PRESS RELEASES

Treasury Sanctions Paraguay’s Former President and Current Vice President for Corruption

January 26, 2023

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Horacio Manuel Cartes Jara (Cartes), the former President of Paraguay, and Hugo Adalberto Velazquez Moreno(Velazquez), the current Vice President, for their involvement in the rampant corruption that undermines democratic institutions in Paraguay. OFAC is also designating Tabacos USA Inc., Bebidas USA Inc., Dominicana Acquisition S.A., and Frigorifico Chajha S.A.E., for being owned or controlled by Cartes. These individuals and entities are being designated pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.

“Treasury is committed to addressing systemic corruption around the world, even in its most entrenched forms and at the highest levels of public office,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Today’s action exposes the endemic corruption undermining Paraguayan democratic institutions and highlights the pressing need for the Government of Paraguay to act in the best interest of its citizens, not line the pockets of its political elites.”   

Today’s action follows the visa restrictions imposed on Cartes and Velazquez in 2022 under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2022, supporting a whole-of-government approach to combatting corruption and illicit finance.

TARGETING CORRUPTION AT THE HIGHEST LEVELS OF PARAGUAYAN GOVERNMENT

Horacio Cartes

Cartes engaged in corruption before, during, and after his term as President of Paraguay.

Cartes’ political career was founded on and continues to rely on corrupt means for success. He joined the Colorado Party in 2009, providing financial investments and incentives to induce the party to eliminate its 10-year length-of-affiliation requirement to enable him to run as the party’s presidential nominee. Cartes paid party members up to $10,000 each to support his candidacy ahead of the 2013 elections. While President of Paraguay, Cartes continued his corrupt schemes, including making cash payments to officials in exchange for their loyalty and support. He maintained his grip on policymaking through monthly cash bribes paid out to loyal legislators; payments ranged from $5,000 to $50,000 per member. Cartes ensured the effectiveness of this scheme by terminating payments to legislators who failed to carry out his orders.

In 2017, Cartes pledged $1 million of his own wealth to buy the votes of legislators to support his unsuccessful push for constitutional reform to allow him to run for a second term in 2018. Cartes continued to influence legislative activities after leaving office, targeting political opponents, and bribing legislators to direct votes in his interest, with top supporters receiving as much as $50,000 monthly.  

Cartes is being designated pursuant to E.O. 13818 for being a foreign person who is a current or former government official, or a person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

OFAC is also designating four entities, Tabacos USA Inc., Bebidas USA Inc., Dominicana Acquisition S.A., and Frigorifico Chajha S.A.E., pursuant to E.O. 13818 for being owned or controlled by Cartes.

Concurrent with this action, OFAC is issuing two general licenses, GL 5 and GL 6, authorizing, respectively, certain transactions related to Frigorifico Chajha S.A.E. and the wind-down of transactions involving any entity 50 percent or more owned by Cartes through 12:01 a.m. eastern standard time, March 27, 2023, as well as associated FAQs 1111 and 1112.

Hugo Velazquez

Velazquez, the current Vice President of Paraguay, has also engaged in corrupt practices to interfere with legal processes and protect himself and criminal associates from criminal investigations, including by bribing and threatening those who could expose his criminal activity.

Cartes and Velazquez both have ties to members of Hizballah, an entity designated by the U.S. Department of State as a Foreign Terrorist Organization and the target of multiple OFAC designations. Hizballah has regularly held private events in Paraguay where politicians make agreements for favors, sell state contracts, and discuss law enforcement efforts in exchange for bribes. Representatives of both Cartes and Velazquez have collected bribes at these meetings.

Velazquez is being designated pursuant to E.O. 13818 for being a foreign person who is a current or former government official, or a person acting for or on behalf of such an official, who has engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the persons described 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, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or otherwise exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or 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 SDN List, but also from its willingness 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. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

GLOBAL MAGNITSKY

Building upon the Global Magnitsky Human Rights Accountability Act, E.O. 13818 was issued on December 20, 2017, in recognition that the prevalence of human rights abuse and corruption that have their source, in whole or in substantial part, outside the United States, had reached such scope and gravity as to threaten the stability of international political and economic systems. Human rights abuse and corruption undermine the values that form an essential foundation of stable, secure, and functioning societies; have devastating impacts on individuals; weaken democratic institutions; degrade the rule of law; perpetuate violent conflicts; facilitate the activities of dangerous persons; and undermine economic markets. The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons.

