We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.
16 May 2014
The Office of Foreign Assets Control (OFAC) has sanctioned additional parties in connection with the continuing crisis in Ukraine. The most recent designations target seven officials in Russia's leadership, including two members of President Putin's inner circle and 17 entities linked to Putin's inner circle in the banking, construction and energy sectors. OFAC imposed the sanctions pursuant to Executive Order 13661 (March 17 2014), which authorises sanctions on officials of the Russian government and any individual or entity that is owned or controlled by, has acted for or on behalf of, or has provided material or other support to, a senior Russian government official. The targeted individuals will be subject to an asset freeze and a US visa ban, and the targeted companies will be subject to an asset freeze.
The sanctions come in response to what the Obama administration perceives to be Russia's lack of action in support of promises to de-escalate tensions in Ukraine, pursuant to its April 17 2014 Geneva Statement. Undersecretary for Terrorism and Financial Intelligence David Cohen stated: "The United States, acting on its own and alongside our international partners, will impose increasing costs on Russia if it persists in its efforts to destabilize Ukraine and will hold Russia accountable for its provocative actions." Treasury Secretary Jack Lew further explained the US motivation for the sanctions:
"Russia's dangerous and inflammatory actions against Ukraine are illegal and illegitimate. Since Russia has refused to follow through on its Geneva commitments, today the United States is following through on its statements... Today's targeted actions, taken in close coordination with the EU, will increase the impact we have already begun to see on Russia's own economy as a result of Russia's actions in Ukraine and from U.S. and international sanctions."
However, Lew suggested that if Russia were to take effective steps to de-escalate the conflict, sanctions against Russian officials and entities could ease. These sanctions come as Ukraine prepares to hold its presidential election on May 25 2014.
In conjunction with the OFAC sanctions, the Department of Commerce's Bureau of Industry and Security (BIS) has also announced that it is expanding US export restrictions on items subject to the Export Administration Regulations in response to Russia's continued actions in southern and eastern Ukraine. To that end, the department added 13 of the designated companies to the entity list, based on its determination that the companies are involved, or pose a significant risk of becoming involved, in activities contrary to the national security and foreign policy interests of the United States. Exports, re-exports or other foreign transfers of items subject to the Export Administration Regulations to these designated companies now require a licence, and the department will review applications for such licences with a presumption of denial.
The Department of State has also announced that it is expanding its export restrictions on technologies and services regulated under the US Munitions List. The department's Directorate of Defence Trade Controls and BIS have announced that both agencies will deny export licence applications to supply to Russia or occupied Crimea any high-technology item or defence articles or services regulated under the Export Administration Regulations or the US Munitions List that will contribute to Russia's military capabilities. Both agencies will also revoke any such existing export licences.
OFAC designated the following parties in the recent sanctions. Those marked with an asterisk were also added to the Department of Commerce's entity list.
The following Russian government officials have been designated:
The following entities have been designated:
For further information on this topic please contact Lisa Crosby, Andrew Shoyer or Robert Torresen at Sidley Austin LLP's Washington DC office by telephone (+1 202 736 8000), fax (+1 202 736 8711) or email (email@example.com,firstname.lastname@example.org or email@example.com). Alternatively, please contact Arnoud Willems at Sidley Austin LLP's Brussels office by telephone (+32 2 504 6440), fax (+32 2 504 6401) or email (firstname.lastname@example.org). The Sidley Austin LLP website can be accessed at www.sidley.com.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.