The Los Angeles Post

Promoting Accountability and Imposing Costs on the Russian Federation and Its Enablers for Putin’s Aggression Against Ukraine

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06/02/2022 10:51 AM EDT

 

The Department of State is taking additional steps to target Russia’s oligarchs and elites, in close coordination with partners and allies, with the goal of imposing severe costs on the Government of the Russian Federation and limiting the Kremlin’s ability to fund Putin’s war of aggression against Ukraine.

INDIVIDUALS AND ENTITIES DESIGNATED BY THE STATE DEPARTMENT

  • God Nisanov, an oligarch with close ties to numerous Russian officials, is being designated pursuant to E.O. 14024 section 1(a)(vii). Nisanov is a real estate investor and one of the richest people in Europe.
  • Evgeny Novitskiy, a Russian elite with close ties to the Government of Russia, is being designated pursuant to E.O. 14024 section 1(a)(vii).
  • Maria Zakharova is being designated pursuant to E.O. 14024 section 1(a)(iii)(A) for her role as an official of the Government of the Russian Federation as the spokesperson for the Foreign Ministry. The EU, UK, Japan, Australia, and New Zealand have previously designated Maria Zakharova.
  • Sergey Gorkov, the head of RosGeo and a former executive of sanctioned banks, is being designated pursuant to E.O. 14024 section 1(a)(iii)(A) for his involvement in the Government of the Russian Federation via RosGeo.
  • Severgroup is a multi-billion-dollar Russia’s investment company with holdings and subsidiaries in metallurgy, engineering, mining, tourism, banking, technology, media, and finance, among other sectors. Severgroup is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the financial services sector of the Russian Federation economy.
  • Alexey Mordashov, the leader of Severgroup Limited Liability Company and one of Russia’s wealthiest billionaires, is being designated, pursuant to section 1(a)(iii)(C) of E.O. 14024, for being a leader, official, senior executive officer, or member of the board of directors of Severgroup, an entity whose property or interests in property are blocked pursuant to E.O. 14024 section 1(a)(i). The EU, Australia, New Zealand, and the UK previously designated Alexey Mordashov.
  • Family members of Alexey Mordashov who are being designated pursuant to section 1(a)(v) of E.O. 14024 for being the spouse or adult child of a person whose property and interests in property are blocked pursuant to section 1(a)(ii) or 1(a)(iii) of E.O. 14024 are:
    • Marina Mordashova
    • Nikita Mordashov
    • Kirill Mordashov
  • Entities designated for relation to Alexey Mordashov include:
    • Severstal is among Russia’s leading domestic steel producers. Severstal is being designated pursuant to E.O. 14024 Section 1(a)(vii) because it is owned or controlled by Alexey Mordashov, a person whose property and interests in property are blocked pursuant to section 1(a)(iii)(C) of E.O. 14024.
    • Algoritm is a holding company that controls dozens of Russian technology, media, and advertising companies. Algoritm is being designated pursuant to E.O. 14024 section 1(a)(vii) because it is owned or controlled by Alexey Mordashov, a person whose property and interests in property are blocked pursuant to section 1(a)(iii)(C) of E.O. 14024.
    • Nord Gold is a gold mining company with assets and operations around the world, including in the Russian Federation, Burkina Faso, French Guiana, Guinea, Kazakhstan, and Canada. Nord Gold is being designated pursuant to E.O. 14024 section 1(a)(vii) because it is owned or controlled by Alexey Mordashov, a person whose property and interests in property are blocked pursuant to section 1(a)(iii)(C) of E.O. 14024.
  • In addition, the Department of the Treasury issued two new general licenses (“GL”) and amended one GL in connection with the Department’s designations of Severstal, Nord Gold, and Alogritm. Specifically:
    • Under GL 36, all transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to the wind down of transactions involving Public Joint Stock Company Severstal or any entity in which Public Joint Stock Company Severstal owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern daylight time, August 31, 2022, provided that any payment to Public Joint Stock Company Severstal or any other blocked person must be made into a blocked account in accordance with the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR)
    • Under GL 37, all transactions prohibited by E.O. 14024 that are ordinarily incident and necessary to the wind down of transactions involving Nord Gold PLC, or any entity in which Nord Gold PLC owns, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern daylight time, July 1, 2022, provided that any payment to Nord Gold PLC or any other blocked person must be made into a blocked account in accordance with the RuHSR.
    • GL 25 was amended to exclude Algorithm, an entity that will be designated pursuant to E.O. 14024, from the scope of the authorization. GL 25 authorizes all transactions ordinarily incident and necessary to the receipt or transmission of telecommunications involving the Russian Federation that are prohibited by the RuHSR.  Additionally, GL 25 authorizes the exportation or re-exportation, sale, or supply, directly or indirectly, from the United States or by U.S. persons, wherever located, to the Russian Federation of services, software, hardware, or technology incident to the exchange of communications over the internet, such as instant messaging, videoconferencing, chat and email, social networking, sharing of photos, movies, and documents, web browsing, blogging, web hosting, and domain name registration services, that is prohibited by the RuHSR.

SANCTIONS IMPLICATIONS

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) will add the entities and vessels above to the list of Specially Designated Nationals and Blocked Persons.  As a result of today’s action, all property and interests in property of the entities above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC.  In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.  All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt.  These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.