Markets Wired

WASHINGTON – Today, in coordination with the U.S. Department of Justice and the Federal Bureau of Investigation (FBI), the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated a Russian network that procured military and sensitive dual-use technologies from U.S. manufacturers and supplied them to Russian end-users.

Those designated today are Russian national and procurement agent Yury Yuryevich Orekhov (Orekhov) and two of his companies, Nord-Deutsche Industrieanlagenbau GmbH (NDA GmbH) and Opus Energy Trading LLC (Opus Energy Trading). Today’s designations highlight the U.S. government’s continuing efforts to hinder Russia’s ability to wage its war of aggression in Ukraine, including by holding accountable those who support Russia’s military by disrupting its illicit defense and technology procurement networks around the world.

Today’s action builds upon last week’s meeting of top officials representing ministries of finance and other government agencies from 33 countries to discuss the effects of international sanctions and export controls on Russia’s military-industrial complex and critical defense supply chains. The Departments of the Treasury, Commerce, and State released an alert on Friday detailing the impact of international sanctions and export controls. Read the joint alert.

“Thanks to the unprecedented sanctions and export controls imposed by our broad coalition of partners and allies, Russia has increasingly struggled to secure critical inputs and technologies needed for its brutal war against Ukraine,” said Deputy Secretary of the Treasury Wally Adeyemo. “We know these efforts are having a direct effect on the battlefield, as Russia’s desperation has led them to turn to inferior suppliers and outdated equipment. That’s why we will continue to take every opportunity to crack down on evasion of these sanctions and export controls across the globe.”

The U.S.-origin technologies that Orekhov and his company NDA GmbH procured included advanced semiconductors and microprocessors used in fighter aircraft, ballistic and hypersonic missile systems, smart munitions, radar, satellites, and other military applications. Orekhov and NDA GmbH ultimately sent these items to Russian end-users, including entities on the U.S. Department of Commerce, Bureau of Industry and Security’s Entity List, in violation of U.S. export controls. U.S. components that Orekhov procured have been found in Russian weapons platforms in Ukraine.

Orekhov and NDA GmbH were designated pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy.

Opus Energy Trading was 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, Orekhov.

More information about the concurrent actions taken by the DOJ and the FBI can be found here

 

SANCTIONS IMPLICATIONS

As a result of today’s designation, all property and interests in property of these persons located 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 in the aggregate by one or more of such 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 blocked or designated persons are prohibited, unless authorized by a general or specific license issued by OFAC, or otherwise 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.

View identifying information on the individuals and entities sanctioned today.

 

###