June 28, 2022
Treasury Implements G7 Commitments by
Prohibiting Gold Imports and Targeting Defense Industrial Base, Military and
Intelligence Units, and Sanctions Evaders
FinCEN and U.S. Department of Commerce
Implementing G7 Commitments by Cracking Down on Export Control Evasion
WASHINGTON – Today, the U.S. Department of the Treasury’s Office
of Foreign Assets Control (OFAC) designated 70 entities, many of which are
critical to the Russian Federation’s defense industrial base, including State
Corporation Rostec, the cornerstone of Russia’s defense, industrial,
technology, and manufacturing sectors, as well as 29 Russian individuals.
Today’s actions, taken pursuant to Executive Orders (E.O.s) 14024 and 14065,
strike at the heart of Russia’s ability to develop and deploy weapons and
technology used for Vladimir Putin’s brutal war of aggression against Ukraine.
“We once again reaffirm our commitment to working alongside our
partners and allies to impose additional severe sanctions in response to
Russia’s war against Ukraine,” said Secretary of the Treasury Janet L. Yellen.
“Broad multilateral commitments and actions by G7 members this week further cut
off the Russian Federation’s access to technology that is critical to their
military. Targeting Russia’s defense industry will degrade Putin’s capabilities
and further impede his war against Ukraine, which has already been plagued by
poor morale, broken supply chains, and logistical failures.”
Today’s designations were taken in tandem with the U.S.
Department of State, which is imposing sanctions on an additional 45 entities
and 29 individuals. Included in the State Department’s action is the
designation of Russian Federation military units and the re-designation of
Russia’s Federal Security Service (FSB), which have been credibly implicated in
human rights abuses or violations of international humanitarian law in Ukraine.
The Department of State further announced steps to impose visa restrictions on
officials believed to have threatened or violated Ukraine’s sovereignty,
territorial integrity, or political independence, including on more than 500
Russian Federation military officers and on Russian Federation officials
involved in suppressing dissent.
Concurrent with today’s sanctions actions, OFAC prohibited the
importation of Russian gold into the United States, and Treasury’s Financial
Crimes Enforcement Network (FinCEN) issued a joint alert with the U.S.
Department of Commerce’s Bureau of Industry and Security, advising vigilance
against Russian and Belarusian export control evasion. Financial institutions
and the private sector continue to play a key role in disrupting Russia’s
efforts to acquire critical goods and technology to support its war-making
efforts.
GOLD IMPORTATION PROHIBITION
The Director of OFAC, in consultation with the Department of
State and the Department of Commerce, determined that the prohibitions of
section 1(a)(i) of E.O.
14068 shall apply to
gold of Russian Federation origin, with immediate effect. As a result,
the importation into the United States of gold of Russian Federation origin is
prohibited, except to the extent provided by law, or unless licensed or
otherwise authorized by OFAC. This determination excludes gold of Russian
Federation origin that was located outside of the Russian Federation prior to
today.
As announced at the G7 Summit, the United States is joined in
taking action against Russian gold, the country’s biggest non-energy export, by
the United Kingdom, Canada, and Japan. Even
before this new prohibition,
certain gold-related transactions involving the Russian Federation were
sanctionable under E.O. 14024 or other Russia-related sanctions
authorities. OFAC has cautioned U.S. persons to be vigilant about
attempts to circumvent OFAC regulations through gold-related transactions.
ROSTEC, THE FOUNDATION OF RUSSIA’S DEFENSE-INDUSTRIAL BASE
State Corporation Rostec (Rostec) is a massive Russian state-owned enterprise
formed to consolidate Russia’s technological, aerospace, and
military-industrial expertise. Rostec is a holding company whose subsidiaries
are engaged in a wide range of industries, including automotive, defense,
aviation, and metals. In addition to leading Russia’s domestic defense
production, Rostec also facilitates foreign trade in defense and related
materiel as well as civilian and dual-purpose products. Rostec’s management
umbrella includes more than 800 entities across a wide range of sectors.
Rostec was designated pursuant to E.O. 14024 for operating or
having operated in the defense and related materiel sector of the Russian
Federation economy. As a result, all entities owned 50 percent or more,
directly or indirectly, by Rostec are blocked, even if not identified by OFAC.
Today’s action built upon previous designations of certain
Rostec’s holdings pursuant to E.O. 14024 in recent months and Rostec’s
previous addition to OFAC’s Sectoral Sanctions Identifications List (“SSI
List”) pursuant to Directive 3 of E.O. 13662 following Russia’s 2014 invasion
of Ukraine. Rostec is also sanctioned by Australia, Canada, the European Union
(EU), New Zealand, Switzerland, and the United Kingdom (UK).
