Senate Banking Committee Considers Latest Information on Russian Sanctions

The Senate Banking Committee considered testimony on the current and future sanctions against Russia for its invasion of Ukraine.

Assistant Treasury Secretary for Terrorist Financing and Financial Crimes Elizabeth Rosenberg testified that Treasury imposed a large number of sanctions and designated hundreds of Russian individuals and entities, effectively cutting them off from the U.S. financial system. In written remarks, she added that "Treasury has mounted an aggressive campaign to close the global financial policy and regulatory loopholes across jurisdictions that Russian aiders and abettors of this war, and other criminals, use to perpetuate their illicit activity" through regulatory policy from FinCEN and working with the Financial Action Task Force ("FATF"). She said that Treasury is constantly monitoring and re-evaluating its course of action regarding sanctions and making adjustments as needed. She highlighted efforts targeting crucial sectors of the Russian economy, including the energy sector, citing the ongoing negotiations of an energy price cap for Russian-exported oil and petroleum (see related coverage).

Director of the DOJ KleptoCapture Task Force Andrew C. Adams testified on actions taken to prevent sanctions evasion, including (i) publicizing lists of sanctioned individuals and entities subject to asset freezes, (ii) monitoring export controls established by the Department of Commerce and (iii) assisting in the implementation of sanctions targeting critical economic sectors of Russia's economy. Mr. Adams said that the DOJ will continue to utilize tools such as civil and criminal forfeiture to seize assets from Russian oligarchs in support of Ukraine's defense.

Senate Banking Committee Chair Sherrod Brown (D-OH) expressed continued support for the sweeping sanctions provisions, stating that "[t]he impact of our smart and targeted economic measures has rippled throughout the Russian economy, damaging their defense industrial base." Ranking Member Pat J. Toomey (R-PA) criticized the current state of the sanctions, arguing that the sanctions currently imposed have not yet achieved their intended goal, and urged Congress to impose policies that would "crush the Kremlin's will to continue this war."