Sanctions

Trump wants to lift sanctions related to a Russian oligarch. Here’s why Politifact By John Kruzel

December 19, 2018 Oleg Deripaska reduced ownership of EN+ Group PLC, which wholly owns JSC EuroSibEnergo (ESE), and owns United Co. Rusal PLC, from 70% to 49.5% and will not have a vote. Deripaska is to be structurally shielded from having any influence in the companies. “With this letter, we wish to provide you with notification that Treasury intends to terminate the sanctions imposed on En+ Group plc (“En+”), UC Rusal pie (“Rusal”), and JSC EuroSibEnergo (“ESE”)in 30 days. Deripaska will remain sanctioned. All of Deripaska’s property and interests in property, including entities in which he owns a fifty percent or greater interest, will remain blocked, and foreign persons will continue to be subject to secondary sanctions should they knowingly facilitate a significant transaction for or on behalf of Deripaska or entities in which he owns a fifty percent or greater interest. None of the transactions to be undertaken to divest Deripaska of his interests in these companies will allow Deripaska to obtain cash either in return for shares relinquished in, or from future dividends he may receive from, En+, Rusal, or ESE. OFAC reserves the right to relist any or all of these companies should the change in circumstances represented by their implementation of the agreement with OFAC be reversed, including by a material breach of the terms of the agreement.” Letter from the US Treasury, Andrea M. Gacki, Director, Office of Foreign Assets Control to Senate Majority Leader Mitch McConnell

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action in response to Russia’s continued disregard for international norms.  Specifically, OFAC designated a former officer of Russia’s Main Intelligence Directorate (GRU) for having acted on behalf of sanctioned oligarch Oleg Deripaska (Deripaska).  OFAC also issued new designations related to the Internet Research Agency (IRA), an entity previously sanctioned for its efforts to interfere in U.S. elections.  Today’s action also includes the designation of 15 members of the GRU, a previously designated Russian military intelligence organization, for their involvement in a wide range of malign activity, including attempting to interfere in the 2016 U.S. election, efforts to undermine international organizations through cyber-enabled means, and an assassination attempt in the United Kingdom.  These 15 operatives are being sanctioned pursuant to the Countering America’s Adversaries Through Sanctions Act (CAATSA).  To date, this Administration has sanctioned 272 Russia-related individuals and entities for a broad range of malign activities.

“Treasury is sanctioning Russian intelligence operatives involved in cyber operations to interfere with the 2016 election and a wide range of other malign activities.  We are taking action against operatives working on behalf of a sanctioned oligarch, hacking the World Anti-Doping Agency and other international organizations, and engaging in other subversive actions,” said Steven T. Mnuchin, Secretary of the Treasury.  “The United States will continue to work with international allies and partners to take collective action to deter and defend against sustained malign activity by Russia, its proxies, and intelligence agencies.”

As a result of today’s designations, all property and interests in property of these persons subject to or transiting U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.”

Rebuking Trump, over 130 House Republicans challenge plans to lift sanctions against Putin ally Washington Post January 17, 2019 “The overwhelming 362 to 53 vote will not prevent the Trump administration from easing sanctions on three companies connected to Oleg Deripaska, a Russian oligarch with ties to former Trump campaign chairman Paul Manafort, as Senate Republicans narrowly blocked a similar measure on Wednesday.”

  • Victor Alekseyevich Boyarkin (Boyarkin) is a former GRU officer who reports directly to Deripaska and has led business negotiations on Deripaska’s behalf.  Deripaska and Boyarkin were involved in providing Russian financial support to a Montenegrin political party ahead of Montenegro’s 2016 elections.  Boyarkin was designated pursuant to Executive Orders (E.O.) 13661 and 13662 for having acted or purported to act for or on behalf of, directly or indirectly, Oleg Deripaska, who was previously designated pursuant to E.O. 13661 for having acted or purported to act for or on behalf of a senior Russian government official, as well as pursuant to E.O. 13662 for operating in the energy sector of the Russian Federation economy, as well as with entities 50 percent or more owned by designated persons.

