US sanctions UAE firms in push to curb Gulf state’s Russian ties

The US targeted several companies based in the United Arab Emirates in the latest round of Russia-related sanctions as it seeks to up the pressure on the Gulf country to curb ties with Moscow.

The US Treasury Department blacklisted 130 individuals and companies in an effort to clamp down on Russia’s defense and technology sectors, as well as companies and people in third countries that help move goods into Russia. Several companies based in the UAE and Turkey were on the list, including logistics and at least one financial services firm. 

Western officials have pressed for the oil-rich UAE to stop acting as a gateway for Russia to get around sanctions.

Russia has so far been able to get around some of the trade restrictions imposed on it by the US, UK and Europe by routing banned goods via third countries such as the Gulf country, as well as Turkey and some Central Asian nations that have not introduced sanctions themselves. Dubai, the UAE’s commercial hub, also has seen an influx of Russians and their capital since the February 2022 invasion of Ukraine.

The US said the sanctions were aimed at entities which trade goods that can be used as dual-use items for President Vladimir Putin’s war in Ukraine and financial services firms. 

One of the sanctioned firms, ARX Financial Engineering Ltd., is a UAE-based financial engineering company that offered investment services to Russian investors.

The US accused the firm of “identifying ways that Russian rubles could be sent from sanctioned Russian VTB Bank” and converted into US dollars. Two Irish nationals involved at ARX were also sanctioned.

Still, in the statement announcing the sanctions, the Treasury said recent actions “particularly by the UAE” were encouraging as the agency continues its efforts to enforce restrictions. Thursday’s announcement was the latest of hundreds of sanctions actions imposed by the US and its allies against Russia since the war began.