More Sanctions Target Russia’s Supply Chains

The State Department, Commerce and the Treasury announced sweeping sanctions on nearly 400 individuals and entities across 17 jurisdictions involved in providing advanced technology, equipment, and financial support to Russia’s military-industrial complex.

Treasury is targeting third-country sanctions evasion networks that support Russia’s war machine, as well as domestic Russian importers and producers of key inputs for the country’s military-industrial base.

State's sanctions target circumvention by parties in multiple third countries, several senior Russian Ministry of Defense officials and defense companies, and those that support the development of Russia’s future energy production and exports.

Commerce is adding 40 entities to its Entity List and expanding controls on nearly 50 additional entities to combat diversion of sensitive items to Russia.  Commerce is also restricting exports of additional precursor chemicals to Russia and Belarus to combat Russia’s use of riot control agents and other chemicals on the battlefield in Ukraine.    [12993]

Deputy Secretary of the Treasury Wally Adeyemo emphasized the international community's commitment to curtailing Russia’s military capabilities. “The United States and our allies will continue decisive actions to impede the flow of critical technologies that support Russia’s illegal war,” Adeyemo said, urging other nations to join efforts against sanctions evasion.

Key Targets and Networks

The sanctions cover individuals and entities operating in countries such as China, India, Switzerland, Türkiye, and Thailand. Key targets include:

• Defense Supply Networks: Türkiye-based firms such as Mirex Havacilik ve Savunma, accused of facilitating contracts for Russian defense systems, and New Way Group, linked to the Russian GRU intelligence agency, were blacklisted.
• Electronic Components Procurement: Companies in China and Hong Kong, such as Sinno Group and affiliated firms, were penalized for supplying microelectronics essential to Russian precision-guided weapons.
• Dual-Use Technology and Manufacturing Exports: Many Indian firms were sanctioned for sending dual-use technology to Russian entities. Other firms from Hong Kong and Switzerland also faced designations for evading controls on high-priority goods.
• Convoluted Evasion Routes: Among designated firms, Benin-based Centre Chinois De Developpement Economique Et Commercial Au Benin SARL was cited for its role in a procurement scheme to obfuscate shipments of advanced manufacturing equipment and metalworking machines to a Russian machine tool builder;while a Montenegro firm exported bearings and machine tools to Russia.
• In addition, OFAC designated Shaurya Aeronautics, an indian Aviation Maintenance and Flight Services operatorfor shipments to Russia of high-priority dual-use technology, including radar apparatus, radio navigational aid apparatus and radio remote control apparatus, and electrical apparatus.

The U.S. Department of State separately targeted Belarus-based entities and several officials within the Russian Ministry of Defense. The sanctions also extend to defense firms and senior officials involved in manufacturing and energy sectors critical to Russia’s war efforts.

Disrupting Evasion Mechanisms

The sanctions aim to disrupt elaborate schemes Russia relies on to procure essential technologies, circumventing export restrictions. Entities sanctioned today are engaged in activities listed under the Bureau of Industry and Security’s Common High Priority List (CHPL), which identifies items of strategic concern.

Designated companies include those operating logistics chains, corporate service providers, and intermediaries funneling critical goods to Russian defense contractors.

Financial enablers, including Switzerland-based trust companies and other corporate facilitators, were also blacklisted for assisting sanctions evasion.

[Treasury Announcement]

General Licenses Issued

OFAC has issued  Russia-related General License 8K, "Authorizing Transactions Related to Energy," Russia-related General License 25G, "Authorizing Transactions Related to Telecommunications and Certain Internet-Based Communications," Russia-related General License 110, "Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on October 30, 2024," Russia-related General License 111, "Authorizing Certain Transactions Related to Debt or Equity of, or Derivative Contracts Involving, Certain Entities Blocked on October 30, 2024," and Russia-related General License 112, "Authorizing Civil Aviation Safety and Wind Down Transactions Involving Shaurya Aeronautics Private Limited."