U.S. Sanctions Against Russia Have Global Reach, Treasury Says

U.S. sanctions imposed on Russians because of the nation’s annexation of Crimea will have an international reach, said Treasury Undersecretary for Terrorism and Financial Intelligence David Cohen.

The Treasury last month designated 31 individuals, including Crimean separatist leaders and Russian government officials, as well as a St.Petersburg-based OAO Bank Rossiya. Foreign ministers from North Atlantic Treaty Organization countries convened yesterday in Brussels with Ukraine and the disputed Black Sea peninsula on the agenda.

Those affected by the U.S. sanctions include billionaire Gennady Timchenko, whose activities in the energy industry have been directly linked to President Vladimir Putin, and Yuri Kovalchuk, the largest shareholder of Bank Rossiya and personal banker for senior officials of the Russian Federation, Cohen said in written testimony to a Senate subcommittee today.

“Those designated have had their assets in the U.S. frozen and are barred entirely from conducting business with, in, or through the United States,” Cohen said. “They will also find it very difficult to conduct business outside the U.S., because our experience with other sanctions programs has demonstrated that major financial centers around the world often adhere to U.S. guidelines when it comes to the implementation of sanctions.”

The U.S. is in daily communication with its counterparts in the Group of Seven, the European Union, and other countries with significant financial and economic links to Russia to discuss how to best adopt collective measures, Cohen also said.

To contact the reporter on this story: Kasia Klimasinska in Washington at kklimasinska@bloomberg.net

To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net Brendan Murray

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