New York company violates Russia sanctions, loses over $7 million
Photo: the sanctions violation is linked to Russian oligarch Oleg Deripaska (Getty Images)
The US government has imposed a fine of more than $7 million on the New York–based company Gracetown Inc. for conducting financial transactions that violated sanctions against Russia, including measures targeting oligarch Oleg Deripaska, according to the Office of Foreign Assets Control (OFAC) at the US Department of the Treasury.
OFAC stated that Gracetown must pay $7,139,305. The company was accused not only of violating the sanctions regime but also of failing to file required reports on blocked assets. The fine is close to the maximum penalty, which, according to OFAC, underscores the serious consequences of non-compliance with sanctions regulations.
The investigation found that between April 2018 and May 2020, Gracetown received 24 payments totaling $31.2 thousand on behalf of a company linked to Deripaska. At that time, the businessman was already under US sanctions, and OFAC had formally warned against any direct or indirect transactions with him. Additionally, the company failed to report blocked assets for more than 45 months.
Gracetown Inc. was established in 2006 to manage three luxury properties in New York and Washington, purchased by Deripaska through various legal entities. From 2006 to 2018, the Russian oligarch was the company’s ultimate beneficiary.
For context, last month, US President Donald Trump stated he would soon introduce "powerful sanctions" against Russia - stronger than any he had previously announced.
It was also reported that in October, the US imposed sanctions on Russian oil giants Rosneft, Lukoil, and 36 of their subsidiaries to pressure the Kremlin into negotiations on Ukraine. Immediately afterward, the market value of both companies dropped sharply, forcing them to sell off foreign assets.
