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3/19/2020 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine | U.S. Department of the Treasury Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine June 20, 2017 Action Underscores U.S. Commitment to Maintain the Strength of Existing Sanctions in Furtherance of a Diplomatic Solution to the Crisis in Ukraine Washington --The U.S. Department of the Treasury’s O ice of Foreign Assets Control (OFAC) today reinforced existing sanctions on Russia by designating or identifying a range of individuals and entities involved in the ongoing conflict under four Executive orders (E.O.s) related to Russia and Ukraine. Today’s action is designed to counter attempts to circumvent U.S. sanctions and will maintain alignment of U.S. measures with those of our international partners. It will also provide additional information to assist the private sector with sanctions compliance. These steps are consistent with the U.S. commitment to seek a diplomatic resolution to the crisis in Ukraine and to facilitate Crimea’s return to Ukraine. U.S. sanctions on Russia related to the situation in eastern Ukraine will remain in place until Russia fully honors its obligations under the Minsk Agreements. U.S. sanctions related to Crimea will not be li ed until Russia ends its occupation of the peninsula. “These designations will maintain pressure on Russia to work toward a diplomatic solution,” said Treasury Secretary Steven T. Mnuchin. “This administration is committed to a diplomatic process that guarantees Ukrainian sovereignty, and there should be no sanctions relief until Russia meets its obligations under the Minsk agreements.” In today’s action, OFAC designated 38 individuals and entities under Ukraine-related authorities, including one entity that has engaged in the evasion of existing sanctions, two Russian government o icials and two individuals acting for or on behalf of a government o icial, two entities that are owned or controlled by an individual previously designated, and 11 individuals and entities that operate in the Crimea region of Ukraine. https://home.treasury.gov/news/press-releases/sm0114 1/8 3/19/2020 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine | U.S. Department of the Treasury As a result of today’s action, any property or interest in property of the designated persons in the possession or control of U.S. persons or within the United States must be blocked. Additionally, transactions by U.S. persons involving these persons are generally prohibited. OFAC also identified 20 subsidiaries that are owned 50 percent or more by the previouslydesignated AK Transne OAO (Transne ), subject to Directive 2 under E.O. 13662, which prohibits U.S. persons from dealing in new debt of greater than 90 days maturity of the sanctioned entities. Designations of Ukrainian Separatists (E.O. 13660) Today’s action targets 21 Ukrainian separatists, entities, and their supporters pursuant to E.O. 13660 for being responsible for or complicit in, or having engaged in, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; for acting for or on behalf of, being owned or controlled by, or providing material or other support to previously designated groups; or for asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine. This action is part of an ongoing e ort to hold those responsible for violations of Ukraine’s sovereignty and territorial integrity accountable for their actions. Vadim Bulgakov is the head of the Federal Penitentiary Service of the so-called “Republic of Crimea” and Sevastopol. Bulgakov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine. Igor Kornet is the “Minister of Internal A airs” of the so-called “Luhansk People’s Republic (LPR).” He previously announced that the Ministry of Interior of the LPR would launch a largescale issuance of LPR passports to residents. Kornet is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR. https://home.treasury.gov/news/press-releases/sm0114 2/8 3/19/2020 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine | U.S. Department of the Treasury Leonid Pasechnik is the “Minister of State Security” of the so-called “LPR.” He has been involved in a number of corruption schemes related to the smuggling of contraband between the LPR and Russia, to include arms, coal, fuel, and other related material. Pasechnik is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR. Natalya Khorsheva is “Acting Minister” of the “Council of Ministers” of the so-called “LPR.” She previously announced that the LPR Council of Ministers adopted a resolution that would establish the Russian Ruble as the principal currency of the LPR. Khorsheva is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the LPR. Petr Jarosh is the head of the Russian Federal Migration Service in the so-called “Republic of Crimea” and was sanctioned by the EU for supporting actions and policies which undermine the territorial integrity and independence of Ukraine. Jarosh is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine. Aleksey Kostrubitsky is the “Civil Defense and Emergency Situations Minister” of the so-called “Donetsk People’s Republic (DPR).” Kostrubitsky is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR. Aleksey Dikiy is the “Minister of Interior” of the so-called “DPR.” Dikiy