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Treasury Hardens Sanctions With 130 New Russian Evasion and Military-Industrial Targets

usa
BM. GE
02.11.23 20:46
44

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) continues to disrupt the networks and channels through which Russia attempts to sustain its beleaguered military. Today’s sanctions focus on individuals and entities abetting Russia’s unconscionable war against Ukraine by providing Russia with much-needed technology and equipment from third countries. Additionally, these actions take aim at Russia’s domestic industrial base, which is seeking to reinvent itself as the maintainer of Russia’s war machine. With these designations, Treasury is disrupting producers, exporters, and importers of nearly all of the high-priority items identified by the international coalition imposing sanctions and export controls on Russia.

“Russia is dependent on willing third-country individuals and entities to resupply its military and perpetuate its heinous war against Ukraine and we will not hesitate in holding them accountable,” said Secretary of the Treasury Janet L. Yellen. “Our global sanctions coalition has choked off Russia’s access to key inputs for its military industrial complex and has undermined the Kremlin’s ability to wage its unprovoked war. Today’s actions demonstrate our further resolve in continuing to disrupt every link of Russian military supply chain, and target outside actors who would seek to support Russia’s war effort.”

The U.S. Department of State is also issuing nearly 100 sanctions today targeting Russia’s future energy production and revenue, metals and mining sector, defense procurement, and those involved in supporting the Russian government’s war effort and other malign activities.

DISRUPTING RUSSIA’S INTERNATIONAL SUPPLY CHAINS

Unable to domestically produce much of the technology, equipment, and other materiel it needs to sustain and maintain its military-industrial complex, Russia has offshored that production, relying on third-country suppliers to acquire the goods it needs. Russia continues to exploit otherwise legitimate economic relationships with the People’s Republic of China (PRC), Türkiye, and the United Arab Emirates (the UAE), which have become hubs for exporting, reexporting, and transshipping to Russia foreign-made technology and equipment. Treasury continues to work with partners to prevent further Russian sanctions evasion and export control violations through their jurisdictions. Recent actions taken—particularly by the UAE—are encouraging, and the U.S. looks forward to working with partners to verify that Russia is no longer able to exploit their jurisdictions.

Entities based in the PRC, Türkiye, and the UAE continue to send high-priority dual-use goods to Russia, including critical components that Russia relies on for its weapons systems (“high-priority goods”). While Treasury will continue to work with the Governments of the PRC, Türkiye, and the UAE to address potential sanctions and export control vulnerabilities together in the spirit of bilateral cooperation, Treasury will not hesitate to take action to prevent Russia from using the U.S. and international financial systems to sustain its war of aggression against Ukraine.

Türkiye

Azint Elektronik Makina Gida Urunleri Tekstil Nakliyat Ithalat Ihracat Sanayi Ticaret Limited (Azint Elektronik) is a supplier of high-quality foreign-made microelectronics. Between August 2022 and June 2023, Azint Elektronik made shipments to Russia containing high-priority goods such as electronic integrated circuits and tantalum and multilayer ceramic capacitors.

Basilevs Lojistik Medikal Tarim Ticaret Ve Sanayi Sti (Basilevs Lojistik) has sent high-priority goods to Russia. Basilevs Lojistik has also sent lithium-ion batteries, electrical batteries, and instruments for metal processing to Russia.

Bosphorus Gate Dis Ticaret Limited Sirketi (Bosphorus Gate) has made shipments of high-priority goods to Russia, including electronic integrated circuits and machines for the transmission and regeneration of data. U.S.-designated Russian military-industrial complex firm Limited Liability Company AK Microtech sought to procure microelectronics production equipment through Bosphorus Gate.

Jacbac Technology Dis Ticaret Limited Sirketi (Jacbac Technology) is a manufacturer and exporter of technological products that has made dozens of shipments of equipment to Russia since August 2022. Jacbac Technology has made shipments to Russia of instruments for metalworking and metal turning machine tools.

Kuzey Logistics Tasimacilik Ithalat Ihracat Ve Dis Ticaret Limited Sirketi (Kuzey Logistics)is a logistics company, with certificates of operation in Russia and Türkiye, which provides Russian customs clearance and truck transportation services in Russia.