Project LakhtaInternet Research Agency (IRA)Yevgeniy Prigozhin‘s Concord Management & Concord Catering

“Today, OFAC also designated several entities and individuals related to Project Lakhta, a broad Russian effort that includes the IRA, designated previously under E.O. 13694, as amended, which has sought to interfere in political and electoral systems worldwide.  Since at least 2014, Project Lakhta has used among other things, fictitious online personas that posed as U.S. persons in an effort to interfere in U.S. elections, as the IRA did during the 2016 U.S. election.  Concord Management and Consulting LLC and Concord Catering — two entities owned by Yevgeniy Prigozhin (Prigozhin)controlled Project Lakhta’s funding, recommended personnel, and oversaw Project Lakhta’s activities.  Concord Management and Consulting LLC, Concord Catering, and Prigozhin were all previously designated pursuant to E.O. 13694, as amended, on March 15, 2018 for providing funding to the IRA’s operations.  Prigozhin was also previously designated for materially assisting senior officials of the Russian Federation under E.O. 13661, while Concord Management and Consulting LLC and Concord Catering were designated under E.O. 13661 on June 20, 2017.

Since 2014, Project Lakhta concealed its activities by operating through several entities to include the IRA, Nevskiy News LLC, Economy Today LLC, and the Federal News Agency LLC.  As a result, Nevskiy News LLC, Economy Today LLC, and the Federal News Agency LLC were designated pursuant to E.O. 13694, as amended, for being owned or controlled by or having acted or purported to act for or on behalf of, directly or indirectly, Concord Management and Consulting LLC and Concord Catering.

Within weeks after the designation of the IRA, the Federal News Agency LLC — an entity utilized by Project Lakhta to obscure its activities that was also designated today — announced that it was creating a new Russian-funded, English-language website called USA Really.  USA Really, which is operated by Alexander Aleksandrovich Malkevich (Malkevich), engaged in efforts to post content focused on divisive political issues but is generally ridden with  inaccuracies.  In June 2018, USA Really attempted to hold a political rally in the United States, though its efforts were unsuccessful.  As of June 2018, Malkevich was a member of Russia’s Civic Chamber commission on mass media, which serves in a consultative role to the Russian government.  Based on this activity, USA Really was designated pursuant to E.O. 13694, as amended, for being owned or controlled by the Federal News Agency LLC, while Malkevich was designated pursuant to E.O. 13694, as amended, for having acted or purported to act for or on behalf of, directly or indirectly, USA Really.

As of 2018, Elena Alekseevna Khusyaynova (Khusyaynova) served as the Chief Accountant in Project Lakhta’s finance department, where she managed Project Lakhta’s budgeting and payment of expenses associated with its social media operations, advertising campaigns, infrastructure, and registration of legal entities used to further its activities.  Khusyaynova maintained Project Lakhta’s monthly budgets and submitted requests to Concord Management and Consulting LLC and Concord Catering.  As a result of these activities, Treasury designated Khusyaynova pursuant to E.O. 13694, as amended, for having acted or purported to act for or on behalf of, directly or indirectly, Concord Management and Consulting LLC and Concord Catering.  Khusyaynova is also the subject of a criminal complaint announced on October 19, 2018.

GRU ATTEMPTED ELECTION INTERFERENCE

Nine Russian GRU officers were designated today for their direct involvement in efforts to interfere in the 2016 U.S. election by targeting election systems and political parties, as well as releasing stolen election-related documents.  These nine individuals worked within Unit 26165 and Unit 74455 of the GRU.  Unit 26165 engaged in cyber operations that involved the staged release of documents stolen through computer intrusions.  Unit 74455 assisted in the release of stolen documents through various online personas, promoted those releases, and then aided in the publication of stolen content on social media accounts operated by the GRU.  These nine GRU officers are subjects of an indictment announced on July 13, 2018.

All 9 were designated pursuant to CAATSA Section 224 for knowingly engaging in significant activities undermining cybersecurity against any person, including a democratic institution or government, on behalf of the Government of the Russian Federation, and for acting or purporting to act for or on behalf of, directly or indirectly, the GRU.

