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1092. Do non-U.S. companies risk exposure to sanctions for providing ammunition or other military goods to Russia or for supporting Russia’s military-industrial complex?
Yes. Multiple Russia-related sanctions authorities authorize sanctions against non-U.S. persons that provide goods, services, or other support for Russia’s military-industrial complex. For example, OFAC may block any person determined to operate or have operated in the defense and related materiel sector of the Russian Federation economy pursuant to Executive Order (E.O.) 14024 of April 15, 2021, “Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation.” In addition, pursuant to E.O. 14024, OFAC may block persons determined to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of certain sanctionable activities enumerated in E.O. 14024 or any person whose property and interests in property are blocked...
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1) Like a "statement of licensing policy" is an articulation, by OFAC, of a non-binding intent to exercise its inherent discretion to issue specific licenses for certain categories of activities, this FAQ and otherwise like it functions as an effective "statement of sanctioning policy." Here, OFAC points to the broad "material support" and "operating in" designation criteria found in EO 14024 and provides notice that these designation criteria will be used to sanction non-U.S. persons for activities otherwise outside the scope of OFAC's primary sanctions jurisdiction. In addition, OFAC specifies that "operate or have operated in the defense and related materiel sector of the Russian Federation economy" will cover persons determined to "engage in the provision of ammunition or other military goods to the Russian Federation, including persons determined to operate or have operated in the arms or related materiel sector of the Russian...