OFAC Sanctions : press release (over 300 new sanctions issued across Treasury and State)

U.S. Treasury Implements New Measures to Pressure Russia Amid Ongoing Ukraine Conflict

As President Biden and G7 leaders convene in Italy, the U.S. Treasury has announced extensive measures aimed at intensifying pressure on Russia. These measures include increased secondary sanctions on foreign financial institutions engaging with Russia’s war economy, restrictions on Russian access to U.S. software and IT services, and targeting over 300 individuals and entities globally who support Russia’s military efforts.

Key actions involve:

1. Secondary Sanctions: Foreign financial institutions now face heightened risks of sanctions for significant transactions with entities supporting Russia’s military-industrial complex.
2. Global Targeting: Over 300 individuals and entities across multiple continents have been sanctioned for aiding Russia’s war economy and evading existing sanctions.
3. Software and IT Restrictions: Prohibitions on supplying certain IT and software services to Russia, effective September 2024, to hinder the military-industrial base’s reliance on foreign technology.
4. Financial System Targeting: Actions against Russia’s financial infrastructure, including banks and trading markets facilitating war-related investments.
5. Evasion Networks: Sanctions on over a dozen transnational networks involved in money laundering and procuring war materials for Russia.
6. LNG Revenue Limitation: Targeting entities involved in Russia’s future liquefied natural gas projects to limit potential energy revenues.

Treasury Secretary Janet L. Yellen emphasized the measures to disrupt its access to international resources, highlighting the strategic focus on cutting off critical supplies and financial support.

Source and listings : https://home.treasury.gov/news/press-releases/jy2404

Above this, The United States has recently imposed sanctions on four individuals associated with ISIS, specifically “targeting a human smuggling network” connected to the terrorist group. This coordinated effort involved close cooperation with the Government of Türkiye, which is also taking action against this network. The individuals sanctioned include Olimkhon Makhmudjon Ugli Ismailov, Muhammad Ibrohimjon Niyazov, Muhammadyusuf Alisher Ogli Mirzoev, and Adam Khamirzaev.

Details of the Sanctions and Legal Implications

The sanctions, enacted under Executive Order 13224, block all property and interests in property of these individuals within the United States. This includes any entities owned 50% or more by them. U.S. persons are prohibited from engaging in transactions involving these individuals. Violating these restrictions could lead to secondary sanctions, particularly for foreign financial institutions that facilitate significant transactions for these individuals.

For Sanctioned Individuals and Their Legal Advisors

Understanding the sanctions’ implications is crucial for those affected. The Office of Foreign Assets Control (OFAC) oversees these sanctions and offers a process for removal from the SDN List, emphasizing that the goal of sanctions is to induce positive behavioral changes rather than merely to punish. Legal advisors and accountants working with sanctioned individuals should be well-versed in OFAC regulations and the process for challenging or seeking removal from these sanctions.