Smart Techno Group Dis Ticaret Ve Lojistik Limited Sirketi (Smart Techno Group) has sent high-priority goods to Russia, including electronic integrated circuits, machines for reception, conversion and transmission of data, and tantalum capacitors.

Technopartner Teknoloji Urunleri Bilisim Sanayi Ve Ticaret Limited Sirketi (Technopartner) has sent equipment for calibration and material testing equipment to Russia. In early 2023, Technopartner procured sensitive U.S.-origin technology on behalf of Russian military-industrial clients.

Azint Elektronik and Bosphorus Gate were designated pursuant to Executive Order (E.O.) 14024 for operating or having operated in the electronics sector of the Russian Federation economy.

Basilevs Lojistik, Jacbac Technology, Smart Techno Group, and Technopartner were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.

Kuzey Logistics was designated pursuant to E.O. 14024 for operating or having operated in the transportation sector of the Russian Federation economy.

In addition to those entities, Treasury also took action today to disrupt a Türkiye-based illicit procurement network with ties to Russian intelligence services.

Turkish national Berk Turken is the owner of Türkiye-based firms BSB Grup Internet Ve Yapay Zeka Teknolojileri Anonim Sirketi (BSB Group) and Turken Dijital Matbaa Teknolojileri Bilgisayar Bilisim Kirtasiye Fotografcilik Sanayi Ve Dis Ticaret Limited Sirketi (Turken Digital). BSB Group was established in 2021 by Berk Turken and is wholly owned by him. Berk Turken and Turken Digital have been involved in enabling Russian intelligence services to procure technology for sanctioned Russian entities. Turken Digital has worked with U.S.-designated Limited Liability Company TBS (TBS) and Andrey Vladimirovich Timoshin (Timoshin) to arrange payment and shipping details to overcome sanctions barriers and move goods from Türkiye to Russia. TBS and Timoshin were designated in May 2023. TBS is a technology company located in Moscow that provides testing systems for the microelectronic industry. Russia’s intelligence services have used TBS to enable payments and ship equipment on behalf of Russian customers. Timoshin worked with TBS and other companies to procure semiconductor and nanotechnology production equipment for sanctioned Russian entities. Timoshin’s procurement activity was directed by Russia’s intelligence services.

Berk Turken and Turken Digital were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. BSB Group was 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, Berk Turken.

United Arab Emirates

365 Days Freight Services FZCO (365 Days) specializes in moving high-value goods and computer components. 365 Days has shipped high-priority goods, including machines for the reception, conversion, and transmission of data, to Russia.

Alcotech International Trading DMCC (Alcotech) specializes in financing and delivering projects in high-tech equipment. Alcotech has worked with Russian end-users to acquire specialized technical equipment. Andrei Golovtchenko (Golovtchenko) is the director and owner of Alcotech. Golovtchenko facilitated the shipment of industrial equipment to a Russian end-user.

Alfa Logistics FZCO (Alfa Logistics) has shipped high-priority goods, including machines for the reception, conversion, and transmission of data, to Russia.

Dubai Sea Breeze has shipped U.S.-origin aircraft parts and equipment to Russia. Dubai Sea Breeze’s Russian-language website caters to construction, heavy equipment, and aircraft industry clients seeking to obtain products manufactured in the United States and Europe.

Flavic FZE (Flavic) imports and exports aviation equipment and technology to and from Russia for repair, reconstruction, testing, and other maintenance, and is certified to work with the Russian Ministry of Defense.

Globe Trekkers LLC (Globe Trekkers) has shipped high-priority goods, including processing units, to Russia.

Hyperel FZCO (Hyperel) has shipped high-priority goods, machines for the reception, conversion, and transmission of data to Russia. Hyperel has also shipped U.S.-made vehicle-related equipment and technology to Russia.

Kobolt Trading FZ LLC (Kobolt) has shipped high-priority goods, including machines for the reception, conversion, and transmission of data, to Russia.

Mobitronix LLC (Mobitronix) is involved in the trade of satellite receiving equipment and other computer equipment, and has shipped high-priority goods, including electronic integrated circuits; machines for the reception, conversion, and transmission of data; tantalum capacitors; ceramic capacitors; and electrical parts, to Russia.

