Khartoum North, Khartoum, 10783, Sudan

Defense Industries System is Sudan’s largest defense enterprise, generating an estimated $2 billion in revenue via hundreds of subsidiaries across various sectors of Sudan’s economy. DIS manufactures a range of small arms, conventional weapons, ammunition, and military vehicles for the SAF, and uses a complex system to hide its ownership of these subsidiaries and to obtain favorable letters of credit from the Sudan Central Bank. Defense Industries System not only defaults on the loans obtained under these letters of credit but also uses these favorable funds guarantees to compete unfairly with civilian businesses that do not enjoy such favorable financial terms. In addition, between the opaque ownership structure of its subsidiaries and certain tax exemptions, Defense Industries System contributes little, if anything, to Sudan’s revenues. OFAC designated Defense Industries System pursuant to E.O. 14098 for being responsible for, or complicit in, or having directly or indirectly engaged or attempted to engage in actions or policies that threaten the peace, security, or stability of Sudan.

https://home.treasury.gov/news/press-releases/jy1514

2023-06-01

US

Executive Order 14098 Imposing Sanctions on Certain Persons Destabilizing Sudan and Undermining the Goal of a Democratic Transition

OFAC country specific

Sudan

Blocking Property, Suspending Entry

• https://www.state.gov/risks-and-considerations-for-u-s-businesses-operating-in-sudan/

E.O. 14098 of May 4, 2023, among other things, authorizes the imposition of sanctions on foreign persons to address the situation in Sudan following the military’s seizure of power in October 2021 and the outbreak of inter-service fighting in April 2023, and to support a transition to democracy and civilian transitional government in Sudan.

SDN