ARTICLE
24 October 2014

US And EU Also Issue Traditional Blocking Sanctions To Target Russian Individuals And Entities

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A&O Shearman

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On July 16, OFAC imposed traditional blocking sanctions under E.O. 13661 against eight Russian arms firms for operating in the arms or related material sector in Russia.
Worldwide International Law

On July 16, OFAC imposed traditional blocking sanctions under E.O. 13661 against eight Russian arms firms for operating in the arms or related material sector in Russia. Additionally, two entities and one individual were sanctioned pursuant to E.O. 13660 for threatening the peace, security, stability, sovereignty and territorial integrity of Ukraine. This included the "Luhansk People's Republic" and the "Donetsk People's Republic," which have asserted governmental authority over parts of Ukraine without authorization, and Aleksandr Borodai, the self-declared "prime minister" of the Donetsk People's Republic. Feodosiya Enterprises, a key shipping facility in the Crimean peninsula, was designated for its alleged complicity in the misappropriation of Ukrainian state assets. Finally, OFAC added four Russian officials, including Sergey Beseda, a senior Russian Federal Security Service official, to the SDN List. OFAC separately added OJSC United Shipbuilding Corporation to the SDN List pursuant to E.O. 13661 for operating in the arms or related material sector in Russia. United Shipbuilding Corporation is a Russian state-owned company that designs and constructs ships for the Russian Navy.

On September 12, pursuant to E.O. 13661, OFAC designated and blocked the assets of five Russian state-owned defense technology firms — Almaz Antey GSKB, JSC NIIP, Kalinin Machine Plant JSC, Mytishchinski Mashinostroitelny Zavod OAO, and OAO Dolgoprudny Research Production Enterprise — for operating in the arms or related material sector in Russia.

On July 11, the European Union imposed asset freezes and travel bans on 11 people accused of fomenting unrest in eastern Ukraine. An additional 15 people and 18 entities were targeted on July 25, including several senior Russian officials and the president of the Republic of Chechnya. In August 2014, the EU added a further eight individuals and three entities to its blacklist, followed by more people—including leading members of President Vladimir Putin's inner circle—on September 12,8 resulting in a total of 119 designated individuals since the introduction of measures targeting Russia in March 2014.

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