  1. Viktor Borisovich Netyksho (Netyksho) As of March 2016, Netyksho was in command of Unit 26165 of the GRU.
  2. Boris Alekseyevich Antonov (Antonov)  As of March 2016, Antonov was a Major assigned to Unit 26165 of the GRU and was responsible for supervising those who targeted the 2016 U.S. Presidential election.
  3. Ivan Sergeyevich Yermakov (Yermakov) As of March 2016, Yermakov was an officer assigned to Unit 26165 of the GRU.  Between March and May 2016, Yermakov participated in the hacking of email accounts and servers associated with the 2016 U.S. election.  Yermakov also played an integral role in compromising WADA’s database in 2016. 
  4. Aleksey Viktorovich Lukashev (Lukashev) As of March 2016, Yermakov was a Senior Lieutenant within Unit 26165 of the GRU who sent spearphishing emails to campaign members associated with the 2016 U.S. election. 
  5. Nikolay Yuryevich Kozachek (Kozachek) As of March 2016, Kozachek was a Lieutenant Captain assigned to Unit 26165 of the GRU.  Kozachek also developed and monitored malware utilized by the GRU used to hack into networks associated with the 2016 U.S. election.
  6. Artem Andreyevich Malyshev (Malyshev) As of March 2016, Malyshev was a Second Lieutenant within Unit 26165 of the GRU who monitored malware implanted by the GRU on networks associated with the 2016 U.S. election.  Malyshev also played an integral role in compromising WADA’s database in 2016.
  7. Aleksandr Vladimirovich Osadchuk (Osadchuk)  As of March 2016, Osadchuk was the commanding officer of Unit 74455 of the GRU.   
  8. Aleksey Aleksandrovich Potemkin (Potemkin) As of March 2016, Potemkin was an officer assigned to Unit 74455 of the GRU and supervised a department that was responsible for the administration of computer infrastructure used in the release of stolen documents online. 
  9. Anatoliy Sergeyevich Kovalev (Kovalev) As of March 2016, Kovalev was an officer assigned to Unit 74455 of the GRU.  By July 2016, Kovalev hacked the website of a state board of elections and stole voter information.  By August 2016, Kovalev also hacked into computers of a U.S. company that supplied software used to verify voter registration information for the 2016 U.S. elections.

WORLD ANTI-DOPING AGENCY-RELATED DESIGNATIONS

Between 2016 and 2018, Russia targeted the World Anti-Doping Agency (WADA), the Organization for the Prohibition of Chemical Weapons (OPCW), and other international nonpolitical organizations using cyber hacking techniques.  In 2016, WADA announced that malicious actors, who were in fact the GRU, had accessed data on its networks through spearphishing attacks and then illegally released confidential medical data pertaining to professional athletes, with modifications from the original version in some instances.  These cyber-enabled operations followed WADA’s exposure of Russia’s extensive state-sponsored doping program in an independent WADA commission report.  On October 4, 2018, the U.S. Department of Justice indicted and Dutch authorities announced the expulsion of the four GRU officers identified below involved in malicious cyber activity targeting the OPCW, the international organization responsible for eradicating chemical weapons worldwide under a United Nations mandate, who Treasury is also designating today.

Specifically, OFAC designated Aleksei Morenets (Morenets) and Evgenii Serebriakov (Serebriakov), officers in the GRU who played an integral role in compromising WADA’s database in 2016, as well as assisting the GRU’s attempted cyber intrusions into the OPCW.  Morenets and Serebriakov were designated pursuant to CAATSA Section 224 for knowingly engaging in significant activities undermining cybersecurity against any person, including a democratic institution or government, on behalf of the Government of the Russian Federation, and for acting or purporting to act for or on behalf of, directly or indirectly, the GRU. 

Oleg Sotnikov (Sotnikov) served as a Russian military intelligence officer who provided support to the GRU during its targeting of the OPCW, and was designated pursuant to CAATSA Section 224 for knowingly engaging in significant activities undermining cybersecurity against any person, including a democratic institution or government, on behalf of the Government of the Russian Federation, and for acting or purporting to act for or on behalf of, directly or indirectly, the GRU.  

Alexey Minin (Minin) also served as a Russian military intelligence officer who supported the targeting of the OPCW, and also worked with Sotnikov to assemble hacking equipment during the operation.  Minin was designated pursuant to CAATSA Section 224 for knowingly engaging in significant activities undermining cybersecurity against any person, including a democratic institution or government, on behalf of the Government of the Russian Federation, and for acting or purporting to act for or on behalf of, directly or indirectly, the GRU.

NOVICHOK NERVE AGENT SKIRPAL ATTACK IN SALISBURY, ENGLAND MARCH 2018

In a brazen attack that defied international norms and Russia’s obligations under the Chemical Weapons Convention, GRU officers attempted to assassinate Sergei Skripal and his daughter by using a military grade nerve agent called Novichok in Salisbury, England in March 2018.  Skripal, his daughter, and a police officer survived the attack; however, months later, two additional British nationals were exposed to the agent, one of whom died as a result.  Many governments, including the United States, United Kingdom, Germany, France, and Canada, have made it clear that the Russian government was responsible for this attack.

Today OFAC is designating Alexander Petrov (Petrov) and Ruslan Boshirov (Boshirov), the GRU officers responsible for carrying out this attempted assassination of Sergei Skripal and his daughter.  Petrov and Boshirov were designated pursuant to CAATSA Section 224 for acting or purporting to act for or on behalf of, directly or indirectly, the GRU.

