U.S. and EU impose further sanctions in relation to actions in Ukraine

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This E-Alert provides an update on the U.S. and EU sanctions discussed in the Allen & Overy E-Alerts dated March 13, 2014, titled “United States and European Union authorize sanctions relating to situation in Ukraine”; March 18, 2014, titled “U.S. and EU expand sanctions relating to the Ukraine”; and March 27, 2014, titled “Ukraine: U.S. and EU expand the list of persons subject to sanctions” (the March 13 E-Alert, March 18 E-Alert and March 27 E-Alert). 

Please see section entitled "Further Information" for links to these E-Alerts.

On 28 April 2014, in response to the ongoing situation in Ukraine, the United States designated twenty-four (24) additional individuals and entities for sanctions under Executive Order 13661 (EO 13661).1 EO 13661, signed by U.S. President Barack Obama on 16 March 2014, authorizes the imposition of visa restrictions on, and the freezing of the U.S. property and financial assets of, persons the U.S. Government determines to be responsible for or complicit in undermining democratic processes and institutions in Ukraine; threatening its peace, security, stability, sovereignty, and territorial integrity; and contributing to the misappropriation of its assets.

On 14 April 2014, the Council of the European Union agreed to take further action against certain individuals in relation to the misappropriation of Ukrainian State funds and alleged human rights violations in Ukraine. The Council adopted Implementing Decision 2014/216/CFSP2 (the April 14 Implementing Decision) and Implementing Regulation (EU) No 381/20143 (the April 14 Implementing Regulation), which expand the list of individuals targeted with a travel ban and a freeze of their assets within the EU.

Furthermore, on 28 April 2014, the Council of the European Union decided to expand the list of persons sanctioned in relation to "actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine". In this regard, the Council adopted Implementing Decision 2014/238/CFSP4 (the April 28 Implementing Decision) and Implementing Regulation (EU) No 433/20145 (the April 28 Implementing Regulation), which further expand the list of individuals targeted with a travel ban and a freeze of their assets within the EU.

This brings the total number of persons subject to EU sanctions in connection with the crisis in Ukraine to 70 (and 57 persons and entities are subject to U.S. sanctions).

The expansion of U.S. and EU sanctions lists relating to the situation in Ukraine may pose challenges to companies and financial institutions with business dealings involving individuals or entities targeted by these measures. Such challenges may be heightened if the U.S. and EU continue to expand the number of persons designated for sanctions.

U.S. Sanctions: Additional designations

On 28 April 2014, in response to the evolving situation in Ukraine, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated additional individuals and entities for sanctions under EO 13661 and added these individuals and entities to OFAC’s list of Specially Designated Nationals (SDN List). The latest designations include various companies, officials and private individuals with ties to the Russian government and Russian President Vladimir Putin, as well as Russia’s energy and oil and gas sectors.

Additional persons designated for U.S. sanctions under EO 13661

  The following persons have been designated for sanctions under EO 13661 and added to OFAC’s SDN List:

  1. BELAVENCEV, Oleg Evgenyevich; Russian Presidential Envoy to the Crimean District; Member of the Russian Security Council;
  2. CHEMEZOV, Sergei;
  3. KOZAK, Dmitry; Deputy Prime Minister of the Russian Federation;
  4. MUROV, Evgeniy Alekseyevich; Director of the Federal Protective Service of the Russian Federation; Army General;
  5. PUSHKOV, Aleksei Konstantinovich; Chairman of State Duma Committee on International Affairs;
  6. SECHIN, Igor; and
  7. VOLODIN, Vyacheslav; First Deputy Chief of Staff of the Presidential Executive Office.

