Over 300 new sanctions issued across Treasury and State
Foreign financial institutions that support Russia’s war economy face greater risk of sanctions
WASHINGTON — As President Biden and Group of Seven (G7) Leaders prepare to meet this week in Italy, the U.S. Department of the Treasury is issuing sweeping new measures guided by G7 commitments to intensify the pressure on Russia for its continued cruel and unprovoked war against Ukraine. Today’s actions ratchet up the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy; restrict the ability of Russian military-industrial base to take advantage of certain U.S. software and information technology (IT) services; and, together with the Department of State, target more than 300 individuals and entities both in Russia and outside its borders—including in Asia, the Middle East, Europe, Africa, Central Asia, and the Caribbean—whose products and services enable Russia to sustain its war effort and evade sanctions.
“Russia’s war economy is deeply isolated from the international financial system, leaving the Kremlin’s military desperate for access to the outside world,” said Secretary of the Treasury Janet L. Yellen. “Today’s actions strike at their remaining avenues for international materials and equipment, including their reliance on critical supplies from third countries. We are increasing the risk for financial institutions dealing with Russia’s war economy and eliminating paths for evasion, and diminishing Russia’s ability to benefit from access to foreign technology, equipment, software, and IT services. Every day, Russia continues to mortgage its future to sustain its unjust war of choice against Ukraine.”
Treasury is targeting the architecture of Russia’s financial system, which has been reoriented to facilitate investment into its defense industry and acquisition of goods needed to further its aggression against Ukraine. Treasury is also targeting more than a dozen transnational networks laundering gold for a designated Russian gold producer, supporting Russia’s production of unmanned aerial vehicles (UAVs), and procuring sensitive and critical items such as materials for Russia’s chemical and biological weapons program, anti-UAV equipment, machine tools, industrial machinery, and microelectronics. Today’s action also takes further steps to limit Russia’s future revenue from liquefied natural gas.
The State Department is targeting over 100 entities and individuals engaged in the development of Russia’s future energy, metals, and mining production and export capacity; sanctions evasion and circumvention; and furthering Russia’s ability to wage its war against Ukraine.
On December 22, 2023, President Biden expanded Treasury’s tools to disrupt and degrade Russia’s war machine by authorizing Treasury to impose sanctions on foreign financial institutions for aiding Russia’s military-industrial base. Today, Treasury is broadening the definition of Russia’s military-industrial base to include all persons blocked pursuant to Executive Order (E.O.) 14024. This means that foreign financial institutions risk being sanctioned for conducting or facilitating significant transactions, or providing any service, involving any person blocked pursuant to E.O. 14024, including designated Russian banks such as VTB Bank Public Joint Stock Company (VTB) and Public Joint Stock Company Sberbank of Russia (Sberbank). This expanded definition reflects Treasury’s assessment that Russia has re-oriented its economy and marshalled all parts of its government toward supporting its reprehensible war effort. Foreign financial institutions face sanctions risk for continuing to facilitate transactions involving Russia’s military-industrial base. Financial institutions should review OFAC’s updated sanctions advisory for practical guidance on how to identify sanctions risks and implement corresponding controls.
To help clarify the risk foreign financial institutions face by conducting or facilitating significant transactions or providing any service involving Russia’s designated banks, OFAC has updated the Specially Designated Nationals and Blocked Persons List (SDN List) information for five sanctioned Russian financial institutions, to include the addresses and aliases of their foreign locations.
Specifically, OFAC has updated the listings for Promsvyazbank Public Joint Stock Company to include its locations in Beijing, People’s Republic of China (PRC), Bishkek, Kyrgyz Republic, and New Delhi, India; for State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank to include its locations in Beijing, PRC and Mumbai, India; for Sberbank to include its locations in Beijing, PRC and New Delhi and Mumbai, India; for VTB to include its locations in New Delhi, India, and Beijing and Shanghai, PRC; and for VTB Capital Holdings Closed Joint Stock Company to include its location in Hong Kong, PRC.
In coordination with the U.S. Department of Commerce and in line with G7 efforts to disrupt the Russian military-industrial base’s reliance on foreign IT systems, Treasury has taken steps to restrict the Russian military-industrial base’s access to certain software and IT-related services. To implement this policy, Treasury, in consultation with the Department of State, has issued a new determination under Executive Order (E.O.) 14071, which prohibits the supply to any person in the Russian Federation of (1) IT consultancy and design services; and (2) IT support services and cloud-based services for enterprise management software and design and manufacturing software. The determination will take effect on September 12, 2024.
