U.S. ratchets up sanctions against Russia

   The U.S. Commerce Department’s Bureau of Industry and Security is further restricting trade with Russia in response to the country’s continued support of separatists in eastern Ukraine. 
   In specific, the agency will institute a policy denying export, re-export or foreign transfer of certain items for use in Russia’s energy sector that may be used for exploration or production from deep-water, Arctic offshore, or shale projects that have the potential to produce oil. 
   “While these sanctions do not target or interfere with the current supply of energy from Russia or prevent Russian companies from selling oil and gas to any country, they make it difficult for Russia to develop long-term, technically challenging future projects,” according to BIS.
   In addition to these energy sector restrictions, BIS will add another Russian defense technology company — OJSC United Shipbuilding Corp. — to the Entity List based on a determination it is involved, or poses a significant risk of becoming involved, in activities contrary to the national security and foreign policy interests of the United States. Designation on the Entity List imposes a license requirement for the export, re-export or foreign transfer of items subject to the Export Administration Regulations to the designated entities, with a presumption of denial.
   These actions are being taken in conjunction with an announcement by the Treasury Department on Tuesday that it also will impose sanctions on a number of parties.
   “In light of Russia’s continuing support for separatists in Ukraine, we took additional steps today to further increase financial pressure on the Russian government,” stated Treasury Undersecretary for Terrorism and Financial Intelligence David S. Cohen. “These actions, along with actions announced today by the European Union, significantly increase the costs to Russia for its efforts to undermine Ukraine’s sovereignty. We are prepared to continue to expand these sanctions if Russia refuses to change course.” 
   Treasury imposed measures prohibiting U.S. persons and persons within the United States from transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity or new equity for Bank of Moscow, Russian Agricultural Bank, and VTB Bank OAO, their property, or their interests in property.