U.S. Treasury Department Press Release

PRESS RELEASES

Treasury Sanctions Russian Proxy Wagner Group as a Transnational Criminal Organization 

January 26, 2023

Sanctions Target Wagner’s Global Support Network, Russia’s Military Complex, Putin Cronies 

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is taking additional actions to degrade the Russian Federation’s capacity to wage war against Ukraine by sanctioning six individuals and 12 entities.  Today’s action, concurrent with additional sanctions actions by the Department of State, targets the infrastructure that supports battlefield operations in Ukraine, including producers of Russia’s weapons and those administering Russian-occupied areas of Ukraine.  Notably, today’s actions include the designation of persons that support Russian defense-related entities. 

“As sanctions and export controls on Russia from our international coalition continue to bite, the Kremlin is desperately searching for arms and support – including through the brutal Wagner Group – to continue its unjust war against Ukraine,” said Secretary of the Treasury Janet L. Yellen. “Today’s expanded sanctions on Wagner, as well as new sanctions on their associates and other companies enabling the Russian military complex, will further impede Putin’s ability to arm and equip his war machine.”

DESIGNATING THE WAGNER GROUP AS A SIGNIFICANT TRANSATIONAL CRIMINAL ORGANIZATION 

PMC Wagner (Wagner Group) is a Russian private military company led by Yevgeniy Prigozhin, a Putin crony and the target of multiple U.S. sanctions. Wagner Group has been involved in Kremlin-backed combat operations around the world in support of Putin’s war on Ukraine. As Russia’s military has struggled on the battlefield, Putin has resorted to relying on the Wagner Group to continue his war of choice. The Wagner Group has also meddled and destabilized countries in Africa, committing widespread human rights abuses and extorting natural resources from their people. Today, the Wagner Group is being redesignated pursuant to Executive Order (E.O.) 13581, as amended by E.O. 13863, for being a foreign person that constitutes a significant transnational criminal organization. Wagner personnel have engaged in an ongoing pattern of serious criminal activity, including mass executions, rape, child abductions, and physical abuse in the Central African Republic (CAR) and Mali.

In light of the transcontinental threat posed by the Wagner Group, Treasury is concurrently redesignating the Wagner Group pursuant to E.O. 13667 for being responsible for or complicit in, or having engaged in, the targeting of women, children, or any civilians through the commission of acts of violence, or abduction, forced displacement, or attacks on schools, hospitals, religious sites, or locations where civilians are seeking refuge, or through conduct that would constitute a serious abuse or violation of human rights or a violation of international humanitarian law in relation to the CAR. These actions also advance the implementation of President Biden’s “Memorandum on Promoting Accountability for Conflict-Related Sexual Violence (CRSV),” which directs federal agencies to leverage existing sanctions authorities to hold perpetrators of CRSV accountable and combat rampant impunity for these egregious acts.

On June 20, 2017, OFAC designated the Wagner Group pursuant to E.O. 13660 for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine, and on November 15, 2022, the Department of State designated the Wagner Group pursuant to E.O. 14024 for operating in the defense and related materiel sector of the Russian Federation economy.  The Wagner Group has also been sanctioned by Australia, Canada, Japan, the United Kingdom, and the European Union.

DISRUPTING THE WAGNER GROUP’S GLOBAL NETWORK

Treasury is also designating numerous entities and individuals on multiple continents that support the Wagner Group’s military operations. 

Joint Stock Company Terra Tech (Terra Tech) is a Russia-based technology firm that supplies space imagery acquired by commercially active satellites, as well as aerial images acquired by unmanned systems.  Changsha Tianyi Space Science and Technology Research Institute Co. LTD (Spacety China) is a People’s Republic of China (PRC)-based entity that has provided Terra Tech synthetic aperture radar satellite imagery orders over locations in Ukraine. These images were gathered in order to enable Wagner combat operations in Ukraine. In addition, OFAC today took action against Spacety Luxembourg S.A. (Spacety Luxembourg), Spacety China’s Luxembourg-based subsidiary. Joint Stock Company Research and Production Concern BARL (AO BARL) is a Russian space company supporting Russia’s military activities in Ukraine.  AO BARL has shared foreign high-resolution satellite imagery with Russia’s military.

