The Office of Foreign Assets Control announced the following sanctions action last week.
Russia-related Sanctions
OFAC fines NY property manager for Russia sanctions violations: On December 4, the U.S. OFAC announced a $7.1 million penalty against Gracetown Inc., a New York property management firm, for violating Russia-related sanctions and failing to report blocked assets. Between April 2018 and May 2020, Gracetown processed 24 payments totaling $31,250 for a company ultimately owned by sanctioned Russian oligarch Oleg Deripaska, despite prior OFAC warnings prohibiting such dealings. The firm also failed to report blocked assets for more than 45 months. Read more. Read the enforcement action.
OFAC settles with IPI Partners for Russia sanctions violations: On December 4, OFAC announced an $11.5 million settlement with Chicago-based private equity firm, IPI Partners, LLC for 51 apparent violations of Russia-related sanctions. In 2017–2018, IPI solicited and received investments from Russian oligarch Suleiman Kerimov through complex legal structures and continued to maintain those investments for four years after Kerimov’s designation in April 2018. OFAC classified the conduct as non-egregious and not voluntarily self-disclosed. Read more.
OFAC extends Lukoil wind-down license: OFAC issued General License 128B, authorizing certain transactions involving Lukoil retail service stations located outside Russia through April 29, 2026. Lukoil has ~200 Lukoil-branded petrol stations in New Jersey, Pennsylvania, and New York. The license permits transactions ordinarily incident and necessary to purchase goods and services from, or maintain, operate, or wind down these stations. The license does not authorize transactions prohibited under Directives 2 or 4 of E.O. 14024, dealings with other blocked persons, or transfers to accounts in Russia. General License 128B replaces 128A effective December 4, 2025. Read more. Read FAQ 1225 which clarifies activities authorized by General Licenses 128B and 131.
Foreign Terrorist Organization Sanctions
OFAC targets affiliates of Tren de Aragua: On December 3, OFAC sanctioned key affiliates of Tren de Aragua (TdA), a designated Foreign Terrorist Organization. The action includes Venezuelan entertainer Jimena Romina Araya Navarro (“Rosita”), part of a network of five individuals in the entertainment industry who provided material support to TdA. Rosita reportedly helped TdA leader Héctor Rusthenford Guerrero Flores (“Niño Guerrero”) escape from prison in 2012. Others in the network allegedly laundered money for TdA leaders. OFAC also designated five additional TdA affiliates and one South American entity. Read more.
