Treasury Sanctions Individuals and Entities Involved In Russia-Ukraine Sanctions Evasion - Global Trade Magazine
  August 17th, 2015 | Written by

Treasury Sanctions Individuals and Entities Involved In Russia-Ukraine Sanctions Evasion

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  • The OFAC action was meant to counter attempts to circumvent U.S. sanctions.
  • OFAC director: “These action underscores our resolve to maintain pressure on Russia for violating international law.”
  • OFAC also designated five Crimean port operators and one sea ferry operator.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated several individuals under executive orders (E.O.s) related to Russia and Ukraine as being subject to U.S. sanctions.  The action, taken on July 30, was meant to counter attempts to circumvent U.S. sanctions.

OFAC designated 13 individuals and entities that have supported serious and sustained evasion of existing sanctions; two entities that operate in the arms or related materiel sector of the Russian Federation; four former Ukrainian government officials for being complicit in the misappropriation of public assets in Ukraine; five Crimean port operators, and one Crimean ferry operator.

“These action underscores our resolve to maintain pressure on Russia for violating international law and fueling the conflict in eastern Ukraine,” said John E. Smith, acting director of OFAC.  “Our message is clear: we will continue to act to ensure the effectiveness of our sanctions, which will not be rolled back until the Minsk Agreements are fully implemented.”

The steps are consistent with the U.S. commitment to seek a diplomatic resolution to the crisis in Ukraine, according to Smith, by maintaining our sanctions on Russia, which will not be rolled back until the Minsk Agreements are fully implemented. This all follows an EU action last month to extend its sanctions on Russia and Canada’s announcement also last month to supplement its own sanctions on Russia.

The sanctions targeting 15 individuals and entities were instituted pursuant to E.O. 13661, signed by President Obama in December 2014, which authorizes sanctions on any individual or entity operating in the arms sector in the Russian Federation.  Thirteen of these targets are linked to serious and sustained sanctions evasion by designated persons Gennady Timchenko, Boris Rotenberg, and Kalashnikov Concern.  Additionally, two entities were designated for operating in the arms or related materiel sector in the Russian Federation.

OFAC also designated five Crimean port operators and one sea ferry operator – State Enterprise Kerch Sea Commercial Port, State Enterprise Sevastopol Sea Trading Port, State Enterprise Feodosia Sea Trading Port, State Enterprise Evpatoria Sea Commercial Port, State Enterprise Yalta Sea Trading Port, and State Shipping Company Kerch Sea Ferry – pursuant to E.O. 13685.  E.O. 13685 authorizes sanctions on any person determined to be operating in the Crimea region of Ukraine, to be a leader of an entity operating in the Crimea region of Ukraine, or to be owned or controlled by, or to have provided material support for, any person designated under this E.O.

All six targets are being designated because they operate in the Crimea region of Ukraine.  Under existing U.S. and EU sanctions, U.S. and EU persons are already broadly prohibited from trading with or investing in Crimea, and three of the six port operators – State Enterprise Kerch Sea Commercial Port, State Enterprise Sevastopol Sea Trading Port, and State Shipping Company Kerch Sea Ferry – were previously designated by the EU.  Today’s action, which blocks any of their assets in or coming under U.S. jurisdiction and generally prohibits U.S. persons from dealing with them, underscores the commitment to opposing Russia’s occupation and attempted annexation of Crimea, according to Smith.


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