![]() Klyukin was already on the White House’s sanctions list when the share sale took place in May 2022. They added: “I’d have advised against this.” They said the most “prudent” thing to do would have been to freeze the shares, rather than allow them to be sold.Ī second expert said the transaction posed a risk “given how broadly the US interpret their jurisdiction”. If you create a methodology whereby a gets paid by a currency workaround there’s still plenty of risk.” “The US is aggressive at enforcing sanctions and Russia is particularly hot at the moment. ![]() The use of cryptocurrency to transfer funds to Klyukin could also have been an aggravating factor, they added.Īn executive order issued by the US president, Joe Biden, in April 2021 prohibited “deceptive or structured transactions or dealings to circumvent any United States sanctions, including through the use of digital currencies or assets or the use of physical assets”.Ī legal expert on sanctions said: “Whenever there’s a you’ve got to be careful. In practice, this can have consequences such as a company being excluded from the US financial system. Secondary sanctions can be levied by Washington against companies or individuals who are not subject to US jurisdiction, if they are deemed to be acting in a way that undermines US sanctions. However, legal experts said that Copper could have been targeted by “secondary” sanctions if the US authorities had been aware it was involved in a deal that benefited a Russian subject to restrictions. The US does not have jurisdiction over the use of other countries’ currencies or over who foreign citizens do business with. The share sale appears to have been designed to avoid breaching US sanctions, which prohibit the use of dollars, or the involvement of American citizens, in financial dealings with sanctioned individuals. Copper then converted the sterling into cryptocurrency and transferred those digital assets to Klyukin, 46, the Guardian understands. The crypto company is understood to have collected payment from the buyer in sterling, who paid more than £15m for the shares. ![]() The company told the Guardian that it had complied with applicable sanctions law at all times, based on external legal advice.Ĭopper appears to have effectively acted as an intermediary between Klyukin and a company that was willing to buy the Russian banker’s shares. Copper builds and manages digital systems for companies aiming to invest in, trade or use cryptocurrency. The transaction raises fresh questions about the use of cryptocurrency and the transparency around often opaque payment methods, as crypto comes under growing scrutiny from western governments trying to enforce sanctions against Moscow. The Guardian understands that Copper, which has a subsidiary based in New York, helped arrange a transaction designed to remove Klyukin from its shareholder register. Klyukin was sanctioned because of his role on the supervisory board of the Russian lender Sovcombank, as the US targeted “elites close to Putin” after the invasion of Ukraine. ![]()
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