Markets Wired

OFAC takes action in partnership with Canada and the EU

WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated eight individuals and one entity in response to Russia’s continued aggression toward Ukraine and attempted occupation of Crimea.  Seven of these individuals were also designated yesterday by the European Union (EU).  In addition to the United States, Canada designated these same individuals today as part of a coordinated action in a strong demonstration of the international community’s continued condemnation of Russia’s interference in Crimean politics.  Additionally, OFAC designated one individual and one entity providing rail services in support of Russia’s efforts to deepen the economic integration of Russia and Crimea.  Today’s action demonstrates Treasury’s unwavering commitment to continue holding Russia accountable for its destabilizing activity in Ukraine.

“Treasury’s action, taken in close coordination with our international allies and partners, reiterates our unwavering support for restoring free and fair democratic political processes in Crimea,” said Secretary Steven T. Mnuchin. “The coordinated U.S., EU, and Canadian designations limit the ability of these illegitimate officials to do business internationally and highlights the strength of the transatlantic alliance in standing up to Russia’s continued aggression.”

DESIGNATION OF CRIMEAN OFFICIALS (E.O. 13660)

Today’s action targets seven Crimean officials of the so-called Republic of Crimea, who have asserted governmental authority over the Crimean Peninsula without the authorization of Ukraine, thereby undermining democratic processes or institutions in Ukraine and taking actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine.

Yuri Gotsanyuk is the so-called Prime Minister of the so-called Republic of Crimea.

Mikhail Razvozhaev is the so-called Acting Governor of Sevastopol.

Vladimir Nemtsev is the so-called Chairman of the Legislative Assembly.

Sergei Danilenko is the so-called Chairman of the Sevastopol Election Commission.

Lidia Basova is the so-called Deputy Chairman of the Sevastopol Election Commission.

Ekaterina Pyrkova is the so-called Secretary of the Sevastopol Election Commission.

Ekaterina Altabaeva is the so-called member of the Federation Council of the Russian Federation representing Sevastopol.

DESIGNATION FOR OPERATING IN THE CRIMEA REGION OF UKRAINE (E.O. 13685)

Today’s action also targets an entity operating in the Crimea region of Ukraine and its chief executive officer (CEO) for being the leader of an entity operating in the Crimea region of Ukraine and for having acted or purported to act for or on behalf of, directly or indirectly, that entity.

Grand Service Express is a Moscow-based private railway company that began offering passenger rail service between the Russian mainland and the Crimean Peninsula over the Kerch Strait Bridge in late December 2019.

Alexander Ganov is the CEO of Grand Service Express.  Ganov became the CEO on August 28, 2019.

As a result of today’s action, all property and interests in property of these individuals and entity that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC.  OFAC’s regulations generally prohibit all dealings by U.S. persons or dealings within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.  Additionally, any entities owned 50 percent or more in the aggregate by designated persons are also blocked by operation of law.

Moreover, foreign persons that knowingly engage in a significant transaction or transactions with the persons designated today may themselves face the risk of designation.

Read identifying information on the individuals and entity sanctioned today.

####