SM Distribution Inc FZCO (SM Distribution) is an electronics trading company that has shipped high-priority goods, including machines for the reception, conversion, and transmission of data, to Russia.

TCH Consultancy has shipped high-priority goods, including machines for the reception, conversion, and transmission of data, to Russia.

365 Days, Alcotech, Alfa Logistics, Flavic, Golovtchenko, Globe Trekkers, Hyperel, Kobolt, SM Distribution, and TCH Consultancy were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.

Mobitronix was designated pursuant to E.O. 14024 for operating or having operated in the electronics sector of the Russian Federation economy.

Dubai Sea Breeze was designated pursuant to E.O. 14024 for operating or having operated in the transportation sector of the Russian Federation economy.

In addition to targeting UAE-based firms supplying dual-use goods to Russia, OFAC is also taking steps to disrupt a UAE-based network involved in Russian illicit finance.

ARX Financial Engineering Limited (ARX) is a UAE-based financial engineering company set up to provide brokerage and investment servicesa t institutional and professional clients. ARX has offered investment services to Russian investors, including the ability to transfer Russian financial assets into and house brokerage and bank accounts in the UAE to promote their access to the global financial system. ARX has been involved in identifying ways that Russian rubles could be sent from sanctioned Russian bank VTB Bank Public Joint Stock Company (VTB) and converted to U.S. dollars. ARX has also identified ways to reduce the risk of identification of a client's assets in the event of sanctions exposure.

Oman-based Tadawul Financial Services SAOC (Tadawul) is a boutique investment firm that provides clients access to brokerage and portfolio management services though global financial markets, safekeeping of assets, and advice. Tadawul has been leveraged to house and manage Russian illicit assets. Tadawul' s corporate relationship with ARX is intended to support servicing of Russian clients.

Russian national Natalia Vladimirovna Solozhentseva (Solozhentseva) is the former vice president of VTB and a former board member of VTB’s Cypriot subsidiary. Solozhentseva has worked with ARX to strengthen and growth its business and to establish investment firms that manage illicit Russian assets in jurisdictions with. minimal regulatory oversight.

Additionally, Cyprus-based company Solinvest LTD (Solinvest) is directed and owned by Solozhentseva. Cypriot national Aegli Tamani Phella (Phella) is a director of Solinvest and chairman of the board of directors of Tadawul.

Additional ARX-linked individuals designated today include:

  • Irish national Liam Eoin Fraher (Fraher) is a founding partner and member of the board of ARX and the deputy chairman of the board of the directors of Tadawul.
  • Latvian national Donats Skutelis (Skutelis) is the chief executive officer (CEO) and a partner of ARX and a shareholder of Tadawul.
  • Russian national Beyshen Kasymovich Isaev (Isaev) is a senior relationship manager at ARX.
  • Irish national Dermot O'Reilly (O'Reilly) is the head of ethical finance at ARX.

ARX, Tadawul, Solozhentseva, Fraher, Skutelis, and Isaev were designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation Economy. Solinvest was 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, Solozhentseva. Phella 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 Solinvest. O'Reilly 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 ARX.

People’s Republic of China

PRC-based Beijing Jiahehengde Technology Company Ltd. (Jiahehengde) and Beijing Shangyixianda Technology CompanyLtd. (Shangyixianda) have conducted hundreds of shipments of electro-optical equipment, cameras, telecommunications equipment, and other electronic components to Russia-based LLC Laser Components, which was designated today by the U.S. Department of State. Jiahehengde and Shangyixianda were designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for LLC Laser Components, a person whose property and interests in property are blocked pursuant to E.O. 14024.

China Taly Aviation Technologies Corp. (China Taly) is a PRC-based company that has shipped radar components to a Russian state-owned missile manufacturer for use in advanced antiaircraft missile systems. China Taly was designated pursuant to E.O. 14024 for operating or having operated in the aerospace sector of the Russian Federation economy.

