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27 February 20247 minute read

New US sanctions target Russia and Russian sanctions evaders in financial, technology, defense, energy, and other sectors

On February 23, 2024, the US Treasury Department’s Office of Foreign Assets Control (OFAC), in conjunction with the US State Department, added over 500 entities and individuals to the Specially Designated Nationals and Blocked Persons List (SDN List), and the US Department of Commerce’s Bureau of Industry and Security (BIS) announced the addition of over 90 entities to the Entity List, to mark the two-year anniversary of Russia’s invasion of Ukraine and as a response to the death of pro-democracy Russian opposition leader Aleksey Navalny.

The designations focused on Russian entities and individuals directly or indirectly involved in Russia’s invasion of Ukraine and human rights abuses, as well as non-Russian individuals and entities that have assisted Russia to evade or circumvent US sanctions on Russia. The designations were announced in parallel with the US Department of Justice’s February 22, 2024 announcement of five separate criminal actions involving sanctions violations, international money laundering, and the forfeiture of $2.5 million in luxury property.

This latest action underscores the continued risk involved in transacting with entities in and out of Russia that directly or indirectly support Russia’s invasion of Ukraine; the global reach of the designations; the pitfalls companies may face in the absence of risk-based sanctions, export control, and anti-money laundering compliance measures; and the US’s continued commitment to a whole-of-government approach in this area.


Over the past two years, the US Treasury Department and other US government agencies – including the Commerce Department, the State Department, and the Justice Department – have engaged in a whole-of-government effort to punish parties responsible for Russia’s aggression in Ukraine and diminish Russia’s warmaking capacity.

Since February 2022, the US government has designated thousands of persons, including over 2,000 Russia-based entities, connected to or based in Russia pursuant to Executive Order 14024, Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation, and has imposed restrictions on several sectors of Russia’s economy. In addition, the Commerce Department has placed more than 900 parties on the Entity List since Russia’s invasion of Ukraine.  Among other measures, OFAC has blocked hundreds of major Russian banks, manufacturers, and defense companies, as well as restricted US persons from undertaking new investment in Russia and providing certain types of services to Russian entities.

On December 22, 2023, President Joe Biden issued Executive Order 14114, which amended previously issued Executive Order 14024 to authorize the imposition of sanctions on foreign financial institutions that support Russia’s military-industrial base.

President Biden stated that his administration designed this most recent round of sanctions to “ensure Putin pays an even steeper price for his aggression abroad and repression at home.”[1]

New sanctions on Russian entities across sectors

The new sanctions target the following sectors of the Russian economy:

  • Financial infrastructure: OFAC designated nine Russian banks,[2] five Russian investment firms and venture capital funds,[3] and six Russia-based financial technology companies.[4] OFAC also designated the state-owned operator of Russia’s Mir National Payment System, National Payment Card System JSC.

  • Technology and electronics: OFAC designated over 20 providers of advanced software, information technology, robots, and data processing and hosting services; over 30 3D printing and scanning companies as well as manufacturers of 3D equipment, semiconductors, and electronics; and over 20 producers of equipment used for optical, radar, and navigational purposes.

  • Defense industrial base: OFAC designated more than 5 weapons producers; over 25 metalworking and hydraulic equipment and tools manufacturers; over 10 lubricants, coolants, and industrial chemicals suppliers; and 15 cargo transport systems and truck parts providers. OFAC also designated several other military UAV operators and manufacturers, including over 20 designations of entities and individuals involved in the Alabuga UAV procurement network, which works with the Russian military to assemble attack UAVs shipped from Iran.

  • Energy, aerospace, diamonds, and precious metals: OFAC designated over 15 energy storage and power supply entities, 5 entities involved in Russia’s aerospace sector, and Russia’s state-owned exporter of rough and polished diamonds and precious metals. OFAC also clarified that the prohibitions issued on February 8, 2024 regarding the import of Russian diamonds and jewelry made in Russia containing diamonds apply even if the diamonds have been substantially transformed into other products outside of Russia. The prohibitions apply beginning March 1, 2024 for diamond jewelry and diamonds with a weight of 1.0 carat or greater, and apply beginning September 1, 2024 for diamonds with a weight of 0.5 carats or greater.

The new sanctions also targeted Chinese, Serbian, Irish, Finnish, Kyrgyz, and German entities and individuals who helped Russia evade international sanctions. OFAC designated six Chinese entities for supplying electronics to Russia, a Lichtenstein-based entity and its German owners for supplying precious metals to Russia, and Serbia-based technology exporters for supplying technology and equipment to Russia. OFAC has more aggressively targeted third-country sanctions evaders in recent months, with Deputy Treasury Secretary Wally Adeyemo stating on February 23, 2024 that the US government will continue to prioritize combating attempts by Russia to evade sanctions.[5]

US Department of Commerce adds over 90 entities to Entity List

BIS added 93 entities to the Entity List based on their activities to support Russia’s defense-industrial sector.  The entities are located in Russia, the People’s Republic of China, Turkey, the United Arab Emirates, Kyrgyzstan, India, and South Korea. These designations prohibit the provision to these entities of items subject to the US Export Administration Regulations (EAR). In addition, over 50 of these entities were subject to a “footnote 3” designation, which imposes a license requirement for all items subject to the EAR subject to a policy of denial for all items except for food and medicine designated as EAR99, which are reviewed on a case-by-case basis.

Going forward

Expanding US sanctions on Russia that remain short of comprehensive sanctions further complicate US companies’ ability to operate in or otherwise deal with Russia or entities that engage in business with Russia.  Persons subject to US jurisdiction are encouraged to remain vigilant in dealings with Russian counterparties and should undertake heightened due diligence to reduce or mitigate the operational, legal, economic, and reputational risks associated with doing business in Russia. 

DLA Piper’s global team continues to monitor developments as they arise and will provide further updates. If you have any questions regarding these sanctions and their implications, please contact any of the authors, your DLA Piper relationship attorney, Rick Newcomb, Michelle Morgan, or Nate Bolin.

[1] Statement from President Joe Biden Ahead of the Two-Year Anniversary of Russia’s Brutal Assault Against Ukraine, The White House (Feb. 23, 2024),

[2] Avangard Joint Stock Bank, Bank RostFinance, Joint Stock Commercial Bank Chelindbank, Joint Stock Commercial Bank International Financial Club, Joint Stock Commercial Bank Modulbank, Joint Stock Company Databank, Maritime Joint Stock Bank Joint Stock Company, Public Joint Stock Company Bystrobank, and Public Joint Stock Company SPB Bank.

[3] Limited Liability Company BSF Capital, Limited Liability Company Investment Consultant Elbrus Capital, Limited Liability Company Orbita Capital Partners, Nonprofit Organization Investment and Venture Fund of the Republic of Tatarstan, and Obshchestvo S Ogranichennoi Otvetstvennostyu Guard Kapital.

[4] Finansovye Informatsionnye Sistemy, Joint Stock Company Quorum, Limited Liability Company Crypto Pro, Obshchestvo S Ogranichennoi Otvetstvennostyu Faktor TS, Obshchestvo S Ogranichennoi Otvetstvennostyu Sistemy Prakticheskoi Bezopasnosti, and Obshchestvo S Ogranichennoi Otvetstvennostyu Validata.

[5] Wally Adeyemo, Deputy Secretary of the Treasury, U.S. Treasury Department, Remarks at the Council on Foreign Relations (Feb. 23, 2024).