US moves to disrupt Russia’s booming wartime economy with unprecedented sanctions

Admin I Wednesday, June 12, 2024

 

WASHINGTON – The United States has put things in motion to disrupt Russia’s booming wartime economy by sanctioning more than 300 individuals and entities. The sanctions are aimed at  degrading Russia’s capability to pursue its war of aggression against Ukraine.

This is taking place even as the Russian economy grew at 3.6 percent GDP despite existing sanctions from G7 and projected to grow at the same pace in 2024.

In this action, the Department of State is imposing sanctions on more than 100 individuals and entities. “These designations, according to the Department  aim to disrupt sanctions evasion and backfilling and target entities in multiple third countries including the People’s Republic of China (PRC). 

The Department’s designations also constrain Russia’s future energy revenues, building on previous sanctions stalling the development of Russia’s Arctic LNG 2 project and other Russian future energy projects. 

Designations targeting Russia’s defense industrial base incorporate sanctions on Belarusian entities supporting Russia’s war machine. The Department is also designating malign authorities and elites responsible for the forced transfer and deportation of Ukrainian children.

“All targets are being designated pursuant to Executive Order (E.O.) 14024, as amended, which authorises sanctions with respect to specified harmful foreign activities of the Government of the Russian Federation”, the Department said,

The statement said the United States will continue to use all tools at its disposal to disrupt support for Russia’s military-industrial base and curtail Russia’s ability to exploit the international financial system in furtherance of its war against Ukraine. 

“We continue to stand in solidarity with Ukrainians defending their homeland from Russia’s aggression as well as with Russians striving for a more democratic future for their country”, the Department of State said..

DISRUPTING SANCTIONS EVASION AND BACKFILLING EFFORTS

The Department is maintaining its effort to disrupt the networks and channels through which Russia can procure technology and equipment from third countries to support its war effort. Today’s designations target producers, exporters, and importers of items critical to Russia’s military-industrial base.

Those items include items on the Common High Priority List (CHPL) identified by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) alongside the European Union (EU), United Kingdom (UK), and Japan. Entities based in the People’s Republic of China (PRC), United Arab Emirates (UAE), the Kyrgyz Republic, and Türkiye, among other countries, continue to sell these items and other key dual-use goods to Russia, including critical components that Russia relies on for its weapons systems.

PRC-based Entities Supporting Russia’s War Effort

We are particularly concerned by the scale and breadth of dual-use goods exports from the PRC. Russia continues to leverage sanctions evasion and circumvention networks to procure components such as microelectronics, which it uses to make weapons. Imports from the PRC are filling critical gaps in Russia’s defense production cycle to produce weapons, ramp up defense production, and bolster its military-industrial base.

Today, the Department is designating seven PRC-based entities that have supplied goods supporting Russia’s war effort.

The Department is designating the following entity pursuant to section 1(a)(i) of E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy:

POLY TECHNOLOGIES INCORPORATED (PTI) is a PRC defense company and state-owned enterprise that has shipped dual-use and defense-related equipment to numerous U.S.-designated Russian defense sector entities since February 2022. PTI has previously been subject to Department of State nonproliferation-related sanctions and was added to the Department of Commerce’s Entity List in June 2014.

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the technology sector of the Russian Federation economy:

BEIJING DEEPCOOL INDUSTRIES CO LTD is a PRC-based company involved in the supply of over $1 million worth of CHPL items to Russian companies, including the U.S.-designated, Russia-based AKTSIONERNOE OBSHCHESTVO TASKOM and OOO NOVYI AI TI PROEKT.

WUHAN TIANYU INFORMATION INDUSTRY CO LTD is a PRC-based company involved in the supply of over $900,000 worth of CHPL items to Russia, including to the U.S. designated, Russia-based JOINT STOCK COMPANY ALFA-BANK.

ASIALINK SHANGHAI INTL LOGISTICS CO LTD (ASIALINK) is a PRC-based company involved in the supply of CHPL items to several U.S.-designated Russia-based companies, including LIMITED LIABILITY COMPANY KVAZAR, LIMITED LIABILITY COMPANY MDIKAM EK, LIMITED LIABILITY COMPANY SPETSVOLTAZH, PETERSBURG INTELLIGENT TRANSPORT LOGISTICS, and LIMITED LIABILITY COMPANY GALIKA SERVIS. ASIALINK sent at least 1,350 shipments of CHPL items to LLC MDIKAM EK, 800 shipments of CHPL items to LLC SPETSVOLTAZH, and 400 shipments of CHPL items to PETERSBURG INTELLIGENT TRANSPORT LOGISTICS. Products shipped include electronic integrated circuits, and other controlled electronic components.

3NOD DIGITAL HONG KONG LIMITED is a Hong Kong-based company involved in the supply of over $1 million worth of CHPL to Russian companies, including the U.S.-designated, Russia-based OBLTRANSTERMINAL.

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the aerospace sector of the Russian Federation economy:

MILE HAO XIANG TECHNOLOGY CO LTD is a PRC-based company involved in the supply of components to Russian customers.

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the manufacturing sector of the Russian Federation economy:

GUANGDONG PRATIC CNC TECHNOLOGY CO LTD is a PRC-based company involved in the supply of over $1.9 million CHPL items to Russian customers, including the U.S.-designated, Russia-based UMAC LLC. UMAC LLC has a public history of supplying machine tools – both domestic and foreign-produced – to the Russian military-industrial base, and its past customers include U.S.-designated, Russia-based battle tank manufacturer JSC RESEARCH AND PRODUCTION CORPORATION URALVAGONZAVOD NAMED AFTER F.E. DZERZHINSKY.

