A US task force which has enforced sanctions on Russian oligarchs since the 2022 Ukraine invasion has been disbanded by Donald Trump’s justice department.
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, according to a memo from Attorney General Pam Bondi, issued during a wave of orders on her first day in office.
“This policy requires a fundamental change in mindset and approach,” Ms Bondi wrote in the directive, adding that resources now devoted to enforcing sanctions and seizing the assets of oligarchs will be redirected to countering cartels.
The effort, launched during Joe Biden’s administration, was designed to strain the finances of wealthy associates of Russian president 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 in Ukraine.
The task force brought indictments against aluminium magnate Oleg Deripaska and Konstantin Malofeyev, the TV tycoon, for alleged sanctions busting, and seized yachts belonging to sanctioned oligarchs Suleiman Kerimov and Viktor Vekselberg.
It also secured a guilty plea against a US lawyer who made $3.8 million in payments to maintain properties owned by Vekselberg.
Prosecutors assigned to the task force 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.
Mr Trump has spoken about improving relations with Moscow. He has previously vowed to end the war in Ukraine, a ceasefire proposal is expected to be presented by the US to world leaders at the Munich security conference next week.
The emphasis on drug cartels comes after Mr Trump designated many such groups as terrorist organisations, 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, will now prioritise bribery investigations related to cartels, according to the memo.