is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or https://home.treasury.gov/news/press-releases/sm0114 3/8 3/19/2020 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine | U.S. Department of the Treasury policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR. Irina Nikitina is “Chairwoman” of the “Central National Bank” of the so-called “DPR.” She previously announced the test launch of a system designed to allow money transfers between individuals from the DPR and LPR. Nikitina is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR. Andrei Melnikov is the “Minister of Economic Development” of the so-called “Republic of Crimea.” Melnikov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine. Oleg Kamshilov is the “Prosecutor” of the so-called “Republic of Crimea.” Kamshilov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and asserting governmental authority over any part or region of Ukraine without the authorization of the Government of Ukraine. Aleksey Muratov is an o icial representative of the so-called “DPR” in Russia. He was involved in raising funds in Russia for relief aid for Donetsk and Luhansk, but it is alleged that only a small portion of the funds reached the intended recipients. Muratov is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; and acting or purporting to act for or on behalf of, directly or indirectly, the DPR. PMC Wagner is a private military company that has recruited and sent soldiers to fight alongside separatists in eastern Ukraine. PMC Wagner is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine. https://home.treasury.gov/news/press-releases/sm0114 4/8 3/19/2020 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine | U.S. Department of the Treasury Dmitriy Utkin is the founder and leader of PMC Wagner. Utkin is being designated for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, stability, sovereignty, or territorial integrity of Ukraine; and for acting or purporting to act for or on behalf of, directly or indirectly, PMC Wagner. Central Republic Bank is the central bank of the so-called “DPR” and is directed and coordinated by the Council of Ministers of the DPR. The bank operates throughout the territory of the self-proclaimed DPR and conducts the regular payment of pensions and benefits to residents of the territory. Central Republic Bank is being designated for acting or purporting to act for or on behalf of, directly or indirectly, or being owned or controlled by, the DPR. State Bank Luhansk People’s Republic is the central bank of the so-called “LPR” and was established by the Council of Ministers of the LPR. The bank operates more than 110 branches within the territory of the so-called LPR. State Bank is being designated for acting or purporting to act for or on behalf of, directly or indirectly, or being owned or controlled by, the LPR. TSMRBANK, OOO is a Russian bank that services clients in the so-called “DPR” and “LPR.” The bank maintains close ties with the leadership of the DPR. TSMRBANK, OOO is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the LPR and the DPR. Sergey Nazarov is being designated for materially assisting, sponsoring, or providing financial, material, or technological support for, or goods and services in support of, the DPR and LPR. He is the chairman of the Interagency Commission for Humanitarian Assistance in the Donbass Republics (the “Interagency Commission”), which is nominally dedicated to providing humanitarian assistance to the Donetsk and Luhansk regions but in actuality also oversees projects in the transportation, trade, energy, tax, and financial sectors. The Russian government, through Nazarov and the Interagency Commission, has exercised economic control in the Donetsk and Luhansk regions. In addition to his activities in Donetsk and Luhansk, Nazarov has also worked to encourage international investment in Crimea. Nazarov, the Deputy Minister of Economic Development of the Russian Federation, is also being designated pursuant to E.O. 13661 as an o icial of the Government of the Russian Federation. Wolf Holding of Security Structures is an organization owned by the previously-designated Night Wolves motorcycle club. The company provides martial arts and tactical military courses https://home.treasury.gov/news/press-releases/sm0114 5/8 3/19/2020 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine | U.S. Department of the Treasury to foreign military, law enforcement, and Russian-speaking compatriots from European and Asian States. Wolf Holding of Security Structures is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Night Wolves. Gennadii Anatolievich Nikulov is the President of Wolf Holding of Security Structures. Gennadii Nikulov is being designated for acting for or on behalf of Wolf Holding of Security Structures. Denis Yuryevich Ryauzov is the Combat Trainer Leader for Wolf Holding of Security Structures. Denis Ryauzov is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, and for acting or purporting to act for or on behalf of, directly or indirectly, Wolf Holding of Security Structures. Bike Center, a business located in Moscow, is being designated for being owned or controlled by the previously-designated leader of the Night Wolves, Aleksandr Zaldostanov. Designations Related to Russia’s Purported Annexation of Crimea OFAC also