On Wednesday, January 15, the U.S. Department of the Treasury expanded its list of individuals and entities subject to sanctions, including among others, the Zaporizhzhia Nuclear Power Plant, located in territory occupied by Russians.
According to a statement from the U.S. Treasury Department, the ZNPP was added to the list as part of the effort to combat Russian schemes to evade previously imposed sanctions.
The largest nuclear power plant in Ukraine, Zaporizhzhia, has been occupied by Russian troops since the onset of the full-scale invasion in 2022.
“These actions target a sanctions evasion scheme established between entities in Russia and the People's Republic of China (PRC) to facilitate cross-border payments for sensitive goods. Additionally, the Treasury Department is adding a financial institution from the Kyrgyz Republic to the sanctions list, which coordinated actions with Russian officials and a bank already on the U.S. sanctions list to implement the evasion scheme,” the statement said.
It is noted that the Treasury has re-included nearly 100 organizations in the sanctions list under Executive Order 13662, which had previously been added under Executive Order 14024. As a result of the inclusion of these organizations in the sanctions list under Executive Order 13662, foreign entities, including foreign financial institutions that knowingly facilitate significant transactions for or on behalf of any of these organizations, may be subject to mandatory secondary sanctions under the sanctions program related to Ukraine and Russia.
“Today's actions undermine the Kremlin's ability to circumvent our sanctions and access goods necessary for weapon production for their war in Ukraine. The expansion of mandatory secondary sanctions today will reduce Russia's access to revenue and goods,” stated Deputy Treasury Secretary Wally Adeyemo.
The U.S. Department of State is imposing sanctions on over 150 organizations and individuals under Executive Order 14024, including a wide range of companies from the Russian defense industry and those supporting its military-industrial base. The sanctions also encompass dozens of companies from various countries that continue to assist Russia in evading U.S. sanctions, particularly in the PRC, which remains the largest supplier of dual-use goods and a facilitator of sanctions evasion in support of Russia's military efforts.
In particular, the U.S. has added Russian and Chinese companies involved in payment schemes for sanctioned goods to the SDN list.
Russia and China are working on establishing regional clearing platforms (RCPs) in both countries, which will act as counterparties for executing cross-border payments and facilitate cashless settlements for payments for sanctioned goods, the U.S. Treasury notes.
According to the agency, the scheme involves major banks already on the SDN list, such as Sberbank, Alfa-Bank, Sovcombank, T-Bank, and Bank "Tochka". Additionally, there are other Russian companies that were not previously under sanctions: LLC "Gerbarium Office Management" (Gerbarium), JSC "Atlant Torg", LLC "Sigma Partners", JSC "Transactions and Settlements", JSC "Arktur", and Paylink Limited.
Chinese companies involved in such schemes have also been added to the SDN list. Among them are Anhui Hongsheng International Trade Co Ltd, Qingyuan Fo Feng Leda Supply Chain Service Co Ltd, Heilongjiang Shunsheng Economic And Trade Development Co Ltd, Qingdao Hezhi Business Service Co Ltd, Xinjiang Financial Import And Export Co Ltd, Hangzhou Xianghe Trading Co Ltd, Shaanxi Hongrun Jinhua Trading Co Ltd, Fujian Xinfuwang International Trade Co Ltd, and Jilin Province Shunda Trading Company Ltd.
The U.S. has also included the Turkish shipyard Kuzey Star Shipyard Maritime Industry and Trade (North Star Shipyard) in the sanctions list. The document states that the company is linked to FSUE "Atomflot" (a structure of the state corporation "Rosatom").