U.S. OFAC issues Russia-related determination, general licenses, and FAQs

Treasury is targeting the architecture of Russia’s financial system

June 12, 2024

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today issued a release announcing several updates to Russia-related sanctions.

  • Determination pursuant to Section 1 (a)(ii) of Executive Order 14071: The determination concerns the prohibition on certain information technology and software services.
  • General licenses: OFAC has issued several Russia-related general licenses, including those facilitating agricultural and medical transactions, energy-related transactions, telecommunications, and internet-based communications.
  • “Frequently asked questions” (FAQs): New and amended FAQs concern the scope and application of the Russia-related sanctions.
  • New designations and updates: OFAC has added new individuals and entities to its specially designated nationals (SDN) list. These additions include various individuals and companies across multiple countries linked to Russia's technology, military, and financial sectors.

A related Treasury release (June 12, 2024) explains that Treasury is targeting the architecture of Russia’s financial system. Treasury is also targeting more than a dozen transnational networks laundering gold for a designated Russian gold producer, supporting Russia’s production of unmanned aerial vehicles (UAVs), and procuring sensitive and critical items such as materials for Russia’s chemical and biological weapons program, anti-UAV equipment, machine tools, industrial machinery, and microelectronics. Today’s action also takes further steps to limit Russia’s future revenue from liquefied natural gas.

In addition, the State Department is targeting over 100 entities and individuals engaged in the development of Russia’s future energy, metals, and mining production and export capacity; sanctions evasion and circumvention; and furthering Russia’s ability to wage its war against Ukraine.

 

For more information, contact a professional with KPMG Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
Principal
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
E: aahanchian@kpmg.com

Christopher Young
Principal
E: christopheryoung@kpmg.com

Gisele Belotto
Principal
E: gbelotto@kpmg.com

George Zaharatos
Principal
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
Principal
E: jlibby@kpmg.com
John Anderson
Managing Director
E: johneanderson@kpmg.com
Jenna Leigh Glass
Managing Director
E: jennaleighglass@kpmg.com

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