Ukraine Crisis: Global Sanctions Developments
In light of the current conflict and crisis in Ukraine, we are tracking the evolving sanctions imposed by several governments on Russia and Russia-aligned regions and certain individuals. The jurisdictions in focus are: EU, Japan, Republic of Korea, UK and US.
US – March 24, 2022: Today the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced its designation of “key enablers” of the Russian invasion of Ukraine. These designations include dozens of Russian defense companies, 328 members of the Russian State Duma, as well as the head of Sberbank, Russia’s largest financial institution. This action by OFAC brings US sanction more closely in line with measure taken by the EU, UK and Canada.
Russian Defense Companies: As part of this sanctions package, OFAC designated 48 companies that are part of Russia’s “defense-industrial base.” These designations include Tactical Missiles Corporation JSC (translated abbreviation as KTRV) as well as KTRV’s General Director Boris Viktorovich Obnosov and 28 entities that are part of KTRV’s structure; JSC NPO High Precision Systems (High Precision Systems); NPK Tekhmash OAO (Tekhmash); Joint Stock Company Russian Helicopters (Russian Helicopters) and 15 subsidiary entities; and Joint Stock Company Kronshtadt (Kronshtadt).
Russian Duma: Additionally, OFAC designated The State Duma of the Federal Assembly of the Russian Federation and 328 of its members for their support of President Putin’s invasion of Ukraine. OFAC noted such complicity included the ratification of treaties recognizing the so-called Donetsk People’s Republic and Luhansk People’s Republic. Today’s action supplements the March 11 designation of 12 members of the Russian State Duma who had advocated for Russia’s recognition of the breakaway Ukrainian regions.
Sberbank: Today, OFAC also designated Herman Gref, the head of Sberbank and a known ally of Putin.
In addition to the above sanctions, OFAC also confirmed it issued new guidance in the form of Frequently Asked Questions to clarify that “any transaction involving gold related to the Central Bank of the Russian Federation is covered by existing sanctions.”