Urgent note: Russian court decision on OFAC sanctions intersection with Russian asset recovery strategy affects foreign parties

Alert: Russian court decision on OFAC sanctions intersection with Russian asset recovery strategy Effective: 15 April 2026

A Russian commercial court has issued a decision addressing the intersection of OFAC sanctions restrictions with ongoing asset recovery proceedings in Russia. The ruling directly affects foreign creditors pursuing enforcement against Russian-origin assets where the underlying counterparty or asset chain touches the OFAC SDN list. For foreign creditors holding Russian-law security or actively pursuing Russian court enforcement, this decision introduces a material compliance fork: continuing enforcement as before may now carry regulatory exposure on both sides of the sanctions divide.

Foreign creditors enforcing against Russian assets through Russian courts face a dual constraint. Russian procedural rules on distressed assets — including the restrictions on outbound payments to creditors from "unfriendly states" under the prevailing counter-sanction framework — have been reinforced by this ruling, which signals that Russian courts will scrutinise whether a proposed enforcement step would itself constitute a sanctioned transaction under applicable foreign restrictions. Creditors from OFAC-jurisdiction entities must now assess whether executing a Russian court judgment — receiving Russian-origin funds or taking title to a frozen Russian asset — triggers a US sanctions prohibition, even where the Russian court has formally approved the recovery step. The window to reconfigure enforcement strategy before the next procedural stage closes is narrow.

Recommended action:

1. Map the OFAC nexus. Identify whether any party in the enforcement chain — the judgment debtor, the asset custodian, or an intermediary — appears on the SDN list or is owned or controlled by a designated person. This determination governs whether a general licence or specific licence from OFAC is required before proceeding.

1. Assess the Russian counter-sanction exposure. Under the Russian counter-sanction framework, payments to creditors from states designated as "unfriendly" are subject to restrictions that may require funds to be held in a Type "C" escrow account rather than transferred directly. Review whether your current enforcement approach accounts for this requirement or whether a restructured payment route is necessary.

1. Take legal advice before the next Russian court hearing. Proceeding without a confirmed position on both the OFAC nexus and the Russian counter-sanction requirement risks either a sanctions breach or the forfeiture of procedural priority in the Russian proceedings.

For further analysis on how Russian courts have addressed the OFAC sanctions intersection with domestic recovery proceedings, see our related briefing at Federal Tax Service guidance on OFAC sanctions intersection and our practice overview at Asset Tracing & Recovery.

Speak to our team — info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76

— Elizaveta Razina Senior Lawyer, Practice Lead — IP Enforcement, Vetrov & Partners vetrovpartners.com/razina/

Vetrov & Partners is a Russian boutique law firm established in 2009, recognised by Pravo-300 for eight consecutive years. The firm's asset tracing and recovery practice advises foreign creditors navigating Russian enforcement proceedings, counter-sanction restrictions, and cross-border recovery strategy. Enquiries: info@vetrovpartners.com | WhatsApp / Telegram: +7 (983) 510-38-76 | t.me/vitvetcom

This alert is for informational purposes only and does not constitute legal advice. Vetrov & Partners is a Russian-qualified law firm. Contact info@vetrovpartners.com for advice on your specific situation.