Terra Tech and AO BARL are being designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. Spacety China is being designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of Terra Tech. Spacety Luxembourg is being designated pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Spacety China.

As a part of this action, Treasury is also designating persons in the CAR and the United Arab Emirates (UAE) that are connected to the Wagner Group’s operations in CAR.  The Department of State is amplifying this action by concurrently designating two persons pursuant to E.O. 14024. Wagner Group personnel first deployed to CAR in January 2018 purportedly to “train” CAR military and security forces. Since then, the Wagner Group has used entities it controls – Officer’s Union for International Security and Sewa Security Services – to provide a veneer of legitimacy for the presence of Wagner Group personnel in CAR, operating under the guise of “instructors.” Wagner Group personnel have perpetrated numerous instances of human rights abuses against civilians in the CAR, including mass summary executions, rape, arbitrary detention, torture, and displacement of civilians. Moreover, the Wagner Group controls numerous gold and diamond mines in CAR, while raiding and plundering others. The Wagner Group has denied access to CAR government officials seeking to inspect mining operations at Wagner Group-controlled sites.

Sewa Security Services (Sewa) is a CAR-based security company controlled by the Wagner Group that provides protection for senior CAR government officials. Sewa has also claimed to provide “instructors” for “training exercises” in CAR. Sewa is being designated under E.O. 13667 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, PMC Wagner, a person whose property and interests in property are blocked pursuant to E.O. 13667.

Officer’s Union for International Security (OUIS) is a Wagner Group front company operating in CAR. Based in Russia, OUIS claims to represent Russian “instructors” in CAR. Starting in early 2021, the Wagner Group used OUIS to obscure an increase of Wagner Group personnel operating in CAR. OUIS is being designated under E.O. 13667 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, PMC Wagner, a person whose property and interests in property are blocked pursuant to E.O. 13667.

Aleksandr Aleksandrovich Ivanov (Ivanov) is a Russian national and the director of OUIS. As director, Ivanov provided an official response to a United Nations report that accused Russian “instructors” of committing human rights abuses in CAR. Ivanov is being designated under E.O. 13667 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, PMC Wagner, a person whose property and interests in property are blocked pursuant to E.O. 13667.

Kratol Aviation (Kratol) is a UAE-based aviation firm. The Wagner Group uses Kratol-provided aircraft to move personnel and equipment between the CAR, Libya, and Mali. Kratol is being designated under E.O. 13667 for having materially assisted, sponsored, or provided financial, material, logistical, or technological support for, or goods or services in support of, PMC Wagner, a person whose property and interests in property are blocked pursuant to E.O. 13667.

Valery Nikolayevich Zakharov (Zakharov) is a Russian national and Wagner Group employee, who served as the National Security Advisor to CAR’s President, serving in both roles simultaneously. During his tenure as the CAR’s National Security Advisor, Zakharov influenced the strategic direction of the Wagner Group in the CAR, while advising CAR’s President on security matters. Zakharov is being designated under E.O. 13667 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, PMC Wagner, a person whose property and interests in property are blocked pursuant to E.O. 13667.

SANCTIONING RUSSIA’S DEFENSE INDUSTRIAL COMPLEX, INCLUDING THOSE SUPPORTING PREVIOUSLY SANCTIONED RUSSIAN FEDERATION DEFENSE-RELATED ENTITIES

Treasury is also designating the following targets to further degrade Russia’s war machine. 

JSC Aviacon Zitotrans (Aviacon Zitotrans) is a Russian cargo airline that has handled cargo shipments for sanctioned Russian Federation defense entities. Additionally, Aviacon Zitotrans has shipped military equipment such as rockets, warheads, and helicopter parts all over the world.  For instance, Aviacon Zitotrans has shipped defense materiel to Venezuela, Africa, and other locations. As one example of its efforts, as of September 2022, Aviacon Zitotrans sought to use a Turkish company and Turkish diplomats to facilitate the sale of Russian defense equipment abroad on behalf of Rosoboroneksport OAO, a U.S.-designated Russian Federation state-owned defense firm. Aviacon Zitotrans is being designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel and aerospace sectors of the Russian Federation economy.  OFAC identified as property in which Aviacon Zitotrans has an interest four Russia-registered Ilyushin aircraft with tail numbers RA-76842, RA-76502, RA-76846, and RA-78765.

