OFAC Enhances Sanctions On Russia And Its Procurement Networks Abroad

On November 2, 2023, the Treasury Department's Office of Foreign Assets Control ("OFAC") unveiled new sanctions targeting Russia's energy production, metals and mining, and defense procurement sectors. OFAC also continued zeroing in on Russia's procurement network for its military by sanctioning entities in China, Turkey, and the United Arab Emirates ("UAE") (together, "countries of concern"). These countries have been found by OFAC to supply Russia with, among other items and services, certain "high priority items" previously identified by the U.S. government and its allies. OFAC also sanctioned seven Russia-based banks, making it more difficult to conduct banking in, and provide financial services to, Russia. Companies should thoroughly assess the entities mentioned in this notice to avoid engaging in any business activities with Specially Designated Nationals ("SDN"), whether directly or indirectly.