A company based in Czechia has been hit by new US anti-Russia sanctions

The U.S. Treasury Department has accused Versvet, based in Karlovy Vary, of assisting a Russian company evade trade restrictions.

Expats.cz Staff

Written by Expats.cz Staff Published on 21.05.2023 13:20:00 (updated on 21.05.2023) Reading time: 2 minutes

Versvet, a company based in the Czech Republic, has become the focus of new anti-Russian sanctions imposed by the United States, the U.S. Treasury Department announced this weekend. The Treasury Department has accused Versvet of aiding a Russian firm in circumventing trade restrictions.

The Czech Finance Ministry, meanwhile, told Czech News Agency that it can only enforce sanctions listed by the European Union, the United Nations, and those on the Czech Republic's national sanctions list.

According to the Treasury Department, Versvet was involved in facilitating the import of electronics for Russian firm Radioavtomatika, despite the Russian company being subject to sanctions since the beginning of Russia's war in Ukraine.

Radioavtomatika specializes in procuring foreign equipment for Russia's defense industry and has consistently attempted to import such equipment through various intermediaries since being sanctioned last year.

Versvet, owned and controlled by Russian citizen Svetlana Verkhovtseva, was identified as one of those intermediaries by the U.S. Treasury Department. The department's Office of Foreign Assets Control has subsequently imposed sanctions on both Verkhovtseva and her company.

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Versvet, located on Belgrade Street in Karlovy Vary, West Bohemia, operates out of the town's commercial and administrative center. Next to the spa colonnade, this area is considered one of the most appealing parts of Karlovy Vary.

The Czech Finance Ministry told Czech News Agency that the Financial Analytical Office is responsible for monitoring information regarding U.S. actions and implementing sanctions-related measures in the Czech Republic.

However, under current regulations, the Financial Analytical Office can only execute these measures on individuals or entities listed on Czech, EU, or UN sanctions lists, according to Foreign Ministry spokeswoman Michaela Lagronová.

The U.S. Treasury Department has stated that the Office of Foreign Assets Control is targeting additional individuals and entities associated with Radioavtomatika. In total, the office has imposed sanctions on 22 individuals and 104 entities with ties to more than 20 countries or jurisdictions.

These sanctions result in the freezing of all assets belonging to the designated entities in the United States. Additionally, U.S. citizens and individuals on U.S. soil are prohibited from engaging in transactions with these entities unless explicitly authorized by the Office of Foreign Assets Control.

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