AO Ural Civil Aviation Factory (UCAF) has developed the Altius unmanned aerial vehicle (UAV) for Russia’s Ministry of Defense. UCAF has specifically leveraged personnel to repair UAVs used in Russia’s full-scale invasion of Ukraine. UCAF is being designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.

Joint Stock Company National Aviation Service Company (NASC) is a Russia-based state-owned enterprise that repairs and maintains aircraft and electronic equipment. Per a Russian Federation presidential decree, NASC was designated as Russia’s state intermediary for the service of Russian military aircraft supplied abroad. Despite existing restrictions against Russia’s military-industrial complex, NASC has represented itself as not subject to sanctions for the purpose of facilitating Russian defense contracts. NASC is being designated pursuant to E.O. 14024 for operating or having operated in the aerospace sector of the Russian Federation economy.

LLC Research & Production Enterprise Prima (Prima) is a Russia-based entity that develops and produces communication equipment for Russian-manufactured helicopters and airplanes. Prima is being designated pursuant to E.O. 14024 for operating or having operated in the aerospace sector of the Russian Federation economy.

Federal State Unitary Enterprise Scientific and Production Enterprise Gamma (Gamma) is a Russia-based technology entity that carries out work in the interest of the U.S.-designated Federal Security Service (FSB) and the Ministry of Defense of the Russian Federation. Gamma is being designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel and technology sectors of the Russian Federation economy.

Alan Valeryevich Lushnikov (Lushnikov) is the largest shareholder and president of the U.S.-designated Kalashnikov Concern, the original manufacturer of the AK-47 assault rifle.  Lushnikov indirectly owns 75 percent of Kalashnikov Concern’s shares with the remaining 25 percent being owned by U.S.-designated State Corporation Rostec. Lushnikov is being designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.

LLC TKKH-Invest (TKKH-Invest) is the financial vehicle through which Lushnikov owns shares in Kalashnikov Concern. Lushnikov owns 100 percent of TKKH-Invest, and TKKH-Invest owns 75 percent of Kalashnikov Concern. TKKH-Invest was designated pursuant to E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Lushnikov, a person whose property and interests in property are blocked pursuant to E.O.14024.

JSC Aerospace Defense Concern Almaz-Antey (Almaz-Antey) is a Russia-based state-owned enterprise that designs, develops and manufactures anti-aircraft, anti-missile, and non-strategic missile defense systems.  OFAC first designated Almaz-Antey on July 16, 2014, pursuant to E.O. 13661.  Today, OFAC redesignated Almaz-Antey pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.  

Yan Valentinovich Novikov (Novikov) is a Russian national and the Director General and CEO of Almaz-Antey. Novikov is being designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy, and for being or having been a leader, official, senior executive officer, or member of the board of directors, of the Government of the Russian Federation (GoR).

OFAC will continue to target Russia’s efforts to resupply its weapons and sustain its war of aggression against Ukraine and destabilizing activities worldwide, including any foreign individuals or entities that assist the Russian Federation in those efforts. Non-U.S. persons risk exposure to sanctions pursuant to E.O. 14024 for supporting Russia’s military-industrial complex.

TARGETING PUTIN’S CRONIES AND THEIR FAMILY MEMBERS

OFAC also sanctioned Rustam Nurgaliyevich Minnikhanov (Minnikhanov), a Russian national and the chairman of the board of U.S.-designated Tupolev Public Joint Stock Company, which produces strategic bombers for Russia’s armed forces. Minnikhanov is also the longtime head of Tatarstan, a federal subject of the Russian Federation. Minnikhanov is being designated pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of the GoR and for operating or having operated in the defense and related materiel and aerospace sectors of the Russian Federation economy.

Much of Minnikhanov’s property is formally registered in the name of his wife, Gulsina Akhatovna Minnikhanova (Minnikhanova). Minnikhanova’s main asset is Obshchestvo s Ogranichennoi Otvetstvennostyu Luchano (Luciano), a hotel and spa complex in Kazan, a city in the Russian Federation. In 2016, a non-governmental organization (NGO) in Russia accused Minnikhanov and Minnikhanova of accepting bribes in the form of investment in Luciano and a mansion in Kazan. The same NGO estimates that the Minnikhanov family owns properties worth almost $50 million, spread across Russia, France, and the United Arab Emirates.

Minnikhanova is being designated pursuant to E.O. 14024 for being a spouse of Minnikhanov.  Luciano was designated pursuant to E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Minnikhanova.

