Russian Businessman Sues Treasury, OFAC Over Sanctions

Oleg Deripaska, a Russian businessman who was sanctioned by the U.S. in 2018, sued the Treasury Department last week, alleging its sanctions rely on “unsubstantiated” allegations and have led to the “utter devastation” of his “wealth, reputation, and economic livelihood,” according to court documents. The suit, filed March 15, requests that the U.S. District Court for the District of Columbia order Treasury's Office of Foreign Assets Control to remove the sanctions. It names Treasury Secretary Steven Mnuchin, Treasury Department OFAC Director Andrea Gacki, the Treasury Department and OFAC as defendants.

Deripaska (see 1903070012) was originally sanctioned in April 2018 when OFAC said in a notice that he was operating in the Russian energy sector and was essentially a Russian government official. OFAC also said Deripaska has been investigated for money laundering and was accused of extortion, racketeering, threatening business rivals and ordering “the murder of a businessman,” the notice said. In the suit, Deripaska said OFAC’s sanctions relied on “false rumor and innuendo and originate from decades old defamatory attacks originated by his business competitors.” The suit added “there is substantial reason to doubt OFAC’s compliance with the law here.”

Last year OFAC also sanctioned businesses in which Deripaska owned stakes, including B-Finance Ltd., Basic Element Limited, EN+ Group, EuroSibEnergo, United Company RUSAL PLC, Russian Machines, GAZ Group and Agroholding Kuban. In the suit, Deripaska said he “has been effectively shut out from the international business community and the global financial system,” adding that businesses refuse to do business with him “out of fear of exposure to U.S. sanctions.” A Treasury spokesperson said the department does not comment on pending litigation.