New OFAC designations signal continued U.S. sanctions pressure on Russia
Last week, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) blacklisted 21 individuals and nine entities for various reasons, including involvement in the ongoing conflict in eastern Ukraine, connections to the Crimea region (which is subject to a complete U.S. embargo), and links to the Russian government. Several of the newly minted Specially Designated Nationals (SDNs), including Russian engineering company Technopromexport, were allegedly involved in diverting Siemens-made gas turbines to Crimea in potential violation of European Union sanctions rules. OFAC also added twelve subsidiaries of Surgutneftegaz to the Sectoral Sanctions Identification List, clarifying that the entities are subject to the energy-sector sanctions described in Directive 4 to E.O. 13662.
The new sanctioned parties are a sign of continuing U.S. pressure on Russia to implement the Minsk agreements and help end the conflict in Ukraine. The designations also came just before today’s statutory deadline to implement new sanctions on Russia, which include the release of the “Kremlin Report” or “oligarch list” that will name Kremlin-connected Russian nationals and their overseas assets and business interests. We will provide an update when and if that list is released.