Georgios Georgiou

Georgios Georgiou (Georgiou) is a money launderer who has facilitated money laundering globally for criminal organizations, corrupt businessmen, and Russian oligarchs. Georgiou has used various money laundering schemes to move hundreds of millions of dollars for Russian oligarchs and obfuscated the beneficial ownership of the funds. These schemes included loans for the purchase of land, a loan-back transaction with “loan forgiveness,” and the use of convertible promissory notes. Georgiou also provided services to U.S.-designated John Desmond Hanafin, the founder and CEO of U.S.-designated Huriya Private FZE LLE, a private equity and corporate structuring entity heavily involving in moving Russian finance into the UAE and money laundering.

Georgiou was designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy.

AIT and Anton Garevskikh

Advanced Industrial Technologies GmbH (AIT) is a Switzerland-based supplier of industrial equipment and provides sourcing, procurement, and logistics services. AIT has worked with Russian end-users to procure dual-use equipment from European, American, and Asian suppliers. Swiss national Anton Garevskikh (Garevskikh) is the CEO and owner of AIT.

AIT and Garevskikh were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. Garevskikh was also 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 AIT.

Artur Petrov Sanctions Evasion Network

Artur Aleksandrovich Petrov (Petrov) orchestrated a complex sanctions evasion scheme to procure U.S.-made electronics technology for Russian end-users. On August 31, 2023, Petrov was charged by the U.S. Attorney’s Office in the Southern District of New York (SDNY) with export control violations, smuggling, wire fraud, and money laundering offenses based on Petrov’s alleged participation in a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. The Cyprus Police provided critical assistance in effecting Petrov’s arrest on August 26, 2023 in the Republic of Cyprus at the request of the United States.

According to the allegations in SDNY’s complaint, Petrov is a Russian national who has resided in Russia and Cyprus and works for Obshchestvo S Ogranichennoi Otvetstvennostyu Elektrokom VPK (Elektrokom), a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. Petrov and two co-conspirators operated an illicit procurement network in Russia and elsewhere overseas. They have fraudulently procured from U.S. distributors large quantities of microelectronics subject to U.S. export controls on behalf of Elektrokom. To carry out the scheme, Petrov and his co-conspirators used shell companies and other deceptive means to conceal that the electronics components were destined for Russia. The technology that Petrov and his co-conspirators has procured in contravention of export controls during the course of the conspiracy has significant military applications and includes various types of electronics components that have been recovered in Russian military hardware on the battlefield in Ukraine, such as Russian guided missiles, drones, and electronic warfare and communications devices.

According to the allegations in SDNY’s complaint, to perpetrate the scheme, Petrov first acquired the controlled microelectronics from U.S.-based electronics exporters using a Cyprus-based shell company, Astrafteros Technokosmos LTD (Astrafteros), which he operates. Petrov procured these sensitive electronics components by falsely representing to the U.S. exporters that Astrafteros was purchasing the items for fire security systems, among other commercial uses, and that the ultimate end-users and destinations of the electronics were companies in Cyprus or other third countries—when in fact the components were destined for Elektrokom.

Petrov, Elektrokom, and Astrafteros were designated pursuant to E.O. 14024 for operating or having operated in the electronics sector of the Russian Federation economy.

DIMINISHING RUSSIA’S DOMESTIC INDUSTRIAL BASE

Russia’s desperation to extend its war of choice against Ukraine has led to a reorientation of its domestic industrial base away from producing goods for the Russian people to attempting to ensure that the war machine can sustain itself. Today, OFAC is targeting a wide array of Russia-based industrial firms that produce, import, distribute, and repair industrial machinery, machine tools, spare parts, additive manufacturing (including 3D printing) equipment, ball bearings, and other industrial equipment and materials.