STATE DEPARTMENT CONCURRENT ACTION

In a concurrent action, the Department of State also added 12 individuals and entities designated today to the List of Specified Persons under Section 231 of CAATSA for being part of, or operating for or on behalf of, the defense or intelligence sector of the Russian Federation. As a result of this action, any person determined to knowingly engage in a significant transaction with these 12 individuals will be subject to CAATSA Section 231 sanctions.” US Treasury


Today, in its largest ever single-day action targeting the Iranian regime, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned more than 700 individuals, entities, aircraft, and vessels.  This action is a critical part of the re-imposition of the remaining U.S. nuclear-related sanctions that were lifted or waived in connection with the Joint Comprehensive Plan of Action (JCPOA). ”


Treasury and the Terrorist Financing Targeting Center Partners Sanction Taliban Facilitators and their Iranian Supporters US Treasury – 9 individuals October 23, 2018


April 6, 2018

Treasury Designates Russian Oligarchs, Officials, and Entities in Response to Worldwide Malign Activity

“Concurrent with this action, OFAC is issuing two general licenses to minimize immediate disruptions to U.S. persons, partners, and allies.  For details, see General Licenses 12 and 13, as well as related FAQs.

All assets subject to U.S. jurisdiction of the designated individuals and entities, and of any other entities blocked by operation of law as a result of their ownership by a sanctioned party, are frozen, and U.S. persons are generally prohibited from dealings with them.  Additionally, non-U.S. persons could face sanctions for knowingly facilitating significant transactions for or on behalf of the individuals or entities blocked today.

Designated Russian Oligarchs

  1. Vladimir Bogdanov is being designated for operating in the energy sector of the Russian Federation economy.  Bogdanov is the Director General and Vice Chairman of the Board of Directors of Surgutneftegaz, a vertically integrated oil company operating in Russia. OFAC imposed sectoral sanctions on Surgutneftegaz pursuant to Directive 4 issued under E.O. 13662 in September 2014.
  2. Oleg Deripaska is being designated pursuant to E.O. 13661 for having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation, as well as pursuant to E.O. 13662 for operating in the energy sector of the Russian Federation economy.  Deripaska has said that he does not separate himself from the Russian state.  He has also acknowledged possessing a Russian diplomatic passport, and claims to have represented the Russian government in other countries.  Deripaska has been investigated for money laundering, and has been accused of threatening the lives of business rivals, illegally wiretapping a government official, and taking part in extortion and racketeering.  There are also allegations that Deripaska bribed a government official, ordered the murder of a businessman, and had links to a Russian organized crime group.
  3. Suleiman Kerimov is being designated for being an official of the Government of the Russian Federation.  Kerimov is a member of the Russian Federation Council.  On November 20, 2017, Kerimov was detained in France and held for two days. He is alleged to have brought hundreds of millions of euros into France – transporting as much as 20 million euros at a time in suitcases, in addition to conducting more conventional funds transfers – without reporting the money to French tax authorities.  Kerimov allegedly launders the funds through the purchase of villas.  Kerimov was also accused of failing to pay 400 million euros in taxes related to villas.
  4. Igor Rotenberg is being designated for operating in the energy sector of the Russian Federation economy.  Rotenberg acquired significant assets from his father, Arkady Rotenberg, after OFAC designated the latter in March 2014.  Specifically Arkady Rotenberg sold Igor Rotenberg 79 percent of the Russian oil and gas drilling company Gazprom Burenie.  Igor Rotenberg’s uncle, Boris Rotenberg, owns 16 percent of the company.  Like his brother Arkady Rotenberg, Boris Rotenberg was designated in March 2014.
  5. Kirill Shamalov is being designated for operating in the energy sector of the Russian Federation economy.  Shamalov married Putin’s daughter Katerina Tikhonova in February 2013 and his fortunes drastically improved following the marriage; within 18 months, he acquired a large portion of shares of Sibur, a Russia-based company involved in oil and gas exploration, production, processing, and refining.  A year later, he was able to borrow more than one $1 billion through a loan from Gazprombank, a state-owned entity subject to sectoral sanctions pursuant to E.O. 13662.  That same year, long-time Putin associate Gennady Timchenko, who is himself designated pursuant to E.O. 13661, sold an additional 17 percent of Sibur’s shares to Shamalov.  Shortly thereafter, Kirill Shamalov joined the ranks of the billionaire elite around Putin.
  6. Andrei Skoch is being designated for being an official of the Government of the Russian Federation.  Skoch is a deputy of the Russian Federation’s State Duma.  Skoch has longstanding ties to Russian organized criminal groups, including time spent leading one such enterprise.
  7. Viktor Vekselberg is being designated for operating in the energy sector of the Russian Federation economy.  Vekselberg is the founder and Chairman of the Board of Directors of the Renova Group.  The Renova Group is comprised of asset management companies and investment funds that own and manage assets in several sectors of the Russian economy, including energyIn 2016, Russian prosecutors raided Renova’s offices and arrested two associates of Vekselberg, including the company’s chief managing director and another top executive, for bribing officials connected to a power generation project in Russia.

