US warns companies against supporting Russia

MANILA, Philippines - The United States warned non-US companies, including those in the Philippines, against providing material support to Russia following Washington’s imposition of economic sanctions on Moscow starting July 29.

The US embassy in Manila informed the Department of Foreign Affairs that the economic sanctions were made in light of Russia’s “purported annexation of Crimea and ongoing violation of Ukraine’s sovereignty and territorial integrity, a breach of its core obligations under international law and threaten international peace and stability.”

Philippine businesses dealing with Russian companies were advised to consult the US Treasury Department’s website on a daily basis to ensure that the companies they transact with are not among those identified by the US.

The US said non-US companies “could be subject to US sanctions for providing material support to or acting on behalf of a sanctioned individual or entity.”

“Companies who wish to take advantage of business opportunities created by the withdrawal of cooperative businesses were warned that the US would have serious concerns with any company that takes such actions,” it added.

The sanctions include the following:

• Imposition of targeted sectoral sanctions on three additional Russian banks under Executive Order 13662: Bank of Moscow, Russian Agricultural Bank and VTB Bank OAO. US persons are prohibited from transacting in, providing financing for or otherwise dealing in debt with a maturity of longer than 90 days or equity that is issued on or after 29 July 2014 by, on behalf of or for the benefit of Bank of Moscow, Russian Agricultural Bank and VTB Bank OAO, and any subsidiaries owned 50 percent or more by them. These measures are the same as those applied to Gazprombank on July 16, 2014.

• Designation of one Russian defense company under Executive Order 13661: United Shipbuilding Corp. This company and any subsidiaries owned 50 percent or more by it will face an asset freeze and a prohibition on doing business with US persons. This company was also added to the Department of Commerce Entity’s list, which imposes a license requirement, with a presumption of denial, for the export, re-export or foreign transfer of items subject to the Export Administration Regulations.

• Adoption of a policy of denial of export licenses for certain items for use in Russia’s energy sector that may be used for exploration or production from deep water, Arctic offshore or shale objects that have the potential to produce oil. This policy does not target or interfere with the current supply of energy from Russia or prevent Russian companies from selling oil and gas to the United States or any other country. But this policy does make it difficult for Russia to develop long-term, technically challenging, strategic energy projects.