The following Russia-based firms were designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy:

  • OOO Absolyut Shar is a bearing manufacturer and extensive supplier of bearings, gears, and driving elements;
  • Alfa Machinery Group supplies metalworking equipment and machinery to Russian manufacturers;
  • Anisoprint Rus LLC is a distributor of industrial 3D printing equipment;
  • Baikov Institute of Metallurgy and Materials Science Russian Academy of Sciences researches manufacturing processing of ferrous, non-ferrous, and rare metals and alloys;
  • Baltiyskaya Promishlennaya Kompaniya manufactures metalworking machines and is involved in the production of protective casings, guards, and chip conveyors;
  • Baltpromservis manufactures bearings, gears, and gearing and driving elements, and also repairs machinery and equipment;
  • Limited Liability Company Clean Gases Plus manufactures industrial gases, explosives, devices, and sensors;
  • Cybercom Limited is a distributor of industrial 3D printing and 3D scanning equipment;
  • LLC Etalon Pro supplies metalworking equipment to Russian companies for industrial production;
  • LLC F2 Innovations is a distributor of industrial 3D printing equipment;
  • Obshchestvo S Ogranichennoi Otvetstvennostyu FAM Grupp supplies components for machine engineering, develops solutions for industrial automation, and manufactures electric motors, generators, and other components;
  • Obshchestvo S Ogranichennoi Otvetstvennostyu FAM Kholding supplies components for mechanical engineering and develops industrial automation systems;
  • Obshchestvo S Ogranichennoi Otvetstvennostyu FAM Robotiks is engaged in production process automation with the application of industrial robots;
  • Obshchestvo S Ogranichennoi Otvetstvennostyu FAM Rusavtomatika supplies automation equipment and wholesales machinery;
  • Gazpromneft Catalytic Systems Limited Liability Company manufactures chemical agents for advanced oil refining in Russia;
  • Haitian Precision LLC wholesales metalworking equipment;
  • Limited Liability Company I Machine Technology supplies metal-cutting machines to Russian companies, including on a turnkey basis;
  • Obshchestvo S Ogranichennoi Otvetstvennostyu Innovatsionnye Tekhnologii i Materialy produces carbon composite materials for major Russian aerospace companies;
  • OOO Instrumentalno Podshipnikovaya Kompaniya supplies bearings and metal-cutting equipment;
  • IRS Laser Technology Limited Liability Company manufactures laser metal surfacing technology for the aviation, energy, mining, and metallurgical sectors;
  • Aktsionernoe Obshchestvo IPK Finval is a leading supplier of industrial machinery, tools, gear, and equipment and also provides engineering services for electronics manufacturing;
  • Kami Group Limited Liability Company is one of the largest suppliers of industrial equipment in Russia and is involved in the manufacture of metalworking equipment;
  • JSC Kompozit (Kompozit) performs research and experimental work on the properties of materials, including those relating to additive manufacturing. Kompozit specializes in the manufacture of manmade fibers, technical ceramic products, products based on graphite or other carbon, weapons and ammunition, and the casting of light metals;
  • Obshchestvo S Ogranichennoi Otvetstvennostyu Khaitian SNG is a wholesaler of injection molding machines, robots, and peripherals that also provides services to manufacturers of polymer products;
  • Aktsionernoe Obshchestvo Lama supplies spare parts and manufactures spare parts for bulldozers;
  • Limited Company Laser Systems creates products for the air navigation and meteorology fields and holds a license for the development, production, and testing of armed and military equipment;
  • LLC SPC Lasers and Apparatus TM develops and produces industrial laser equipment;
  • Aktsionernoe Obshchestvo Mashinostroitelnyi Kholding develops and manufactures drilling tools and equipment;
  • Zakrytoe Aktsionernoe Obshchestvo Magnitogorskii Zavod Prokatnykh Valkov produces metalworking machinery and equipment;
  • NIK LLC is engaged in industrial 3D printing for Russian aviation customers;
  • LLC Nizhnekamsk Mechanical Plant repairs machinery and equipment and manufactures products using metallurgy;
  • Joint Stock Company Omutninsk Metallurgical Plant manufactures a wide assortment of metal products;
  • OOO TD Podshipnik Trade distributes and develops bearing products;
  • Promyshlennaya Gruppa Vekprom Limited Liability Company wholesales machine tools and manufactures metalworking equipment and machinery;
  • Nauchno Proizvodstvennoe Obyedinenie Promodel manufactures critical castings for the aviation, oil, and gas industries;
  • Promoil Limited Liability Company is involved in machinery manufacturing and wholesales machines, devices, apparatus, and equipment for general industrial and special purposes, including industrial equipment, lathes, milling machines, and boring machines;
  • LLC Research and Production Association 3D Integration is a distributor of industrial 3D printing equipment;
  • Aktsionernoe Obshchestvo Rust 95 produces valves and automatic control devices;
  • Public Joint Stock CompanySasta manufactures metal-cutting machine tools and road machinery;
  • Scientific and Technical Center Privodnaya Tehnika Limited Liability Company manufactures equipment for the metallurgy and energy sectors;
  • Obshchestvo S Ogranichennoi Otvetstvennostyu SFT distributes specialized tools for computer numerical control (CNC) metalworking equipment;
  • OOO TD Sibirskiy Podshipnik supplies bearings to the machinery and manufacturing industries;
  • Stan LLC manufactures metal-working equipment;
  • Stanki.Ru Limited Liability Company is involved in the manufacture of metalworking equipment and wholesales industrial machinery and machine tools;
  • Stankim delivers metalworking equipment and components for the production of metalworking equipment;
  • Stankomashstroy manufactures metalworking equipment;
  • Stankoprom OOO manufactures finished metal products;
  • Syncam Additive Center makes additive manufacturing equipment;
  • Limited Liability Company Tek Kom Manufacturing produces and supplies bearings and bearing units, seals, mechatronics, services, and lubrication systems;
  • Uraldomnoremont Ekaterinburg manufactures machinery for metallurgy;
  • Obshchestvo S Ogranichennoi Otvetstvennostyu Vidis Grupp (Vidis Grupp) is a wholesaler of industrial machinery, to include metal cutting tools, owned by U.S.-designated Russian aerospace and defense company Joint Stock Company Tekhnodinamika (Tekhnodinamika). Vidis Grupp was also 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, Tekhnodinamika;
  • Zakrytoe Aktsionernoe Obshchestvo Instrument manufactures fabricated metal products;
  • Zavod Kompleksnye Dorozhnye Mashiny manufactures special-purpose motor vehicles, such as utility vehicles;
  • Zavod Podshipnikovykh Uzlov manufactures and supplies bearings, gears, drives, and bearing housings, and;
  • Zavod Pribornykh Podshipnikov Limited Liability Company is Russia's largest manufacturer of miniature precision ball bearings.

