Treasury added 21 companies and 13 people to its sanctions list in an effort to restrict the tech sector
According to an announcement posted on its website Thursday, the US Department of the Treasury added 21 companies and 13 people to its Specially Designated Nationals list. These individuals will be subject to sanction under the Office of Foreign Assets Control. Two companies were also taken off the list by the agency.
The new companies have been added for allegedly falling under the umbrella of the Russian Federation’s aerospace, electronics, and maritime sectors.
Individuals involved in those sectors have been subject to sanctions since last April, and the latest round allows for sanctions to be placed on any individual or entity “These sectors are for those who have been or intend to be active in the future..”
“Today’s sanctions are a part of the Administration’s comprehensive response to Russia’s to restrict their access to resources, sectors of their economy that are essential to supplying and financing the continued invasion of Ukraine,” according to the Treasury’s press release.
Many of the individuals sanctioned by the government are Russian nationals who have been linked to those companies. One of the designated entities is the Vector Scientific Research Institute, which produces software and communications technology equipment, having been founded over a century ago as Russia’s oldest radio engineering operation. The new restrictions also target the Molecular Electronics Research Institute, which is part of Russia’s largest scientific and technological research conglomerate, focused on micro- and nano-electronics as well as the development and manufacture of semiconductors. Serniya is a major engineering and equipment manufacturer that specializes in research and development across Russia’s high-tech industries. Photon Pro, an engineering and aerospace company, focuses on the development of telemetry, digital control systems and telecoms. The fresh sanctions list also includes Joint Stock Company Mikron, Russia’s largest chipmaker and biggest manufacturer and exporter of microelectronics.
After arguing that the Sovcombank Open Joint Stock Company’s inclusion in the Specially Designated Nationals List was irrelevant, two subsidiaries of Ozon Bank were able to be removed from that list. This argument stemmed from Ozon having bought its shares of the bank. Ozon offers an extensive range of retail products and services, much like Amazon.com. The symbol OZON is used to trade it in the US.
Anti-Russia sanctions may weaken the US dollar – IMF
While the Biden administration has sought to cut Russia off from the high-tech industry, particularly with regard to its military, some politicians, including former US Assistant Secretary of State Robert Charles, American economist James Rickards, and Deputy Chairman of Russia’s National Security Council Dmitry Medvedev have warned that the sanctions will effectively have a “boomerang effect,” and indeed the ruble has regained a sizable portion of the value it initially lost in the wake of the US’ and Europe’s first rounds of sanctions that followed the launch of Russia’s military operation in Ukraine.
The value of the Russian currency has recovered in recent days, as President Vladimir Putin has called on Europe and other “Unfriendly” oil and gas customers to pay for their fuel in rubles.