SOVEREIGN DEBT PROHIBITIONS Pursuant to the E.O. of April 15, 2021, Treasury’s Office of Foreign Assets Control (OFAC) is issuing a directive that generally prohibits U.S. financial institutions from participating in the primary market for ruble or non-ruble denominated bonds issued after June 14, 2021 by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation, and further prohibits U.S. financial institutions from lending ruble or non-ruble denominated funds to these three entities. This directive expands upon existing prohibitions on certain dealings in Russian sovereign debt that have been in place since August 2019.

 PRESS RELEASES

Treasury Sanctions Russia with Sweeping New Sanctions Authority

178

April 15, 2021

WASHINGTON — Today, the U.S. Department of the Treasury took multiple sanctions actions under a new Executive Order (E.O.) targeting aggressive and harmful activities by the Government of the Russian Federation.  Treasury’s actions include the implementation of new prohibitions on certain dealings in Russian sovereign debt, as well as targeted sanctions on technology companies that support the Russian Intelligence Services’ efforts to carry out malicious cyber activities against the United States.

“The President signed this sweeping new authority to confront Russia’s continued and growing malign behavior,” said Treasury Secretary Janet L. Yellen.  “Treasury is leveraging this new authority to impose costs on the Russian government for its unacceptable conduct, including by limiting Russia’s ability to finance its activities and by targeting Russia’s malicious and disruptive cyber capabilities.” 

NEW AUTHORITY IN RESPONSE TO RUSSIAN MALIGN ACTIVITIES

The E.O. of April 15, 2021, “Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation,” elevates the U.S. government’s capacity to deploy strategic and economically impactful sanctions to deter and respond to Russia’s destabilizing behavior.  In particular, this new E.O. authorizes sanctions to counter Russia’s harmful foreign activities that threaten the national security and foreign policy of the United States, including:  undermining the conduct of free and fair elections and democratic institutions in the United States and its allies and partners; engaging in and facilitating malicious cyber activities against the United States and its allies and partners that threaten the free flow of information; fostering and using transnational corruption to influence foreign governments; pursuing extraterritorial activities targeting dissidents or journalists; undermining security in countries and regions important to the United States’ national security; and violating well-established principles of international law, including respect for the territorial integrity of states.  To address these threats, the E.O. of April 15, 2021 authorizes sanctions on a wide range of persons, including, among others, those operating in the technology and defense and related materiel sectors of the Russian Federation economy, and in any additional sectors of the Russian Federation economy as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State.

SOVEREIGN DEBT PROHIBITIONS

Pursuant to the E.O. of April 15, 2021, Treasury’s Office of Foreign Assets Control (OFAC) is issuing a directive that generally prohibits U.S. financial institutions from participating in the primary market for ruble or non-ruble denominated bonds issued after June 14, 2021 by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation, and further prohibits U.S. financial institutions from lending ruble or non-ruble denominated funds to these three entities.  This directive expands upon existing prohibitions on certain dealings in Russian sovereign debt that have been in place since August 2019.