Page:2020-07-29 PSI Staff Report - The Art Industry and U.S. Policies that Undermine Sanctions.pdf/28

 Following Vladimir Putin's election to the Russian presidency in 2000, existing power structures began to shift, facilitating the rise of a new generation of oligarchs. Prior to becoming president, Putin promised to dismantle the existing class of oligarchs who prospered under his predecessor Boris Yeltsin. In 2003, under Putin's direction, the government began to acquire some of Russia's wealthiest companies. True to his word, Putin replaced the older generation of oligarchs with men from his inner circle and offered them valuable government contracts. Loopholes in Russian law used to limit competition enabled these oligarchs to "build themselves into the state system," as they continued to gain access to state contracts.

d. Arkady and Boris Rotenberg are Sanctioned by the United States

Brothers Arkady and Boris Rotenberg are among the oligarchs who have received billions of dollars from Putin-enabled government contracts. Four days after President Obama's March 16, 2014 EO 13661 sanctioning "any individual or entity that is owned or controlled by, that has acted for or on behalf of, or that has provided material or other support to, a senior Russian government official," OFAC officially designated Arkady and Boris Rotenberg. OFAC described Arkady and Boris Rotenberg as "members of the Russian leadership's inner circle." This position made them both beneficiaries of a Russian economy that frequently enriched Putin loyalists. That designation highlighted their close personal ties to President Putin. The Treasury announcement specifically stated: