The U.S. Department of the Treasury has announced a significant expansion of economic sanctions under Executive Order 14024, targeting multiple entities linked to Russia’s energy, manufacturing, and mining sectors. These measures aim to curtail revenue streams supporting Russia’s activities in Ukraine and broader regional destabilization efforts.
The sanctions focus on subsidiaries of U.S.-designated NOVATEK CHINA HOLDINGS CO LTD, a PRC-based company established in August 2023. NOVATEK CHINA HOLDINGS CO LTD is involved in the marketing of LNG from the Arctic LNG 2 project. The Department has designated the following eight subsidiaries under section 1(a)(vii) of E.O. 14024 for being owned or controlled by the company:
- XUANWU WENQU SEA FREIGHT SHANGHAI CO LTD
- XUANWU LUCUN SEA FREIGHT SHANGHAI CO LTD
- XUANWU TIANYUE SEA FREIGHT SHANGHAI CO LTD
- XUANWU TRADING SHANGHAI CO LTD
- XUANWU ZUOFU SEA FREIGHT SHANGHAI CO LTD
- XUANWU YOUBI SEA FREIGHT SHANGHAI CO LTD
- XUANWU TIANKUI SEA FREIGHT SHANGHAI CO LTD
- XUANWU TIANJI SEA FREIGHT SHANGHAI CO LTD
Oilfield Service Providers and Engineering Firms Targeted
In a parallel move, the Department imposed sanctions on Russia-based oilfield service providers, particularly LIMITED LIABILITY COMPANY NEFTSERVICEHOLDING (LLC NSKH) and its network of subsidiaries operating in the Perm region. LLC NSKH specializes in modernizing oil and gas projects. Subsidiaries designated under E.O. 14024 include:
- LIMITED LIABILITY COMPANY PERMNEFTEOTDACHA
- LIMITED LIABILITY COMPANY PERM ENGINEERING TECHNICAL CENTER GEOFIZIKA
- LIMITED LIABILITY COMPANY TECHNICAL SERVICE CENTER
- LIMITED LIABILITY COMPANY FLEK
- LIMITED LIABILITY COMPANY NEFTGAZISSLEDOVANIYE
Russia’s Metals, Mining, and Construction Sectors Sanctioned
Further sanctions were imposed on Russia’s mining industry, specifically targeting JOINT STOCK COMPANY UGOLNAYA KOMPANIYA KUZBASSRAZREZUGOL (KUZBASSRAZREZUGOL) and related entities involved in coal production and distribution. These include:
- LIMITED LIABILITY COMPANY SKIF (subsidiary of KUZBASSRAZREZUGOL)
- KRU OVERSEAS LIMITED (Cyprus-based subsidiary)
- LIMITED LIABILITY COMPANY TPK SIB (subsidiary of VZRYVPROM)
Financial and Technological Sanctions Expanded
The U.S. also sanctioned financial service entities, such as the NONCOMMERCIAL ORGANIZATION REGIONAL INNOVATION INVESTMENT FUND YAMAL, for supporting technological advancements in Russia’s Yamal-Nenets region. Additionally, LIMITED LIABILITY COMPANY RIGINTEL and LIMITED LIABILITY COMPANY KAPRON, key players in engineering software and petrochemicals, were designated for operating in the technology sector.
Sanctions Impact and Compliance Measures
As a result of these designations, all property and interests in property of the sanctioned entities that are within U.S. jurisdiction are frozen. Transactions involving these entities by U.S. persons, including contributions and receipt of funds or services, are prohibited unless authorized by the Treasury’s Office of Foreign Assets Control (OFAC).
These sanctions reflect a continued commitment by the U.S. government to disrupt revenue channels funding Russia’s destabilizing actions. The Treasury emphasized that sanctions aim to change behavior, not merely to punish, and entities seeking delisting may submit petitions for reconsideration via OFAC’s official channels.