KEY ROSTEC HOLDINGS AND AFFILIATED ENTITIES
Targeting Russia’s
Aerospace Sector
Today’s sanctions on Rostec subsidiary Public Joint
Stock Company United Aircraft Corporation (UAC) will weaken Russia’s
ability to continue its aerial assault on Ukraine. UAC and its subsidiaries and
affiliated entities, described below, are critical to the Russian military’s
ability to procure, maintain, and replace aircraft and related materiel.
UAC was created in 2006 by decree of recently U.S.-sanctioned
Russian Federation President Vladimir Putin, to act as a holding company for
Russia’s various aircraft builders. As key enterprises in Russia’s
military-industrial complex, UAC and its subsidiaries develop, produce, sell,
modernize, and repair military aircraft. UAC also includes the well-known
military brands Sukhoi and MiG.
UAC was designated pursuant to E.O. 14024 for operating or
having operated in the aerospace sector of the Russian Federation economy and
for being owned or controlled by, or for having acted or purported to act for
or on behalf of, directly or indirectly, the Government of the Russian
Federation (GoR). All entities owned 50 percent or more, directly or
indirectly, by UAC are blocked, even if not identified by OFAC. UAC is also
sanctioned by Canada, the EU, Japan, Switzerland, and the UK.
Tupolev Public Joint Stock Company (Tupolev), a UAC-affiliated entity, is
Russia’s leading designer and producer of strategic bombers and long-range
aircraft. Its bombers have been used by Russia against targets in Ukraine.
Tupolev was designated pursuant to E.O. 14024 for operating or
having operated in the defense and related materiel sector and the aerospace
sector of the Russian Federation economy. Tupolev is also sanctioned by Canada,
New Zealand, and Switzerland.
OFAC also designated two subsidiaries through which Tupolev
operates, Limited Liability Company KAPO-Avtotrans and Limited
Liability Company KAPO-Zhilbitservis, pursuant to E.O. 14024 for being
owned or controlled by, or for having acted or purported to act for or on
behalf of, directly or indirectly, Tupolev.
Irkut Corporation Joint Stock Company (Irkut), another UAC-affiliated entity,
manufactures fighter jets for the Russian Federation’s military and does
full-cycle production of a variety of military and civil aircraft.
Irkut was designated pursuant to E.O. 14024 for operating or
having operated in the defense and related materiel sector and the aerospace
sector of the Russian Federation economy. Irkut is also sanctioned by Canada,
New Zealand, and Switzerland.
Additionally, the following Russia-based Irkut subsidiaries were
designated pursuant to E.O. 14024 for being owned or controlled by, or
having acted or purported to act for or on behalf of, directly or indirectly,
Irkut:
1.
Energotsentr
Irkut, a chemicals,
petroleum, rubber, and plastic company;
2.
Irkut-Avtotrans, a transport, freight, and storage company;
3.
Irkut-Remstroi, a construction company;
4.
Irkut-Stanko
Service, a business services
company;
5.
Rapart
Servisez, a wholesale
business;
6.
Sportivno-Ozdorovitelnyi
Tsentr Irkut-Zenit, a leisure company;
7.
The
Limited Liability Company Networking Company Irkut, a utilities company; and
8.
Tipografiya
Irkut, a printing and
publishing company.
All entities owned 50 percent or more, directly or indirectly,
by Irkut are blocked, even if not identified by OFAC.
Public Joint Stock Company Taganrog Aviation
Scientific-Technical Complex N.A.G.M. Beriev (TANTK), a subsidiary of UAC, produces a variety of
aircraft, including the Be-200 amphibious aircraft and the A-50E early radar
warning aircraft.
TANTK was designated pursuant to E.O. 14024 for operating or
having operated in the aerospace sector of the Russian Federation economy.
TANTK is also sanctioned by Canada.
Joint Stock Company Flight Research Institute N.A. M.M. Gromov (Gromov Flight Research Institute), a
subsidiary of UAC, is a research and development center that includes ground
and flight test complexes.
Gromov Flight Research Institute was designated pursuant to E.O.
14024 for operating or having operated in the aerospace sector of the Russian
Federation economy.
Open Joint Stock Company Ilyushin Aviation Complex (Ilyushin Aviation), a UAC-affiliated company,
produces civil and military aircraft, including Il-76 heavy transport aircraft
used by the Russian Federation’s military for the invasion of Ukraine.