Additional entities designated for U.S. sanctions under EO 13661

The following entities have been designated for sanctions under EO 13661 and added to OFAC’s SDN List:

  1. AQUANIKA, 47A, Sevastopolskiy Ave., of. 304, Moscow 117186, Russia; 1/2 Rodnikovaya ul., Savasleika s., Kulebakski raion, Nizhegorodskaya oblast 607007, Russia;
  2. AVIA GROUP LLC, Terminal Aeroport Sheremetyevo Khimki, 141400 Moskovskaya obl., Russia;
  3. AVIA GROUP NORD LLC, 17 A, Stratoyava St., Saint Petersburg, Russia;
  4. CJSC ZEST, pr. Medikov 5, of. 301, St. Petersburg, Russia; 2 Liter a Pl. Rastrelli, St. Petersburg 191124, Russia;
  5. INVESTCAPITALBANK, 100/1, Dostoevskogo Street, Ufa, Bashkortostan Republic 450077, Russia;
  6. JSB SOBINBANK, 15 Korp. 56 D. 4 Etazh ul. Rochdelskaya, Moscow 123022, Russia; 15/56 Rochdelskaya Street, Moscow 123022, Russia;
  7. SAKHATRANS LLC, 14 ul. Molodezhnaya Rabochi Pos. Vanino, 682860 Vaninski, Raion Khabarovski Krai, Russia;
  8. SMP BANK, 71/11 Sadovnicheskaya Street, Moscow 115035, Russia;
  9. STROYGAZMONTAZH, 53 prospekt Vernadskogo, Moscow 119415, Russia;
  10. STROYTRANSGAZ GROUP, 3 Begovaya Street, Building #1, Moscow 125284, Russia;
  11. STROYTRANSGAZ HOLDING, 33 Stasinou Street, Office 2 2003, Nicosia Strovolos, Cyprus;
  12. STROYTRANSGAZ LLC, House 65, Novocheremushkinskaya, Moscow 117418, Russia;
  13. STROYTRANSGAZ OJSC, House 58, Novocheremushkinskaya St., Moscow 117418, Russia;
  14. STROYTRANSGAZ-M LLC, 26th Meeting of the Communist Party Street, House 2V, Novy Urengoy, Tyumenskaya Oblast, Yamalo-Nenetsky Autonomous Region 629305, Russia;
  15. THE LIMITED LIABILITY COMPANY INVESTMENT COMPANY ABROS, 2 Liter a Pl. Rastrelli, St. Petersburg 191124, Russia;
  16. TRANSOIL, 18A Petrogradskaya nab., St. Petersburg 197046, Russia; and
  17. VOLGA GROUP, 3, rue de la Reine L-2418, Luxembourg; Russia.

Pursuant to EO 13661, all property and interests in property that are or come within the United States or that are or come within the possession or control of any United States person of these persons must be blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in. Additionally, the immigrant and non-immigrant entry into the United States of these persons is suspended. For further discussion of the sanctions authorized by EO 13661 and other related developments, please see the March 13, March 18 and March 27 E-Alerts, as well as Allen & Overy’s April 15 update titled "United States Updates List of Specially Designated Nationals Relating to Situation in Ukraine", available here: 

April 15 E-Alert

The EU Implementing Decisions and Implementing Regulations

Further individuals sanctioned

Under the April 14 Implementing Decision and Implementing Regulation, 4 additional individuals were added to the lists of persons subject to a travel ban and asset freeze, as set out in the Annex to Decision 2014/119/CFSP (the March 5 Decision) and in Annex I to Regulation (EU) No 208/2014 (the March 5 Regulation).

The inclusion of these 4 individuals brings the total number of persons subject to EU sanctions pursuant to the March 5 Decision and Regulation to 22. The individuals are listed below:

  1. YANUKOVYCH, Viktor Fedorovych; former President of Ukraine (designated in the March 5 Decision and Regulation);
  2. ZAKHARCHENKO, Vitalii Yuriyovych; former Minister of Internal Affairs (designated in the March 5 Decision and Regulation);
  3. PSHONKA, Viktor Pavlovych; former Prosecutor General of Ukraine (designated in the March 5 Decision and Regulation);
  4. YAKYMENKO, Oleksandr Hryhorovych; former Head of Security Service of Ukraine (designated in the March 5 Decision and Regulation);
  5. PORTNOV, Andriy Volodymyrovych; former Adviser to the President of Ukraine (designated in the March 5 Decision and Regulation);
  6. LUKASH, Olena Leonidivna; former Minister of Justice of Ukraine (designated in the March 5 Decision and Regulation);
  7. KLIUIEV, Andrii Petrovych; former Head of Administration of President of Ukraine (designated in the March 5 Decision and Regulation);
  8. RATUSHNIAK, Viktor Ivanovych; former Deputy Minister of Internal Affairs of Ukraine (designated in the March 5 Decision and Regulation);
  9. YANUKOVYCH, Oleksandr Viktorovych; son of former President of Ukraine (designated in the March 5 Decision and Regulation);
  10. YANUKOVYCH, Viktor Viktorovych; son of former President of Ukraine (designated in the March 5 Decision and Regulation);
  11. PSHONKA, Artem Viktorovych; son of former Prosecutor General, Deputy Head of the faction of Party of Regions in the Verkhovna Rada of Ukraine (designated in the March 5 Decision and Regulation);
  12. KLIUIEV, Serhii Petrovych; businessman, brother of Mr. Andrii K1iuiev (designated in the March 5 Decision and Regulation);
  13. AZAROV, Mykola Yanovych; Prime Minister of Ukraine until January 2014 (designated in the March 5 Decision and Regulation);
  14. AZAROV, Oleksii Mykolayovych; son of former Prime Minister Azarov (designated in the March 5 Decision and Regulation);
  15. KURCHENKO, Serhiy Vitaliyovych; businessman (designated in the March 5 Decision and Regulation);
  16. TABACHNYK, Dmytro Volodymyrovych; former Minister of Education and Science of Ukraine (designated in the March 5 Decision and Regulation);
  17. BOHATYRIOVA, Raisa Vasylivna; former Minister of Health of Ukraine (designated in the March 5 Decision and Regulation);
  18. KALININ, Ihor Oleksandrovych; former Adviser to the President of Ukraine (designated in the March 5 Decision and Regulation);
  19. ARBUZOV, Serhiy; former Prime Minister of Ukraine (designated in the April 14 Implementing Decision and Implementing Regulation);
  20. IVANYUSHCHENKO, Yuriy; Ukrainian MP for the Party of Regions (designated in the April 14 Implementing Decision and Implementing Regulation);
  21. KLYMENKO, Oleksandr; former Minister of Revenues and Charges of Ukraine (designated in the April 14 Implementing Decision and Implementing Regulation); and
  22. STAVYTSKYI, Edward; former Minister of Fuel and Energy of Ukraine (designated in the April 14 Implementing Decision and Implementing Regulation).

This is in addition to the list of individuals previously subject to a travel ban and a freezing of funds and economic resources set out in the Annex to Decision 2014/145/CFSP6 (the March 17 Decision) and in Annex I to Regulation (EU) No 269/20147 (the March 17 Regulation). The April 28 Implementing Decision and Implementing Regulation add 15 new individuals to these lists:

  1. AKSYONOV, Sergey Valeryevich; acting Prime Minister of Crimea (designated in the March 17 Decision and Regulation);
  2. KONSTANTINOV, Vladimir Andreevich; speaker of the Supreme Council of the Autonomous Republic of Crimea (designated in the March 17 Decision and Regulation);
  3. TEMIRGALIEV, Rustam Ilmirovich; Deputy Chairman of the Council of Ministers of Crimea (designated in the March 17 Decision and Regulation);
  4. BEREZOVSKIY, Deniz Valentinovich; appointed commander of the Ukrainian Navy on March 1, 2014 (designated in the March 17 Decision and Regulation);
  5. CHALIY, Aleksei Mikhailovich; recently acclaimed Mayor of Sevastopol (on February 23, 2014) (designated in the March 17 Decision and Regulation);
  6. ZIMA, Pyotr Anatoliyovych; appointed as the new head of the Crimean Security Service (designated in the March 17 Decision and Regulation);
  7. ZHEREBTSOV, Yuriy; Counsellor of the Speaker of the Verkhovna Rada of Crimea (designated in the March 17 Decision and Regulation);
  8. TSEKOV, Sergey Pavlovych; Vice Speaker of the Verkhovna Rada (designated in the March 17 Decision and Regulation);
  9. OZEROV, Viktor Alekseevich; Chairman of the Security and Defense Committee of the Federation Council of the Russian Federation (designated in the March 17 Decision and Regulation);
  10. DZHABAROV, Vladimir Michailovich; First Deputy Chairman of the International Affairs Committee of the Federation Council of the Russian Federation (designated in the March 17 Decision and Regulation);
  11. KLISHAS, Andrei Aleksandrovich; Chairman of the Committee on Constitutional Law of the Federation Council of the Russian Federation (designated in the March 17 Decision and Regulation);
  12. RYZHKOV, Nikolai Ivanovich; Member of the Committee for Federal Issues, Regional Politics and the North of the Federation Council of the Russian Federation (designated in the March 17 Decision and Regulation);
  13. BUSHMIN, Evgeni Viktorovich; Deputy Speaker of the Federation Council of the Russian Federation (designated in the March 17 Decision and Regulation);
  14. TOTOONOV, Aleksandr Borisovich; Member of the Committee on Culture, Science, and Information of the Federation Council of the Russian Federation (designated in the March 17 Decision and Regulation)
  15. PANTELEEV, Oleg Evgenevich; First Deputy Chairman of the Committee on Parliamentary Issues (designated in the March 17 Decision and Regulation);
  16. MIRONOV, Sergei Mikhailovich; Member of the Council of the State Duma (designated in the March 17 Decision and Regulation);
  17. ZHELEZNYAK, Sergei Vladimirovich; Deputy Speaker of the State Duma of the Russian Federation (designated in the March 17 Decision and Regulation);
  18. SLUTSKI, Leonid Eduardovich; Chairman of the Commonwealth of Independent States Committee of the State Duma of the Russian Federation (designated in the March 17 Decision and Regulation);
  19. VITKO, Aleksandr Viktorovich; Commander of the Black Sea Fleet; Vice-Admiral (designated in the March 17 Decision and Regulation);
  20. SIDOROV, Anatoliy Alekseevich; Commander of Russia’s Western Military District (designated in the March 17 Decision and Regulation);
  21. GALKIN, Aleksandr; Commander of Russia’s Southern Military District (designated in the March 17 Decision and Regulation);
  22. ROGOZIN, Dmitry Olegovich; Deputy Prime Minister of the Russian Federation (designated in the March 21 Implementing Decision and Regulation);
  23. GLAZYEV, Sergey; Adviser to the President of the Russian Federation (designated in the March 21 Implementing Decision and Regulation);
  24. MATVIYENKO, Valentina Ivanova; Speaker of the Russian Federation Council (designated in the March 21 Implementing Decision and Regulation);
  25. NARYSHKIN, Sergei Evgenevich; Speaker of the Russian Federation State Duma (designated in the March 21 Implementing Decision and Regulation);
  26. KISELYOV, Dmitry Konstantinovich; Appointed as Head of the Russian Federal State News Agency "Rossiya Segodnya" (designated in the March 21 Implementing Decision and Regulation);
  27. NOSATOV, Alexander Mihailovich; Deputy-Commander of the Black Sea Fleet, Rear-Admiral (designated in the March 21 Implementing Decision and Regulation);
  28. KULIKOV, Valery Vladimirovich; Deputy-Commander of the Black Sea Fleet, Rear Admiral (designated in the March 21 Implementing Decision and Regulation);
  29. SURKOV, Vladislav Yurievich; Aide to the President of the Russian Federation (designated in the March 21 Implementing Decision and Regulation);
  30. MALYSHEV, Mikhail; Chair of the Crimea Electoral Commission (designated in the March 21 Implementing Decision and Regulation);
  31. MEDVEDEV, Valery; Chair of Sevastopol Electoral Commission (designated in the March 21 Implementing Decision and Regulation);
  32. TURCHENYUK, Lt. Gen. Igor; Commander of the Russian forces in Crimea (designated in the March 21 Implementing Decision and Regulation);
  33. MIZULIN, Elena Borisovna; Deputy in the Russian Federation State Duma (designated in the March 21 Implementing Decision and Regulation);
  34. KOZAK, Dmitry Nikolayevich; Deputy Prime Minister of the Russian Federation (designated in the April 28 Implementing Decision and Regulation);
  35. BELAVENTSEV, Oleg Yevgenyvich; Plenipotentiary Representative of the President of the Russian Federation into the Crimean Federal District (designated in the April 28 Implementing Decision and Regulation);
  36. SAVELYEV, Oleg Genrikhovick; Russian Minister for Crimean Affairs (designated in the April 28 Implementing Decision and Regulation);
  37. MENYAILO, Sergei Ivanovich; acting governor of the city of Sevastopol (designated in the April 28 Implementing Decision and Regulation);
  38. KOVATIDI, Olga Fedorovna; member of the Russian Federation Council (designated in the April 28 Implementing Decision and Regulation);
  39. SHVETSOVA, Ludmila Ivanovna; Deputy Chairman of the State Duma of the Russian Federation (designated in the April 28 Implementing Decision and Regulation);
  40. NEVEROV, Sergei Ivanovich; Deputy Chairman of the State Duma of the Russian Federation (designated in the April 28 Implementing Decision and Regulation);
  41. SERGUN, Igor Dmitrievich; Director of GRU (Main Intelligence Directorate of the Russian Federation) (designated in the April 28 Implementing Decision and Regulation);
  42. GERASIMOV, Valery Vasilevich; Chief of the General Staff of the Armed Forces of the Russian Federation (designated in the April 28 Implementing Decision and Regulation);
  43. PROKOPIV, German; leader of the Lugansk Guard (designated in the April 28 Implementing Decision and Regulation);
  44. BOLOTOV, Valeriy; one of the leaders of the group "Army of the South-East" (designated in the April 28 Implementing Decision and Regulation);
  45. PURGIN, Andriy; head of the Donetsk Republic (designated in the April 28 Implementing Decision and Regulation);
  46. PUSHYLIN, Denys; one of the leaders of the Donetsk People’s Republic (designated in the April 28 Implementing Decision and Regulation);
  47. GENNADEVICH, Tsyplakov Sergey; one of the leaders of the organization People’s Militia of Donbas (designated in the April 28 Implementing Decision and Regulation); and
  48. STRELKOV, Igor (aka Ihor Strielkov); staff of the Main Intelligence Directorate of the General Staff of the Armed Forces of the Russian Federation (designated in the April 28 Implementing Decision and Regulation).

