Buses wait to carry expelled diplomats and their families from the U.S. Embassy in Moscow, Russia, on Thursday. (AP Photo/Pavel Golovkin)

Buses wait to carry expelled diplomats and their families from the U.S. Embassy in Moscow, Russia, on Thursday. (AP Photo/Pavel Golovkin)

US punishes Russian oligarchs, officials with more sanctions

A dozen Russian companies owned by the oligarchs were also targeted.

  • By JOSH LEDERMAN Associated Press
  • Friday, April 6, 2018 8:17pm
  • Nation-World

Associated Press

WASHINGTON — The United States punished dozens of Russian oligarchs and government officials on Friday with sanctions that took direct aim at President Vladimir Putin’s inner circle, as President Donald Trump’s administration tried to show he’s not afraid to take tough action against Moscow.

Seven Russian tycoons, including aluminum magnate Oleg Deripaska, were targeted, along with 17 officials and a dozen Russian companies, the Treasury Department said. Senior Trump administration officials cast it as part of a concerted, ongoing effort to push back on Putin, emphasizing that since Trump took office last year, the U.S. has punished 189 Russia-related people and entities with sanctions.

Rather than punishing Russia for one specific action, the new sanctions hit back at the Kremlin for its “ongoing and increasingly brazen pattern” of bad behavior, said the officials, who weren’t authorized to comment by name and briefed reporters on condition of anonymity. The officials ticked through a list of complaints about Russia’s actions beyond its borders, including its annexation of Crimea, backing of separatist rebels in eastern Ukraine, support for Syrian President Bashar Assad, and cyber-hacking.

Above all else, Russia’s attempts to subvert Western democracy prompted the U.S. sanctions, officials said, in a direct nod to concerns that the U.S. president has failed to challenge Putin for alleged interference in the 2016 election that brought Trump to power.

Deripaska, whose business conglomerate controls assets from agriculture to machinery, has been a prominent figure in special counsel Robert Mueller’s Russia investigation over his ties to former Trump campaign chairman Paul Manafort. The Treasury Department said Deripaska was accused of illegal wiretaps, extortion, racketeering, money laundering and even death threats against business rivals.

On the London Stock Exchange, global depositary receipts of En+, an energy company majority-owned by Deripaska, dropped by 19 percent on news of the sanctions. Deripaska’s conglomerate, Basic Element, said it regretted the sanctions and was analyzing them with its lawyers.

Putin’s government dismissed the sanctions as “absurdity,” arguing that the U.S. was punishing companies that have longstanding business ties to the U.S. The Russian Foreign Ministry said the U.S. was “striking at ordinary Americans” by jeopardizing “thousands of jobs.”

“American democracy is clearly degrading,” the ministry said. “Of course, we will not leave the current and any new anti-Russian attack without a tough response.”

To the dismay of Trump’s critics and of Russia hawks, the president has continued to avoid directly criticizing Putin himself and recently invited the Russian leader to meet with him, possibly at the White House. Yet in recent weeks Trump’s administration has rolled out a series of actions — including several economic and diplomatic steps — to increase pressure on Putin and those presumed to benefit from his power.

“Nobody has been tougher on Russia than I have,” Trump said at a news conference on Tuesday.

Yet even as it rolled out the new penalties, Trump’s administration left open the possibility of “a good relationship with Russia” in the future. And at the White House, spokeswoman Sarah Huckabee Sanders said discussions with Moscow about a Trump-Putin summit would not be called off.

“Not at all,” Sanders said. “We’ll continue.”

Those being punished aren’t necessarily involved in the Russian actions in Syria, Ukraine or elsewhere that have drawn consternation from the West. But officials said the goal was to put pressure on Putin by showing that those who have benefited financially from his position of power are fair game.

The target list includes some who are closely tied to Putin himself, including top-tier officials involved in Kremlin decision-making and heads of the top state-controlled business entities. Yet others on the list are far from the Kremlin’s orbit, including some who long have fallen out of favor or hold technical positions.

Targets include:

—Kirill Shamalov, who is reportedly Putin’s son-in-law, married to his daughter Katerina Tikhonova, although neither Putin nor the Kremlin have acknowledged that she is his daughter.