Ilyushin Aviation was designated pursuant to E.O. 14024 for
operating or having operated in the defense and related materiel sector and the
aerospace sector of the Russian Federation economy.
Joint Stock Company Ilyushin Finance Company (Ilyushin Finance), a UAC-affiliated
financial services company, finances and delivers Russian civil aircraft to
Russian and foreign airlines.
OFAC designated Ilyushin Finance pursuant to E.O. 14024 for
operating or having operated in the financial services sector of the Russian
Federation economy.
Joint Stock Company United Engine Corporation (UEC), a Rostec-affiliated holding
company, produces engines in support of the GoR’s national security and
defense. The motors and engines that it produces are used for military, civil,
and space purposes. Specifically, UEC supplies engines for operational,
tactical, transport, and training aircraft, as well as for air- and sea-based
cruise missiles and space launch vehicles.
UEC was designated pursuant to E.O. 14024 for operating or
having operated in the defense and related materiel sector of the Russian
Federation economy. UEC was previously added to OFAC’s SSI List in 2015,
pursuant to Directive 3 of E.O. 13662. UEC is also sanctioned by the EU and New
Zealand.
Joint Stock Company Tekhnodinamika (Tekhnodinamika) is an aerospace and
defense holding company within Rostec’s structure, and is a designer and
manufacturer of aircraft equipment. Tekhnodinamika’s products are installed on
virtually every Russian airliner, cargo plane, and helicopter. In addition to
its civilian applications, Tekhnodinamika develops products for the Russian
Federation’s military for strike and air reconnaissance missions.
Tekhnodinamika was designated pursuant to E.O. 14024 for
operating or having operated in the defense and related materiel sector of the
Russian Federation economy. Tekhnodinamika was previously added to OFAC’s SSI
List in 2015, pursuant to Directive 3 of E.O. 13662.
In conjunction with these actions, OFAC issued
General License 39,
authorizing all transactions ordinarily incident and necessary to wind down any
transaction involving Rostec or any entity blocked not earlier than June 28,
2022 in which Rostec owns, directly or indirectly, a 50 percent or greater
interest, through 12:01 a.m. eastern daylight time, August 11, 2022. OFAC
also issued
General License 40 authorizing
certain transactions involving certain blocked entities that are ordinarily
incident and necessary to ensure the safety of civil aviation.
Defense Technology
Holdings
Joint Stock Company Concern Avtomatika (Concern Avtomatika) is a Rostec-owned
holding company that develops and produces information security systems.
Concern Avtomatika’s member companies and production facilities design and
manufacture products tied to public security, cyber warfare, information
security, and unmanned aerial vehicles. Its research and development work
includes ties to military and technical cooperation.
Concern Avtomatika was designated pursuant to E.O. 14024 for
operating or having operated in the technology sector of the Russian Federation
economy.
Joint Stock Company Information Security Reform (IS Reform) is a technology company
within Rostec’s structure that, among other things, provides consulting on
various information technology and communications-related subjects, and
conducts advanced information technology training for Rostec employees. Rostec
has sought to concentrate its competence in the field of information security
within IS Reform.
IS Reform was designated pursuant to E.O. 14024 for operating or
having operated in the technology sector of the Russian Federation economy.
Open Joint Stock Company Russian Electronics (Ruselectronics) is a Rostec-owned
holding company that unites Russia’s radio-electronic industry. Ruselectronics
manufactures electronic components across more than 140 production
organizations and research institutes. It is responsible for more than 50
percent of the output of electronic components in Russia.
Ruselectronics was designated pursuant to E.O. 14024 for
operating or having operated in the technology and electronics sectors of the
Russian Federation economy. Ruselectronics was previously added to OFAC’s SSI
List in 2015, pursuant to Directive 3 of E.O. 13662, and is also sanctioned by
Australia, Canada, the EU, and Switzerland.
Today, OFAC additionally designated the following Russia-based
subsidiaries of Ruselectronics pursuant to E.O. 14024 for being owned or
controlled by, or for having acted or purported to act for or on behalf of,
directly or indirectly, Ruselectronics. These include:
1.
Aktsionernoe
Obshchestvo Nauchno Issledovatelskii Institut Promyshlennogo Televideniya Rastr, which conducts research and experimental
development activities of natural sciences and engineering;
2.
Aktsionernoe
Obshchestvo Nauchno Issledovatelskii Institut Sredstv Vychislitelnoi Tekhniki, which produces military and power supply
systems;
3.
