Latest US Sanctions on Russia Target Elites, Steel, Gold, Luxury Companies and Military Procurement | Kelley Drye & Warren LLP

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Today the United States imposed new sanctions on Russia, targeting Russian oligarch Alexey Mordashov and his companies, other Russian elites, asset management and luxury services companies and companies involved. in supplying the Russian and Belarusian military.

Targeting Russian elites and their businesses

The Office of Foreign Assets Control (OFAC), in conjunction with the US State Department, today designated Russian billionaire Alexey Mordashov and several of his companies as Specially Designated Nationals (SDNs), including PJSC Severstal, a major Russian steel producer; Severgroup, a multi-billion dollar investment company; Nord Gold PLC, a gold mining company; and Algoritm LLC, a Russian technology, media and advertising company. Mordashov, Designated Companies and all entities 50% or more owned by newly listed SDNs are subject to full US blocking sanctions. Business with blocked parties and any dealings in the property or interests in the property of blocked parties are broadly prohibited without the prior approval of OFAC. U.S. Persons must also report to OFAC within 10 business days any property or interest in property of the Blocked Parties in their possession or control.

OFAC has issued two temporary blanket licenses to authorize U.S. persons to engage in certain activities necessary to terminate pre-existing relationships with PSJC Severstal and Nord Gold PLC which expire on August 31, 2022 and July 11, 2022, respectively.

Other designated elites include Mariya Zakharova, spokeswoman for the Russian Foreign Ministry; Sergei Roldugin, a close associate of Russian President Vladmir Putin; God Nisanov, Russian billionaire and real estate magnate; and Evgeny Novitsky, a Russian entrepreneur.

Asset management and luxury services companies

OFAC has sanctioned a series of asset management and luxury services companies associated with Vladimir Putin’s inner circle, such as Imperial Yachts SARL, a yacht brokerage firm, its CEO, Evgeniy Borisovich Kochman, and other companies associated with Kochman. The designations also included various yachts and aircraft used by or affiliated with the Russian elite.

Military supply networks

Finally, the U.S. Department of Commerce’s Bureau of Industry and Security added 71 Russian and Belarusian parties to its entity list, broadly prohibiting the export, re-export, or transfer of items subject to U.S. regulations. export administration (EAR) to listed parties without permission. license from BIS, which is unlikely to be granted under a denial policy for most items.

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