ICIJ: Trump administration gave firm with ties to ballroom donor the green light to do business with a sanctioned Russian bank

• ICIJ states VTB Bank sold its interests in Teghut for 4 billion rubles, or roughly $46.5 million, in June.
• ICIJ notes Sokolov donated $11 million in 2025 to MAGA Inc., a pro-Trump super PAC.

Dynamic Frontier Holdings, managed by Konstantin Sokolov, received authorization from the U.S. Treasury Department’s OFAC on June 1 to acquire Teghut, an Armenian copper mine, from Russia’s sanctioned VTB Bank. The sanctions normally prohibit U.S. entities from transacting with VTB Bank, but OFAC can grant licenses for exceptions.

VTB Bank sold its interests in Teghut to a group of international investors in June, with proceeds totaling 4 billion rubles, or roughly $46.5 million. Armenia’s competition commission approved the acquisition on July 7, and Sokolov’s spokesperson confirmed the OFAC license to ICIJ.

• $11 million Sokolov donation to MAGA Inc. in 2025

• Review OFAC license details for Dynamic Frontier Holdings’ Teghut acquisition dated June 1.
• Screen transactions involving VTB Bank against U.S. sanctions lists and OFAC license exceptions.
• Assess ownership transparency and public-private role separation in Sokolov’s Armenian business entities.

This story highlights the importance of monitoring OFAC license exceptions to sanctions, especially when U.S. entities transact with high-risk, sanctioned banks like VTB Bank. Compliance officers must ensure that all such transactions are properly documented, licensed, and transparent, as political connections and overlapping public-private roles can raise red flags for potential conflicts of interest and regulatory scrutiny. The case also underscores the need for robust due diligence on ownership structures and the legitimacy of license approvals.