—Igor Rotenberg, the son of Arkady Rotenberg, a friend of Putin’s since they were teenagers.

—Andrey Kostin, named among government officials, heads the nation’s second-largest bank, VTB, which is controlled by the state.

—Alexei Miller, the longtime head of Gazprom, the state-controlled natural gas giant. Both Miller and Kostin are longtime key members of Putin’s team.

A state-owned arms-dealing company, accused by the U.S. of selling to Assad, was also targeted, along with a subsidiary bank. Many other targets were associated with Russia’s energy sector, including parts of Gazprom.

The sanctions freeze any assets that those targeted have in U.S. jurisdictions and bar Americans from doing business with them. But the administration said it would give guidance to Americans who may currently have business with them about how to wind down that business and avoid running afoul of the sanctions. Some, but not all, of the individuals sanctioned will also be prohibited from entering the United States.

It was not clear whether any of those hit have significant holdings in the U.S. that could be seized, and if they did previously, they may have already moved their money elsewhere in anticipation of the sanctions. In January, lists of Russian officials and oligarchs were published by the State Department and Treasury. The lists, required under a law passed last year, were informally seen as lists of potential future sanctions targets, even though the public version of the oligarchs list was merely a reprint of Forbes’ list of billionaires in Russia.

The U.S. also has punished Russia for other troubling activity, including its alleged involvement in the poisoning an ex-spy with a military-grade nerve agent in Britain. In tandem with European allies, the Trump administration expelled dozens of Russian diplomats and shut down the Russian consulate in Seattle. And last month, the U.S. targeted 19 Russians and five Russian entities with sanctions in the first use of the new sanctions powers Congress passed last year in response to the election meddling.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Nation-World

FILE - Britain's Queen Elizabeth II looks on during a visit to officially open the new building at Thames Hospice, Maidenhead, England July 15, 2022. Buckingham Palace says Queen Elizabeth II is under medical supervision as doctors are “concerned for Her Majesty’s health.” The announcement comes a day after the 96-year-old monarch canceled a meeting of her Privy Council and was told to rest. (Kirsty O'Connor/Pool Photo via AP, File)
Queen Elizabeth II dead at 96 after 70 years on the throne

Britain’s longest-reigning monarch and a rock of stability across much of a turbulent century died Thursday.

A woman reacts as she prepares to leave an area for relatives of the passengers aboard China Eastern's flight MU5735 at the Guangzhou Baiyun International Airport, Tuesday, March 22, 2022, in Guangzhou. No survivors have been found as rescuers on Tuesday searched the scattered wreckage of a China Eastern plane carrying 132 people that crashed a day earlier on a wooded mountainside in China's worst air disaster in more than a decade. (AP Photo/Ng Han Guan)
No survivors found in crash of Boeing 737 in China

What caused the plane to drop out of the sky shortly before it was to being its descent remained a mystery.

In this photo taken by mobile phone released by Xinhua News Agency, a piece of wreckage of the China Eastern's flight MU5735 are seen after it crashed on the mountain in Tengxian County, south China's Guangxi Zhuang Autonomous Region on Monday, March 21, 2022. A China Eastern Boeing 737-800 with 132 people on board crashed in a remote mountainous area of southern China on Monday, officials said, setting off a forest fire visible from space in the country's worst air disaster in nearly a decade. (Xinhua via AP)
Boeing 737 crashes in southern China with 132 aboard

More than 15 hours after communication was lost with the plane, there was still no word of survivors.

Former Rep. Matt Gaetz, R-Fla., center, arrives at the U.S. Capitol in Washington D.C. with Sen. JD Vance, R-Ohio, right, the vice president-elect, on Wednesday morning. Gaetz withdrew from consideration Thursday, saying he was an unfair distraction to the transition. (Haiyun Jiang / The New York Times)
Matt Gaetz withdraws from consideration as attorney general

“It is clear that my confirmation was unfairly becoming a distraction,” Gaetz wrote Thursday on X.

