The Office of Foreign Assets Control will allow payment of certain taxes and import fees to Russia despite the sanctions imposed on the Russian central bank, national wealth fund and Ministry of Finance on Feb. 28 (see 2202280021). General License 13 authorizes payments of "taxes, fees, or import duties," as well as the purchase or receipt of "permits, licenses, registrations, or certifications" through 12:01 a.m. June 24. Russia's Federal Customs Bureau is part of its Ministry of Finance. The licence was issued March 2 along with General License 14, which authorizes certain activities by an entity that has the "sole function in the transaction" of acting as an "operator of a clearing and settlement system" with certain Russian financial institutions.
The U.K. increased its sanctions on Russia, designating the Russian Direct Investment Fund and its CEO Kirill Alexandrovich Dmitriev. Both entities are now subject to an asset freeze, per a March 1 notice from the Office of Financial Sanctions Implementation. The RDIF, Russia's sovereign wealth fund, and its CEO already are subject to U.S. sanctions.
The U.S. issued another set of “expansive” Russia sanctions, targeting various Russian oligarchs, allies of Russian President Vladimir Putin, their family members and several Russian intelligence disinformation outlets. The designations include more than 80 people and entities in Russia or Ukraine that either offer financial support to the Kremlin or help the government “promulgate disinformation and influence perceptions,” the Treasury Department said.
The Office of Foreign Assets Control added Russian sanctions regulations to implement a sweeping April 2021 executive order that authorized new designations against people and companies operating in Russia’s defense and technology sectors, involved in attempts to influence foreign elections and more (see 2104150019). The added regulations, which took effect March 1, are in an “abbreviated form” so OFAC can provide “immediate guidance to the public.” The agency intends to add more regulations, which could include guidance on various definitions and general licenses.
The United Kingdom maintained its barrage of restrictions imposed against Russia following its invasion of Ukraine. So far, the government has sweeping sanctions on a host of Russian individuals and entities, including the Russian Central Bank and President Vladimir Putin himself (see 2202280024). This deluge continued on Feb. 28 and March 1 with greater action to isolate Russia and freeze it out of the global economy.
New sanctions on the Russian Central Bank, Ministry of Finance and two Russian investment funds announced Feb. 28 are the “most significant action” the Treasury Department has ever taken against an economy the size of Russia, said a senior administration official that day. “We're doing exactly what we said we’d do,” the official said during a call with reporters. “We said all options are on the table, including the most severe sanctions ever contemplated against Russia.”
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 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.
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 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.