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U.S. Will Maintain Sanctions Pressure Until Russia Has Fulfilled All of Its Commitments under the Minsk Agreements

September 1, 2016
U.S. Treasury Department
Office of Public Affairs

FOR IMMEDIATE RELEASE

U.S. Will Maintain Sanctions Pressure Until Russia Has Fulfilled All of Its Commitments under the Minsk Agreements

WASHINGTON – To maintain the effectiveness of existing sanctions, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today designated 37 individuals and entities under three Executive Orders (E.O.s) related to Russia and Ukraine.  Today’s action is part of OFAC’s ongoing efforts to counter attempts to circumvent sanctions on Russia, to assist the private sector with sanctions compliance, and to foster a diplomatic resolution to the conflict in Ukraine.  The action demonstrates Treasury’s steadfast commitment to maintain sanctions until Russia fully implements its commitments under the Minsk agreements, including a comprehensive cease fire, the withdrawal of all weapons and military personnel, and the restoration of Ukraine’s control over its side of the internationally recognized border.  It also underscores the U.S. government’s opposition to Russia’s occupation of Crimea and our firm refusal to recognize its attempted annexation of the peninsula.  These sanctions follow the recent extension of European Union sectoral sanctions, and together these steps demonstrate continued international unity in opposing Russia’s actions in Ukraine.

“Russia continues to provoke instability in eastern Ukraine despite its Minsk commitments,” said Acting OFAC Director John E. Smith.  “Treasury stands with our partners in condemning Russia’s violation of international law, and we will continue to sanction those who threaten Ukraine’s peace, security, and sovereignty.”

Today OFAC also identified a number of subsidiaries that are owned 50 percent or more by previously sanctioned Russian companies to provide additional information to assist the private sector with sanctions compliance.

Designation Regarding Sanctions Evasion (E.O. 13661)

Today’s action targets one entity pursuant to E.O. 13661, which authorizes sanctions on, among others, any individual or entity that has acted for or on behalf of, or supported, an individual or entity previously designated under this E.O.

CJSC ABR Management (“ABR Management”) is designated for acting for or on behalf of, directly or indirectly, and materially assisting, sponsoring, or providing, financial, material, or technological support for, or goods or services to or in support of, Bank Rossiya.  Bank Rossiya managers founded ABR Management to strategically manage the banking group’s assets.  As the trustee under a trust agreement with certain Bank Rossiya shareholders, ABR Management has the power to exercise voting rights for a majority of Bank Rossiya shares, including rights to propose candidates for Bank Rossiya management positions.

Designations Regarding Separatists (E.O. 13660)

Today’s action also targets 17 Ukrainian separatists pursuant to E.O. 13660 for being responsible for or complicit in actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine; or for acting for or on behalf of previously designated groups as leaders of such entities.

The following six individuals are designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine; and acting for or on behalf of the previously designated, self-proclaimed Donetsk People’s Republic (DPR) or the previously designated, self-proclaimed Luhansk People’s Republic (LPR): Eduard Basurin, so-called Deputy Commander of the Ministry of Defense, DPR;Viktor Yatsenko, so-called Minister of Communications, DPR; Vladimir Kononov, so-called Minister of Defense, DPR; Zaur Ismailov, so-called Prosecutor General, LPR; Evgeny Manuilov, so-called Minister of Finance, LPR; and Alexandr Shubin, so-called Minister of Justice, LPR.

The following 11 individuals, officials of the so-called Republic of Crimea, are designated for asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine: Dmitry Polonsky, so-called Minister of Information and Mass Communications; Anna Anyukhina, so-called Minister for Property and Land Relations;  Mikhail Sheremet, so-called First Deputy Chairman of the Council of Ministers; Svetlana Alekseevna Borodulina, so-called Minister of Fuel and Energy;  Irina Kiviko, so-called Minister of Finance; Valentin Demidov, so-called Minister of Economic Development; Oleg Shapovalov, so-called Minister of Justice; Andrey Gennadievich Vasyuta, so-called Minister of Industrial Policy; Viktor Palagin, so-called Head of the Federal Security Service Directorate;Mikhail Nazarov, so-called Director of the Investigative Committee Chief Investigations Division; andGeorgiy Muradov, so-called Deputy Chairman of the Council of Ministers and Permanent Representative to the President of the Russian Federation.  Two of these individuals, Dmitry Polonsky and Georgiy Muradov, are additionally designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine.

Additional E.O. 13660 Designation

The Salvation Committee of Ukraine also is designated pursuant to E.O. 13660 for being owned or controlled by, or acting for or on behalf of, directly or indirectly, former Ukrainian Prime Minister Mykola Azarov, whom OFAC previously designated under the same E.O. for the misappropriation of state assets of Ukraine.

Designations Regarding Crimean Entities (E.O. 13685)

Today’s action also targets the following 18 construction, transportation, and defense entities pursuant to E.O. 13685, which authorizes sanctions on, among others, any person determined to operate in the Crimea region of Ukraine.  Except as otherwise noted, the persons listed below are designated for operating in the Crimea region of Ukraine.