Designated Oligarch-Owned Companies

In addition to sanctioning the individuals listed above, OFAC today designated 12 companies that constitute some of the most prominent among the entities that are owned or controlled by the individuals designated today.  This list of 12 companies owned or controlled by the sanctioned oligarchs should not be viewed as exhaustive, and the regulated community remains responsible for compliance with OFAC’s 50 percent rule.

Oleg Deripaska-Controlled Companies

  1. B-Finance Ltd., based in the British Virgin Islands, is being designated for being owned or controlled by, directly or indirectly, Oleg Deripaska.
  2. Basic Element Limited is being designated for being owned or controlled by, directly or indirectly, Oleg Deripaska.  Basic Element Limited is based in Jersey and is the private investment and management company for Deripaska’s various business interests.
  3. EN+ Group is being designated for being owned or controlled by, directly or indirectly, Oleg Deripaska, B-Finance Ltd., and Basic Element Limited.  EN+ Group is located in Jersey and is a leading international vertically integrated aluminum and power producer.
  4. EuroSibEnergo is being designated for being owned or controlled by, directly or indirectly, Oleg Deripaska and EN+ Group. EuroSibEnergo is one of the largest independent power companies in Russia, operating power plants across Russia and producing around nine percent of Russia’s total electricity.
  5. United Company RUSAL PLC is being designated for being owned or controlled by, directly or indirectly, EN+ Group.  United Company RUSAL PLC is based in Jersey and is one of the world’s largest aluminum producers, responsible for seven percent of global aluminum production.
  6. Russian Machines is being designated for being owned or controlled by, directly or indirectly, Oleg Deripaska and Basic Element Limited.  Russian Machines was established to manage the machinery assets of Basic Element Limited.
  7. GAZ Group is being designated for being owned or controlled by, directly or indirectly, Oleg Deripaska and Russian Machines.  GAZ Group is Russia’s leading manufacturer of commercial vehicles.
  8. Agroholding Kuban, located in Russia, is being designated for being owned or controlled by, directly or indirectly, Oleg Deripaska and Basic Element Limited.

Igor Rotenberg-Controlled Companies

Gazprom Burenie, OOO is being designated for being owned or controlled by Igor Rotenberg.  Gazprom Burenie, OOO provides oil and gas exploration services in Russia.

NPV Engineering Open Joint Stock Company is being designated for being owned or controlled by Igor Rotenberg.  NPV Engineering Open Joint Stock Company provides management and consulting services in Russia.


Ladoga Menedzhment, OOO is being designated for being owned or controlled by Kirill Shamalov.  Ladoga Menedzhment, OOO is located in Russia and engaged in deposit banking.


Renova Group is being designated for being owned or controlled by Viktor Vekselberg.  Renova Group, based in Russia, is comprised of investment funds and management companies operating in the energy sector, among others, in Russia’s economy.


Designated Russian State-Owned Firms

Russia has contributed to the instability of the Government of Syria through the sales and transfer of Russian-origin military equipment in support of Assad’s regime, enabling Assad to continue carrying out attacks against Syrian citizens.  These attacks have included chemical weapons attacks, which claimed the lives of hundreds of Syrian citizens.

  • Rosoboroneksport is a state-owned Russian weapons trading company with longstanding and ongoing ties to the Government of Syria, with billions of dollars’ worth of weapons sales over more than a decade.  Rosoboroneksport is being designated under E.O. 13582 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the Government of Syria.
  • The Russian Financial Corporation Bank (RFC Bank) is being designated for being owned by Rosoboroneksport.  RFC Bank incorporated in Moscow, Russia and its operations include deposit banking activities.

Designated Russian Government Officials

Gazprombank Officials

  1. Andrey Akimov is the Chairman of the Management Board of state-owned Gazprombank. Akimov is being designated pursuant E.O. 13661 for being an official of the Government of the Russian Federation.
  2. Alexey Miller is the Chairman of the Management Committee and Deputy Chairman of the Board of Directors of state-owned company Gazprom.  Miller is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  3. Sergey Fursenko is a member of the board of directors of Gazprom Neft, a subsidiary of state-owned Gazprom.  Fursenko is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.

