U.S. Sanctions Imposed on Russian SOEs

On July 16, 2014, the United States Treasury Department imposed sanctions on two Russian energy companies (Rosneft and Novatek), two Russian banks (Vnesheconombank (VEB) and Gazprombank), eight Russian arms firms, the Ukrainian breakaway ‘‘‘Luhansk People‘s Republic‘ and ‘‘‘Donetsk People‘s Republic,‘ Aleksandr Borodai, the ‘‘‘Prime Minister‘ of the Donetsk People‘s Republic, Feodosiya Enterprises, a shipping facility in the Crimean peninsula and eight Russian government officials.  The sanctions prohibit U.S. persons from only providing medium- and long-term capital to any of the entities, but does not block the property or interests of the banks, nor prohibit other transactions.  In short, these sanctions against the aforementioned entities are quite narrow and permit a good deal of “business as usual.” 

The eight Russian arms firms included in the list are as follows: Almaz-Antey, Federal State Unitary Enterprise State Research and Production Enterprize Bazalt, JSC Concern Sozvezdie, JSC MIC NPO Mashinostroyenia, Kalashnikov Concern, KBP Instrument Design Bureau, Radio-Electronic Technologies and Uralvagonzavod.