BIS, OFAC Continue Sanctions Campaign Against Russian Defense, Other Sectors
The Bureau of Industry and Security furthered its crackdown on Russian arms and weaponry traders on Sept. 12, as the Obama administration strapped another sanctions package on the Russian defense, financial and energy sectors (here). BIS added five Russian companies to its Entity List. The designations level license requirements, with a presumption of denial, for the export, reexport and foreign transfer of items subject to the Export Administration Regulations (EAR). Those companies are as follows:
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
- Almaz-Antey Air Defense Concern Main System Design Bureau, JSC
- Tikhomirov Scientific Research Institute of Instrument Design
- Mytishchinski Mashinostroitelny Zavod, OAO
- Kalinin Machine Plant, JSC
- Dolgoprudny Research Production Enterprise
BIS also added five energy companies to the Entity List. U.S. exporters are now forced to get a license, with a presumption of denial, for the trade of EAR-subject items to the five companies if the U.S. exporter knows the companies intend to use the items for certain energy exploration and production activities. Those companies include Gazprom, Gazpromneft, Lukoil, Rosneft and Surgutneftegas.
President Barack Obama said on Sept. 11 this U.S. sanctions package follows suit with a recent European Union commitment to impose sanctions (see 14090914). The measures, which target the same sectors as the U.S. sanctions, also went into force on Sept. 12 (here).
The Treasury Department’s Office of Foreign Assets Control imposed sanctions on Sept. 12 in coordination with BIS on a range of companies (here). The defense traders added to the BIS Entity List will also now be subject to OFAC sanctions. Those companies will be added to the Specially Designated Nationals List, meaning financial transactions are restricted with those firms. OFAC is also making changes to the Sectoral Sanctions Identifications list, while adding the following companies:
- Ak Transneft
- Lukoil Oao
- OJSC Gazprom Neft
- Open Joint Stock Company Gazprom
- Rostec
- Sberbank Of Russia
- Surgutneftegas
Transactions and financing are now restricted with those companies. OFAC also made some logistical changes to the Sectoral Sanctions Identifications list statuses for a number of companies placed on that list through the recent series of U.S. sanctions packages on Russian and Ukrainian entities and individuals.