designated 11 individuals and entities pursuant to E.O. 13685. E.O. 13685 authorizes sanctions on any person determined to be operating in the Crimea region of Ukraine, to be a leader of an entity operating in the Crimea region of Ukraine, or to be owned or controlled by, or to have provided material support for, any person designated under this E.O. IFD Kapital (IFDK) is a diversified holding company with investments in several sectors of the Russian economy, and owns a hotel complex in Crimea called the Riviera Sunrise Resort & Spa, which is also being designated today. IFDK claimed control of the hotel complex a er its previous managers halted operations in the Crimea region due to U.S. sanctions. IFDK is being designated for operating in the Crimea region of Ukraine. Riviera Sunrise Resort & Spa is a hotel complex operating in Alushta, Crimea. Riviera Sunrise Resort & Spa is being designated for operating in the Crimea region of Ukraine, and for being owned or controlled by IFDK. https://home.treasury.gov/news/press-releases/sm0114 6/8 3/19/2020 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine | U.S. Department of the Treasury Olga Plaksina is the Chairperson of IFDK and is responsible for certain aspects of Crimean development. Plaksina is being designated for being the leader of and acting or purporting to act for or on behalf of, directly or indirectly, IFDK. KPSK, OOO is an insurance carrier located in Simferopol, Crimea. The company, one of Russia’s top corporate property insurers, is the insurer of the bridge being constructed across the Kerch Strait connecting Crimea to Russia. KPSK, OOO is being designated for operating in the Crimea region of Ukraine. Oboronlogistika, OOO is the Russian Defense Ministry’s sole executor for the procurement of goods, works, and services for maritime transport of military troops and freight on the territory of the so-called Republic of Crimea. Oboronlogistika, OOO owns maritime vessels operating in and around the Kerch ferry and the Baltic Sea. Oboronlogistika, OOO is being designated for operating in the Crimea region of Ukraine. OFAC also designated the following six banks for operating in Crimea: Taatta, AO; Joint Stock Company Black Sea Bank of Development and Reconstruction; Joint Stock Commercial Bank Rublev; Joint Stock Company Commercial Bank North Credit; IS Bank, AO; and VVB, PAO. Designations Related to O icials of the Russian Government and Sanctions Evasion Today’s action also targets six individuals and entities pursuant to E.O. 13661, which authorizes sanctions on, among others, any individual or entity that is owned or controlled by, or that has provided material or other support to, persons operating in the arms or related materiel sector in the Russian Federation, and o icials of the Government of the Russian Federation. Molot-Oruzhie, OOO manufactures ordnance and accessories and is located in the Russian Federation. In 2016, previously-designated Kalashnikov Concern advised a foreign company to use Molot-Oruzhie, OOO to falsify invoices in order to circumvent U.S. and EU sanctions. MolotOruzhie is being designated for operating in the arms or related material sector of the Russian Federation and for acting or purporting to act for on behalf of, directly or indirectly, Kalashnikov Concern. https://home.treasury.gov/news/press-releases/sm0114 7/8 3/19/2020 Treasury Designates Individuals and Entities Involved in the Ongoing Conflict in Ukraine | U.S. Department of the Treasury Limited Liability Company Concord Management and Consulting and Concord Catering are being designated for being owned or controlled by Yevgeniy Prigozhin, who OFAC designated in December 2016. Alexander Babakov is the Russian Federation’s Special Presidential Representative for Cooperation with Organizations representing Russians Living Abroad. Babakov was sanctioned in 2014 by the EU, which noted that he voted “yes” on a Russian bill for the annexation of Crimea. Alexander Babakov is being designated as an o icial of the Government of the Russian Federation. Aleksandr Vorobev is Alexander Babakov’s Chief of Sta . Aleksandr Vorobev is being designated for acting or purporting to act for or on behalf of, directly or indirectly, Alexander Babakov. Mikhail Plisyuk is a sta er to Alexander Babakov. Mikhail Plisyuk is being designated for acting or purporting to act for or on behalf of, directly or indirectly, Alexander Babakov. Identifications Under the Sectoral Sanctions Identification List (E.O. 13662) Today, OFAC also identified a number of subsidiaries owned 50 percent or more by Transne , which was made subject to the Sectoral Sanctions Identification List on September 12, 2014 pursuant to E.O. 13662. Transne and its 50 percent or more subsidiaries are subject to Directive 2, which prohibits U.S. persons from dealing in new debt of greater than 90 days maturity of sanctioned entities. The subsidiaries identified today were already subject to the same restrictions as their parent per OFAC’s Revised Guidance on Entities Owned by Persons Whose Property and Interests in Property Are Blocked, which can be found here. These identifications will help the public more e ectively comply with the sanctions on Transne . #### https://home.treasury.gov/news/press-releases/sm0114 8/8
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