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U.S. issues sanctions to combat Russian sanctions-evasion scheme

The Treasury Department announced a new round of sanctions against banks allegedly involved with helping Russia skirt sanctions. Photo by Maxim Shipenkov/EPA-EFE
The Treasury Department announced a new round of sanctions against banks allegedly involved with helping Russia skirt sanctions. Photo by Maxim Shipenkov/EPA-EFE

Jan. 15 (UPI) -- The Treasury Department on Wednesday announced sanctions connected with Russian secret payment channels created to skirt U.S. restrictions and a Kyrgyzstan financial institution that supports the Kremlin's military-industrial complex.

The sanctions were established to disrupt payments between actors in Russia and China to facilitate cross-border payments for "sensitive goods." The department said the Kyrgyzstan bank was also involved in the sanction evasion scheme.

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The Treasury Department said nearly 150 entities and individuals have been sanctioned for their efforts to help Russia get around various restrictions since its invasion of Ukraine which is approaching three years.

"Today's actions frustrate the Kremlin's ability to circumvent our sanctions and get access to the goods they need to build weapons for their war of choice in Ukraine," Deputy Secretary of the Treasury Wally Adeyemo said in a statement.

"Today's expansion of mandatory secondary sanctions will reduce Russia's access to revenue and goods."

The department said Russian and Chinese officials are working together to "facilitate non-cash mutual settlements for payments for so-called sanctioned goods."

Keremet Bank in Kyrgyzstan became the latest player the sanction-evasion scheme, coordinating with Russian officials and the previously sanctioned Russian bank Promsvyazbank Public Joint Stock Company, of PSB, to facilitate cross-border transfers.

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The department said the PSB has transformed into an institution that serves the Russian military and finances large state defense contracts for the Kremlin worth billions. Sanctioned Russian Moldovan oligarch Ilvan Mironovich Shor has led discissions in the Keremet sanctions scheme, the Treasury Department said.

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