Introduction

Events such as the removal of Russian businessmen from the OFAC SDN List are rare. Each such case inevitably draws attention. Still, when, on May 28, 2025, OFAC published a notice on its website stating that Bortsov Nikolay Ivanovich had been removed from the sanctions list, the news seemed somewhat unusual. And here is why.

Nikolay Ivanovich Bortsov Removed from U.S. Sanctions List

On May 28, 2025, the Office of Foreign Assets Control of the U.S. Department of the Treasury (OFAC) published an update on its website titled “Balkans-related, Counter Narcotics, and Russia-related Designations Removals”. Among the individuals removed from the SDN list under Russia-related sanctions, there was only one name: Bortsov Nikolay Ivanovich.

The full OFAC entry regarding his removal reads as follows:

BORTSOV, Nikolay Ivanovich (Cyrillic: БОРЦОВ, Николай Иванович), Russia; DOB 08 May 1945; nationality Russia; Gender Male; Secondary sanctions risk: See Section 11 of Executive Order 14024.; Member of the State Duma of the Federal Assembly of the Russian Federation (individual) [RUSSIA-EO14024] (Ibid.).

As this entry suggests, Nikolay Ivanovich Bortsov had originally been sanctioned in his capacity as a member of the State Duma.

Indeed, this aligns with earlier OFAC actions: on March 24, 2022, OFAC added the State Duma and all its members to the SDN list, including Nikolay Ivanovich Bortsov. Just over a year later, on April 23, 2023, Bortsov passed away at the age of 77, according to media and public sources.

In other words, Bortsov Nikolay Ivanovich was removed from the U.S. sanctions list more than two years after his death. This naturally raises the question: why would OFAC delist an individual posthumously? At first glance, one might assume that death automatically renders sanctions status irrelevant. Yet, in practice, the situation is more nuanced. Unfortunately, OFAC rarely discloses the reasoning behind its decisions, either for designations or removals, and this case was no exception. No official explanation accompanied the announcement.

Still, if we attempt to independently analyze the potential motives, the idea that OFAC sought to “posthumously rehabilitate” Mr. Bortsov seems highly unlikely and does not hold up under scrutiny. A more plausible explanation is that the removal was driven by pragmatic considerations, most likely related to his family. Mr. Bortsov’s family is known to be among the wealthiest in Russia. In 2008, he sold a 75.53% stake in OJSC “Lebedyansky,” one of Russia’s largest juice producers, where he served as general director and principal shareholder, to PepsiCo. The deal was reportedly worth USD 1.4 billion.

Given these circumstances, it is reasonable to assume that the removal was the result of lobbying efforts by his family, for whom the status of being closely related to an SDN-listed individual likely caused significant inconvenience. As is well known, the consequences of an SDN listing extend beyond the sanctioned individual. Family members often face both reputational harm and practical difficulties in their personal and professional lives. These may include denial of visas to Western countries, the inability to open bank accounts in U.S. dollars or Euros, and obstacles to engaging in international business, particularly involving contracts, cross-border payments, and foreign operations.

Even in the absence of direct legal grounds for sanctions against them, mere association with an SDN-listed person is frequently seen by banks and government agencies as a risk factor. This results in frozen assets, the refusal of service, and restrictions on access to essential financial and legal infrastructure.

Conclusion

In practice, removal from the OFAC sanctions list is the result of careful, well-structured, and thoroughly documented work. To obtain such a decision from OFAC, it is necessary to prepare a comprehensive submission that includes strong legal arguments supported by references to applicable regulations, along with evidence demonstrating that the original grounds for designation are no longer valid or were erroneous from the outset. In this particular case, it appears that Mr. Bortsov’s family undertook such efforts, most likely with the help of legal counsel they engaged, specializing in U.S. sanctions law.

In all matters involving the potential removal of individuals or entities from the OFAC sanctions list, we strongly recommend seeking assistance from attorneys experienced in U.S. sanctions practice. This significantly increases the likelihood of a successful outcome and ensures that the strategy for engaging with OFAC is sound and effective.

There are, in fact, numerous legitimate grounds for removal from the OFAC SDN list. If you are considering filing such a request, contact us. We will promptly assess your situation and provide you with a clear and actionable plan.