U.S. Sanctions Russian Chipmaker & Tech Companies; Expands Sanctions Authority
Today, the United States imposed sanctions on Russian technology companies and a network of companies involved in procuring goods for the Russian Intelligence Services. The Treasury Department also issued a determination authorizing the Office of Foreign Assets Control (OFAC) to impose sanctions on companies and individuals that it determines operate in the aerospace, electronics, or marine sectors of the Russian economy.
New Specially Designated NationalsOFAC designated additional 21 entities and 13 individuals as Specially Designated Nationals (SDNs) as part of today’s action. Most notably, OFAC imposed sanctions on JSC Mikron today, Russia’s largest chipmaker and exporter of more than 50 percent of Russia’s microelectronics. Other sanctioned companies include AO NII-Vektor, T-Platforms, and the Molecular Electronics Research institute.
In addition, OFAC imposed sanctions on OOO Serniya Engineering and its surrounding procurement network for their role in obfuscating Russian military and intelligence activities and supporting Russia’s defense sector. Other governments, including the European Union, Japan, and the United Kingdom recently imposed similar sanctions.
Expanded Sanctions AuthorityPursuant to section 1(a)(i) of E.O. 14024, the Treasury Department expanded its sanctions authority to include aerospace, marine, and electronic sectors of the Russian economy. The action does not automatically impose sanctions on all actors operating in these sectors. Instead, the action allows OFAC to add companies and individuals that operate or have operated in the Russian aerospace, marine, and electronic sectors to the SDN List in the future.
Other Sanctions Measures from the United KingdomSeparately, the United Kingdom imposed new sanctions today on Russian media companies, Rossiya Segodnya and TV-Novosti, and related individuals.
Tags: Russia sanctions