The United States strongly supports the free flow of information and communications globally, and these actions are not intended to disrupt civil society and civil telecommunications. Despite the new prohibitions, OFAC continues to maintain authorizations for certain telecommunication and internet-related transactions, as well as humanitarian transactions, under General Licenses 6D and 25D, which mitigate the impacts to Russian civil society and protect public access to information communications technology.
The Moscow Exchange (MOEX) operates Russia’s largest public trading markets for equity, fixed income, derivative, foreign exchange, and money market products, as well as Russia’s central securities depository and the country’s largest clearing service provider. U.S.-designated Russian President Vladimir Putin has approved a series of measures to further attract capital through MOEX from both Russian and non-Russian persons from “friendly countries”—expanding opportunities for both Russians and non-Russians to profit from the Kremlin’s war machine by making investments in Russian sovereign debt, Russian corporations, and leading Russian defense entities, including U.S.-designated State Corporation Rostec, Public Joint Stock Company United Aircraft Corporation (UAC), Kamaz Publicly Traded Company (Kamaz), Irkut Corporation Joint Stock Company, Uralvagonzavod, and Joint Stock Company Russian Helicopters.
The National Clearing Center (NCC) is the central counterparty and clearing agent for, and a subsidiary of, MOEX. NCC is supervised by the Central Bank of the Russian Federation (CBR).
The Non-Bank Credit Institution Joint Stock Company National Settlement Depository (NSD) is Russia’s central securities depository and is a subsidiary of MOEX. NSD provides bank account services, registration of over-the-counter trades, and liquidity management services. The European Union (EU) previously sanctioned NSD in June 2022.
Gas Industry Insurance Company Sogaz (Sogaz) is an insurance company that provides insurance to Russian military personnel and personnel of leading defense entities, including U.S.-designated UAC, Joint Stock Company Experimental Design Bureau Novator, and Federal State Enterprise Ya M Sverdlov Plant. Sogaz has also been sanctioned by Australia, Canada, the EU, New Zealand, and the United Kingdom (UK).
Joint Stock Company Russian National Reinsurance Company (RNRC) is a Russian state-owned reinsurance provider that was created in 2016 to provide protection for sanctioned persons. RNRC has also been sanctioned by the EU and UK.
MOEX, NCC, NSD, Sogaz, and RNRC were designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy. Sogaz was also designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.
Russia relies on complex transnational supply chains to feed its war machine and enable production of materiel to sustain its war effort. Similar networks also attempt to evade sanctions using convoluted schemes to move money and other valuable goods and assets. Today’s action targets more than a dozen of these types of networks, designating more than 90 individuals and entities across Russia, Belarus, the British Virgin Islands, Bulgaria, Kazakhstan, the Kyrgyz Republic, the PRC, Serbia, South Africa, Türkiye, and the United Arab Emirates (UAE).
For more information on these targets, please see Annex 1.
Russia has transformed into a war economy in which companies across the spectrum of Russian industry contribute to Russia’s war effort. Today’s action reflects the intricate landscape of Russia’s domestic war economy by targeting more than 100 entities that operate or have operated in the defense and related materiel, manufacturing, technology, transportation, or financial services sectors of the Russian Federation economy.
For more information on these targets, please see Annex 2.
Guided by commitments made by President Biden and G7 leaders to limit Russia’s future energy revenues and impede Russia’s development of future energy projects, today Treasury is targeting entities involved in three liquefied natural gas (LNG) projects that Russia hopes to bring online in the future: the Obsky LNG, Arctic LNG 1, and Arctic LNG 3 projects. Today’s action also includes designations of three entities involved in either construction of natural gas-related projects or manufacturing specialized equipment for LNG transportation, as well as the identification of seven under-construction LNG vessels.
For more information on these targets, please see Annex 3.
Limited Liability Company Aero-HIT (Aero-HIT) is a Khabarovsk, Russia-based company that has purchased equipment and components to produce several modifications of the Veles multi-rotor first person view strike drone. Aero-HIT-manufactured Veles drones have been used by Russian forces based in Kherson against Ukrainian targets. The Veles drones can be used as an attack drone, as optical reconnaissance devices, or as part of an electronic reconnaissance system. Russia-based Andrei Andreevich Anisimov (Anisimov) is the Director General of Aero-HIT. In his capacity as Director General, Anisimov has worked to expand production of unmanned aerial vehicles (UAVs) for use by Russian forces. PRC-based Shenzhen Huasheng Industry Co Ltd has contracted with Aero-HIT to supply UAV components for Aero-HIT. Russia-based Obshchestvo S Organichennoi Otvetstvennostyu Renovatsio-Invest (Renovatsio-Invest) procured PRC-manufactured UAVs on behalf of Aero-HIT. Renovatsio-Invest has also attempted to provide similar services of procuring PRC-manufactured UAVs to other entities in the Russian military-industrial base.