Belarus-based Network Supporting the Russian Military

The Department continues to designate entities and individuals related to the Lukashenka regime’s support for Russia’s illegal, full-scale invasion of Ukraine. Today, the Department is designating a Russian state-owned defense repair facility and several Belarusian entities and associated individuals supporting the Russian military’s war effort by providing parts to that facility.

Additionally, we are designating a Belarusian company and its director that have provided maintenance services directly to Russian military units. These actions build on the Department of the Treasury’s April 15, 2024, designations of several Belarusian networks providing support to Russia’s war efforts.

The Department is designating the following entities pursuant to section 1(a)(i) of E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy:

JOINT STOCK COMPANY 81 ARMORED FIGHTING VEHICLES REPAIR PLANT (81 BTRZ) is a Russian state-owned enterprise that has repaired and shipped overhauled military vehicles to Russian military bases under contract with the Russian Ministry of Defense.

PRODUCTION UNITARY ENTERPRISE PLANT SVT is a Belarusian company that has performed technical maintenance on equipment owned by Russian military units.

VALYANTSIN ALFREDAVICH MIKLASHEVICH is the director of SVT.

Pursuant to section 1(a)(vi) of E.O. 14024, the following entities are being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of 81 BTRZ, a person whose property and interests in property are blocked pursuant to E.O. 14024:

UNITARY PRIVATE SCIENCE PRODUCTION ENTERPRISE TEHNOLIT (TEHNOLIT) is a Belarusian company that has exported vehicle parts from Belarus to 81 BTRZ and refurbished engines in support of the Russian Ministry of Defense.

LIMITED LIABILITY COMPANY BAZTUBE (BAZTUBE) is a Belarusian company that has provided cold-formed electric welded steel pipes to 81 BTRZ, which repairs Russian military vehicles.

JOINT STOCK COMPANY BELARUSREZINOTEKHNIKA (BRT) is a Belarusian company that has exported parts to 81 BTRZ in support of the National Guard of the Russian Federation.

Pursuant to section 1(a)(iii)(C) of E.O. 14024, the following individual is being designated for being or having been a leader, official, senior executive officer, or member of the board of directors of TEHNOLIT, a person whose property and interests in property are blocked pursuant to E.O. 14024:

ALEKSANDR MIKHAILOVICH BODYAKO is the director of TEHNOLIT.

Pursuant to section 1(a)(iii)(C) of E.O. 14024, the following individual is being designated for being or having been a leader, official, senior executive officer, or member of the board of directors of BAZTUBE, a person whose property and interests in property are blocked pursuant to E.O. 14024:

ELENA ALEKSANDROVNA PERESELYAK is the director of BAZTUBE.

Pursuant to section 1(a)(iii)(C) of E.O. 14024, the following individuals are being designated for being or having been leaders, officials, senior executive officers, or members of the board of directors of BELARUSREZINOTEKHNIKA (BRT), a person whose property and interests in property are blocked pursuant to E.O. 14024:

OLEG PETROVICH SHPAKOV is the executive director of BRT.

DMITRY YURYEVICH MANKO is the commercial director of BRT.

Other Third-Country Entities Supporting Russia’s War Effort

The Department is also taking action against a range of entities in the UAE, Türkiye, the Kyrgyz Republic, Moldova, and Singapore that have supplied critical dual-use goods in support of Russia’s war effort.

The Department is designating the following entities pursuant to section 1(a)(i) of E.O. 14024 for operating or having operated in the aerospace sector of the Russian Federation economy:

AVIATECH FZC is a UAE-based company that supplied aircraft equipment and supplies, including Russian military aviation components for Mi-type helicopters and Il-76 heavy cargo-carrying ramp aircraft, to Russia-based companies.

AIRROCK SOLUTIONS LIMITED LIABILITY COMPANY (AIRROCK SOLUTIONS) is a Moldova-based company that supplied at least $1.5 million of controlled electronic and aviation components to Russia-based companies.

AEROSTAGE SERVICES LIMITED LIABILITY COMPANY (AEROSTAGE SERVICES) is a Moldova-based company that supplied at least $80,000 in controlled aviation spare parts and electronic components to Russia-based companies.

MAX JET SERVICE LIMITED LIABILITY COMPANY (MAX JET) is a Moldova-based company that supplied at least $486,000 in controlled aviation spare parts and electronic components to Russia-based companies.

AIRROCK SOLUTIONS, AEROSTAGE SERVICES, and MAX JET supplied spare aircraft parts to Russian entities, including U.S-designated LLC AVIAKOMPANIYA POBEDA and LLC S 7 ENGINEERING.

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the technology sector of the Russian Federation economy:

LIGHTSPEED DISTRIBUTION FZCO is a UAE-based company that shipped at least $968,000 in CHPL items, including electronic components, to Russia-based entities. These shipments correspond to CHPL Tiers 1 and 3.A.

EMITRADE FZE is a UAE-based company that shipped at least $6.20 million in CHPL items, including electronic components, to Russia-based entities. These shipments correspond to CHPL Tier 3.A.

ITIC LLC FZ is a UAE-based company that sent over 3,000 shipments that included CHPL items to U.S.-designated and Russia-based entities. These shipments included goods with HS codes that correspond to CHPL Tiers 1, 2, 3, and 4.A.

