The US justice department under Donald Trump is disbanding an effort started after Russia’s 2022 invasion of Ukraine to enforce sanctions and target oligarchs close to the Kremlin.
A memo from the attorney general, Pam Bondi, issued during a wave of orders on her first day in office but not previously reported, said the effort, known as Task Force KleptoCapture, will end as part of a shift in focus and funding to combating drug cartels and international gangs.
“This policy requires a fundamental change in mindset and approach,” Bondi wrote in the directive on Wednesday, adding that resources now devoted to enforcing sanctions and seizing the assets of oligarchs would be redirected to countering cartels.
The effort, launched during Joe Biden’s administration, was designed to strain the finances of wealthy associates of Vladimir Putin and punish those facilitating sanctions and export control violations.
It was part of a broader push to freeze Russia out of global markets and enforce wide-ranging sanctions imposed on Moscow amid international condemnation of its war on Ukraine.
The taskforce brought indictments against the aluminum magnate Oleg Deripaska and TV tycoon Konstantin Malofeyev for alleged sanctions busting, and seized yachts belonging to the sanctioned oligarchs Suleiman Kerimov and Viktor Vekselberg.
It also secured a guilty plea against a US lawyer who made $3.8m in payments to maintain properties owned by Vekselberg.
Prosecutors assigned to the taskforce will return to their previous posts. The changes will be in effect for at least 90 days and could be renewed or made permanent, according to the directive.
Trump has spoken about improving relations with Moscow. He has previously vowed to end the war in Ukraine, though he has not released a detailed plan.
The emphasis on drug cartels comes after Trump designated many such groups as terrorist organizations, part of a crackdown on illegal immigration and fentanyl trafficking.
The shift also implicates enforcement of a US foreign bribery law that has led to some of the justice department’s largest corporate cases over the last decade. The unit enforcing that law, known as the Foreign Corrupt Practices Act (FCPA), will now prioritize bribery investigations related to cartels, according to the memo.
A wide range of multinational firms has come under justice department scrutiny over the law, including Goldman Sachs, Glencore and Walmart. Those large corporate resolutions do not typically involve cartels.
“It is a radical move away from traditional FCPA cases and toward a narrow subset of drug and violent crime-related cases that have never been the focus of FCPA enforcement,” said Stephen Frank, a lawyer at law firm Quinn Emanuel Urquhart & Sullivan who worked on FCPA cases as a federal prosecutor.
Article by:Source: Reuters in Washington