Aero-HIT, Anisimov, Shenzhen Huasheng Industry Co Ltd, and Renovatsio-Invest were designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.
Russia-based Newton-ITM is a supplier and producer of metalworking equipment and high-precision parts for the aerospace industry. Russian national Dmitrii Vladimirovich Alikhanov (Alikhanov) is the director of Newton-ITM. Alikhanov has worked with European machine tool manufacturers to illicitly procure machinery for Russian end-users. Alikhanov has used Kyrgyz Republic-based Obshchestvo s Ogranichennoy Otvestvennostyu Nova Proekt (Nova Proekt) as a falsified end-user to procure machine tools for Russian end-users.A number of foreign intermediaries, including Türkiye-based Safes Lojistik Ithalat Ihracat Sanayi Ticaret Limited (Safes Lojistik), PRC-based Chongqing Fagima Electromechanical Equipment Co Ltd (Chongqing Fagima), and Hong Kong-based GBL International Logistics Co Ltd (GBL), helped to ship foreign-origin machine tools to Newton-ITM.
Newton-ITM, Alikhanov, Nova Proekt, Safes Lojistik, Chongqing Fagima, and GBL were designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy.
Russia-based Silk Way Rally Association (Silk Way) holds an annual off-road rally race that the U.S.-designated Russian Main Intelligence Directorate (GRU) uses as a front for intelligence operations. The GRU has given awards to Russian national Bulat Akhatovich Yanborisov (Bulat), the head of Silk Way, for his work. Bulat appears to use his properties in Europe as transit points for GRU officers. Bulat, who is Silk Way’s CEO and general director, alongside his son Amir Bulatovich Yanborisov (Amir), use Silk Way’s logistical infrastructure to procure anti-UAV and radioelectronic warfare equipment for use on the battlefield in Ukraine.
Silk Way, Bulat, and Amir were designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.
U.S.-designated OOO Mayak (Mayak) assists Russian companies in circumventing sanctions through Mayak’s trading houses and consolidated warehouses in Europe, delivering parallel imports from Europe, Türkiye, and the UAE. Russian national Nikolai Aleksandrovich Levin (Levin) is the General Director and owner of Mayak and has used a network of companies to facilitate the import of U.S. and foreign electronics, industrial materials, and other goods into Russia. Levin is the Director and owner of Serbia-based Bassire Group DOO Beograd (Bassire Group) and is the sole executive of Thailand-based NAL Solutions Company Limited (NAL Solutions). Türkiye-based Expert Machinery Kimyasal Urunler Ticaret Limited Sirketi (Expert Machinery) is co-owned by Levin and has sent over $500,000 worth of high priority HS code goods to Mayak and Russia-based OOO TAV (TAV), including machines for the reception, conversion, and transmission of data and integrated electronic circuits. TAV buys and delivers imported goods and offers all types of cargo transportation all over Russia and is owned by Russian national Aleksandr Vasilyevich Tanchev (Tanchev). Tanchev is the Director of Hong Kong-based Tavit Hong Kong Co Limited (Tavit), which has sent over $2 million worth of U.S.-made goods to Mayak.
Levin, Expert Machinery, and Tavit were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. TAV and Tanchev were designated pursuant to E.O. 14024 for operating or having operated in the transportation sector of the Russian Federation economy. Bassire Group and NAL Solutions were designated pursuant to E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Levin.
Russian national Andrey Dmitriyevich Sudakov (Sudakov), an employee of U.S.-designated Russian state-owned gold producer Public Joint Stock Company Polyus (Polyus), and his Hong Kong-based associate Mu Xiaolu (Mu), engaged in a complex, multi-layered laundering scheme whereby payments from the sale of Russian-origin gold were converted into fiat currency and cryptocurrencies through numerous UAE and Hong Kong-based front companies. The scheme used numerous Hong Kong-based trading companies, including Holden International Trading Limited (Holden) and Taube Precious HK Limited (Taube) to route payments related to gold sales through foreign financial institutions back into the Russian financial system. The scheme also used UAE-based front company Red Coast Metals Trading DMCC (Red Coast) to obfuscate payments from the sale of Russian-origin gold. Additionally, the scheme involved Hong Kong-based VPower Finance Security Hong Kong Limited (VPower) to transport the Russian-origin gold.