HOLDING RUSSIA ACCOUNTABLE FOR ILLEGAL ATTEMPTED ANNEXATION

A critical aspect of Putin’s war against Ukraine is Russia’s effort to control – including through sham annexation referendums – Russia-occupied areas of Ukraine.  As a part of promoting accountability for those involved in this aspect of Russia’s war effort, Treasury is designating two Russian Federation Presidential Administration (PA) officials involved in these reprehensible efforts. 

Aleksandr Dmitrievich Kharichev (Kharichev) and Boris Yakovlevich Rapoport(Rapoport) are Russian Federation PA officials associated with U.S.-designated Sergei Kiriyenko. The PA subdivision led by Kharichev was tasked with hiring personnel to administer Russia-occupied areas of Ukraine’s Donbas region.

Kharichev’s subordinate Rapoport, who is also closely tied to U.S.-designated former PA official Vladislav Surkov, has been engaged in nefarious activity on behalf of the Kremlin for years, including supporting electoral campaigns of Kremlin-backed candidates and implementing Kremlin policy related to self-proclaimed breakaway republics in Ukraine and Georgia. Most recently, Rapoport prepared the sham annexation referendums staged in September 2022 in the Donetsk, Kherson, Luhansk, and Zaporizhzhia oblasts of Ukraine.

Kharichev and Rapoport are being designated pursuant to E.O. 14024 for being or having been leaders, officials, senior executive officers, or members of the board of directors of the GoR. Kharichev and Rapoport have also been sanctioned by the European Union, Switzerland, and the United Kingdom.

The Department of State is concurrently taking a number of actions under E.O. 14024. It is  designating five entities and one individual linked to the Wagner Group and is also designating 23 individuals and entities for their status as government officials, their involvement in the extended networks of designated persons, and/or for being a part of Russia’s military industrial complex. Additionally, the Department of State is identifying two yachts and one aircraft as blocked property. Information on these actions is available in this Fact Sheet [+link].

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the individuals 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 authorized by a general or specific license issued by OFAC, or exempt. 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 the ability to designate and add persons to the SDN List but also the willingness 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. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list.

U.S. Treasury Department Press Release

Sanctioning Senior Paraguayan Officials for Corruption

PRESS STATEMENT

ANTONY J. BLINKEN, SECRETARY OF STATE

JANUARY 26, 2023

The United States is sanctioning a former and a current senior Paraguayan official for their involvement in systemic corruption that has undermined democratic institutions in Paraguay. The Department of the Treasury is designating Horacio Manuel Cartes Jara (Cartes), the former President of Paraguay, and Hugo Adalberto Velazquez Moreno (Velazquez), the current Vice President of Paraguay. It is also designating four entities owned or controlled by Cartes: Tabacos USA Inc., Bebidas USA Inc., Dominicana Acquisition S.A., and Frigorifico Chajha S.A.E. These individuals and entities are being sanctioned pursuant to Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.

Today’s actions reinforce the Department of State’s public designations of Cartes and Velazquez for significant corruption in 2022, demonstrating our continued commitment to combatting systemic corruption, addressing state capture, bolstering democratic institutions, and promoting accountability in Paraguay.

Cartes, one of the wealthiest individuals in Paraguay, was President of Paraguay from 2013 to 2018 and is currently the leader of the Colorado Party. During his tenure as President and since, Cartes has engaged in a concerted pattern of corruption, including widespread bribery of government officials and legislators. For more than a decade, Cartes leveraged his illicitly acquired wealth and influence to expand his political and economic power over Paraguayan institutions.

Velazquez has engaged extensively in corrupt practices, including influence peddling and bribery. While serving as Vice President of Paraguay, Velazquez has worked to interfere with legal processes to protect himself and criminal associates from investigations and threatened those who could expose his criminal activity.

Today’s actions support the United States Strategy on Combatting Corruption. The United States stands with the people of Paraguay. We will continue to support partners in Paraguayan institutions in their own efforts to combat corruption and defend the rule of law.