NIT GROUP FZE is a UAE-based company that sent over 1,000 shipments that included CHPL items to Russia-based companies, with HS codes that correspond to CHPL Tiers 2, 3.A, and 4.A.

KOC GEMICILIK VE TASIMACILIK DIS TICARET LIMITED SIRKETI (KOC GEMICILIK) is a Türkiye-based company that sent shipments that included CHPL items to Russia-based companies, with HS codes that correspond to CHPL Tiers 1, 2, 3.A, 4.A, and 4.B. KOC GEMICILIK also sent multiple shipments of CNC machine tools to companies based in Russia.

BEE INSAAT MIMARLIK ANONIM SIRKETI (BEE INSAAT) is a Türkiye-based company that sent shipments that included CHPL items to Russia-based companies, with HS codes that correspond to CHPL Tiers 1, 2, 3.A, and 4.B. BEE INSAAT also sent numerous shipments of CNC machine tools to companies based in Russia.

ANKARA GLOBAL DIS TICARET LIMITED SIRKETI is a Türkiye-based company that sent shipments that included CHPL items to Russia-based companies, with HS codes that correspond to CHPL Tiers 1, 2, and 3.A.

PLATIN GROUP MACHINE MANUFACTURING INTERNATIONAL COMPANY LTD is a Türkiye-based company that sent shipments that included CHPL items to Russia-based companies, with HS codes that correspond to CHPL Tiers 1, 2, and 3. Products shipped include U.S.-origin electronic integrated circuits.

LLC TRANSIT SERVICE BISHKEK is a Kyrgyzstan-based company involved in the supply of CHPL items to Russian companies, including the U.S.-designated, Russia-based RADIANT EK AO.

SECRET LOGISTICS SOLUTION FZCO is a UAE-based company engaged in transportation, logistics, supply chain, and storage services. SECRET LOGISITCS exports CHPL items to Russian customers, including U.S.-designated BRAND SERVER OPTIONS.

CNCFORM GRUP MAKINA METAL INSAAT HIRDAYAT GIDA NAKLIYE OTOMOTIV ITHRACAT SANAYI VE TICARET LIMITED SIRKETI is a Türkiye-based company that exports CHPL items to Russian customers.

ORG LOGISTICS FZE (ORG LOGISTICS) is a UAE-based company engaged in logistics, supply chain, and cargo handling services. ORG LOGISITICS has supplied CHPL items to Russian customers.

FAYN LAYN LIMITED LIABILITY COMPANY (FAYN LAYN) is a Russia-based company engaged in the wholesale trade of electronic and telecommunication equipment. FAYN LAYN receives CHPL items from Singapore-based PCB LINE.

PCB LINE PTE LTD (PCB LINE) is a Singapore-based company engaged in the wholesale of machinery, equipment, and supplies. PCB LINE exports CHPL items, including printed circuit boards to Russia-based FAYN LAYN.

WRIGHT AERO COMPONENTS FZE (WRIGHT AERO) is a UAE-based company engaged in the wholesale distribution of transportation equipment and supplies. WRIGHT AERO exports CHPL items to Russian customers, including U.S.-designated LLC AVIAKOMPANIYA POBEDA.

A Port Operator Providing Services to Blocked Russian Vessels

The Department is taking action against an entity that has provided services to blocked Russian vessels.

Pursuant to section 1(a)(vi)(B) of E.O. 14024, the following entity is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, TRANSMORFLOT LLC, a person whose property and interests in property are blocked pursuant to E.O. 14024:

BULUTLAR GEMI TERSANECILIK SANAYI TICARET LIMITED SIRKETI is a Türkiye-based company and the owner and operator of Bulut Shipyard and is providing berthing and repair services to two blocked vessels, LADY MARIIA and BALTIC LEADER, which are property of the U.S.-designated TRANSMORFLOT LLC.

DEGRADING RUSSIA’S FUTURE ENERGY PRODUCTION AND EXPORT CAPACITY

The Department continues to sanction entities involved in the development of Russia’s future energy production and export capacity. Today, the Department is designating a PRC-based shipyard operator involved in the manufacture and shipment of highly specialized liquefied natural gas (LNG) modules designed specifically for Russia’s Arctic LNG 2 project. 

Furthermore, the Department is designating two companies involved in the development of a new LNG project in Murmansk, Russia, which is anticipated to leverage similar engineering, logistics, and LNG marketing as the Arctic LNG 2 project.

The Department is also designating four companies involved in the ongoing logistics development of Russia’s Vostok Oil project. Vostok Oil is a major Russian oil development project from which Russia plans to export upwards of 100 million tons of oil per year. Today’s actions intend to slow or halt further construction and logistics operations within the Vostok Oil project.

The Department is designating the following entity pursuant to section 1(a)(vi)(B) of 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 LLC ARCTIC LNG 2, a person whose property and interests in property are blocked pursuant to E.O. 14024:

PENGLAI JUTAL OFFSHORE ENGINEERING HEAVY INDUSTRIES CO is a PRC-based shipyard operator which has constructed and shipped critical natural gas liquefaction technology, aboard previously blocked vessels AUDAX, PUGNAX, and HUNTER STAR, to LLC ARCTIC LNG 2.

Pursuant to section 1(a)(i) of E.O. 14024, the following entities and individual are being designated for operating or having operated in the construction sector of the Russian Federation economy:

LLC MURMANSK LNG (MURMANSK LNG) was established to implement and develop the future Murmansk LNG project, a new large-scale LNG project in the Murmansk region, with an intended production capacity of 20.4 million tons of LNG per year.

