Biden administration warns financial institutions to control Russians trying to avoid sanctions by investing in US commercial real estate, writes Bloomberg.

The US Treasury Department warned that Russian elites, oligarchs and other sanctioned entities could take advantage of the industry's complex financing methods and opaque ownership structures to continue investing in US real estate..

The move comes almost a year after Russian troops invaded Ukraine..

“Thanks to international pressure and economic restrictions that more than 30 countries have imposed on Russia for its brutal war against Ukraine, there are fewer opportunities for the sanctioned Russian elites to move and hide their ill-gotten wealth,” said Himamauli Das.. director of the Financial Crime Network.

The report says the Treasury seeks to expose channels that Russian elites, oligarchs and their proxies may be using to move or withhold funds..

The sanctions hit some of the world's richest people with ties to Russia, including Roman Abramovich, and put financial pressure on those people.. However, the full impact on Russian billionaires is unclear.. The Treasury Department warned that U.S. financial institutions should watch out for using offshore companies to buy commercial real estate, as well as attracting investors who may have links to sanctioned individuals..

Sanctioned Russians may try to avoid being noticed by investing in projects that are less likely to attract public or media attention, investing in more modest properties instead of the usual luxury ones, from offices to apartment buildings and not only in big cities, according to the Ministry of Finance warning..

“Attempts to evade sanctions occur in real estate markets in small and medium-sized cities across the United States with the same probability as in large ones,” the Department of the Treasury said in a statement..

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As reported, Finland, within the framework of sanctions against the Russian Federation for the invasion of Ukraine, froze 187 million euros of Russian assets.

In addition, the U.S. Department of Justice KleptoCapture Task Force is scheduled to begin transferring confiscated Russian assets to the State Department in the coming weeks and months to channel them to help rebuild Ukraine..