US Issues Hundreds of New Sanctions Targeting Russia and Sanctions Evasion Networks
The U.S. issued nearly 400 new financial blocking sanctions last week against people and companies in Russia and across Asia, Europe and the Middle East for aiding Russia’s war effort against Ukraine. The designations, issued by the Treasury and State departments, target “numerous” Russia-related procurement and sanctions evasion networks along with businesses involved in the Russian energy and mining industries, supporting the country’s military industrial base, connected to Russian state-owned entities, helping to forcibly re-educate Ukrainian children and more.
The sanctions mark the Aug. 24 Ukrainian Independence Day, Treasury said. Deputy Treasury Secretary Wally Adeyemo said the measures also “implement the commitments” made by the Group of 7 countries “to disrupt Russia’s military-industrial base supply chains and payment channels.”
Along with the new sanctions, Treasury also warned foreign regulators and financial institutions about efforts by Russia to evade sanctions by opening new overseas branches and subsidiaries of Russian banks. Other countries should be cautious about any dealings with overseas branches or subsidiaries of Russian financial institutions, including efforts to open new branches or subsidiaries of Russian financial institutions that are not themselves sanctioned,” the agency said. “Treasury has a range of tools available to respond to the establishment of new evasion channels.”
The Treasury sanctions target more than 60 Russia-based technology and defense companies working in the country’s technology industry along with Russian steel, iron, and coal mining firms and financial technology companies. The Office of Foreign Assets Control also designated people and companies based in Italy, Turkey, Switzerland, Hong Kong, France, Austria, Hungary, the U.K. and the United Arab Emirates for indirectly or directly shipping to or aiding Russia.
The State Department sanctioned more than 190 people and entities helping Russia evade sanctions and supporting the development of Russia’s Arctic LNG 2 and other energy projects, including Russian air cargo logistics entities, subsidiaries of State Atomic Energy Corporation Rosatom and more.
OFAC also issued new general licenses, including General License 106, which authorizes the wind-down of transactions with 17 newly sanctioned entities and any company they own by 50% or more. Those transactions are authorized through 12:01 a.m. EDT on Oct. 9.
New General License 107 authorizes certain safety and environmental-related transactions with Ocean Speedstar Solutions OPC Private Limited and Zara Shipholding Co. through 12:01 a.m. EDT Oct. 23. The State Department sanctioned both for managing liquefied natural gas carriers that have loaded and transported LNG from Russia’s Arctic LNG 2 project.
Two other general licenses, 103 and 104, authorize certain transactions related to U.S. diamond imports.