Mikhail Fradkov is the President of the Russian Institute for Strategic Studies (RISS), a major research and analytical center established by the President of the Russian Federation, which provides information support to the Presidential Administration, Federation Council, State Duma, and Security Council.  Fradkov is being designated pursuant E.O. 13661 for being an official of the Government of the Russian Federation.

Andrey Kostin is the President, Chairman of the Management Board, and Member of the Supervisory Council of state-owned VTB Bank.  Kostin is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.

Alexey Dyumin is the Governor of the Tula region of Russia.  He previously headed the Special Operations Forces, which played a key role in Russia’s purported annexation of Crimea.  Dyumin is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.

Russian Government Officials

  1. Oleg Govorun is the Head of the Presidential Directorate for Social and Economic Cooperation with the Commonwealth of Independent States Member Countries.  Govorun is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  2. Vladimir Kolokoltsev is the Minister of Internal Affairs and General Police of the Russian Federation.  Kolokoltsev is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  3. Konstantin Kosachev is the Chairperson of the Council of the Federation Committee on Foreign Affairs.  Kosachev is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  4. Nikolai Patrushev is Secretary of the Russian Federation Security Council.  Patrushev is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  5. Vladislav Reznik is a member of the Russian State Duma.  Reznik is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  6. Evgeniy Shkolov is an Aide to the President of the Russian Federation.  Shkolov is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  7. Alexander Torshin is the State Secretary – Deputy Governor of the Central Bank of the Russian Federation.  Torshin is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  8. Vladimir Ustinov is the Plenipotentiary Envoy to Russia’s Southern Federal District. Ustinov is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  9. Timur Valiulin is the head of the General Administration for Combatting Extremism within Russia’s Ministry of Interior.  Valiulin is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  10. Alexander Zharov is the head of Roskomnadzor (the Federal Service for the Supervision of Communications, Information Technology, and Mass Media).  Zharov is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.
  11. Viktor Zolotov is the Director of the Federal Service of National Guard Troops and Commander of the National Guard Troops of the Russian Federation.  Zolotov is being designated pursuant to E.O. 13661 for being an official of the Government of the Russian Federation.

 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine   6/20/2017

Donetsk People’s Republic (DPR) Luhansk People’s Republic (LPR). PMC Wagner-Dmitriy UtkinNight Wolves

Action Underscores U.S. Commitment to Maintain the Strength of Existing Sanctions in Furtherance of a Diplomatic Solution to the Crisis in Ukraine
 
 Washington —The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today reinforced existing sanctions on Russia by designating or identifying a range of individuals and entities involved in the ongoing conflict under four Executive orders (E.O.s) related to Russia and Ukraine.  Today’s action is designed to counter attempts to circumvent U.S. sanctions and will maintain alignment of U.S. measures with those of our international partners.  It will also provide additional information to assist the private sector with sanctions compliance.  These steps are consistent with the U.S. commitment to seek a diplomatic resolution to the crisis in Ukraine and to facilitate Crimea’s return to Ukraine.  U.S. sanctions on Russia related to the situation in eastern Ukraine will remain in place until Russia fully honors its obligations under the Minsk Agreements.  U.S. sanctions related to Crimea will not be lifted until Russia ends its occupation of the peninsula.
 
These designations will maintain pressure on Russia to work toward a diplomatic solution,” said Treasury Secretary Steven T. Mnuchin.  “This administration is committed to a diplomatic process that guarantees Ukrainian sovereignty, and there should be no sanctions relief until Russia meets its obligations under the Minsk agreements.”
In today’s action, OFAC designated 38 individuals and entities under Ukraine-related authorities, including one entity that has engaged in the evasion of existing sanctions, two Russian government officials and two individuals acting for or on behalf of a government official, two entities that are owned or controlled by an individual previously designated, and 11 individuals and entities that operate in the Crimea region of Ukraine.
As a result of today’s action, any property or interest in property of the designated persons in the possession or control of U.S. persons or within the United States must be blocked.  Additionally, transactions by U.S. persons involving these persons are generally prohibited.
OFAC also identified 20 subsidiaries that are owned 50 percent or more by the previously-designated AK Transneft OAO (Transneft), subject to Directive 2 under E.O. 13662, which prohibits U.S. persons from dealing in new debt of greater than 90 days maturity of the sanctioned entities.
 