MURMANSK TRANSGAZ LLC is a Russia-based company constructing gas pipeline infrastructure in support of the Murmansk region.

JOINT STOCK COMPANY YAMALDORSTROY is a Russia-based company constructing part of the pipeline for the Vostok Oil project.

NOVATEK-LNG FUEL KASHIRA LLC is a Russia-based company, and wholly-owned subsidiary of a major Russian energy company, which is the operator of an LNG complex under construction in the Kashira region of Russia.

KIRILL GENNADIEVICH SELEZNEV (SELEZNEV) is a Russian national and the General Director of U.S.-designated OOO RUSKHIMALYANS. SELEZNEV was also designated by the United Kingdom in May 2023.

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the technology sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY BALTMASH is a Russia-based company that has designed and produced polyurethane foam insulation for the transportation of LNG on Arc7 ice-class LNG carriers, as a potential replacement for G7-origin technology that Russia can no longer access.

CLOSED JOINT STOCK COMPANY MEKAMINEFT is a Russia-based oilfield services provider that specializes in hydraulic fracturing in cooperation with GAZPROM NEFT, an entity subject to certain debt and equity restrictions pursuant to E.O. 13662 and E.O. 14024.

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the transportation sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY TBS LOGISTIKA is a Russia-based transportation company and the main transport and logistics operator of the Vostok Oil project. Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the engineering sector of the Russian Federation economy:

JOINT STOCK COMPANY GT MORSTROY is a Russia-based company that has provided engineering services for the development of a new offshore oil transshipment complex in the Kola Bay, which is intended to serve the Vostok Oil project.

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the marine sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY OIL TERMINAL BELOKAMENKA is a Russia-based company that is the contractor for the construction and operation of a new offshore oil transshipment complex in the Kola Bay, which is intended to serve the Vostok Oil project.

TARGETING RUSSIA’S METALS AND MINING INDUSTRY

The Department continues to designate entities involved in Russia’s metals and mining industry with a view to further constraining Russia’s revenue generation capacity and military-industrial base. Today, the Department is designating entities within the Koulstar group and the Elga Coal Complex, two networks of companies licensed to mine some of Russia’s largest metallurgical coal deposits. Additionally, the Department is designating the Seligdar group of companies, one of Russia’s largest gold mining networks.

Targeting Entities in the Koulstar group

The Department is designating the following entities pursuant to section 1(a)(i) of E.O. 14024 for operating or having operated in the metals and mining sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY KOULSTAR (KOULSTAR) is a Russia-based coal producer and exporter that holds licenses for the future extraction of large metallurgical coal deposits in Russia.

LIMITED LIABILITY COMPANY COAL COMPANY RAZREZ BEYSKIY (RAZREZ BEYSKIY) is a Russia-based coal producer and the owner and developer of a coal mine located in the Republic of Khakassia, Russia.

LIMITED LIABILITY COMPANY RAZREZ BOGATYR (RAZREZ BOGATYR) is a Russia-based coal company developing a mine at the Bogatyr coal deposit in the Novosibirsk region of Russia.

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the transportation sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY COALSTAR TRANS (COALSTAR TRANS) is a Russia-based railroad transportation company used by the Koulstar group.

LIMITED LIABILITY COMPANY COALSTAR SEA TERMINAL is a company developing a future coal terminal in Wrangel Bay, Russia, designed to ship coal extracted from mines operated by RAZREZ BEYSKIY and RAZREZ BOGATYR.

LIMITED LIABILITY COMPANY AURORA SEA PORT (AURORA SEA PORT) is developing a future terminal in Fokino, Russia, designed to ship coal extracted from mines operated by RAZREZ BEYSKIY and RAZREZ BOGATYR.

LIMITED LIABILITY COMPANY BEYSKIY PROMYSHLENNO TRANSPORTNYY KOMPLEKS is a Russia-based company developing railroad infrastructure to transport coal extracted from a mine operated by RAZREZ BEYSKIY.

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the management consulting sector of the Russian Federation economy:

JOINT STOCK COMPANY BIZNES PROYEKT is a Russia-based holding company and the owner of AURORA SEA PORT.

Pursuant to section 1(a)(i) of E.O. 14024, the following entities and individuals are being designated for operating or having operated in the metals and mining sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY UGOLNAYA KOMPANIYA RAZREZ MAYRYKHSKIY (RAZREZ MAYRYKHSKIY) is a Russia-based coal mining company that operates a surface coal mine located in the Republic of Khakassia, Russia.

BORIS NIKOLAEVICH VARSHAVSKIY (VARSHAVSKIY) is a founder, shareholder, and the General Director of RAZREZ MAYRYKHSKIY. VARSHAVSKIY is a former co-owner of KOULSTAR, and the former Minister of Natural Resources and Ecology of the Republic of Khakassia.

ALEKSANDR NIKOLAYEVICH BORODAYEV (BORODAYEV) is a founder and shareholder of RAZREZ MAYRYKHSKIY. BORODAYEV is a former co-owner of KOULSTAR.

Targeting Companies in the Elga Coal Complex

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the financial services sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY MANAGEMENT COMPANY ELGA is a Russia-based financial and industrial management company that manages the Elga Coal Complex, a large Russian metals and mining network that extracts and sells metallurgical coal.