Impact of the latest changes

Neither the April 14 nor April 28 Implementing Decisions provide for new sanctions. They simply add to the list of individuals subject to the sanctions set out in the March 5 and March 17 Decision respectively, which consist of both a travel ban and an asset freeze.

The April 14 and April 28 Implementing Regulations follow a similar approach and simply add further names to the list in the March 5 and March 17 Regulation. These individuals are, therefore, subject to an asset freeze (the Regulations do not impose travel bans).

The sanctions imposed by both the March 5 and March 17 Decision and Regulation are discussed in more detail in our March 13 and March 18 E-Alert, available here:

March 13 E-Alert

March 18 E-Alert

March 13 E-Alert

March 18 E-Alert

March 27 E-Alert

1Executive Order 13661- Blocking Property of Additional Persons Contributing to the Situation in Ukraine, 79 Fed. Reg. 15535 (March 19, 2014) (available at http://www.treasury.gov/resource-center/sanctions/Programs/Documents/ukraine_eo2.pdf).

2Council Implementing Decision 2014/216/CFSP of 14 April 2014 implementing Decision 2014/119/CFSP concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Ukraine (available at http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014D0216&from=EN).

3Council Implementing Regulation (EU) No 381/2014 of 14 April 2014 implementing Regulation (EU) No 208/2014 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Ukraine (available at http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0381&from=EN).

4Council Implementing Decision 2014/238/CFSP of 28 April 2014 implementing Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (available at http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOL_2014_126_R_0005&from=EN).

5Council Implementing Regulation (EU) No 433/2014 of 28 April 2014 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (available at http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOL_2014_126_R_0002&from=EN).

6As amended by Council Implementing Decision 2014/151/CFSP (the March 21 Implementing Decision).

7As amended by Council Implementing Regulation (EU) 284/2014 (the March 21 Implementing Regulation).

 

Topics:  Asset Freeze, EU, Misappropriation, OFAC, Sanctions, SDN List, Travel Ban, Ukraine, Visa Restrictions

Published In: General Business Updates, Elections & Politics Updates, Finance & Banking Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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