Designations of Ukrainian Separatists (E.O. 13660)
Today’s action targets 21 Ukrainian separatists, entities, and their supporters pursuant to E.O. 13660 for being responsible for or complicit in, or having engaged in, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; for acting for or on behalf of, being owned or controlled by, or providing material or other support to previously designated groups; or for asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine.  This action is part of an ongoing effort to hold those responsible for violations of Ukraine’s sovereignty and territorial integrity accountable for their actions.
 
Vadim Bulgakov is the head of the Federal Penitentiary Service of the so-called “Republic of Crimea” and Sevastopol.  Bulgakov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine.
 
Igor Kornet is the “Minister of Internal Affairs” of the so-called “Luhansk People’s Republic (LPR).”  He previously announced that the Ministry of Interior of the LPR would launch a large-scale issuance of LPR passports to residents.  Kornet is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR.
Leonid Pasechnik is the “Minister of State Security” of the so-called  “LPR.”  He has been involved in a number of corruption schemes related to the smuggling of contraband between the LPR and Russia, to include arms, coal, fuel, and other related material.  Pasechnik is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR.
Natalya Khorsheva is “Acting Minister” of the “Council of Ministers” of the so-called “LPR.”  She previously announced that the LPR Council of Ministers adopted a resolution that would establish the Russian Ruble as the principal currency of the LPR.  Khorsheva is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR.
Petr Jarosh is the head of the Russian Federal Migration Service in the so-called “Republic of Crimea” and was sanctioned by the EU for supporting actions and policies which undermine the territorial integrity and independence of Ukraine.  Jarosh is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine.
Aleksey Kostrubitsky is the “Civil Defense and Emergency Situations Minister” of the so-called “Donetsk People’s Republic (DPR).”  Kostrubitsky is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR.
Aleksey Dikiy is the “Minister of Interior” of the so-called “DPR.”  Dikiy is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR.
Irina Nikitina is “Chairwoman” of the “Central National Bank” of the so-called “DPR.”  She previously announced the test launch of a system designed to allow money transfers between individuals from the DPR and LPR.  Nikitina is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR.
Andrei Melnikov is the “Minister of Economic Development” of the so-called “Republic of Crimea.”  Melnikov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine.
Oleg Kamshilov is the “Prosecutor” of the so-called “Republic of Crimea.”  Kamshilov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine.
 
Aleksey Muratov is an official representative of the so-called “DPR” in Russia.  He was involved in raising funds in Russia for relief aid for Donetsk and Luhansk, but it is alleged that only a small portion of the funds reached the intended recipients.  Muratov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR.
PMC Wagner is a private military company that has recruited and sent soldiers to fight alongside separatists in eastern Ukraine.  PMC Wagner is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine.
 
Dmitriy Utkin is the founder and leader of PMC Wagner.  Utkin is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, stability, sovereignty, or territorial integrity of Ukraine; and for acting or purporting to act for or on behalf of, directly or indirectly, PMC Wagner.
 
Central Republic Bank is the central bank of the so-called “DPR” and is directed and coordinated by the Council of Ministers of the DPR.  The bank operates throughout the territory of the self-proclaimed DPR and conducts the regular payment of pensions and benefits to residents of the territory.  Central Republic Bank is being designated for acting or purporting to act for or on behalf of, directly or indirectly, or being owned or controlled by, the DPR.
State Bank Luhansk People’s Republic is the central bank of the so-called “LPR” and was established by the Council of Ministers of the LPR.  The bank operates more than 110 branches within the territory of the so-called LPR.  State Bank is being designated for acting or purporting to act for or on behalf of, directly or indirectly, or being owned or controlled by, the LPR.
 