LIMITED LIABILITY COMPANY ELGA STROY MINING SERVICE (ESMS) is a Russia-based financial services company within the Elga Coal Complex group of companies.

Pursuant to section 1(a)(vii) of E.O. 14024, the following entities are being designated for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, ESMS. They are both Russia-based subsidiaries of ESMS:

LIMITED LIABILITY COMPANY ELGA STROY

LIMITED LIABILITY COMPANY ELGA MAGISTRAL

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the metals and mining sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY ELGAUGOL (ELGAUGOL) is a Russia-based coal mining company and the rightsholder of a license to develop one of Russia’s largest deposits of metallurgical coal reserves. ELGAUGOL is the main coal exporter within the Elga Coal Complex group of companies.

Pursuant to section 1(a)(vii) of E.O. 14024, the following entities are being designated for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, ELGAUGOL. They are both Russia-based subsidiaries of ELGAUGOL:

LIMITED LIABILITY COMPANY ELGA FACTORIES

LIMITED LIABILITY COMPANY UNDYTKAN

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the metals and mining sector of the Russian Federation economy. These entities are Russia-based coal mining companies within the Elga Coal Complex group of companies:

LIMITED LIABILITY COMPANY ELGA FACTORIES 2

LIMITED LIABILITY COMPANY ELGA MINING

LIMITED LIABILITY COMPANY ELGA MINING 2

LIMITED LIABILITY COMPANY ELGA FACTORIES 3

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the transportation sector of the Russian Federation economy. These entities are Russia-based rail transportation, service, and logistics companies within the Elga Coal Complex group of companies:

LIMITED LIABILITY COMPANY ELGA TRANS is a Russia-based service and maintenance company for the Elga-Ulak railway line, which provides cargo transportation for the Elga Coal Complex group of companies.

LIMITED LIABILITY COMPANY ELGA DOROGA is a Russia-based operator and owner of the Elga-Ulak railway line that the Elga Coal Complex group of companies uses to transport coal.

LIMITED LIABILITY COMPANY ELGALOGISTICS is a Russia-based transport and logistics company that handles domestic, export, import, and transit shipments of products from the Elga Coal Complex group of companies.

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the engineering sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY ELGA ENGINEEERING is a Russia-based engineering company within the Elga Coal Complex group of companies involved in the design of industrial facilities for the mining industry.

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the marine sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY PORT ELGA is a Russia-based marine transportation company within the Elga Coal Complex group of companies.

LIMITED LIABILITY COMPANY ELGA MARINE is a Russia-based marine transportation company within the Elga Coal Complex group of companies.

Targeting the Seligdar Group of Companies

Pursuant to section 1(a)(i) of E.O. 14024, the following entities and individuals are being designated for operating or having operated in the metals and mining sector of the Russian Federation economy:

PUBLIC JOINT STOCK COMPANY SELIGDAR (SELIGDAR) is a leading Russian producer of gold and tin, ranking in the top five largest companies in Russia in terms of gold reserves.

LIMITED LIABILITY COMPANY WHITE GOLD is a Russia-based gold mining company and a subsidiary of SELIGDAR.

JOINT STOCK COMPANY ZOLOTO SELIGDARA is a Russia-based gold mining company and a subsidiary of SELIGDAR.

LIMITED LIABILITY COMPANY ARTEL STARATELEI SININDA 1 is a Russia-based gold mining company and a subsidiary of SELIGDAR.

LIMITED LIABILITY COMPANY ARTEL STARATELEI POISK is a Russia-based gold mining company and a subsidiary of SELIGDAR.

LIMITED LIABILITY COMPANY YURSKI is a Russia-based gold mining company and a subsidiary of SELIGDAR.

LIMITED LIABILITY COMPANY SAMOLAZOVSKOE is a Russia-based gold mining company and a subsidiary of SELIGDAR.

LIMITED LIABILITY COMPANY RYABINOVOYE is a Russia-based gold mining company and a subsidiary of SELIGDAR.

PUBLIC JOINT STOCK COMPANY RUSOLOVO (RUSOLOVO) is Russia’s only tin mining holding company and a subsidiary of SELIGDAR.

JOINT STOCK COMPANY OLOVYANNAYA RUDNAYA KOMPANIYA (TIN MINING COMPANY) is a Russia-based tin mining company and a subsidiary of RUSOLOVO.

LIMITED LIABILITY COMPANY AMURSKIY METALLURGICHESKIY KOMBINAT is a Russia-based tin mining company and a subsidiary of RUSOLOVO.

LIMITED LIABILITY COMPANY PRAVOURMISKOE is a Russia-based tin mining company and a subsidiary of RUSOLOVO.

LIMITED LIABILITY COMPANY TERRITORIYA is a Russia-based tin mining company and a subsidiary of RUSOLOVO.

MAINTAINING THE PRESSURE ON ROSATOM

This is the eighth Russia sanctions action that includes designations of State Atomic Energy Corporation Rosatom (Rosatom) subsidiaries. These targets include Rosatom entities developing and producing dual-use and military applicable equipment and components.

The Department is designating the following entities pursuant to section 1(a)(vii) of E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, the Government of the Russian Federation:  

JOINT STOCK COMPANY KIROV ENERGOMASH PLANT (KIROV ENERGOMASH PLANT) is a subsidiary of Rosatom that has been involved in the development and supply of steam turbine units for the energy and defense industries. KIROV ENERGOMASH PLANT turbines are installed on Russian nuclear-powered military vessels including submarines and aircraft carriers.

