In a rare Sunday press release, Treasury yesterday announced OFAC has designated individuals and entities critical to Russia’s ability to wage war against Ukraine. These include the board members of two of Russia’s most important banks, a Russian state-owned bank and 10 of its subsidiaries, a state-supported weapons manufacturer, and three of Russia’s state-controlled television stations that generate revenue for the state.
OFAC also acted to cut off access to services that are used by the Russian Federation and Russian elites to evade sanctions. On Sunday, OFAC identified accounting, trust and corporate formation, and management consulting as categories of services that are subject to a prohibition on the export, reexport, sale, or supply, directly or indirectly, from the United States, or by a U.S. person, wherever located, to any person located in the Russian Federation. OFAC also determined that these same services sectors of the Russian Federation economy are subject to sanctions pursuant to E.O. 14024.
OFAC had previously designated the CEO and Chairman, and the First Deputy Chairman of the Executive Board of Public Joint Stock Company Sberbank of Russia (Sberbank). On Sunday, it designated eight other current and recent members of the Executive Board of Sberbank.
In addition, OFAC yesterday designated 27 members of Gazprombank's Board of Directors.
Also designated were Joint Stock Company Moscow Industrial Bank and ten of its subsidiaries, plus Limited Liability Company Promtekhnologiya, a private defense company that supplies Russia's military and intelligence services with rifles, and three of Russia's top state-owned television stations.
Treasury also took action to cut off Russia’s access to certain key services from U.S. companies, which Russian Federation companies and Russian elites use to build wealth, generating revenue for Putin’s war machine, and evade sanctions. OFAC issued a determination pursuant to E.O. 14071 prohibiting the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of accounting, trust and corporate formation, and management consulting services to any person located in the Russian Federation. This prohibition will take effect June 7, 2022. In conjunction with this determination, OFAC issued new guidance and general licenses authorizing certain transactions related to these services. Yesterday’s action means that the Russian Federation and Russian elites will no longer benefit from U.S. companies’ valuable accounting, trust and corporate formation, and management consulting services.
For further information and a list of yesterday's additions to OFAC's SDN List, see the May 8, 2022, BankersOnline OFAC Update.