U.S. State Department Press Release

Countering the Wagner Group and Degrading Russia’s War Efforts in Ukraine

PRESS STATEMENT

ANTONY J. BLINKEN, SECRETARY OF STATE

JANUARY 26, 2023

The United States is sanctioning individuals and entities linked to Russia’s para-military Wagner Group and its head, Yevgeniy Prigozhin – including its key infrastructure and associated front companies, its battlefield operations in Ukraine, producers of Russia’s weapons, and those administering Russia-occupied areas of Ukraine.  This action supports our goal to degrade Moscow’s capacity to wage war against Ukraine, to promote accountability for those responsible for Russia’s war of aggression and associated abuses, and to place further pressure on Russia’s defense sector.

In November 2022, the Department of State designated the Wagner Group pursuant to E.O. 14024 for operating in the defense and related materiel sector of the Russian economy. It was previously designated by OFAC in June 2017 under E.O. 13660 for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine.

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating the Wagner Group as a significant transnational criminal organization pursuant to Executive Order (E.O.) 13581, as amended by E.O. 13863. The Wagner Group’s pattern of serious criminal behavior includes violent harassment of journalists, aid workers, and members of minority groups and harassment, obstruction, and intimidation of UN peacekeepers in the Central African Republic (CAR), as well as rape and killings in Mali.

Concurrently, OFAC is designating Wagner pursuant to E.O. 13667 for being responsible for or complicit in, or having engaged in, the targeting of women, children, or any civilians through the commission of acts of violence, or abduction, forced displacement, or attacks on schools, hospitals, religious sites, or locations where civilians are seeking refuge, or through conduct that would constitute a serious abuse or violation of human rights or a violation of international humanitarian law in relation to CAR.

Further, the Department of State is designating today five entities and one individual linked to the Wagner Group and Prigozhin.  These designations target a range of Wagner’s key infrastructure – including an aviation firm used by Wagner, a Wagner propaganda organization, and Wagner front companies. OFAC is also designating persons and entities based in CAR, the People’s Republic of China, Luxembourg, and the United Arab Emirates that are connected to Wagner’s operations around the world.

The Department is also designating under E.O. 14024 three individuals for their roles as heads of the Russian Federal Penitentiary Service, which has been reported to facilitate the recruitment of Russian prisoners into the Wagner Group.  The Department is also designating a Deputy Prime Minister who also serves as the Minister of Industry and Trade and the Chairman of the Election Commission of the Rostov Region.

The Department is further designating under E.O. 14024 one individual and four entities associated with Russian Oligarch Vladimir Potanin, who was sanctioned pursuant to E.O. 14024 in December 2022.  Similarly, the Department is designating Sergei Adonev, a financier of Russian President Putin, alongside several associated entities and individuals.  The Department is also identifying two yachts and one aircraft associated with Adonev as blocked property.

Additionally, the Department is designating under E.O. 14024 Aktsionernoye Obshchestvo Dalnevostochnyy TsentrSudostroyeniya i Sudoremonta (AO DTSSS) alongside eight subsidiaries. AO DTSSS and its subsidiaries are known for building and servicing Russia’s military, including its Pacific Fleet.

Finally, the Department is announcing steps to impose visa restrictions on 531 members of the Russian military for actions that threaten or violate the sovereignty, territorial integrity, or political independence of Ukraine pursuant to Section 212(a)(3)(C) of the Immigration and Nationality Act.

These actions also advance President Biden’s plan to promote accountability for conflict-related sexual violence, which calls for federal agencies to leverage existing sanctions authorities to pursue its perpetrators.

The United States is steadfast in our resolve against Russia’s aggression and other destabilizing behavior worldwide. Today’s designations will further impede the Kremlin’s ability to arm its war-machine that is engaged in a war of aggression against Ukraine, and which has caused unconscionable death and destruction.

U.S. State Department Press Release

Actions to Counter Wagner and Degrade Russia’s War Efforts in Ukraine

FACT SHEET

OFFICE OF THE SPOKESPERSON

JANUARY 26, 2023

The United States will continue to impede the Kremlin’s ability to arm and equip its war machine engaged in an unjustified war against Ukraine. The Department of State is designating five entities and one individual linked to the Wagner Group and its head, Yevgeniy Prigozhin. Additionally, the Department is designating nine individuals and 14 entities for their status as government officials, their involvement in the extended networks of designated persons, and/or for being part of Russia’s military industrial complex. Finally, the Department is identifying two yachts and one aircraft as blocked property. All targets are being designated pursuant to Executive Order (E.O.) 14024, which authorizes sanctions with respect to specified harmful foreign activities of the Government of the Russian Federation.

