OFAC designated to the SDN list various entities in the Russian financial sector pursuant to Executive Order 14024 ("E.O. 14024") on February 22. As per the press release issued by OFAC, these designations applies to the financial services sector of the Russian Federation economy, and persons determined to operate or have operated in this identified sector can be subject to sanctions. The designations have targeted Foreign Economic Affairs Vnesheconombank ("VEB") and Promsvyazbank Public Joint Stock Company ("PSB"), which OFAC has identified as critical participants in the Russian financial sectors. VEB's and PSB's respective subsidiaries were also designated in the SDN list. In this regard, examination of the companies in the SDN shows that the USA has targeted to stop operation of Russian financial sector and export[1]import business in commercial business.
VEB subsidiaries blocked pursuant to "E.O. 14024" as follows:
1. Bank BELVEB OJSC – is a bank located
in Belarus.
2. VEB Leasing OJSC – is a leasing company
located in Russia.
3. Prominvestbank – is a bank located in
Ukraine
4. VEB Capital – l is a financial company
located in Russia.
5. VEB Engineering LLC – is an investment
Project implementation services company located in Russia.
6. JSC Infraveb – is an investment Project
support company located in Russia.
7. JSC VEB.DV - is an investment project support
company located in Russia.
8. VEB Asia Limited – is a financial company
located in Hong Kong.
9. LLC Infrastructure Molzhaninovo – is an
electric energy company located in Russia.
10. LLC Resort Zolotoe Koltso – is a real
estate and construction company located in Russia.
11. JSC Russian Export Center – is an
export-related company located in Russia.
12. LLC VEB Ventures – is a financial
company located in Russia
13. LLC VEB Service – is a business and
management advisory company located in Russia.
14. LLC Special Organization for Project Finance Factory of
Project Finance – is a financial company located in
Russia.
15. LLC SIBUGLEMET Group – is a coal mining
company located in Russia.
16. JSC ANGSTREM-T - is a technology company
located in Russia
17. LLC NM-TEKH – is a technology company
located in Russia.
18. JSC SLAVA – is a real estate company
located in Russia.
19. JSC PFC CSKA – is a sporting activities
company located in Russia.
20. LLC Torgovy Kvartal-Novosibirsk – is a
property leasing company located in Russia.
21. LLC Baikal Center – is a construction
company located in Russia.
22. LLC Progorod - is an infrastructure company
located in Russia
23. LLC VEB.RF Asset Management - is a financial
company located in Russia
24. Eximbank of Russia JSC – is an export
support institution located in Russia as well as a commercial bank
regulated by the Central Bank of the Russian Federation.
25. Russian Agency for Export Credit and Investment
Insurance OJSC – is an insurance agency located in
Russia.
PSB subsidiaries blocked pursuant to E.O. 14024 as follows:
1. Alkes Treid OOO - is a financial company
located in Russia.
2. Antares OOO - is a financial company located in
Russia
3. Elitnye Doma OOO – is a real estate
company located in Russia.
4. PSB Innovations and Investments Limited Liability
Company - is a technology company located in Russia.
5. Era Fund Limited Liability Company - is a
technology company located in Russia
6. PSB-Foreks OOO - is a financial company located
in Russia.
7. Kholtsvud OOO - is a financial company located
in Russia.
8. Kourf OOO - is a financial company located in
Russia.
9. Management Company Promsvyaz LLC - is an
investment company located in Russia.
10. Paskal OOO - is a company that provides
management consulting services in Russia.
11. PSB Biznes OOO – is a hospitality
company located in Russia.
12. Saint-Petersburg International Banking Conference
LLC - is a financial company located in Russia.
13. Sergievo-Posad Lend OOO - is a financial
company located in Russia.
14. PSB Avializing OOO - is a financial company
located in Russia.
15. Tekhnosoft OOO - is a technology company
located in Russia.
16. Trinitex OOO - is a real estate company
located in Russia
17. PSB Lizing OOO - is a financial company
located in Russia.
OFAC also designated five vessels to the SDN list that are owned by PSB Lizing OOO as follows:
1. m/v "BALTIC LEADER" (IMO:
9220639), a Russian-flagged roll-on roll-off cargo vessel
2. m/t "LINDA" (IMO: 9256858), a
Russian-flagged crude oil tanker
3. m/t "PEGAS" (IMO: 9256860), a
Russian-flagged crude oil tanker
4. m/v "FESCO MAGADAN" (IMO: 9287699), a
Russian-flagged container vessel
5. m/v "FESCO MONERON" (IMO: 9277412), a
Russian-flagged container vessel
The companies should hesitate to cooperate with the
above-mentioned entities designated in the SDN list to avoid
breaching the sanctions. Therefore, the companies should check
their
partners whether are on the SDN list or not. In this case, the
contracts must be examined between the entities designated in
the SDN list. The sanctions clause have great importance
in the contracts by establishing rightful termination and/or
rejection of orders. Thus, the companies should use their
rights as per sanctions clauses in due course.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.