potential Rosoboroneksport customers to facilitate sales of Russian defense equipment. Igor Zimenkov also supported the Belarusian military-industrial complex by facilitating efforts to sell the state-owned foreign trade unitary enterprise Belspetsvneshtechnika in Latin America.

Today, Igor Zimenkov was named for operating in the defense and related material sector of the economy of the Russian Federation, while Jonatan Zimenkov was named for materially aiding, sponsoring, or providing financial support , material or technological to Igor Zimenkov, Rosoboroneksport and other sanctioned entities.

The Zimenkov Network used shell companies to funnel money and maintain a legal appearance. Asia Trading & Construction PTE Limited, a Singapore-based front company for the Zimenkov Network, and its director, Serena Bee Lin Ng, sold helicopters to customers in Africa on behalf of the Zimenkov Network. In addition, the Cyprus-based Zimenkov network shell company Lobster Management Limited and its director, Mikhail Petrov, facilitated sanctions evasion by providing support to sanctioned entities.

Treasury OFAC continues to work with international partners to coordinate information sharing and enforcement and to travel the world in search of sanctions evasion. The sanctions imposed today are a clear signal to Russia and its military-industrial complex that the United States and its partners are committed to strengthening sanctions enforcement and preventing the evasion of international sanctions.

Disclaimer

BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.

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