INFRASTRUCTURE AND OPERATIONS OF THE WAGNER GROUP

• CHARTER GREEN LIGHT MOSCOW is being designated pursuant to Section 1(a)(i) for operating or having operated in the aerospace sector of the Russian Federation economy. Charter Green Light is an aircraft charter service that offers VIP, group, cargo, and helicopter charters based in Moscow, Russia.  It has been reported that it is the preferred company of the Wagner Group, which uses its charter planes to transport Wagner personnel and equipment.
• ALEKSEI ALEKSEEVICH MALYAREVICH is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, a person (Charter Green Light) whose property and interests in property are blocked pursuant to this order. Malyarevich is the founder and CEO of Charter Green Light.
• AFRICA POLITOLOGY is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, a person (Yevgeniy Prigozhin) whose property and interests in property are blocked pursuant to this order. Africa Politology develops strategies and mechanisms to induce Western countries to withdraw their presence in Africa and is involved in a series of Russian influence tasks in the Central African Republic, to include undermining Western influence, discrediting the UN, and carrying out lawsuits against Western press outlets.
• PRIME SECURITY AND DEVELOPMENT is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, a person (Wagner Group) whose property and interests in property are blocked pursuant to this order. Prime Security and Development has acted as a Wagner Group front company and its Director General has represented Wagner in discussions with African governments.
• SEWA SECURITY SERVICES is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, persons (Yevgeniy Prigozhin and the Wagner Group) whose property and interests in property are blocked pursuant to this order. The Wagner Group’s official presence in the Central African Republic (CAR) is via Sewa.
• OFFICERS UNION FOR INTERNATIONAL SECURITY (OUIS) is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, a person (the Wagner Group) whose property and interests in property are blocked pursuant to this order. OUIS has acted as a Wagner Group front company and has been used to obfuscate the identity of Wagner personnel.

RUSSIAN GOVERNMENT OFFICIALS

The following three officials of the Russian Federal Penitentiary Service have been identified as having facilitated the recruitment of Russian prisoners into the Wagner Group.  These individuals are being designated pursuant to Section 1(a)(iii)(A) for being persons who are or have been leaders, officials, senior executive officers, or members of the board of directors of the Government of the Russian Federation:

• DMITRIY NIKOLAEVICH BEZRUKIKH
• ARKADIY ALEKSANDROVICH GOSTEV 
• IVAN PAVLOVITCH PROKOPENKO 

Russian Deputy Prime Minister and Minister of Industry and Trade, DENIS VALENTINOVICH MANTUROV, is being designated pursuant to Section 1(a)(iii)(A) for being a leader, official, senior executive officer, or member of the board of directors of the Government of the Russian Federation.  Manturov oversees Russia’s defense industry and the production of war materiel for Russia’s use in Ukraine.

The Chairman of the Election Commission of the Rostov Region, ANDREY VLADIMIROVICH BUROV, is being designated pursuant to Section 1(a)(iii)(A) for being a leader, official, senior executive officer, or member of the board of directors of the Government of the Russian Federation.  Burov is responsible for facilitating illegitimate referendums in the occupied regions of Ukraine.

VLADIMIR POTANIN’S NETWORK

Vladimir Olegovich Potanin, one of Russia’s wealthiest oligarchs, was designated alongside members of his network on December 15, 2022. Today, we are designating four additional entities in Potanin’s network:

• MK INTERROS INVEST is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Potanin, a person whose property and interests in property are blocked pursuant to Section 1(a)(iii)(C). MK Interros Invest is a holding company used by Potanin to control his minority stake in Norilsk Nickel.
• WHITELEAVE HOLDINGS LIMITED (WHITELEAVE) is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, MK Interros Invest, an entity whose property and interests in property are blocked pursuant to Section 1(a)(vii). Whiteleave is a holding company and an affiliate of Potanin’s Interros Group that holds shares in Norilsk Nickel.
• SALTCLIFF TRADING LIMITED (SALTCLIFF) is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Whiteleave, an entity whose property and interests in property are blocked pursuant to Section 1(a)(vii).Saltcliff is a holding company owned or controlled by Potanin that manages his investments.
• INTERNATIONAL LIMITED LIABILITY COMPANY INTERROS CAPITAL (INTERROS CAPITAL) is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Whiteleave, an entity whose property and interests in property are blocked pursuant to Section 1(a)(vii).Interros Capital is a firm owned or controlled by Potanin, which purchased a majority stake in Rosbank.

