US Sanctions Targeting Russia’s Maritime Sector

The US State Department declared that Russia’s Government leverages maritime shipping and other marine sector firms for advancing strategic aims, including by supporting the resupply of troops and continuing of occupation of Crimea, and exporting and exploiting energy reserves.

As a result, eight maritime companies of Russia and many associated vessels are designated in compliance with Executive Order 14024.

Per Antony Blinken, the Department of State and the US Treasury have sanctioned the internal shipping firm of Russia’s Ministry of Defense and six other shipping majors that practice moving their military equipment.

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The U.S. has already imposed sanctions on:

  • Russia’s Maritime Register of Shipping;
  • Sovcomflot, the largest shipping firm in Russia; and
  • United Shipbuilding Corporation, is the country’s most sophisticated and greatest shipbuilder.

In addition, Joint Stock Company NTV Broadcasting Company, the Joint Stock Company Channel One Russia, and the Television Station Russia-1 are also blacklisted. These are unable to earn foreign revenue for the Russian state. Besides, top executives from a broad range of Russian majors, including the whole board of Sberbank, the largest bank of Russia, have been named individually on the list of sanctions.

Targeting Russia’s Maritime Sector

The GoR leverages maritime shipping and other marine sector companies to advance its strategic aims, including by supporting the resupply of its troops and the continuation of its occupation of Crimea, and exploiting and exporting energy reserves. Today, the Department of State is designating eight Russian maritime-related companies. This includes the Russian Ministry of Defense’s shipping company, Oboronlogistika OOO, which has been involved in Russia’s illegal seizure and occupation of Crimea since 2014, as well as private Russian maritime shipping companies that transport weapons and other military equipment for the GoR. The Department of State also took action against vessels these maritime shipping companies have an interest in with the addition of 69 vessels to the Department of the Treasury’s List of Specially Designated Nationals and Blocked Persons. The Department of State is also designating one maritime engineering company that works with the GoR and Russian state-owned entities. This action serves as a warning to private Russian companies that those who support Putin’s war machine risk severe costs.

ENTITES DESIGNATED BY THE STATE DEPARTMENT

  1. Oboronlogistika OOO is a Russian shipping company that operates within the Russian Ministry of Defense’s military-construction complex. The main objectives of Oboronlogistika OOO are to guarantee the needs of the Russian Ministry of Defense regarding transportation, storage, and production of military and special purpose goods. Oboronlogistika OOO is the Russian Ministry of Defense’s sole provider of troop transport to certain regions of Russia. Oboronlogistika OOO is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the defense and related materiel sector of the Russian Federation economy. Following Russia’s illegal seizure of Crimea in 2014, the GoR issued a decree defining Oboronlogistika OOO as the sole provider of transportation services for the Russian Ministry of Defense for the delivery of cargo to Russian-occupied Crimea. Three vessels in which Oboronlogistika OOO has an interest are blocked as a result of this action.
  2. SC South LLC, a Russian maritime shipping company, is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the marine sector of the Russian Federation economy. Additionally, SC South LLC is a subsidiary of Oboronlogistika OOO and SC South LLC delivers cargo for the Russian Ministry of Defense. Four vessels in which SC South LLC has an interest are blocked as a result of this action.
  3. Joint Stock Company Northern Shipping Company, a Russian maritime shipping company, performs services for Russia’s Ministry of Defense, including according to orders from Russia’s Ministry of Defense. Joint Stock Company Northern Shipping Company’s vessels transport tanks and other military equipment for Russia’s military, and the company participates in and supports Russian military exercises. Joint Stock Company Northern Shipping Company is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the marine sector of the Russian Federation economy and because it operates or has operated in the defense and related materiel sector of the Russian Federation economy. Twenty-seven vessels in which Joint Stock Company Northern Shipping Company has an interest are blocked as a result of this action.
  4. Transmorflot LLC, a Russian maritime shipping company, is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the marine sector of the Russian Federation economy. Additionally, vessels owned and managed by Transmorflot LLC transport weapons for the GoR. Sixteen vessels in which Transmorflot LLC has an interest are blocked as a result of this action.
  5. M Leasing LLC, a Russian maritime shipping company, is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the marine sector of the Russian Federation economy. Additionally, vessels owned by M Leasing LLC transport weapons for the GoR. Three vessels in which M Leasing LLC has an interest are blocked as a result of this action.
  6. Marine Trans Shipping LLC, a Russian maritime shipping company, is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the marine sector of the Russian Federation economy. Additionally, vessels managed by Marine Trans Shipping LLC transport weapons for the GoR. One vessel in which Marine Trans Shipping LLC has an interest is blocked as a result of this action.
  7. Nord Project LLC Transport Company, a Russian maritime shipping company, is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the marine sector of the Russian Federation economy. Additionally, vessels owned and managed by Nord Project LLC Transport Company transport weapons for the GoR. Fifteen vessels in which Nord Project LLC Transport Company has an interest are blocked as a result of this action.
  8. Obshchestvo S Ogranichennoi Otvetstvennostyu Fertoing (“OOO Fertoing”), a Russian maritime engineering company, is being designated pursuant to E.O. 14024 Section 1(a)(i) because it operates or has operated in the marine sector of the Russian Federation economy. OOO Fertoing performs a large amount of work in the fields of complex marine surveys, navigational, hydrographic and underwater technical support for the construction and operation of facilities for subsea production complexes, offshore, river, and pipeline transport for state-owned entities, and projects on the behalf of the GoR.

Reference: state.gov

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