RESEARCH AND DEVELOPMENT INSTITUTE OF SCIENTIFIC INSTRUMENTS JOINT STOCK COMPANY (NIIP) is a subsidiary of Rosatom that has been involved in radiation testing of electronic equipment and has developed military-applicable counter-UAV detection equipment.

INJECT RESEARCH AND PRODUCTION ENTERPRISE LIMITED LIABILITY COMPANY is a subsidiary of Rosatom that has been involved in the production of semiconductor quantum photonics products and research of laser technologies.

CONSTRAINING RUSSIA’S MILITARY-INDUSTRIAL BASE

Targeting Producers of Russian Weapons Systems and Military Components

The Department is designating the following entities and individual pursuant to section 1(a)(i) of E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy:

JOINT STOCK COMPANY SCIENTIFIC AND PRODUCTION CORPORATION URALVAGONZAVOD NAMED AFTER F E DZERZHINSKY (NPK URALVAGONZAVOD) is a large Russian government-owned manufacturing conglomerate responsible for defense sector products, including Russian tanks, and other machinery.

PUBLIC JOINT STOCK COMPANY KIROV PLANT MAYAK is a leading manufacturer in the Russian defense industry that has supplied the Russian military with conventional arms and equipment.

VIKTOR NIKOLAEVICH ZHILKIN is the director of KIROV MAYAK.

JOINT STOCK COMPANY PERM SCIENTIFIC INDUSTRIAL INSTRUMENT-MAKING COMPANY (PNPPK) has produced and developed navigation, control and stabilization systems used on more than 30 types of aircraft in Russia, including the MiG-29, Su-27, and Su-30.

PUBLIC JOINT STOCK COMPANY SCIENTIFIC PRODUCTION ASSOCIATION STRELA (NPO STRELA) has developed, produced, and modernized missiles, battlefield surveillance radars and artillery used by the Russian Armed Forces.

JOINT STOCK COMPANY RESEARCH AND PRODUCTION ASSOCIATION ISKRA (NPO ISKRA) has developed and manufactured missile systems used by the Russian Armed Forces.

SERGEY PAVLOVICH YURASOV is the CEO of NPO ISKRA.

Pursuant to section 1(a)(vii) of E.O. 14024, the following entity is being designated for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, NPK URALVAGONZAVOD, a person whose property and interests in property are blocked pursuant to E.O. 14024:

JOINT STOCK COMPANY URAL HEAVY EQUIPMENT URALVAGONZAVOD is a subsidiary of NPK URALVAGONZAVOD and has supplied petrochemical products to other subsidiaries and companies in the Russian military-industrial base.

Pursuant to section 1(a)(i) of E.O. 14024, the following entities are being designated for operating or having operated in the aerospace sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY SCIENTIFIC AND PRODUCTION ASSOCIATION AMB has developed and produced the FG-40 internal combustion engine for Russian UAVs.

LIMITED LIABILITY COMPANY ABAKAN AIR (ABAKAN AIR) is a Russia-based company that has performed domestic and international commercial charter freight flights. ABAKAN AIR has conducted arms deliveries on behalf of Russia’s defense industrial base and transported other Russian military equipment. ABAKAN AIR has also transported equipment and supplies on behalf of Yevgeniy Prigozhin-linked entities in Sub-Saharan Africa.

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the financial services sector of the Russian Federation economy:

OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTIU AVIALIZING INVEST is the holding company that owns ABAKAN AIR.

Targeting the Russian Military-Industrial Base and Technology Procurement

The Department is designating the following entities pursuant to section 1(a)(i) of E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy:

JOINT STOCK COMPANY URALREDMET (URALREDMET) is a Russian procurer of vanadium-containing master alloys used in the production of aerospace grade titanium. URALREDMET’s customers include large Russian aerospace-grade titanium producers and other titanium producers supplying the Russian military-industrial base.

JOINT STOCK COMPANY BOR GLASSWORKS (BOR GLASSWORKS) is a Russia-based glass manufacturer that produces sheet and automotive glass. BOR GLASSWORKS supplies armored glass for Russian armored vehicle production.

LIMITED LIABILITY COMPANY KLIN GLASSWORKS is a Russia-based glass manufacturer that produces float glass, a critical base component for tempered and armored glass.

JOINT STOCK COMPANY RUSSIAN GLASS COMPANY is a Russia-based glass manufacturer that produces tempered glass, a critical base component for armored glass.

LIMITED LIABILITY COMPANY MAGISTRAL (MAGISTRAL) is a Russia-based glass manufacturer that produces bulletproof glass. The Ministry of Internal Affairs of the Russian Federation and the Ministry of Defense of the Russian Federation are patrons of MAGISTRAL, and the company has partners that are manufacturers of armored vehicles for the Ministry of Defense of the Russian Federation.

LIMITED LIABILITY COMPANY MEGASTEK is a Russia-based armored glass manufacturer.

JOINT STOCK COMPANY POLEMA is a Russia-based powder metallurgy company whose products are used in additive manufacturing and 3D-printing and offer analogues for Russia’s import substitution strategy.

LIMITED LIABILITY COMPANY PUMORI ENGINEERING INVEST is a Russia-based company engaged in deliveries of high-tech metalworking machines and tools.