Sudakov, Mu, Holden, Red Coast, Taube, Red Coast, and VPower were designated pursuant to E.O. 14024 for operating or having operated in the metals and mining sector of the Russian Federation economy.
Alexey Chichenev (Chichenev) is a Russian national who manages a large-scale microelectronics procurement network based in Hong Kong. Chichenev has used his network of Hong-Kong based import-export companies, including Superchip Limited (Superchip) and Kvantek Limited (Kvantek), to ship millions of dollars’ worth of electronic integrated circuits and other high-priority technology items to Russia. Chichenev is the director and 100 percent owner of Superchip. Chichenev is also the director of Olax Finance Limited, Saril Overseas Limited, and Bargawine (Hong Kong) Limited.
Superchip and Kvantek were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. Chichenev was designated pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of Superchip. Olax Finance Limited, Saril Overseas Limited, and Bargawine (Hong Kong) Limited were designated pursuant to E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Chichenev.
Limited Liability Company Elecom (LLC Elecom) is a Russia-based electronic component manufacturer that has imported high-priority items, including electronic integrated circuits, from foreign companies. Pako International Trading (Pako International) is a Hong Kong-based company that has shipped high-priority items, including electronic integrated circuits and transformers, to Russian companies including LLC Elecom and U.S.-designated Limited Liability Company Promelektro Engineering (Promelektro Engineering). Valetudo Limited (Valetudo) is a Hong Kong-based company that has shipped high-priority items, including electronic integrated circuits and capacitators, to Russian companies including LLC Elecom and Promelektro Engineering. LLC Elecom, Pako International, and Valetudo were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
Brett Warrick Mac Donald (Mac Donald) and Shaun Louw (Louw) are South African nationals who, throughout mid-2023, arranged and oversaw the execution of a training program on survival techniques for U.S.-designated Private Military Company ‘Wagner’ (the Wagner Group) personnel in the Central African Republic. Mac Donald and Louw were designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Wagner Group, a person whose property and interests in property are blocked pursuant to E.O. 14024.
Russia-based Limited Liability Company Unmanned Systems (Unmanned Systems) is a designer and manufacturer of unmanned aircraft systems that have been used as reconnaissance drones by the Russian military. Russia’s military industrial base uses Unmanned Systems and an extensive network of Russian and foreign intermediary companies to purchase microelectronics and high-tech equipment produced abroad. Hong Kong-based Infinite Force Cargo Service HK Limited (Infinite Force) has sent camera lenses for unmanned aircraft to Unmanned Systems as well as high-priority items such as electronic integrated circuits, tantalum capacitors, and multilayer ceramic capacitors to other Russian end-users, including U.S.-designated Silkway Limited Liability Company.PRC-based Shanghai Transit International Forwarding Agency Co Ltd (Shanghai Transit)offers delivery via its own container trains to various Russian cities. Shanghai Transit has provided over $180,000 worth of high-priority items, including electronic integrated circuits, tantalum capacitors, and multilayer ceramic capacitors, to Russia-based end-users, including those supplying equipment to Unmanned Systems.
Unmanned Systems was designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy. Infinite Force and Shanghai Transit were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
Russia-based Limited Liability Company Severnaya Zvezda (Severnaya Zvezda) is a producer and supplier of semiconductors and tantalum capacitors critical to Russia’s war effort. Severnaya Zvezda’s principal supplier is British Virgin Islands-based ARP Investments Limited (ARP), which has made hundreds of shipments of electronic components to Russia since February 2022. ARP has engaged in transactions with U.S.-designated, Serbia-based Kominvex DOO Beograd (Kominvex). Kominvex’s transactions exhibited typologies indicative of possible trade-based money laundering.
Severnaya Zvezda and ARP were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
Russia-based Elekkom Logistik is an official distributor, dealer, and partner of leading foreign and domestic manufacturers of electro-technical products. Elekkom Logistik is part of a wide network of intermediaries supplying the Russian defense industry with foreign-made electronic components and materials used in the production of UAVs and has worked to procure ATXMEGA256A3-AU microchips. PRC-based Shenzhen Youxin Technology Co Ltd (Shenzhen Youxin) has provided more than half a million dollars’ worth of electronic integrated circuits, tantalum capacitors, and multilayer ceramic capacitors to Elekkom Logistik, in addition to chips found in Russian reconnaissance UAVs.