Additionally, the Department of State is designating SERGEY LEONIDOVICH BATEKHIN, the CEO of Interros, pursuant to Section 1(a)(iii)(C) for being or having been a leader, official, senior executive officer, or member of the board of directors of Kholdingovaya Kompaniya Interros OOO (Interros), an entity whose property and interests in property are blocked pursuant to Section 1(a)(i). Interros was founded by Vladimir Potanin.

BUSINESSMAN ADONEV AND HIS NETWORK

Sergei Nikolaevich Adonev is a businessman in Russia who acts as a financier to Russian President Vladimir Putin and Rostec State Corporation head Sergei Chemezov.

• LIMITED LIABILITY COMPANY KALEIDOSKOP is being designated pursuant to Section 1(a)(i) for being an entity that operates or has operated in the financial services sector of the Russian Federation economy.
• SERGEI NIKOLAEVICH ADONEV is being designated pursuant to Section 1(a)(iii)(C) for being a person who is a leader, official, senior executive officer, or member of the board of directors of Kaleidoskop, an entity whose property and interests in property are blocked pursuant to Section 1(a)(i).
• FILIPP SERGEEVICH ADONYEV is being designated pursuant to Section 1(a)(v) for being the spouse or adult child of Adonev, a person whose property and interests in property are blocked pursuant to Section 1(a)(iii)(C).
• LUKA SERGEEVICH ADONYEV is being designated pursuant to Section 1(a)(v) for being the spouse or adult child of Adonev, a person whose property and interests in property are blocked pursuant Section 1(a)(iii)(C).
• The yacht ADDICTION is being identified as blocked property in which Sergei Nikolaevich Adonev has an interest.
• The yacht ANATTA is being identified as blocked property in which Sergei Nikolaevich Adonev has an interest.
• The aircraft S5-SAD is being identified as blocked property in which Sergei Nikolaevich Adonev has an interest.

ENTITIES SUPPORTING RUSSIA’S MILITARY INDUSTRIAL COMPLEX

AKTSIONERNOYE OBSHCHESTVO DALNEVOSTOCHNYY TSENTR SUDOSTROYENIYA I SUDOREMONTA (AO DTSSS) (A.K.A. Joint Stock Company Far Eastern Shipbuilding and Ship Repair Center) is a shipbuilding and repair company that supports Russia’s military forces.  AO DTSSS is being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, the Government of the Russian Federation. Along with its subsidiaries, AO DTSSS is one of the main entities responsible for building and servicing Russia’s Pacific Fleet. AO DTSSS and its subsidiaries are additionally playing roles in Russia’s attempts to expand its military and economic influence in the Arctic, Far East, and Pacific.

The following subsidiaries of AO DTSSS are being designated pursuant to Section 1(a)(vii) for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, AO DTSSS:

• AKTSIONERNOYE OBSHCHESTVO TSENTR SUDOREMONTA DALZAVOD
• AKTSIONERNOYE OBSHCHESTVO SEVERO-VOSTOCHNYY REMONTNYY TSENTR
• AKTSIONERNOYE OBSHCHESTVO DALNEVOSTOCHNYY ZAVOD ZVEZDA 
• AKTSIONERNOYE OBSHCHESTVO 179 SUDOREMONTNYY ZAVOD 
• AKTSIONERNOYE OBSHCHESTVO 30 SUDOREMONTNYY ZAVOD 
• OBSHCHESTVO S ORGANICHENNOY OTVETSTVENNOSTYU DALNEVOSTOCHNYY PROEKTNYY INSTITUT VOSTOKPROEKTVERF
• AKTSIONERNOYE OBSHCHESTVO VLADIVOSTOKSKOYE PREDPRIYATIE ELEKTRORADIOAVTOMATIKA
• AKTSIONERNOYE OBSHCHESTVO TSENTRALNOYE KONSTRUKTORSKOYE BYURO LAZURIT

VISA RESTRICTIONS 

The Department of State is further taking steps to impose visa restrictions on 531 members of the Russian Federation military for actions that threaten or violate the sovereignty, territorial integrity, or political independence of Ukraine pursuant to Section 212(a)(3)(C) of the Immigration and Nationality Act.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the individuals 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 authorized by a general or specific license issued by OFAC, or exempt. 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.

U.S. State Department Fact Sheet