• Section 1. All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: (i) to operate or have operated in the technology sector or the defense and related materiel sector of the Russian Federation economy, or any other sector of the Russian Federation economy as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State.
• DETERMINATION PURSUANT TO SECTION 11(a)(ii) OF EXECUTIVE ORDER 14024
Section 11(a)(ii) of Executive Order (E.O.) 14024 of April 15, 2021 (“Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation”), as amended by E.O. of December 22, 2023 (“Taking Additional Steps With Respect to the Russian Federation’s Harmful Activities”), authorizes the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce, to impose sanctions on a foreign financial institution upon determining that the foreign financial institution has conducted or facilitated any significant transaction or transactions, or provided any service, involving Russia’s military-industrial base, including the sale, supply, or transfer, directly or indirectly, to the Russian Federation, of any item or class of items as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce.
To further address the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States described in E.O. 14024, as amended, and in consultation with the Department of State and the Department of Commerce and pursuant to 31 CFR § 587.802, I hereby determine that section 11(a)(ii) of E.O. 14024 shall apply to items or classes of items listed in the Annex to this determination.
This determination shall take effect on December 22, 2023.
Annex to Determination Regarding Certain Items or Class of Items of December 22, 2023 Items determined pursuant to E.O. 14024, Sec. 11 (a)(ii)
Certain machine tools and manufacturing equipment: Numerically controlled (CNC) machine tools, Additive manufacturing (AM) machine tools, Semiconductor manufacturing equipment
Certain manufacturing materials for semiconductors and related electronics: Silicon boules, Silicon wafers
Photoresist materials, Bare printed circuit boards (PCBs), Printed circuit board (PCB) substrates
Certain electronic test equipment: Oscilloscopes, Automated test equipment, Data acquisition systems, Signal generators, Pulse generators, Spectrum analyzers
Certain propellants, chemical precursors for propellants and explosives: Nitrocellulose, Smokeless powder, Research Department eXplosive (RDX, also known as Royal Demolition eXplosive, cyclonite, hexogen), High Melting eXplosive (HMX, also known as High- Molecular-Weight RDX, octogen, cyclotetramethylenetetranitramine)
Certain lubricants and lubricant additives: Turbine oil, Turbine oil additives
Certain bearings: High-precision ball and roller bearings, Angular contact (spindle) bearings
Certain advanced optical systems: Thermal sights, Thermal imaging arrays, Infrared focal plane arrays, Image intensifier tubes (IITs)
Certain navigation instruments: Inertial navigation systems (INS), Inertial measurement units (IMUs) Fiber-optic gyroscopes (FOGs)
Executive Order 14024 of April 15, 2021 Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation
Regime
OFAC country specific
Target State
Russia
Official Information
In response to the Russian Federation’s continued use of its military-industrial base to support its aggression against Ukraine, the President has issued an Executive Order (E.O.) amending E.O. 14024 that provides the Office of Foreign Assets Control (OFAC) with new authorities to target foreign financial institutions for engaging in certain transactions. Foreign financial institutions that conduct or facilitate significant transactions or provide any service involving Russia’s military-industrial base run the risk of being sanctioned by OFAC.
The United States and partners have put in place a sanctions and export controls regime that has severely restricted Russia’s ability to import many of the items that directly support its brutal and unjustified war against Ukraine. As a result, Russia is increasingly using third countries to evade sanctions and continue its procurement of certain critical items. The United States and partners have published multiple advisories, including detailed red flags, to warn the private sector about Russian sanctions evasion in support of its war machine and to support compliance efforts. OFAC’s new targeting authorities, which are aimed at foreign financial institutions that provide services to, or engage in significant transactions relating to, Russia’s military-industrial base, come as a natural evolution of OFAC’s work to counter evasion and hold accountable those perpetuating Russia’s war against Ukraine, including financial facilitators.
OFAC is issuing this advisory to provide guidance to foreign financial institutions on the amendments to E.O. 14024, including practical guidance on how to identify sanctions risks and implement corresponding controls. For additional guidance on this E.O., please see FAQs 1146–1157.