Elekkom Logistik and Shenzhen Youxin were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
KVAND ISOOO is a Belarus-based developer of drone technology that has designed and tested loitering munition UAVs, and has jointly designed and tested surveillance UAVs with the Belarusian government. KVAND IS OOO has shipped drone technology to the Russian defense establishment. Siarhei Tytsyk is the co-owner and director of KVAND IS OOO. Additionally, Freshvale EOOD, a Bulgaria-based UAV manufacturer, marketed Russian UAVs with offensive capabilities, such as weapons systems and missiles to an African country. KVAND IS and Freshvale EOOD were designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy. Siarhei Tytsyk was designated pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of KVAND IS OOO.
In May 2022, OFAC sanctioned entities comprising the Ostec Group, a Russian technology consortium and military contractor that supports Russian producers of various missile systems and aerial bombs, alongside its principal suppliers in Europe. Following those designations, new routes have emerged to attempt to enable the Ostec Group to acquire much-needed technology and equipment.
Russia-based Fabcenter LLC (Fabcenter), which shares a location with the Ostec Group and whose general director and owner has worked for the Ostec Group for more than a decade, has become a major recipient of goods in Ostec Group’s stead. Fabcenter is a construction company that specializes in the design and construction of production facilities and cleanrooms for the electronics industry.
The Ostec Group’s suppliers have shifted to sending goods—primarily semiconductor production machines, soldering and welding machines, and other technology and equipment—to Fabcenter after previously shipping to Ostec Group entities like U.S.-designated Ostec-Arttool Ltd, Ostec SMT Ltd, and Ostec-Integra Ltd.
Kazakhstan-based KBR Tekhnologii TOO (KBR Tekhnologii) has made hundreds of shipments to Fabcenter, Ostec-Arttool Ltd, Ostec-SMT Ltd, and Ostec-Integra Ltd. The co-founder of KBR Technologies is a longtime employee of U.S.-designated Evgueni Kostiouk, the owner of one the Ostec Group’s previous top suppliers, U.S.-designated Inter-Trans Spolka z Ograniczona Odpowiedzialnoscia.
Türkiye-based Alptech Makina Sanayi Limited Sirketi (Alptech) and Hong Kong-based New Horizons Trading Limited (New Horizons) have made hundreds of shipments to Fabcenter and dozens of shipments to Ostec-Arttool Ltd. KBR Technologies, Alptech, and New Horizons were all established between May and August 2022.
Other Russia-based companies that have received shipments from KBR Technologies, Alptech, and New Horizons include Kseoprom, which manufactures materials and equipment related to the production of electronics; manufacturing equipment wholesaler Niceberg Limited Liability Company (Niceberg), established in June 2023; and manufacturing equipment wholesaler Powertech Limited Liability Company (Powertech), established in July 2023.
Fabcenter was designated pursuant to E.O. 14024 for operating or having operated in the construction sector of the Russian Federation economy. KBR Tekhnologii was designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Fabcenter, Ostec-Arttool Ltd, Ostec-SMT Ltd, and Ostec-Integra Ltd. Alptech and New Horizons were designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Fabcenter and Ostec-Arttool Ltd. Kseoprom, Niceberg, and Powertech were designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy.
Russia-based Design Partner Microchip LLC (DP Microchip) imports electronic components, including high-priority Harmonized System (HS) code goods. DP Microchip collaborated with multiple U.S.-designated entities in Russia to procure electronic components from outside of Russia. Türkiye-based Platform Endustriyel Gida Insaat Elektronik Ve Madencilik Dis Ticaret Limited Sirketi (Platform Endustriyel) and Onyad Bilgisayar Ticaret Limited Sirketi (Onyad Bilgisayar) and PRC-based Yiwu Xinglu Import and Export Co Ltd (Yiwu Xinglu) have together made dozens of shipments of integrated circuits and other electronics to DP Microchip.
DP Microchip, Platform Endustriyel, Onyad Bilgisayar, and Yiwu Xinglu were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
On July 20, 2023, OFAC designated Russia-based Limited Liability Company AK Microtech (AKM), which specializes in transferring foreign semiconductor technology to Russian microelectronics production companies, including entities that provide microelectronics to the Russian defense industry. On September 14, 2023, OFAC designated AKM’s owner and director, Andrei Rostislavovich Khokhlun (Khokhlun), and another Russia-based company owned by Khokhlun, Limited Liability Company Keko R (Keko R).
