InfoBytes Blog
OFAC sanctions Russian defense companies, political leaders, and Sberbank CEO
On March 24, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced several new sanctions in response to Russia’s invasion of Ukraine. The new sanctions, issued pursuant to Executive Order (EO) 14024, target dozens of Russian defense companies, 328 members of the Russian State Duma, and the CEO of Sberbank, Russia’s largest financial institution. According to OFAC, the sanctions target “companies that are part of Russia’s defense-industrial base and that produce weapons that have been used in Russia’s assault against Ukraine’s people, infrastructure, and territory,” and are intended to prevent 48 companies from accessing western technological and financial resources. The sanctions imposed against the Russian Duma members (political and national security leaders who have supported Russia’s invasion of Ukraine) expand on previous sanctions taken against other Duma members (covered by InfoBytes here) and expand designations to now include the State Duma itself as an entity. OFAC further noted that the sanctioned CEO of Sberbank is a close Putin associate who oversees a large number of companies owned by Sberbank in other industries. As a result of the sanctions, all property and interests in property belonging to the sanctioned persons that are in the U.S. or in the possession or control of U.S. persons, and “any entities that are owned, directly or indirectly, 50 percent or more” by the targeted persons are blocked and must be reported to OFAC. Additionally, U.S. persons are prohibited from engaging in any dealings involving the property or interests in property of blocked or designated persons, unless exempt or authorized by a general or specific OFAC license.
The same day, OFAC also published one new Frequently Asked Question clarifying the impact of EO 14024 and other Russia-related sanctions on gold-related transactions or persons participating in the gold market.
Find continuing InfoBytes coverage on the U.S. sanctions response to Russia’s invasion of Ukraine here.