Sudan Faced with Financial Sanctions and Embargoes as US Targets Entities Fueling Conflict
The United States has imposed financial sanctions and embargoes on four companies linked to the Sudanese government’s Rapid Support Forces (RSF) and Sudanese Armed Forces (SAF), in an effort to cut off their revenue streams and deprive them of resources needed to wage war.
Background
According to Secretary of the Treasury Janet L. Yellen, the US is standing “on the side of civilians against those who perpetuate violence towards the people of Sudan”. The sanctions are aimed at entities associated with RSF Commander Mohamed Hamdan Dagalo and his brother Abdul Rahim Dagalo, as well as entities linked to the SAF.
Designated Companies
The following companies have been designated for their involvement in fueling the conflict:
- Al Junaid Multi Activities Co Ltd: A Sudanese holding company controlled by the Dagalo family, which has operated 11 subsidiaries across multiple sectors, including gold mining.
- Tradive General Trading L.L.C.: A front company controlled by RSF Major Algoney Hamdan Dagalo, responsible for procuring vehicles for the RSF.
- Defense Industries System (DIS): Sudan’s largest defense enterprise, involved in producing weapons and military equipment for the SAF.
- Sudan Master Technology (SMT): An arms company also involved in producing weapons and military equipment for the SAF.
Humanitarian Assistance
To ensure that humanitarian assistance reaches Sudanese civilians while maintaining effective sanctions against those contributing to the conflict, the US Treasury Department’s Office of Foreign Assets Control (OFAC) has issued three general licenses authorizing certain transactions relating to:
- Water
- Food
- Agricultural items
- Medical items
Effect of Sanctions
The sanctions will block all property and interests in property of the designated entities within the United States or in the possession or control of US persons. Additionally, any entities owned 50 percent or more by one or more blocked persons are also blocked.
Removal from OFAC List
According to OFAC, the power and integrity of its sanctions derive not only from designating persons to the SDN List but also from removing them consistent with the law. The ultimate goal is not punishment but positive change in behavior. The US Treasury Department has provided detailed information on the process for seeking removal from an OFAC list, including the SDN List, as well as the process to submit a request for removal from an OFAC sanctions list.
Conclusion
The United States has taken a firm stance against entities fueling conflict in Sudan by imposing financial sanctions and embargoes. The goal is to deprive these entities of resources needed to wage war and ensure that humanitarian assistance reaches those affected by the conflict.