JOINT STOCK COMPANY KONAR (KONAR) is a Russia-based manufacturer producing components and assemblies for the shipbuilding, power engineering, and oil and gas industries of Russia. KONAR was instructed by U.S.-designated President Vladimir Putin to increase production for Russia’s domestic machine tools industry in order to expand Russia’s defense industrial base and to mitigate the effects of international sanctions. KONAR is the flagship company of the Russia-based Konar Industrial Group.

JOINT STOCK COMPANY RUSSKIE ELEKTRICHESKIE DVIGATELI (RUSSIAN ELECTRIC MOTORS) is a Russia-based joint venture between KONAR and PUBLIC JOINT STOCK COMPANY TRANSNEFT, an entity subject to certain less than blocking restrictions, that manufactures power generators and electric motors for the oil industry of Russia. 

RUSSIAN ELECTRIC MOTORS is part of the Russia-based Konar Industrial Group.

LIMITED LIABILITY COMPANY MODERN FORGING TECHNOLOGIES (MODERN FORGING TECHNOLOGIES) is a Russia-based metal products manufacturer producing cast ingots. MODERN FORGING TECHNOLOGIES is part of the Russia-based Konar Industrial Group.

LIMITED LIABILITY COMPANY BVK (BVK) is a Russia-based steel castings manufacturer producing products for the shipbuilding industry of Russia. BVK is part of the Russia-based Konar Industrial Group.

JOINT STOCK COMPANY ALEKSINSKII OPYTNYI MEHANICHESKII ZAVOD (AOMZ) is a Russia-based ammunition and weapons manufacturer producing defense products, such as mortar mines and aviation bombs, for Russia’s defense industry. AOMZ has also received public support from U.S.-designated DMITRY ANATOLYEVICH MEDVEDEV, the First Deputy Chairman of the Military-Industrial Commission of Russia.

LIMITED LIABILITY COMPANY STANKOMASH (STANKOMASH) is a Russia-based weapons manufacturer producing defense products, such as the Smerch multiple launch rocket system, for Russia’s Ministry of Defense. STANKOMASH additionally helps to develop and support research projects for Russia’s defense industry.

JOINT STOCK COMPANY OMSKIY NAUCHNO ISSLEDOVATELSKIY INSTITUT PRIBOROSTROENIY is a Russia-based company that manufactures electronic components including pressed circuit boards and radio communication systems.

LIMITED LIABILITY COMPANY KORNET (KORNET) is a Russia-based producer of oil and gas equipment, to include shut-off valves, control valves and equipment for wellhead connections. KORNET is a part of the Russia-based Konar Industrial Group.

Pursuant to section 1(a)(i) of E.O. 14024, the following entity is being designated for operating or having operated in the construction sector of the Russian Federation economy:

LIMITED LIABILITY COMPANY INDUSTRIAL PARK STANKOMASH (INDUSTRIAL PARK STANKOMASH) is a Russia-based construction company that is a member of, and builds industrial buildings and engineering infrastructure facilities for, the Russia-based Konar Industrial Group.

PROMOTING ACCOUNTABILITY FOR MALIGN ACTORS

Targeting Entities and an Individual Supporting Russia’s Malign Activities Abroad

The Department is designating today JOINT STOCK COMPANY GOZNAK (GOZNAK) and LIMITED LIABILITY COMPANY BANKOVSKIE INNOVATSIONNYE SYSTEMY (LLC BIS). GOZNAK is Russia’s state-owned enterprise responsible for producing currency, banknotes, and security products, such as passports. GOZNAK supports the U.S.-designated FEDERAL SECURITY SERVICE (FSB) by producing cryptographic products. GOZNAK also contributes to the production of counterfeit currency globally and was responsible for printing more than $1 billion worth of counterfeit Libyan currency, which exacerbated Libya’s economic challenges. The Department’s designation of GOZNAK today matches previous designations by the EU, UK, and New Zealand. LLC BIS is a subsidiary of GOZNAK that produces software and computer equipment for currency printing.

GOZNAK and LLC BIS are being designated pursuant to section 1(a)(i) of E.O. 14024 for operating or having operated in the manufacturing sector of the Russian Federation economy and pursuant to section 1(a)(vii) of E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, the Government of the Russian Federation.

Pursuant to section 1(a)(i) of E.O. 14024, the following individual is being designated for operating or having operated in the manufacturing sector of the Russian Federation economy:

ARKADY VLADIMIROVICH TRACHUK is the general director of GOZNAK and is in charge of the company’s operations.

Countering Russian Malign Influence in Moldova

Today, the United States is again designating a member of the criminal network of ILAN SHOR (SHOR), a person whose property and interests in property are blocked pursuant to E.O. 14024 for having worked on behalf of the Government of the Russian Federation to interfere in Moldova’s elections.

The Department is designating the following individual pursuant to section 1(a)(vii) of E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, SHOR:

YEVGENIYA ALEKSANDROVNA GUTSUL (GUTSUL) plays a direct and active role in the corrupt activities of SHOR and his U.S.-designated former SHOR PARTY. GUTSUL worked in the SHOR PARTY’s central office and directly participated in criminal activities within the SHOR PARTY as directed by SHOR, including participating in the delivery of cash from Russia to the party, illicitly concealing those funds, and using those funds to benefit SHOR and his criminal enterprise. GUTSUL is currently the governor of the Gagauzia autonomous territorial unit of Moldova following an election that was marked by significant indicators of fraud, including vote-buying and significant illicit, undeclared campaign financing from abroad.