PRC-based Hangzhou Keming Intelligent Technology Co Ltd (HKIT) has made dozens of shipments to AKM as well as shipments to Keko R. The shipments have included technology such as film used in the production of electronic components.
PRC-based Shenzhen C S Im Export Ltd (Shenzhen CSI) is a prolific supplier of technology to AKM, including high-priority items such as machines and apparatus for the manufacture of boules or wafers and electrical transformers, static convertors, and inductors. Shenzhen CSI has helped AKM divert technology to Russia.
PRC national Ting Chen (Chen) is the managing director and owner of Shenzhen CSI. Chen was also involved in a sanctions evasion scheme in which AKM sought to acquire technology via Shenzhen CSI. Chen also owns Hong Kong-based Way Good Technology Limited (Way Good).
Hong Kong-based Kekotech Equipment Limited (Kekotech) has also been used to provide goods to AKM. In addition to Shenzhen CSI, Chen is also affiliated with Kekotech.
PRC national Lap Shun Lee (Lee) has represented Shenzhen CSI in many of its dealings with AKM, including schemes in which AKM sought to evade sanctions against Russia.
HKIT, Shenzhen CSI, Chen, and Lee were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. Way Good was designated pursuant to E.O. 14024 for being owned or controlled by, or having acted for or purported to act for or on behalf of, directly or indirectly, Chen. Kekotech was designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, AKM, a person whose property and interests in property are blocked pursuant to E.O. 14024.
Maksim Yuryevich Ermakov (Ermakov), previously designated pursuant to E.O. 14024, ran a procurement network to obtain microchips for Russian state-owned enterprises, including a state-owned technology company that makes electronic warfare systems for the Russian military. Ermakov was designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. Ermakov has also been sanctioned by the UK.
Chimmed Group is the leading group of Russian companies that supplies Russian customers with a wide range of chemicals and lab equipment. Chimmed Group maintains an extensive network of members and affiliates to procure U.S.- and Western-origin equipment and consumables for Russian entities connected to the country’s biological and chemical weapons programs, including the Federal State Budgetary Establishment 33 Central Scientific Research Test (33rd TSNII), Federal State Budgetary Establishment 27 Scientific Center (27th Scientific Center), and Federal State Budgetary Institution 48 Central Scientific and Research Institute (48th TSNII). Chimmed Group also supplies materials—including raw materials that can be used for the production of chemical and biological weapons—to special laboratories that are a part of the Federal Security Service (FSB) that were implicated in the poisoning of Alexey Navalny.
Russia-based Obshchestvo S Ogranichennoi Otvetstvennostyu Torgovy Dom Khimmed (TD Khimmed) and Obshchestvo S Ogranichennoi Otvetstvennostyu Analiticheskaya Manufaktura (Analiticheskaya Manufaktura) are affiliates of the Chimmed Group. Analiticheskaya Manufaktura attempted to provide equipment to the 48th TSNII. Russia-based companies Obshchestvo S Ogranichennoi Otvetstvennostyu Rusmedtorg (Rusmedtorg) and Obshchestvo S Ogranichennoi Otvetstvennostyu Medstandart (Medstandart) have been closely associated with the Chimmed Group and share a delivery address. Individuals associated with the Chimmed Group purchased biological goods via Medstandart and chemicals via Rusmedtorg. Medstandart has supplied U.S. origin reagents to the Chimmed Group and attempted to provide laboratory goods to the 33rd TSNII.
Russia-based Obshchestvo S Ogranichennoi Otvetstvennostyu Elyuentlaboratoriz (Elyuentlaboratoriz) procured U.S.- and Western-origin equipment and consumables for the 27th Scientific Center and 48th TSNII.
Türkiye-based Biopharmist Medikal Urunler Dis Ticaret LTD STI (Biopharmist) exported laboratory items to affiliates of the Chimmed Group, including Elyuentlaboratoriz, Rusmedtorg, and Medstandart.
Chimmed Group, TD Khimmed, Analiticheskaya Manufaktura, Rusmedtorg, Medstandart, Elyuentlaboratoriz, and Biopharmist were designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.