Aktsionernoe
Obshchestvo Nauchno Proizvodstvennoe Predpriyatie Svyaz, which produces civil and military products;
4.
Aktsionernoe
Obshchestvo Ryazanskii Zavod Metallokeramicheskikh Priborov, which produces electronic valves and other
electronic components;
5.
Aktsionernoe
Obshchestvo Spetsialnoe Konstruktorskoe Byuro Vychislitelnoi Tekhniki, which designs and manufactures
microprocessor controllers and devices;
6.
Aktsionernoe
Obshchestvo Spetsialnoe Proektno Konstruktorskoe Byuro Sredstv Upravleniya, which provides services of software
development, implementation, and maintenance;
7.
Scientific
And Research Institute Ferrit Domen, which develops microwave radiation ferrite technology;
8.
Joint
Stock Company Scientific And Research Institute Of Electronic Engineering
Materials, which develops and
produces electronic equipment materials;
9.
AO
NPP Tsiklon Test, which conducts
engineering tests, research, and certification;
10. Aktsionernoe Obshchestvo Elektron Optronik, which develops and implements operations in
ion implantation technology;
11. Joint Stock Company Scientific Research
Institute Giricond, which conducts
research and development in the field of natural science and engineering;
12. Joint Stock Company Scientific Research
Institute Of Electrical Carbon Products, which is a research institute of electric and coal products;
13. Joint Stock Company Scientific Research
Institute Platan With Plant,
which is engaged in the production and distribution of pigments and dye stuff;
14. Joint Stock Company Special Relay System
Design And Engineering Bureau, which designs and manufactures various types of relays and
switches;
15. Joint Stock Company Trading House Rosel, which is engaged in wholesale and retail
trade;
16. Joint Stock Company Plasma, which is in the industrial, electric, and
electronic machinery sector;
17. Joint Stock Company Central Research Institute
Cyclone, which produces
modern electro-optical devices and systems;
18. Joint Stock Company Scientific Production
Enterprise Kontakt, which issues vacuum
electronic devices for radio and television broadcasting, remote space and
satellite communications, radar, and boost machinery;
19. Joint Stock Company Russian Research Institute
Electronstandart, which tests and
delivers electronic devices for the assembly of electronic equipment, space
objects, nuclear power stations, and ships; and
20. Joint Stock Company Meteor Plant, which produces electronic components and
accessories.
Industrial Exporters
Joint Stock Company Shvabe (Shvabe), a Rostec-owned holding company, is primarily
engaged in the development and serial production of optical and laser systems
and complexes. Shvabe unites several dozen industrial facilities and research
centers across Russia, forming the core of Russia’s optical industry. The
entire cycle of creating high-technology optoelectronic and laser technology
for Russia’s national defense is implemented within the Shvabe holding. Among
other activities, Shvabe develops and produces optoelectronic and laser systems
for the Russian Federation’s armed forces.
Shvabe was designated pursuant to E.O. 14024 for operating or
having operated in the technology sector of the Russian Federation economy. Shvabe
was previously added to OFAC’s SSI List in 2015, pursuant to Directive 3 of
E.O. 13662.
Today, OFAC also designated KAMAZ Publicly Traded
Company (KAMAZ), Russia’s largest truck manufacturer, one of the
world’s top 20 heavy duty truck producers, and a supplier of armored vehicles
to Russia’s military. KAMAZ is affiliated with Rostec and is less than 50
percent owned by Rostec. In March 2022, KAMAZ trucks believed to be operated by
the Russian military were seen in Belarus carrying missiles for Iskander
missile systems, which are produced by U.S.-sanctioned JSC NPO High Precision
Systems. These missiles were allegedly launched as part of the Russian
Federation’s further invasion of Ukraine. Throughout the invasion, Russia’s
KAMAZ Typhoon vehicles have also been observed carrying Russia’s military
personnel throughout Ukraine.
KAMAZ was designated today pursuant to E.O. 14024 for operating
or having operated in the defense and related materiel sector of the Russian
Federation economy. KAMAZ is also sanctioned by Australia, Canada, the EU, New
Zealand, Switzerland, and the UK.
Additionally, OFAC designated the following Russia-based
subsidiaries of KAMAZ pursuant to E.O. 14024 for being owned or controlled by,
or having acted for or on behalf of, directly or indirectly, KAMAZ. These
include:
1.
Leasing
Company KAMAZ Incorporated,
which specializes in selling KAMAZ vehicles and is one of Russia's largest
leasing companies;
2.
