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US Should Close Financial Sanctions 'Loophole' Benefiting Russian Elite, Senator Says

The Biden administration should close a sanctions “loophole” that allows Russian nationals to continue making “significant” deposits at U.S. banks and purchases of U.S. securities, Senate Foreign Relations Committee Chair Sen. Bob Menendez, D-N.J., said. He said the move would more closely align U.S. financial restrictions with those imposed by European allies and help cut off all access to the U.S. financial system for Russian elites who are “currently still able to keep sizable assets safe in the U.S. market.”

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“This would be an important step to deny access to the U.S. financial system for Russian elites who have benefited from [President Vladimir] Putin’s regime,” Menendez said in a March 3 letter to the treasury and state departments. “I call on you to continue to leave no stone unturned as we make sure that Putin pays a heavy, lasting price for this horrific attack on the people of Ukraine.”

Menendez also called on the administration to continue sanctioning entities and people in Belarus for aiding Russia’s military invasion of Ukraine and to “deepen the close coordination” with trading partners on sanctions. Spokespeople for Treasury and State didn’t comment.