Russian billionaires Andrei Bokarev and Iskander Makhmudov have been sanctioned by the US for allegedly making money off the Ukraine war.

Another day, another sanction

In the ongoing saga of sanctions, the U.S. has played its latest card—this time targeting Russian billionaires Bokarev and Makhmudov. These titans of wealth, along with over 150 other entities, find themselves in Uncle Sam's crosshairs, accused of profiting from Russia's incursion into Ukraine.

The move is no mere slap on the wrist. Bokarev and Makhmudov see their U.S.-based assets frozen, and the Treasury Department has pulled the plug on all U.S.-based transactions. It's a classic standoff, and the stakes are high.

Makhmudov, whose son Dzhakangir faces the same fate, founded Ural Mining and Metallurgical Company, among other Russia-based heavyweights. These entities allegedly play a part in Russia's wartime machinery, adding a darker hue to their wealth.

Bokarev, on the other hand, once steered the ship at Transmashholding JSC, a Russian manufacturing behemoth. It's alleged that Russian authorities turned to Transmashholding for infantry combat vehicle components, linking Bokarev to the war effort.

Finally, The US has sanctioned Iskander Makhmudov and Andrei Bokarev, the owners of the odious armaments company Transmashholding and Ural Mining and Metallurgical Company.
Hight time, but now they are sanctioned.
Now go for Rosatom!https://t.co/skSlQ5pE2s

— Anders Åslund (@anders_aslund) September 14, 2023

Trying to dodge the bullet

Bokarev, in an apparent attempt to dodge sanctions, is accused of weaving a web of shell companies to funnel his profits elsewhere. According to the Americans, Bokarev's connections run deep. The Treasury Department asserts he's linked to Russian Defense Minister Sergei Shoigu, among other influential Kremlin figures and their kin.

The sanctions cast a wide net, ensnaring companies supporting Russia's military efforts. The dragnet stretches from construction to energy to tech sectors, bringing a chilly wind to Russia's business landscape.

Treasury Secretary Janet Yellen isn't mincing words, “military supply chains and deprive Putin of the equipment, technology and services he needs to wage his barbaric war on Ukraine,” she said.

The impact of sanctions on Russia have been widespread, on both traditional finance and digital assets.