Nefaz
Publicly Traded Company,
which manufactures buses, trailers, and other largest vehicles for KAMAZ;
3.
Public
Joint Stock Company Tutaev Motor Plant, which manufactures internal combustion engines;
4.
Aktsionernoe
Obshchestvo Torgovo-Finansovaya Kompaniya KAMAZ, a new and used car dealer engaged in the
wholesale and retail sale of vehicle parts, supplies, and equipment;
5.
Non-State
Pension Fund First Industrial Alliance, a pension fund provider;
6.
Begishevo
Airport Joint Stock Company,
an airport in the Russian Federation’s Republic of Tatarstan;
7.
Chelnyvodokanal
OOO, which operates the
on-site water supply facilities of KAMAZ;
8.
Mikam
Holdings Limited, an investment
holding company registered in Cyprus; and
9.
Joint
Stock Company Krasnodarskiy Avtocentr KAMAZ, an official dealer with the authority to sell KAMAZ vehicles
as well as Nefaz buses.
Of note, in an effort to reduce potential impacts to
agricultural production, OFAC issued a time-limited general license, General
License 41, authorizing certain
transactions ordinarily incident and necessary to the manufacture, sale, and
maintenance of agricultural equipment produced by Nefaz or Tutaev Motor Plant.
KAMAZ’s General Director and Chairman of the Management Board
since 2002, Sergei Anatolyevich Kogogin (Kogogin), was also designated
today pursuant to E.O. 14024 for operating or having operated in the defense
and related materiel sector of the Russian Federation economy. Kogogin is also
sanctioned by Australia, Canada, and the UK.
Additionally, OFAC designated three Russia-based
companies, Zalog OOO, Limited Liability Company PFMK,
and Limited Liability Company Alfa-Invest, pursuant to E.O. 14024
for being owned or controlled by, or for acting or purporting to act for or on
behalf of, directly or indirectly, Kogogin. These companies are engaged in
equipment rentals and leasing, furniture and paper manufacturing, and financial
activities, respectively.
Management Entities
OFAC also designated the following entities in Rostec’s
corporate structure pursuant to E.O. 14024 for being owned or controlled
by, or having acted or purported to act for or on behalf of, directly or
indirectly, Rostec:
1.
Joint
Stock Company RT-Tekhpriemka, which conducts quality control for the production of
aeronautical, space equipment, and dual-use technology;
2.
RT-Capital
Limited Liability Company,
which is engaged in debt and financial restructuring and the management of real
estate;
3.
RT-Inform
Limited Liability Company,
which is engaged in the implementation of trade and procurement activities of
holding companies and organizations of Rostec and was previously added to
OFAC’s SSI List, in 2015, pursuant to Directive 3 of E.O. 13662;
4.
RT-Project
Technology Open Joint Stock Company, which conducts Rostec assets management; and
5.
RT-Business
Development, which engages in
asset management and direct investments in non-controlling interests of
businesses in the natural resources, technology, and infrastructure industries.
TARGETING SANCTIONS EVASION
In line with its efforts to hold the GoR accountable worldwide,
OFAC maintains the authority and ability to take action against those seeking
to evade sanctions. To this end, OFAC today designated three individuals and
one entity that are part of a covert procurement network linked to Russia’s
FSB. Alexander Aleksandrovich Kokorev (Kokorev) has sought to
acquire foreign electronics for the Russian Federation’s defense industry. A
former FSB officer himself, Kokorev has covertly procured U.S., Japanese, and
European components for Russia’s defense-industrial use. The FSB was re-designated
today pursuant to E.O. 14024 by the U.S. Department of State. Previously, OFAC
designated the FSB pursuant to E.O. 13382, E.O. 13694, as amended by E.O.
13757, and section 224(a)(1)(A) of the Countering America’s Adversaries Through
Sanctions Act.
In conjunction with the re-designation of FSB, OFAC issued
General License 42, authorizing certain
transactions with the FSB that are necessary and ordinarily incident to requesting
certain licenses and authorizations for the importation, distribution, or use
of certain information technology products in the Russian Federation, as well
as transactions necessary and ordinarily incident to comply with rules and
regulations administered by, and certain actions or investigations involving,
the FSB.
Kokorev has worked together with his wife, Natalia
Vasilyevna Kokoreva (Kokoreva), and covert procurement contact Dmitriy
Valeryevich Afanasyev (Afanasyev). Kokorev, Kokoreva, and Afanasyev
have utilized foreign countries and bank accounts as part of their illicit
efforts. OFAC today additionally designated EMC Sud Limited, a
legal entity registered in Hong Kong. Kokorev has used EMC Sud Limited as part
of his network and for procurement for or on behalf of the FSB.
