Markets Wired

OFAC takes action in partnership with the European Union, United Kingdom, Canada, and Australia

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated five individuals and three entities related to Russia’s occupation of the Crimea region of Ukraine and its severe human rights abuses against the local population. These designations, pursuant to Executive Orders (E.O.) 13660 and 13685, impose sanctions on individuals who have asserted governmental authority over the Crimea region of Ukraine without the authorization of Ukraine, as well as target individuals and entities for operating in the Crimea region of Ukraine. Today’s actions demonstrate the Department of the Treasury’s unwavering commitment to counter Russia’s attack on Ukraine’s sovereignty and territorial integrity and Russia’s human rights abuses against Ukrainians. Several of these individuals and entities have recently been sanctioned by the European Union (EU), United Kingdom (UK), Canada, and Australia.

“This action, taken in close cooperation with our allies, represents the international community’s firm commitment to hold Russia accountable for the attempted annexation of Crimea,” said OFAC Director Andrea M. Gacki. “These designations impose additional costs on Russia for its forceful integration with Crimea and highlight the abuses that have taken place under Russia’s attempted annexation. The United States remains committed to supporting Ukrainian sovereignty: Crimea is Ukraine.”

KERCH STRAIT BRIDGE

Following Russia’s attempted annexation of Crimea in 2014, Russia sought to connect the Russian mainland to the Crimea region of Ukraine, which is separated from Russia by the Kerch Strait. In 2016, Russia began the construction of what would become the longest bridge in Europe: a railway bridge over the Kerch Strait. In 2018, construction was completed, linking Russia with the Crimea region of Ukraine. With our international partners, the United States has continued to take targeted actions against persons involved in this project, undertaken by Russia in furtherance of its illegitimate assertion of sovereignty over Ukraine. For example, on January29, 2020, OFAC designated one individual and one entity related to the construction of the Kerch Strait Bridge as well as seven so-called officials of the so-called Republic of Crimea.

In partnership with our international allies, Treasury designated Leonid Kronidovich Ryzhenkin (Ryzhenkin), Lenpromtransproyekt, and Joint-Stock Company The Berkakit-Tommot-Yakutsk Railway Line’s Construction Directorate in response to their involvement in the construction of the Kerch Strait Bridge. The construction of the Kerch Strait Bridge is a violation of Ukrainian sovereignty and has been condemned by the international community.

Ryzhenkin is a Russian national and the chief executive officer (CEO) of Mostotrest, a Russian construction company that operates in the Crimea region of Ukraine. Mostotrest’s share in the total construction of the Kerch Strait Bridge was worth more than $1.9 billion. Mostotrest and its owner, Arkady Rotenberg, were previously designated by OFAC pursuant to E.O. 13685 and E.O. 13661, respectively. Prior to Mostotrest, Ryzhenkin worked for another designated Russian construction company, Stroygazmontazh, where he also supervised projects related to the construction of the Kerch Strait Bridge. OFAC previously designated Stroygazmontazh pursuant to E.O. 13661. Ryzhenkin was designated pursuant to E.O. 13685 for being the leader of an entity operating in the Crimea region of Ukraine. Ryzhenkin was previously designated by the EU and the UK in 2020 and in 2021 by Canada and Australia.

Lenpromtransproyekt is a Russian company that designed the Kerch Strait Bridge. Lenpromtransproyekt was designated pursuant to E.O. 13685 for operating in the Crimea region of Ukraine. The company was previously designated by the EU and the UK in 2020 and in 2021 by Canada and Australia.

Joint-Stock Company The Berkakit-Tommot-Yakutsk Railway Line’s Construction Directorate is a Russian company that participated in the construction of the railway for the Kerch Strait Bridge. Joint-Stock Company The Berkakit-Tommot-Yakutsk Railway Line’s Construction Directorate was designated pursuant to E.O. 13685 for operating in the Crimea region of Ukraine. The company was previously designated by the EU and the UK in 2020 and in 2021 by Canada and Australia.

ABUSES AGAINST THE LOCAL POPULATION

The atrocious conditions at the Simferopol SIZO-1 pre-trial detention center in Simferopol, in the Crimea region of Ukraine, are emblematic of the widespread human rights abuses perpetrated against Ukraine’s people. The notorious prison is known for severe abuses, communicable diseases, poor and inhumane living conditions, and inadequate medical assistance. Prisoners are known to freeze, starve, suffer from parasites, and be kept in poorly ventilated, unsanitary cells. Among the wide variety of prisoners held at this overcrowded prison are those detained on politically motivated criminal charges, as well as Crimean Tatars and other Ukrainians held in indefinite detention. Simferopol SIZO-1 was designated pursuant to E.O. 13685 for operating in the Crimea region of Ukraine.

OFFICIALS CARRYING OUT THE OCCUPATION OF CRIMEA

Today’s action also targeted three Russian officials and a local official involved in Russia’s occupation of and efforts to control and govern the Crimea region of Ukraine. These bureaucrats are critical to the Russian government’s malign effort to exercise authority within Ukrainian territory following Russia’s illegal seizure of Crimea. Individuals included in this action were: Larisa Vitalievna Kulinich (Kulinich); Pavel Leonidovich Karanda (Karanda); Leonid Mikhailiuk (Mikhailiuk); and Vladimir Nikolaevich Terentiev (Terentiev).

Kulinich, a Ukrainian and Russian national, is the so-called Minister of Property and Land Relations in the so-called Republic of Crimea. Previously, Kulinich was First Deputy Minister of Property and Land Relations.

Karanda, a Russian national, is the so-called Minister of Internal Affairs for the so-called Republic of Crimea.

Mikhailiuk, a Russian national, is the so-called Chief of the Russian Intelligence Services’ Federal Security Service (FSB) Department in Crimea and Sevastopol. Prior to his illegitimate position in Crimea, Mikhailiuk was the head of the FSB departments in Russia’s Vologda and Kaliningrad oblasts.

Terentiev, a Russian national, is the so-called Head of the Main Directorate of the Investigative Committee in the so-called Republic of Crimea and Sevastopol.

Kulinich, Karanda, Mikhailiuk, and Terentiev were designated today pursuant to E.O. 13660 for asserting governmental authority over any part or region of Ukraine without the authorization of Ukraine.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of these individuals and entities 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.

View identifying information on the individuals designated today.

###