On June 12, 2024, the Treasury issued sweeping new measures guided by G7 commitments to intensify the pressure on Russia for its continued cruel and unprovoked war against Ukraine. Treasury’s actions increase the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy, restrict the ability of Russian military-industrial base to take advantage of certain U.S. software and information technology (IT) services, and target more than 300 individuals and entities both in Russia and outside its border whose products and services enable Russia to sustain its war effort and evade sanctions.
The Treasury is targeting Russia's financial system, which has been reoriented to facilitate investment into its defense industry and acquisition of goods needed to further its aggression against Ukraine. The Treasury is also targeting multiple networks that launder gold for a Russian gold producer, aiding in the production of unmanned aerial vehicles and acquiring materials for weapons programs. The action also aims to reduce Russia's future revenue from natural gas.
In addition, the Treasury has expanded the definition of Russia’s military-industrial base to include all persons blocked pursuant to Executive Order (E.O.) 14024. This means that foreign financial institutions risk being sanctioned for conducting or facilitating significant transactions, or providing any service, involving any person blocked pursuant to E.O. 14024. OFAC has also updated the Specially Designated Nationals and Blocked Persons List (SDN List) information for five sanctioned Russian financial institutions, to include the addresses and aliases of their foreign locations.
Read the Treasury’s press release here.
The updated list of Russia-related designations can be found here.