The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed full blocking sanctions against 22 individuals and entities across multiple countries related to a sanctions evasion network supporting Russia’s military-industrial complex.
Today’s action, taken pursuant to Executive Order (E.O.) 14024, are part of the U.S. strategy to methodically and intensively target sanctions evasion efforts around the globe, close down key backfilling channels, expose facilitators and enablers, and limit Russia’s access to revenue needed to wage its brutal war in Ukraine. Over the last year, Treasury has sanctioned over 100 individuals and entities engaging in activity to circumvent international sanctions and export controls imposed on Russia.
The director of Mateas Limited, Uzbekistan-based Maks Borisovich Piflaks (Maks Piflaks), and his son, Gilad Piflaks, are Zimenkov network members and associates of D.E.S. Defense Engineering Solutions LTD. Maks Piflaks was designated today pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of Mateas Limited. Gilad Piflaks was designated pursuant to E.O. 14024 for being a spouse or adult child of Maks Piflaks.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless exempt or authorized by a general or specific license issued by OFAC. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List), but also from its ability to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.
