OFAC Sanctions Russian Military Supply Chains and Elite Connections
The Office of Foreign Assets Control and the State Department issued sanctions against 14 individuals, 28 entities and eight aircraft that are part of a transnational network procuring technology supporting the Russian military-industrial complex and a network of financial facilitators, OFAC said in a Nov. 14 news release.
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Russian electronics company PKK Milandr, its foreign subsidiaries and some of its corporate officers were added to the Specially Designated Nationals List. The move came as part of a larger operation to reduce imported microelectronics that the Russian military is reliant on, OFAC said. It also added Sharp Edge Engineering, a Taiwan-based front company, to the SDN List. OFAC said the company was used to purchase microelectronic components from Asia and Milandr employees used Sharp Edge accounts to procure equipment.
OFAC additionally targeted a broad network of Suleiman Abusaidovich Kerimov's family members and associates, as well as their properties. Kerimov was previously designated in 2018. An extensive enforcement investigation previously revealed that Kerimov used a network of relatives, advisers and opaque legal entities to invest in the U.S. and held assets valued at over $1 billion (see 2206280015).
Malta- and Russia-based aircraft management company Emperor Aviation and eight of its aircraft were also sanctioned in connection with Kerimov. OFAC on Nov. 14 issued Russia-related General License 40C, which replaces General License 40B and allows transactions regarding civil aviation safety.
“The United States will continue to expose and disrupt the Kremlin’s military supply chains and deny Russia the equipment and technology it needs to wage its illegal war against Ukraine,” Treasury Secretary Janet Yellen said. “Today’s actions demonstrate Treasury’s steadfast commitment to targeting people around the world aiding Putin’s war effort and the crony elites who bankroll his regime. Together with our broad coalition of partners, we will continue to use our sanctions and export controls to weaken Russia’s military on the battlefield and cut into the revenue Putin is using to fund his brutal invasion.”