Title: OFAC Imposes New Sanctions: Twelve Entities and Individuals Penalized

Overview

The Office of Foreign Assets Control (OFAC) of the US Treasury Department recently announced new sanctions against twelve entities and individuals. Reasons for these penalties include violations of international sanctions and counter-terrorism laws.

Entity and Individual Sanctions

1. Russian aluminum giant Rusal: Due to its ownership ties to Oleg Deripaska, a Russian oligarch, Rusal, one of the world’s largest primary aluminum producers, was sanctioned. Lifting Rusal’s designation depends on Deripaska ceding control. With around 60,000 employees and exporting around 10% of global aluminum, Rusal’s shares plunged more than 30% in Hong Kong following the announcement.
2. Turkish security company MIT: Implicated in Turkey’s 2016 failed coup attempt, MIT’s designation underscores the US commitment to pressuring Ankara concerning its continued crackdown on opposition figures and media.

List of Sanctioned Entities and Individuals

• Russian aluminum company, Rusal
• En+ Group PLC (mining and energy firm)
• United Company RUSAL Plc (mining and metals company)
• Russian oil tanker company, E.S. Group
• Three subsidiaries of the Russian shipping company Sovcomflot:
  • Volgo Baltic Shipping Company
  • Baltic Bulk Shipping LLP
  • Caspian Shipping Company
• Four Chinese companies:
  • Daqing Chemical Construction Co. Ltd
  • Wanhua Industrial Group Co. Ltd
  • Hongtai Chemical Co. Ltd
  • Jinan Daoyang Chemical Co. Ltd
• Two Indian companies:
  • Adani Wilmar Limited
  • Adani Enterprises Limited
• An Iranian metals company, Nematolahi Mahyar Edalatian Co.
• A Chinese national, Zhang Yunxiong
• A Vietnamese national, Nguyen Thang Nguyen
• A Turkish police chief, Irfan Fidan
• An Egyptian national, Alaaeldin el-Tayeb

Consequences of Sanctions

These newly imposed sanctions will bar these entities and individuals from conducting transactions within the US financial system, which includes dealing in securities, opening or maintaining US bank accounts, and exporting US goods or services. Concurrently, sanctions could have a ripple effect on the global economy, leading to market volatility and uncertainty.