Kokorev, Kokoreva, and Afanasyev were designated pursuant to
E.O. 14024 for acting or purporting to act for or on behalf of, directly or
indirectly, the GoR. EMC Sud Limited was designated pursuant to E.O. 14024 for
being owned or controlled by, or for acting or purporting to act for or on
behalf of, directly or indirectly, Kokorev.
PARTICIPANTS IN RUSSIA’S WAR AGAINST UKRAINE
State Flight Testing Center Named After V.P. Chkalov (929 GLIT) is the largest testing center
of the Aerospace Forces of Russia. Many new Russian aircraft, weapons, and
equipment are tested and evaluated by 929 GLIT, including 4th and
5th-generation combat aircraft and air-launched weapons for combat jets, attack
helicopters, and strategic bombers. Russia uses the 929 GLIT to strike Ukraine
with hypersonic missiles. In April, a hypersonic missile launched at Ukraine
missed its target by several hundred kilometers, hitting Russian-controlled
territory. 929 GLIT also has an outpost at the Khmeimim Air Base, which is used
by the Russian Federation’s military to test and deploy multiple aircraft,
helicopters, and weapons systems in Syria.
929 GLIT was designated pursuant to E.O. 14024 for being a
political subdivision, agency, or instrumentality of the GoR.
The Russia-based Interregional Social Organization Union
of Donbas Volunteers (UDV) is officially, a 14,000-member organization
largely composed of “veterans” of Russia’s unprovoked war against Ukraine and
dedicated to supporting those same veterans. However, since Russia launched its
full-scale invasion of Ukraine in February 2022, the UDV has taken active part
in recruiting and deploying fighters for combat missions to “demilitarize and
de-Nazify” Ukraine. UDV combat units are contracting with the Russian Ministry
of Defense and UDV members are tasked with providing direct support for Russian
military actions, including by clearing and securing territory and providing
security. The UDV is also taking part in operations against Ukrainian military
units. The UDV has also performed reconnaissance operations such as
intelligence-gathering and scouting for Russian forces, including identifying
locations for Russian military strikes against targets in Ukraine. Similar to
other Russian forces fighting in Ukraine, UDV units have suffered from a lack
of equipment, tactical failures, and insufficient training. The UDV was founded
by Vladislav Surkov, a former Putin advisor whom the U.S. designated in March
2014.
The UDV was designated pursuant to E.O. 14024 for being responsible
for or complicit in, or for having directly or indirectly engaged or attempted
to engage in, activities that undermine the peace, security, political
stability, or territorial integrity of the United States, its allies, or its
partners, for or on behalf of, or for the benefit of, directly or indirectly,
the GoR.
OFAC also designated 16 leading officials of the UDV, including
the UDV’s Russia- and Dubai-based Chairman Alexander Yuryevich Boroday,
the former self-proclaimed prime minister of the U.S. sanctioned so-called
“Donetsk People’s Republic” (DNR) and a member of the U.S.-sanctioned State
Duma of the Federal Assembly of the Russian Federation, as well as UDV
Executive Director Andrei Yuryevich Pinchuk, the former head of the
so-called DNR’s security apparatus.
Boroday and Pinchuk were both designated pursuant to E.O. 14024
for being or having been a leader, official, senior executive officer, or
member of the board of directors of the UDV. Boroday was previously designated
by OFAC in July 2014 and again in March 2022 pursuant to E.O. 13662 and E.O.
14024, respectively. He is also sanctioned by Australia, Canada, the EU, Japan,
Switzerland, and the UK. Pinchuk is sanctioned by Australia, Canada, the EU,
New Zealand, Switzerland, and the UK.
OFAC designated the following individuals pursuant to E.O. 14024
for being or having been a leader, official, senior executive officer, or
member of the board of directors of the UDV:
1.
UDV board member and
former head of the so-called DNR’s military police Viktor Yuryevich
Anosov, who is also sanctioned by Australia and Canada;
2.
UDV board member Aleksey
Nikolaevich Chumakov;
3.
UDV chief auditor and
former deputy of the so-called “Luhansk People’s Republic’s” (LNR’s) security
apparatus Yuriy Viktorovich Daniltsev;
4.
UDV deputy chief of
staff Dmitriy Vladimirovich Dzinikashvili;
5.