Russia-based Leningrad Laser Systems (LLS) is involved in the supply, integration, and development of innovative solutions in the fields of lasers and fiber optics in Russia. LLS and U.S.-designated Russia-based laser product manufacturer Lassard are contractors for the U.S.-designated All-Russian Scientific Research Institute Of Experimental Physics’ (VNIIEF’s) Institute of Laser Physics Research. VNIIEF performs experimental testing of Russia’s nuclear weapons. Lassard is an industrial enterprise offering full-cycle manufacturing of laser technology and optical equipment with potential for military and weapons applications. Russia-based Cryotrade Engineering is a supplier of cryogenic equipment, cryogenic instruments, and analytical equipment from leading manufacturers. LLS and Cryotrade Engineering have previously been contracted by U.S.-designated L.D. Landau Institute for Theoretical Physics of Russian Academy of Sciences, a quantum computing research center. China-based Gker Laser Technology Co Ltd (Gker Laser) has sent hundreds of thousands of dollars’ worth of goods, including laser diodes, optical fiber, and lasers, to Lassard. China-based Jinan Kewei Optics Co Ltd (Jinan Kewei) has sent hundreds of high priority HS code goods to LLS and U.S.-designated electronics company Staut Company Limited, including electronic integrated circuits, tantalum capacitors, and multilayer ceramic capacitors.
LLS, Gker Laser, and Jinan Kewei were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. Cryotrade Engineering was designated pursuant to E.O. 14024 for operating or having operated in themanufacturing sector of the Russian Federation economy.
Analog Technology Limited (Analog Technology) is a Hong Kong-based electronic component distributor with locations in the PRC and India that has shipped high-priority items, including electronic integrated circuits, to Russian companies including U.S.-designated LLC Spetselservis and Limited Liability Company Spetsvoltazh. Analog Technology was designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
Shandong Oree Laser Technology Co., Ltd. (Shandong Oree) and Zhejiang Zhenhuan CNC Machine Tool Co., Ltd. (Zhejiang Zhenhuan CNC) are PRC-based machine tool companies that have shipped metalworking machines and other related equipment to Russia. Shandong Oree and Zhejiang Zhenhuan CNC were designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy.
PRC-based Chongqing Xianuofugeluode International Trade Co Ltd (CXI Trade) has made dozens of shipments of technology, including integrated circuits, to Russia since February 2022. CXI Trade has also acquired technology for Russian military-industrial base entities. CXI Trade was designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
Enka Trading Limited is a Hong Kong-based wholesaler with expertise in electronic devices and components that has facilitated the procurement of electronic components, including integrated circuits, for Russian end-use. Enka Trading Limited was designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
PRC-based Shandong Ki Forest New Advanced Co Ltd (Shandong Ki Forest) has made thousands of shipments of high-priority technology to Russia, including semiconductor devices, electronic integrated circuits, tantalum capacitors, transformers, converters, and inductors. Shandong Ki Forest’s primary customers in Russia are Reomaks Limited Liability Company (Reomaks), a supplier of industrial and specialized electronic components, and Solard, an importer of electronic components. Shandong Ki Forest, Reomaks, and Solard were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
Hong Kong-based HK Nicest Electric Technology Co Limited (HK Nicest) has sent over 100 shipments of high-priority items to Russia-based end-users, including electronic integrated circuits, tantalum capacitors, and multilayer ceramic capacitors. HK Nicest has supplied equipment to Russia-based end-users supplying the Russian defense industry with electronics to produce aviation equipment. One of HK Nicest’s Russian buyers has been U.S.-designated Russian electronics company Streloi Ekommerts. HK Nicest was designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
PRC-based Daytek Chongqing International Trade Co Ltd (Daytek) has acquired advanced technological equipment for Russian military-industrial base end-users. PRC national Yi Xuan Wu (Wu) is the director of Daytek. Wu has helped Russian counterparts evade sanctions and acquire technology for the Russian military-industrial base. Daytek and Wu were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
Türkiye-based SSGCTM CNC Takim Tezgahlari Makine Sanayi Ve Ticaret Limited Sirketi (SSGCTM CNC) has provided over $6 million worth of goods to U.S.-designated Russian manufacturing company Limited Liability Company I Machine Technology (I Machine), including computer numerical controlled (CNC) machine tools. Türkiye-based Minyon Kesici Takimlar Makine Sanayi Ve Ticaret Limited Sirketi (Minyon Kesici) has sent over 600 shipments to Russia-based end-users, with shipments including tools used for metal processing and CNC machine tools, including over $800,000 worth of CNC machine tools to I Machine.
Türkiye-based Gepa Uluslararasi Ticaret Limited Sirketi (Gepa) has provided over $4 million worth of goods to U.S.-designated Russian manufacturing company Alfa Machinery Group, including various machine tools and related equipment.
Türkiye-basedKamilhan Lojistik Dis Ticaret Limited Sirketi (Kamilhan Lojistik) has sent over $3 million worth of high priority HS code goods, including electronic integrated circuits and machines for the reception, conversion, and transmission of data, to U.S.-designated Russian electronics company Limited Liability Company Trade House Kyutek.
