The Office of Foreign Asset Control on Feb. 28 issued a new directive that blocks certain transactions with the Central Bank of Russia, the Russian National Wealth Fund, and the Russian Ministry of Finance. OFAC also designated the Russian Direct Investment Fund -- which the agency called a "key" sovereign wealth fund -- along with its CEO, Kirill Dmitriev. OFAC also designated RDIF's management company and one of the managing company’s subsidiaries. By blocking these entities, OFAC said it is "terminating yet another route through which Russia has benefitted from access to the U.S. financial system."
The U.S. is imposing additional sanctions and new export controls following Russia's "further invasion of Ukraine," as promised by President Biden in his Feb. 22 speech (see 2202220003). The sanctions cover financial restrictions on Russian state-owned enterprises, banks, and individuals, while the export controls set restrictions on a variety of high-tech products. The new measures are part of an "unprecedented level of multilateral cooperation" according to the White House.
The Office of Foreign Assets Control designated three individuals, nine entities and one vessel on Feb. 23 as part of its counterterrorism efforts. Abdo Abdullah Dael Amed of Yemen, Chiranjeev Kumar Singh of India, and Konstantinos Stavridis of Greece were added to the Specially Designated Nationals list, along with entities in Turkey, Yemen and the United Arab Emirates. The Department of the Treasury said in a press release said that the targets were key components in a "complex international network of intermediaries" helping to finance Houthi rebels in Yemen.
The Commerce and Treasury Departments announced a raft of new export controls and sanctions measures against Russia in press releases issued Feb. 24 following White House remarks by President Joe Biden. The measures include export control license requirements for a broad swath of the Commerce Control List, and the expansion of sanctions, including to entities in Belarus. The Bureau of Industry and Security also released a final rule on the export control changes, which take effect Feb. 24.
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President Joe Biden announced in a speech Feb. 22 that the U.S. will impose a series of sanctions on Russia for its continued aggression against Ukraine. Biden promised sanctions "far beyond what was implemented in 2014," in response to Russian recognition of the Luhansk and Donetsk republics on Feb. 21, which he called a "flagrant violation of international law." According to a Feb. 21 press call, the White House anticipated the possibility and was prepared to respond immediately. A senior administration official noted the measures were in response to "Russia’s recognition gambit" and that they are distinct from "swift and severe economic measures" prepared should Russia "further invade Ukraine."
The Office of Foreign Assets Control on Feb. 17 sanctioned Sergio Armando Orozco Rodriguez for his involvement with the Cartel de Jalisco Nueva Generacion (CJNG) in Puerto Vallarta, Jalisco, Mexico. CJNG traffics a “significant proportion” of fentanyl and other drugs into the U.S., OFAC said, and Rodriguez helps launder money for the group, and carries out extortion schemes. OFAC previously sanctioned CJNG in 2015 and 2021.
The Office of Foreign Assets Control is adding regulations to implement a pair of executive orders from November 2020 and June 2021 related to securities investments that finance Communist Chinese military companies. The regulations prohibit the purchase or sale of securities with any of the listed people or entities. In addition, the secretary of the treasury can designate further entities that have operated in the defense, surveillance, or related sectors of the Chinese economy.
The Office of Foreign Assets Control is removing sanctions regulations on Burundi, it said in a notice. It follows President Joe Biden's Nov. 18 executive order (see 2111180014) declaring an end to the state of national emergency in Burundi, citing the "significantly altered" situation over the past year, "including the transfer of power following elections in 2020, significantly decreased violence, and ... reforms across multiple sectors."
The Office of Foreign Assets Control is adjusting its civil monetary penalties for inflation, the agency said in a notice released Feb. 8. The new amounts include higher maximum penalties for violations of the Trading With the Enemy Act, the International Emergency Economic Powers Act, the Antiterrorism and Effective Death Penalty Act, the Foreign Narcotics Kingpin Designation Act and the Clean Diamond Trade Act. The agency also updated two references to “one-half the IEEPA maximum CMP from $155,781 to $165,474” and adjusted the recordkeeping CMP amounts in OFAC’s Economic Sanctions Enforcement Guidelines. The changes take effect Feb. 9.