The following Russia-based firms were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy:

  • Joint Stock Company Ascon produces software solutions for 3D modeling, business process development, and engineering data management;
  • Bazis Center LLC is a software designer for complex automation;
  • CSoft Development is a software developer for the fields of mechanical engineering and construction;
  • Gazpromneft Science and Technology Centre Limited Liability Company develops technologies for the Russian oil and gas industries;
  • JSC IQB Technologies is a distributor of industrial 3D printing and 3D scanning equipment, software, and materials;
  • Aktsionernoe Obshchestvo Nauchno Proizvodstvennoe Obyedinenie MKM is a software developer for foundry technologies;
  • Quantorform is a software designer for the automatic simulation of the metallurgical process chain.

Promkomplekt Sintez is a Russia-based company involved in the construction of industrial and commercial buildings as well as the distribution of machine tools. Promkomplekt Sintez was designated pursuant to E.O. 14024 for operating or having operated in the construction sector of the Russian Federation economy.

NT Service is a Russia-based company that provides services for transporting cargo as well as repair and maintenance services for motorways, vehicles, and commercial and industrial machinery. NT Service was designated pursuant to E.O. 14024 for operating or having operated in the transportation sector of the Russian Federation economy.

Central Institute of Aviation Motors (CIAM) is an advanced scientific center and aviation institute involved in the development of aircraft engines. The institute is part of Russia’s military-industrial complex. CIAM was designated pursuant to E.O. 14024 for operating or having operated in the aerospace sector of the Russian Federation economy.

OFAC is also designating several individuals involved in Russian industry.

Russian nationals Vadim Sergeevich Dobrov (Dobrov) and Alexander Aleksandrovich Vyalov (Vyalov) are officials of Public Joint Stock Company Research & Production Corporation Istok Named After AI Shokin (NPP Istok), a Russian manufacturer of electronic components for military end-users that was designated on June 28, 2022.

Dobrov and Vyalov were designated pursuant to E.O. 14024 for operating or having operated in the electronics sector of the Russian Federation economy.