TSMRBANK, OOO is a Russian bank that services clients in the so-called “DPR” and “LPR.”  The bank maintains close ties with the leadership of the DPR.  TSMRBANK, OOO is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the LPR and the DPR.
Sergey Nazarov is being designated for materially assisting, sponsoring, or providing financial, material, or technological support for, or goods and services in support of, the DPR and LPR.  He is the chairman of the Interagency Commission for Humanitarian Assistance in the Donbass Republics (the “Interagency Commission”), which is nominally dedicated to providing humanitarian assistance to the Donetsk and Luhansk regions but in actuality also oversees projects in the transportation, trade, energy, tax, and financial sectors.  The Russian government, through Nazarov and the Interagency Commission, has exercised economic control in the Donetsk and Luhansk regions.  In addition to his activities in Donetsk and Luhansk, Nazarov has also worked to encourage international investment in Crimea.  Nazarov, the Deputy Minister of Economic Development of the Russian Federation, is also being designated pursuant to E.O. 13661 as an official of the Government of the Russian Federation.
Wolf Holding of Security Structures is an organization owned by the previously-designated Night Wolves motorcycle club.  The company provides martial arts and tactical military courses to foreign military, law enforcement, and Russian-speaking compatriots from European and Asian States. Wolf Holding of Security Structures is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Night Wolves.
Gennadii Anatolievich Nikulov is the President of Wolf Holding of Security Structures.  Gennadii Nikulov is being designated for acting for or on behalf of Wolf Holding of Security Structures.
Denis Yuryevich Ryauzov is the Combat Trainer Leader for Wolf Holding of Security Structures.  Denis Ryauzov is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, and for acting or purporting to act for or on behalf of, directly or indirectly, Wolf Holding of Security Structures.
Bike Center, a business located in Moscow, is being designated for being owned or controlled by the previously-designated leader of the Night Wolves, Aleksandr Zaldostanov.
Designations Related to Russia’s Purported Annexation of Crimea
OFAC also designated 11 individuals and entities 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.
IFD Kapital (IFDK) is a diversified holding company with investments in several sectors of the Russian economy, and owns a hotel complex in Crimea called the Riviera Sunrise Resort & Spa, which is also being designated today.  IFDK claimed control of the hotel complex after its previous managers halted operations in the Crimea region due to U.S. sanctions.  IFDK is being designated for operating in the Crimea region of Ukraine.
 
Riviera Sunrise Resort & Spa is a hotel complex operating in Alushta, Crimea.  Riviera Sunrise Resort & Spa is being designated for operating in the Crimea region of Ukraine, and for being owned or controlled by IFDK.
 
Olga Plaksina is the Chairperson of IFDK and is responsible for certain aspects of Crimean development.  Plaksina is being designated for being the leader of and acting or purporting to act for or on behalf of, directly or indirectly, IFDK.
 
KPSK, OOO is an insurance carrier located in Simferopol, Crimea.  The company, one of Russia’s top corporate property insurers, is the insurer of the bridge being constructed across the Kerch Strait connecting Crimea to Russia.  KPSK, OOO is being designated for operating in the Crimea region of Ukraine.
Oboronlogistika, OOO is the Russian Defense Ministry’s sole executor for the procurement of goods, works, and services for maritime transport of military troops and freight on the territory of the so-called Republic of Crimea.  Oboronlogistika, OOO owns maritime vessels operating in and around the Kerch ferry and the Baltic Sea.  Oboronlogistika, OOO is being designated for operating in the Crimea region of Ukraine.  
OFAC also designated the following six banks for operating in Crimea: Taatta, AO; Joint Stock Company Black Sea Bank of Development and Reconstruction; Joint Stock Commercial Bank Rublev; Joint Stock Company Commercial Bank North Credit; IS Bank, AO; and VVB, PAO.
Designations Related to Officials of the Russian Government and Sanctions Evasion
Today’s action also targets six individuals and entities pursuant to E.O. 13661, which authorizes sanctions on, among others, any individual or entity that is owned or controlled by, or that has provided material or other support to, persons operating in the arms or related materiel sector in the Russian Federation, and officials of the Government of the Russian Federation.
Molot-Oruzhie, OOO manufactures ordnance and accessories and is located in the Russian Federation.  In 2016, previously-designated Kalashnikov Concern advised a foreign company to use Molot-Oruzhie, OOO to falsify invoices in order to circumvent U.S. and EU sanctions.  Molot-Oruzhie is being designated for operating in the arms or related material sector of the Russian Federation and for acting or purporting to act for on behalf of, directly or indirectly, Kalashnikov Concern.
Limited Liability Company Concord Management and Consulting and Concord Catering are being designated for being owned or controlled by Yevgeniy Prigozhin, who OFAC designated in December 2016.
Alexander Babakov is the Russian Federation’s Special Presidential Representative for Cooperation with Organizations representing Russians Living Abroad.  Babakov was sanctioned in 2014 by the EU, which noted that he voted “yes” on a Russian bill for the annexation of Crimea. Alexander Babakov is being designated as an official of the Government of the Russian Federation.
Aleksandr Vorobev is Alexander Babakov’s Chief of Staff.  Aleksandr Vorobev is being designated for acting or purporting to act for or on behalf of, directly or indirectly, Alexander Babakov.
Mikhail Plisyuk is a staffer to Alexander Babakov.  Mikhail Plisyuk is being designated for acting or purporting to act for or on behalf of, directly or indirectly, Alexander Babakov.
Identifications Under the Sectoral Sanctions Identification List (E.O. 13662)