SHOR’s criminal network continues to work to advance the Kremlin’s interests in Moldova while seeking to corrupt Moldova’s political system and undermine Moldova’s democracy. Rather than serve the people of Gagauzia and the rest of Moldova, GUTSUL has consistently prioritized SHOR’s personal interests and those of the Kremlin in attempting to undermine and destabilize Moldova. The United States will continue to stand with Moldovans, including the people of Gagauzia, against these corrupt acts.

Targeting a Sanctions Evasion Network of Russian Oligarch Vladimir Potanin

Today, the Department is taking action against a sanctions evasion scheme connected to VLADIMIR OLEGOVICH POTANIN (Potanin), one of the wealthiest oligarchs in Russia, who formerly served as a Deputy Prime Minister for the Russian Federation. Potanin was previously designated by the Department pursuant to E.O. 14024 in December 2022. The Department is designating four Liechtenstein-based foundations, PALOMA FOUNDATION (PALOMA), SPERO FOUNDATION (SPERO), NATWIN FOUNDATION (NATWIN), and CAFAR FOUNDATION (CAFAR); as well as two Cyprus-based entities, SENTIMARE ENTERPRISES LIMITED and PICOTIN HOLDINGS LIMITED, and one UAE-based entity, SENTIMARE ME LIMITED, connected to the scheme.

Given Potanin was previously the ultimate beneficial owner of SENTIMARE ENTERPRISES LIMITED and his minor children’s current equal ownership of SENTIMARE ENTERPRISES LIMITED through four foundations (PALOMA, SPERO, CAFAR, and NATWIN), Potanin retains control of PALOMA, CAFAR, SPERO, and NATWIN.

The Department is designating PALOMA, SPERO, NATWIN, and CAFAR pursuant to section 1(a)(vii) of E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, POTANIN, a person whose property and interests in property are blocked pursuant to E.O. 14024.

Pursuant to section 1(a)(vii) of E.O. 14024, SENTIMARE ENTERPRISES LIMITED is being designated for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, PALOMA, SPERO, CAFAR, and NATWIN, persons whose property and interests in property is blocked pursuant to E.O. 14024. SENTIMARE ENTERPRISES LIMITED was previously ultimately beneficially owned by Potanin and is currently owned equally by Potanin’s minor children through PALOMA, SPERO, NATWIN, and CAFAR.

Pursuant to section 1(a)(vii) of E.O. 14024, SENTIMARE ME LIMITED and PICOTIN HOLDINGS LIMITED are being designated for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, SENTIMARE ENTERPRISES LIMITED. They are both wholly owned by SENTIMARE ENTERPRISES LIMITED.

These designations were the result of extensive coordination with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

Targeting Occupation Authorities and Individuals Involved in the Forced Transfer and Deportation of Ukrainian Children

The Department is continuing to take action against individuals and organizations responsible for the forced deportation, transfer, re-education, and militarization of Ukraine’s children from Russia-occupied areas of Ukraine on behalf of the Government of the Russian Federation.

Pursuant to section 1(a)(ii)(F) of E.O. 14024, the following individuals and entity are being designated for being responsible for or complicit in, or having directly or indirectly engaged or attempted to engage in, activities that undermine the peace, security, political stability, or territorial integrity of the United States, its allies, or its partners, for or on behalf of, or for the benefit of, directly or indirectly, the Government of the Russian Federation:

VALENTINA VASILEVNA LAVRIK (LAVRIK) is the so-called Minister of Education, Science and Youth of the so-called Republic of Crimea appointed by Russia. LAVRIK is responsible for the forced militarization and re-education of Ukraine’s children in Crimea.

INNA VOLODYMYRIVNA SHVENK is the Commissioner for Children’s Rights of the so-called Luhansk People’s Republic and is responsible for the forced relocation of Ukraine’s children to Russia.

IVAN SERGEYEVICH KUSOV is the Minister of Education and Science of the so-called Luhansk People’s Republic and is responsible for the re-education of Ukraine’s children.

OLGA VLADIMIROVNA VOLKOVA (VOLKOVA) is responsible for the forced militarization, re-education, and deportation of Ukraine’s children to Russia and Belarus. VOLKOVA partnered with, and receives support from, U.S.-designated ALEXEY KONSTANTINOVICH TALAI.

ALL RUSSIAN PUBLIC STATE MOVEMENT OF CHILDREN AND YOUTH (MOVEMENT OF THE FIRST) is a Russia-based organization that is responsible for the forced militarization and re-education of Ukraine’s children and provided Russian passports to Ukraine’s children. The MOVEMENT OF THE FIRST was established by the Government of the Russian Federation and is chaired by President Vladimir Putin.

NIKITA VLADIMIROVICH NAGORNY (NAGORNY) is the head of the ALL RUSSIAN CHILDREN AND YOUTH MILITARY PATRIOTIC PUBLIC MOVEMENT YOUTH ARMY (YUNARMIYA), a person previously designated pursuant to E.O. 14024, and is responsible for the forced militarization and re-education of Ukraine’s children. NAGORNY is also being designated pursuant to section 1(a)(iii)(C) for being or having been a leader, official, senior executive officer, or member of the board of directors of YUNARMIYA.

SANCTIONS IMPLICATIONS

As a result of today’s sanctions-related actions, and in accordance with E.O. 14024, as amended, all property and interests in property of the designated persons described above that are in the United States or in possession or control of U.S. persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control (OFAC). Additionally, all entities and individuals that have ownership, either 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 otherwise 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.

The power and integrity of U.S. government sanctions derive not only from the U.S. government’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.