The United States Department of Justice dissolves KleptoCapture, an operational group dedicated to tracking and confiscating assets of Russian oligarchs sanctioned after the large-scale invasion of Ukraine in 2022.
A memorandum signed on Wednesday by U.S. Attorney General Pam Bondi states that the operational group’s activities, known as KleptoCapture, will come to an end as part of a shift in focus towards combating drug cartels and international gangs, as reported by Reuters.
"This policy requires a fundamental change in thinking and approach," the document issued in a "wave of orders" signed by the Attorney General on her first day in office states.
Prosecutors from the KleptoCapture unit will return to their previous roles, and the decision will remain in effect for at least 90 days, with the possibility of extension or becoming permanent, the United States Department of Justice (DOJ) specifies.
Established in March 2022, following the outbreak of the war in Ukraine, the KleptoCapture operational group was tasked with enforcing sanctions and export restrictions against Russia, particularly targeting "corrupt Russian oligarchs."
The group, led by Andrew Adams, focused on foreign investment companies, hedge funds, law firms, and private equity managers suspected of aiding individuals on the U.S. sanctions list.
By February 2024, KleptoCapture had seized or obtained court orders to confiscate nearly $700 million in Russian assets, according to the DOJ. Over 70 individuals were charged with violating sanctions and export controls.
The task force brought indictments against aluminum magnate Oleg Deripaska and media magnate Konstantin Malofeev for sanctions violations and seized yachts belonging to sanctioned oligarchs Suleiman Kerimov and Viktor Vekselberg.
The Kremlin criticized the seizure of Russian assets, calling it "theft."
In April 2023, Russia passed a law allowing the government to take control of Western-related properties in retaliation for asset seizures abroad.
Vladimir Putin also granted Russian courts the authority to use assets held by Americans in Russia as compensation for Russian properties confiscated in the United States.
T.D.