U.S. Expands Russia Sanctions to Target Energy, Financial Services Sectors
The Treasury Department moved July 16 to expand economic sanctions against Russia in response to its “continued attempts to destabilize eastern Ukraine and its ongoing occupation of Crimea.” These sanctions open Russia’s financial services and energy sectors to sanctions, limit the access of two Russian banks and two energy firms to U.S. sources of financing, and impose blocking sanctions against eight arms firms and a set of senior Russian officials. Treasury Secretary Jacob Lew said the U.S. is also “fully prepared to continue increasing the financial and economic pressure on Russia if it does not cease its provocative behavior.”
Specific sanctions imposed include the following.
- Treasury determined that persons operating within Russia’s financial services and energy sectors may now be subject to targeted sanctions and prohibited U.S. persons and persons within the U.S. from transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity for two Russian banks and two Russian energy firms, along with their property or interests in property. These measures do not block the property or interests in property of these entities and do not prohibit transactions with them beyond these specific restrictions.
- Treasury designated eight firms for operating in the arms or related materiel sector in Russia; two entities and one individual for threatening the peace, security, stability, sovereignty or territorial integrity of Ukraine; an entity operating a key shipping facility in the Crimean peninsula for oil imports and exports for being complicit in the misappropriation of state assets of Ukraine; and four individuals for their status as Russian government officials. These designations freeze any of the assets of these entities within U.S. jurisdiction and generally prohibit transactions by U.S. persons or within the U.S. involving these entities.