11:18 31.07.2015

Russian Direct Investment Fund, other VEB entities, Rosneft subsidiaries hit by U.S. sectoral sanctions

2 min read
Russian Direct Investment Fund, other VEB entities, Rosneft subsidiaries hit by U.S. sectoral sanctions

The U.S. has expanded the sanctions lists by adding to them several legal entities and private individuals.

Sectoral sanctions have been imposed on VEB entities and Rosneft, specifically, the Managing Company of the Russian Direct Investment Fund (RDIF), EXIAR, Globexbank, VEB Leasing, VEB Capital, the Federal Project Financing Center, Sviaz-Bank, Prominvestbank, Resad, Rose Group, Veb-Engineering, Veb Asia, RN-Yuganskneftegaz, Rosneft Finance, Rosneft Trading and Neft-Aktiv, among others, a statement released by the U.S. Department of the Treasury said.

Actually, all of these companies were already unable to raise long-term financing and place shares in the United States (which is what sectoral sanctions prohibit), being subsidiaries of sanctions-hit VEB and Rosneft, but formally they were not included on the list until now.

Rosneft and VEB declined to comment.

The "blacklist" – the Specially Designated Nationals List (SDN) – now also includes Roman Rotenberg, the son of businessman Boris Rotenberg, a board member of the Kontinental Hockey League. Pyotr Kolbin, former co-owner of trader Surgutex and a longtime business partner of billionaire Gennady Timchenko; Ukrainians Sergei Kurchenko and Alexander Yanukovych, managers of firearms maker Kalashnikov; and Kai Paananen, head of Finnish energy trader SET Petrochemicals Oy, who is also reportedly a business partner of Timchenko, have also been added to the list.

Other companies included in the SDN List are companies that Timchenko sold a day before U.S. sanctions were imposed against him in March 2014 - Finland's Airfix Aviation and Cyprus-based IPP Oil Products; SET Petrochemicals and Southeast Trading Oy, which are part of the same group; Southport Management Services Ltd; and Langvik Capital, which manages the Rotenberg family's conference center in Finland.

Also added to the SDN List were Izhevsk Mechanical Plant, Izhmash, Ukraine's MAKO Holding, which the Treasury Department said is affiliated with Alexander Yanukovych, and Crimean ports.

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