The Treasury offered this statement to press:
Due to continued Russian efforts to destabilize easternUkraine, Treasury Secretary Jacob J. Lew today determined thatpersons operating within Russia's defense and related materielsector may now be subject to targeted sanctions under ExecutiveOrder 13662. In addition, the U.S. Department of the Treasury todayextended targeted financial sanctions to Russia's largest bank,deepened existing sanctions on Russian financial institutions,expanded sanctions in Russia's energy sector, and increased thenumber of sanctioned Russian entities in the energy and defensesectors.
This newest roundof sanctions prohibits offering financing to Rostec, which deals inindustrial technology products. It also adds Sberbank of Russia,Kremlin's largest bank, to the list of sanctioned financialinstitutions. Debt financing restrictions have been tightened from90 days to 30 days for the other sanctioned banks: Bank of Moscow,Gazprombank OAO, Russian Agricultural Bank, VEB, and VTBBank.
As for defense firms, the assets of the followingcompanies have been blocked: OAO 'Dolgoprudny Research ProductionEnterprise,' Mytishchinski Mashinostroitelny Zavod OAO, KalininMachine Plant JSC, Almaz-Antey GSKB, and JSC NIIP.
The most notable sanction comes in regards to theexportation of goods, services and technology for oildrilling:
Treasury has also imposed sanctions that prohibit theexportation of goods, services (not including financial services),or technology in support of exploration or production for Russiandeepwater, Arctic offshore, or shale projects that have thepotential to produce oil, to five Russian energy companies -Gazprom, Gazprom Neft, Lukoil, Surgutneftegas, and Rosneft -involved in these types of projects. This measure complementsrestrictions administered by the Commerce Department and is similarto new EU measures published today. U.S. persons have untilSeptember 26, 2014 to wind down applicable transactions with theseentities pursuant to a general license that Treasury's Office ofForeign Assets Control issued today.
In targeting Gazprom Neft, the Treasury is restrictingfinancing to this energy firm. David S. Cohen, Under Secretary forTerrorism and Financial Intelligence, told reporters, "Today'sactions demonstrate our determination to increase the costs onRussia as long as it continues to violate Ukraine's territorialintegrity and sovereignty. The United States, in close cooperationwith the European Union, will impose ever-increasing sanctions thatfurther Russia's isolation from the global financial system unlessRussia abandons its current path and genuinely works toward anegotiated diplomatic resolution to the crisis."