Türkiye-based CPS Proses Kontrol Urunleri Sanayi Ve Ticaret Anonim Sirketi (CPS Proses) has shipped German and U.S.-manufactured machine and welding equipment to U.S.-designated Russian technology company and defense contractor Ostec EC Ltd.
Türkiye-based RMB Yapi Insaat Taahhut Sana Yi Ve Ti Caret Limited Sirketi (RMB Yapi) has sent hundreds of thousands of dollars’ worth of remote-controlled unmanned aerial vehicles (UAVs) as well as programmable controllers for UAVs and lithium-ion batteries to Russian end-users.
Türkiye-based Taksan Makina Sanayi Ve Ticaret Anonim Sirketi (Taksan Makina) has sent over $700,000 worth of goods, including metal-working centers and machine tools, to U.S.-designated Russian manufacturing company Limited Liability Company Pumori Northwest
(Pumori Northwest), a major provider of metalworking equipment and machine tools to the
Russian defense industry. Türkiye-based Dener Ithalat Ihracat Ve Dis Ticaret Anonim Sirketi (Dener Ithalat) has sent over $300,000 worth of goods to Pumori Northwest, including metalworking centers and a metalworking machine tool.
SSGCTM CNC, Minyon Kesici, Gepa, Taksan Makina, and Dener Ithalat were designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy. Kamilhan Lojistik, CPS Proses, and RMB Yapi were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.
The following Russia-based persons were designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy:
Additionally, Joint Stock Company Shipbuilding Plant Named after B Ye Butoma (Butoma), located in illegally Russian-occupied Crimea, Ukraine, builds warships for Russia’s Black Sea Fleet. Butoma was designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy.
The following Russia-based entities were designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy:
The following Russia-based persons were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy:
Russia-based Limited Liability Company Bank Tochka (Bank Tochka), founded in 2023, provides financial services to an organization that supports Russian combat troops and to an entity that provides ammunition to Russian military personnel. Bank Tochka was designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy.
Russia-based Ekodor is involved in transportation activities, including cargo handling, transport forwarding, and rail transport. Ekodor was designated pursuant to E.O. 14024 for operating or having operated in the transportation sector of the Russian Federation economy.
The following Russia-based persons were designated pursuant to E.O. 14024 for operating or having operated in the construction sector of the Russian Federation economy:
Russia-based Arktik SPG 3 is involved in geological exploration, including prospecting and evaluation of mineral deposits. Arktik SPG 3 also mines clay, sand, kaolin, gravel, and other minerals. Artktik SPG 3 was designated pursuant to E.O. 14024 for operating or having operated in the metals and mining sector of the Russian Federation economy.
Russia-based Limited Liability Company International Innovation Center for Marine Structures and Ship Repair (International Innovation Center) manufactures enclosed sections of vessels for U.S.-designated shipbuilder Limited Liability Company Shipbuilding Complex Zvezda (Zvezda), which is involved in the construction of specialized liquefied natural gas (LNG) tankers. International Innovation Center was designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy.
Russia-based Regent Baltica Company Limited (Regent Baltica) manufactures cryogenic isothermal panels for LNG storage. Regent Baltica was designated pursuant to E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy.
U.S.-designated Joint Stock Company Sovcomflot (Sovcomflot) is the operator of four LNG tankers that are currently under construction. The following four vessels were identified pursuant to E.O. 14024 as property in which Sovcomflot, a person whose property and interest in property are blocked pursuant to E.O. 14024, has an interest:
U.S.-designated Zvezda is building an additional three LNG tankers at its shipyard. The following vessels were identified pursuant to E.O. 14024 as property in which Zvezda, a person whose property and interest in property are blocked pursuant to E.O. 14024, has an interest:
As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
In addition, foreign financial institutions that conduct or facilitate significant transactions or provide any service involving Russia’s military-industrial base run the risk of being sanctioned by OFAC. For additional guidance, please see the updated OFAC advisory, “Updated Guidance for Foreign Financial Institutions on OFAC Sanctions Authorities Targeting Support to Russia’s Military-Industrial Base,” as well as OFAC Frequently Asked Questions (FAQs) 1146-1157.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s FAQ 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.
Any persons included on the SDN List pursuant to E.O. 14024 may be subject to additional export restrictions administered by the Department of Commerce, Bureau of Industry and Security (BIS).
For identifying information on the individuals and entities sanctioned today, click here.
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