A major sanctions sweep by the US Treasury’s Office of Foreign Assets Control (OFAC) yesterday targeted 150 individuals and entities, with the regulator honing in on Russian military procurement networks that supply the country’s defense industrial base.

It said this was the latest group of companies and people (and by virtue of where they are located, the countries) who materially support Russia’s war by aiding its use of the international financial system.

OFAC said its action on Tuesday underscores Russia’s use of Turkey, the United Arab Emirates, and China, as well as “the use of complex transnational networks and third-country cut-outs, to acquire much-needed technology and equipment for its war economy”.

Blocked persons

As a result of the action, all property and interests in property of the persons above that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC. And any entities that are owned, directly or indirectly, 50% or more by one or more blocked persons are also blocked.

“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,” OFAC said.

G7 leaders commit to new bans

OFAC said its sweeping sanctions action was in keeping with the recent, virtual meeting that the leaders of the Group of Seven (G7) countries held with Ukrainian President Volodymyr Zelensky in a show of solidarity, yielding a new ban on Russian diamonds.

Under the new ban, the G7 countries will outlaw non-industrial diamonds coming from Russia by January and Russian diamonds sold by third countries starting in March. The G7 leaders also planned to tighten controls on Russia’s use of the international financial system and to impose more sanctions to enforce a price cap on Russian oil.

“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.”

OFAC

European Union leaders Charles Michel, President of the European Council, and Ursula von der Leyen, President of the European Commission, have also warned Chinese leader Xi Jinping that the bloc would impose new trade penalties on his nation unless it reins in exports to Russia of goods used for its war in Ukraine.