Boroday’s aide and
UDV’s Southern Military District representative Tamerlan Borisovich
Enaldiev;
6.
UDV’s representative
in Crimea Dmitriy Vasilyevich Khavchenko;
7.
UDV informational
department head Mariya Vasilyevna Koleda;
8.
UDV board member Olga
Ivanovna Kulygina, whom Ukraine’s security services arrested in 2015 for
allegedly transporting arms from Russia to the Donbas for Russia’s
U.S.-sanctioned Main Intelligence Directorate (the GRU);
9.
UDV’s so-called DNR
representative Anastasiya Viktorovna Kuznetsova;
10. UDV’s so-called LNR representative Nadezhda
Vitalyevna Lashkaryova;
11. UDV board member Roman Yuryevich
Lenshin, the former commander of the so-called LNR’s border troops;
12. UDV board member Oleg Ivanovich Pugachyov,
who previously served as deputy commander of a Russia-backed proxy battalion
accused of committing war crimes, including torture and summary execution,
against Ukraine’s soldiers in 2014 and 2015;
13. Deputy chairman of UDV’s Council of
Commanders Yuriy Valeryevich Shevchenko, who previously commanded a
Russia-backed proxy brigade; and
14. UDV chief of staff Aleksey Petrovich
Sosonnyy, also a former commander of a Russia-backed proxy battalion.
STATE-LINKED PRIVATE MILITARY COMPANY
Limited Liability Company RSB-Group (RSB-Group) is a private military
company (PMC) with close ties to Russia’s intelligence services. RSB-Group
hires highly trained Russian Federation Special Forces combatants, including
veterans of Russia’s intelligence services. RSB-Group has provided global
services for Russian companies in close coordination with the FSB, including
services for military aircraft in Libya. In addition, OFAC designated
RSB-Group’s General Director, Oleg Anatolyevich Krinitsyn (Krinitsyn),
and another legally registered, similarly named entity under Krinitsyn’s
control, Limited Liability Company Private Security Organization
RSB-Group, whose listed activities include that of a private security
force.
OFAC designated RSB-Group pursuant to E.O. 14024 for operating
or having operated in the defense and related materiel sector of the Russian
Federation economy. Krinitsyn was designated pursuant to E.O. 14024 for being
or having been a leader, official, senior executive officer, or member of the
board of directors of RSB-Group. OFAC designated Limited Liability Company
Private Security Organization RSB-Group pursuant to E.O. 14024 for being owned
or controlled by, or for having acted or purported to act for or on behalf of,
directly or indirectly, Krinitsyn.
UNDERMINING UKRAINE’S DEMOCRATIC INTEGRITY AND GOVERNANCE
In 2014, Moscow instigated a conflict in the Donbas region of
Ukraine, where Russian Federation-backed forces violently took power leading to
the loss of thousands of lives. The so-called DNR and LNR were designated by
OFAC pursuant to E.O. 13660 as part of the U.S. Government’s response. In
February 2022, the GoR officially recognized the independence of the so-called
states that Russia’s proxies established in portions of the Donbas region in
violation of Ukraine’s sovereignty: the so-called DNR and LNR. In response, the
United States and its partners and allies imposed a trade embargo on the area
of Ukraine occupied by these so-called states in February 2022.
Those two self-proclaimed states, the DNR and LNR, are being
re-designated today pursuant to E.O. 14065 for operating or having operated
since the date of E.O. 14065 in the so-called DNR or LNR regions of Ukraine or
such other regions of Ukraine as may be determined by the Secretary of the
Treasury, in consultation with the Secretary of State.
Vitaliy Pavlovich Khotsenko (Khotsenko) is the newly appointed chairperson of the
so-called government of the DNR. Khotsenko was previously an official in
Russia’s Ministry of Industry and Trade.
Khotsenko was designated today pursuant to E.O. 14024 for being
or having been a leader, official, senior executive officer, or member of the
board of directors of the GoR.
The following six individuals are or have been high level
officials in the so-called DNR and LNR governments. They were designated today
pursuant to E.O. 14065 for being or having been, since the date of E.O. 14065,
leaders, officials, senior executive officers, or members of the board of
directors of an entity operating in the so-called DNR or LNR regions of Ukraine
or such other regions of Ukraine as may be determined by the Secretary of the
Treasury, in consultation with the Secretary of State:
1.
Aleksandr
Evgenyevich Ananchenko (Ananchenko),
was the chairperson of the so-called government of the DNR; Ananchenko is also
sanctioned by Australia, Canada, the EU, Japan, Switzerland and the UK;
2.