Attendees react after Fox News called the presidential race for Former President Donald Trump, during an election night event at the Palm Beach County Convention Center in West Palm Beach, Fla., on Wednesday. Trump made gains in every corner of the country and with nearly every demographic group. (Haiyun Jiang / The New York Times)
Donald Trump returns to power, ushering in new era of uncertainty

Despite criminal convictions and fears of authoritarianism, Trump rode frustrations over the economy and immigration.

Voters cast their ballots at a polling place inside the Weisman Art Museum at the University of Minnesota in Minneapolis on Election Day, Tuesday, Nov. 5 2024. Voters headed into polling stations on Tuesday in the closing hours of a presidential contest that both major parties said would take the country in dramatically different directions, capping a contentious and exhausting 107-day sprint that began when President Joe Biden abandoned his bid for a second term.  (Caroline Yang/The New York Times)
Live updates: Georgia called for Trump

The Daily Herald will be providing live updates on national election developments throughout Tuesday.

Liam Payne performs during the Jingle Ball at Madison Square Garden in New York in 2017. Payne, who rose to fame as a singer and songwriter for the British group One Direction, one of the best-selling boy bands of all time, died after falling from the third floor of a hotel in Buenos Aires on Wednesday. He was 31. (Chad Batka / The New York Times)
Liam Payne, 31, former One Direction singer, dies in fall in Argentina

Payne rose to fame as a member of one of the bestselling boy bands of all time before embarking upon a solo career.

In this photo taken from video provided by the Ukrainian Presidential Press Office, Ukrainian President Volodymyr Zelenskyy speaks to the nation in Kyiv, Ukraine, Sunday, Feb. 27, 2022. Street fighting broke out in Ukraine's second-largest city Sunday and Russian troops put increasing pressure on strategic ports in the country's south following a wave of attacks on airfields and fuel facilities elsewhere that appeared to mark a new phase of Russia's invasion. (Ukrainian Presidential Press Office via AP)
Ukraine wants EU membership, but accession often takes years

President Volodymyr Zelenskyy’s request has enthusiastic support from several member states.

FILE - Ukrainian servicemen walk by fragments of a downed aircraft,  in in Kyiv, Ukraine, Friday, Feb. 25, 2022. The International Criminal Court's prosecutor has put combatants and their commanders on notice that he is monitoring Russia's invasion of Ukraine and has jurisdiction to prosecute war crimes and crimes against humanity. But, at the same time, Prosecutor Karim Khan acknowledges that he cannot investigate the crime of aggression. (AP Photo/Oleksandr Ratushniak, File)
ICC prosecutor to open probe into war crimes in Ukraine

U.N. human rights chief Michelle Bachelet confirmed that 102 civilians have been killed.

FILE - Refugees fleeing conflict from neighboring Ukraine arrive to Zahony, Hungary, Sunday, Feb. 27, 2022. As hundreds of thousands of Ukrainians seek refuge in neighboring countries, cradling children in one arm and clutching belongings in the other, leaders in Poland, Hungary, Bulgaria, Moldova and Romania are offering a hearty welcome. (AP Photo/Anna Szilagyi, File)
Europe welcomes Ukrainian refugees — others, less so

It is a stark difference from treatment given to migrants and refugees from the Middle East and Africa.

Afghan evacuees disembark the plane and board a bus after landing at Skopje International Airport, North Macedonia, on Wednesday, Sept. 15, 2021. North Macedonia has hosted another group of 44 Afghan evacuees on Wednesday where they will be sheltered temporarily till their transfer to final destinations. (AP Photo/Boris Grdanoski)
‘They are safe here.’ Snohomish County welcomes hundreds of Afghans

The county’s welcoming center has been a hub of services and assistance for migrants fleeing Afghanistan since October.

FILE - In this April 15, 2019, file photo, a vendor makes change for a marijuana customer at a cannabis marketplace in Los Angeles. An unwelcome trend is emerging in California, as the nation's most populous state enters its fifth year of broad legal marijuana sales. Industry experts say a growing number of license holders are secretly operating in the illegal market — working both sides of the economy to make ends meet. (AP Photo/Richard Vogel, File)
In California pot market, a hazy line between legal and not

Industry insiders say the practice of working simultaneously in the legal and illicit markets is a financial reality.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.