On 10 January, the United States sanctioned major targets in Russia’s energy sector, the primary source of revenue fueling Russia’s war against Ukraine.
The Department of State is imposing sanctions on nearly 80 individuals and entities. Concurrently, the Department of the Treasury is designating more than 150 individuals and entities and individuals and identifying 183 vessels as blocked property. The Department of State’s designations aim to reduce Russia’s oil and natural gas revenue through sanctions on operators of significant Russian crude oil production and liquified natural gas projects.
The United States will continue to use all tools at its disposal to disrupt support for Russia’s military-industrial base and curtail the Kremlin’s ability to exploit the international financial system and generate revenue in furtherance of its war against Ukraine. We continue to stand in solidarity with Ukrainians in defending their homeland from Russia’s aggression.
… said the Department of the Treasury in a statement
The implications of the latest package
As a result of the latest sanctions-related actions, all property and interests in property of the sanctioned persons that are in the United States or in possession or control of U.S. persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control (OFAC). Additionally, all individuals or entities that have ownership, either directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.
All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC or exempt.
These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.
US sanctions against COSCO
The U.S. has added COSCO Shipping to a list of entities it claims collaborate with China’s military, a move perceived by the shipping industry as an effort to deter American companies from engaging with the Chinese firm. While the blacklisting does not carry the force of a legal sanction for the commercial sector, it has raised alarm in Greece.
Meanwhile, US sanctions have become a significant concern, particularly for Greece, as its largest port, Piraeus, continues to operate normally despite the U.S. blacklisting of its majority owner, China’s largest shipping group, COSCO. The Greek government is currently assessing the potential impact of this development, sources told Reuters on Friday.