Russian national Boris Gennadiyevich Vorontsov (Vorontsov) is an official at a Russian state-owned corporation.

Vorontsov 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 the Government of the Russian Federation.

Russian national Maksim Yuryevich Ermakov (Ermakov) has founded at least seven Russian manufacturing companies.

Ermakov was designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy.

IMPEDING RUSSIA’S TECHNOLOGICAL GROWTH

Today, OFAC continues to put pressure on Russia’s technology sector. The actions today target Russia-based entities and individuals that finance, research, develop, or import advanced technology, including Russia’s finance and technology conglomerate Sistema.

Sistema Public Joint Stock Financial Corporation (Sistema) is one of Russia’s largest publicly-traded diversified holding companies, with involvement in the defense, financial, and technology industries. Sistema was designated pursuant to E.O. 14024 for operating or having operated in the financial services and technology sectors of the Russian Federation economy. Sistema has also been sanctioned by the United Kingdom.

OFAC also designated the following three Sistema subsidiaries 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, Sistema:

  • Luxembourg-based East West United Bank SA
  • Singapore-based Sistema Asia PTE LTD
  • Russia-based Sistema Smarttekh

All entities owned 50 percent or more, directly or indirectly, by Sistema are subject to blocking, even if not identified by OFAC. General License 6C authorizes transactions related to agricultural commodities, medicine, medical devices, replacement parts and components, or software updates, the Coronavirus Disease 2019 (COVID-19) Pandemic, or Clinical Trials.

The following Russia-based firms and individuals were designated pursuant to E.O. 14024 for operating or having operated in the electronics sector of the Russian Federation economy:

  • Joint Stock Company Company Scan wholesales computers and related devices and provides advisory services related to computer technologies;
  • Engineering Center of Innovative Technologies manufactures radio electronics and electronic printed circuits;
  • Fregat OOO (Fregat) is one of the top suppliers of electronic components and equipment in Russia. Fregat’s key customers and partners include multiple designated entities, including U.S.- designated Russian defense companies Joint Stock Company Concern Kalashnikov, State Corporation Rostec, and Joint Stock Company Aerospace Defense Concern Almaz Antey;
  • Research and Production Company Horst is the main supplier of specialty gases for Russia’s semiconductor industry;
  • Aktsionernoe Obshchestvo Optron is one of Russia’s leading manufacturers of semiconductors;
  • Joint Stock Company Scan designs microelectronics and has its own center for designing integrated circuits;
  • OOO TK Fly Bridge is an electronics wholesaler that has fulfilled contracts for U.S.-designated Russian military electronic component manufacturer NPP Istok, and;
  • Joint Stock Company VNIIR Progress is involved in the development and production of electronic components.

TARGETING RUSSIA’S FINANCIAL SERVICES SECTOR

Building on previous sanctions actions, OFAC today sanctioned seven Russia-based banks, an executive of one of those banks, and one Russia-based financial infrastructure entity.

Public Joint Stock Company Saint Petersburg Exchange (SPBX)is a Russia-based brokerage providing access for investors to the international stock markets, including the Russian stock market.

SPBX was designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy.

The following Russia-based financial institutions were designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy:

  • Commercial Bank Absolut Bank PAO, a commercial bank focused on high-tech development;
  • Blanc Bank Limited Liability Company, an investment bank;
  • Home Credit & Finance Bank Limited Liability Company, a private commercial bank;
  • Joint Stock Company Post Bank, a commercial bank;
  • Publichnoe Aktsionernoe Obshchestvo Kommercheski Bank Russki Regionalny Bank (Russki Regionalny Bank), a commercial bank;
  • Joint Stock Company Russian Regional Development Bank, a commercial bank, and;
  • Joint Stock Company Russian Standard Bank, a private commercial bank.

Dmitry Ivanovich Zharikov (Zharikov) is the chairman of Russki Regionalny Bank.

Zharikov was designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy as well as for being or having been a leader, official, senior executive officer, or member of the board of directors of Russki Regionalny Bank.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the 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 blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or 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.

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

For identifying information on the individuals and entities sanctioned today, click here.