Tatiana
Viktorovna Pereverzeva (Pereverzeva),
deputy chairperson of the so-called government of the DNR; Pereverzeva is also
sanctioned by Australia, Canada, the EU, Japan, Switzerland and the UK;
3.
Vladimir
Nikolaevich Antonov (Antonov),
deputy chairperson of the so-called government of the DNR; Antonov is also
sanctioned by Australia, Canada, the EU, Japan, Switzerland and the UK;
4.
Vladimir
Vladimirovich Ezhikov, deputy chairperson
of the so-called government of the DNR;
5.
Yuriy
Nikolaevich Govtvin (Govtvin), is a
deputy chairperson of the so-called government of the LNR; Govtvin is also
sanctioned by Canada, the EU, Japan, Switzerland and the UK; and
6.
Anna
Yurievna Todorova (Todorova), is a
deputy chairperson of the so-called government of the LNR; Todorova is also
sanctioned by Australia, Canada, the EU, Japan, Switzerland and the UK.
RUSSIA’S ENABLERS
Today OFAC also designated the Advanced Research
Foundation (FPI) and its director, Andrey Ivanovich
Grigoryev (Grigoryev) pursuant to E.O. 14024 for operating or having
operated in the defense and related materiel sector of the Russian Federation
economy. OFAC designated FPI and its Director General as part of its crackdown
on technology and defense companies that play an important role in the Russian
Federation’s ability to wage its war against Ukraine.
FPI is a defense research organization created in 2012 under
federal law by the GoR. FPI facilitates cutting edge research and development
for the purposes of national defense and security, modernization of the Russian
Federation’s armed forces, and creation of innovative technologies and
high-tech products for military, special, and dual-use applications. FPI’s
Board of Trustees contains a number of U.S.-sanctioned elites, including
Aleksey Yurievich Krivoruchko, Dmitriy Olegovich Rogozin, Andrey Aleksandrovich
Fursenko, and Sergey Viktorovich Chemezov, who were all previously designated
pursuant to E.O. 13661. FPI collaborates on projects supported by the GRU,
including development of behavior prediction tools using artificial
intelligence. Additionally, FPI has worked on projects for likely end use by an
elite psychological warfare unit of the GRU that is known for large-scale
hacking and foreign malign influence operations.
Grigoryev is the Director General and Chairman of the Board of
FPI and has headed FPI since February 2013. Grigoryev was educated at
technical, military, and scientific institutes in Russia, has served in
Russia’s Ministry of Defense scientific research institutions, and held
leadership positions in Russia’s Ministry of Defense.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in
property of the designated persons above that are in the United States or in
the possession or control of U.S. persons are blocked and must be reported to
OFAC. In addition, any entities that are owned, directly or indirectly, 50
percent or more by one or more blocked persons are also blocked. All
transactions by U.S. persons or within (or transiting) the United States that
involve any property or interests in property of designated or otherwise
blocked persons are prohibited, unless authorized by a general or specific
license issued by OFAC, or otherwise exempt. These prohibitions include the
making of any contribution or provision of funds, goods, or services by, to, or
for the benefit of any blocked person and the receipt of any contribution or
provision of funds, goods, or services from any such person.
For
identifying information on the individuals and entities sanctioned today, click
here.
FINCEN-BIS ALERT ISSUED ON POSSIBLE U.S. EXPORT CONTROL EVASION
Today, the Financial Crimes Enforcement
Network (FinCEN) issued
a joint alert with the U.S.
Department of Commerce’s Bureau of Industry and Security (BIS), urging
financial institutions to remain vigilant for possible attempts by individuals
and entities to evade BIS export controls implemented in connection with
Russia’s invasion of Ukraine. The joint alert provides financial institutions
with an overview of BIS’s current export restrictions; a list of commodities of
concern for possible export control evasion; and select transactional and
behavioral red flags to assist financial institutions in identifying related
suspicious transactions. This is the third alert FinCEN has issued following
Russia’s full-scale invasion of Ukraine. The first
alert, issued March 7,
urges vigilance by financial institutions against potential Russian Federation
attempts to evade sanctions. The second
alert, issued March 16,
highlights the importance of identifying and quickly reporting suspicious
transactions involving real estate, luxury goods, and other high-value assets
of sanctioned Russian Federation elites and their proxies.
https://home.treasury.gov/news/press-releases/jy0838
https://www.state.gov/holding-russia-and-belarus-to-account/
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