U.S. blacklists Russian companies aiding sanctions evasion through digital assets

March 26 (UPI) -- The Biden administration has blacklisted 15 companies and individuals on accusations of being behind the creation of digital services in Russia's financial sector that enable the evasion of sanctions imposed upon the country over its war in Ukraine.

Thirteen companies and two people were sanctioned on Monday by the U.S. Treasury, which said many of the targets had either developed or were operating the blockchain-based services that enabled the evasion of U.S. sanctions. Five of the targets were hit for being owned or controlled by previously designated individuals, it said.

"Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine," Brian Nelson, under secretary of the Treasury for Terrorism and Financial Intelligence, said in a statement.

"As the Kremlin seeks to leverage entities in the financial technology space, Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system."

The sanctions follow the leaders of the Group of Seven nations on Feb. 23 pledging to raise the costs shouldered by Russia to wage its war against Ukraine.

The Treasury said the Monday sanctions also build off the hundreds of sanctions it imposed on Russia's financial system a day after that vow was made.

"We will continue to take all appropriate action to promote accountability for those who enable or profit from Russia's illegal war," State Department spokesman Matthew Miller said Monday in a statement.

Sanctions freeze all assets in the name of those targeted and bar U.S. persons from doing business with them.