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Mar

20

More Designations under the Russia/Ukraine Sanctions

Posted by Clif Burns at 8:19 pm on March 20, 2014

There has been considerable interest among clients and readers to keep abreast of the designations under the new Russia sanctions program. As a result, we now have a new category dedicated solely to these new designations which will be updated promptly as the designations are made. Click on the “Russia Designations” category in the right-hand column and it will take you to all posts containing the designated names and entities so far. You can also subscribe to email notices from us that will contain the names of designated persons and entities shortly after they announced. Click this link to subscribe. There is also a link in the column on the right to subscribe to Russia designation emails.

Here is the complete current list including both lists of designated persons and entities that have been announced so far.

AKSYONOV, Sergey Valeryevich (a.k.a. AKSENOV, Sergei; a.k.a. AKSYONOV, Sergei; a.k.a. AKSYONOV, Sergey; a.k.a. AKSYONOV, Sergiy; a.k.a. AKSYONOV, Serhiy Valeryevich); DOB 26 Nov 1972; POB Balti, Moldova (individual) [UKRAINE].

GLAZYEV, Sergey (a.k.a. GLAZYEV, Sergei); DOB 01 Jan 1961; POB Zaporozhye, Ukraine; Presidential Advisor (individual) [UKRAINE2].

KLISHAS, Andrei (a.k.a. KLISHAS, Andrey); DOB 09 Nov 1972; POB Yekaterinburg, Sverdlovsk, Russia; Chairman of the Russian Federation Council Committee on Constitutional Law, Judicial and Legal Affairs and the Development of Civil Society (individual) [UKRAINE2].

KONSTANTINOV, Vladimir Andreyevich, Crimea, Ukraine; DOB 19 Nov 1956 (individual) [UKRAINE].

MATVIYENKO, Valentina Ivanovna; DOB 07 Apr 1949; POB Shepetovka, Khmelnitsky, Ukraine; Federation Council Speaker; Chairman of the Russian Federation Council (individual) [UKRAINE2].

MEDVEDCHUK, Viktor; DOB 07 Aug 1954; POB Pochyot, Krasnoyarsk Krai, Russia (individual) [UKRAINE].

MIZULINA, Yelena (a.k.a. MIZULINA, Elena; a.k.a. MIZULINA, Elena Borisovna; a.k.a. MIZULINA, Yelena Borisovna); DOB 09 Dec 1954; POB Bui, Kostroma, Russia; State Duma Deputy; Chairman of the State Duma Committee on Family, Women and Children (individual) [UKRAINE2].

ROGOZIN, Dmitry Olegovich (a.k.a. ROGOZIN, Dmitriy; a.k.a. ROGOZIN, Dmitry); DOB 21 Dec 1963; POB Moscow, Russia; Deputy Prime Minister of the Russian Federation (individual) [UKRAINE2].

SLUTSKY, Leonid (a.k.a. SLUTSKIY, Leonid; a.k.a. SLUTSKY, Leonid E.; a.k.a. SLUTSKY, Leonid Eduardovich); DOB 04 Jan 1968; State Duma Deputy; Chairman of the Committee on Affairs of the Commonwealth of Independent States (CIS); First Deputy Chairman of the Committee on International Affairs; Chairman of the Russian World Fund Administration (individual) [UKRAINE2].

SURKOV, Vladislav Yurievich; DOB 21 Sep 1964; POB Solntsevo, Lipetsk, Russia; Presidential Aide (individual) [UKRAINE2].

YANUKOVYCH, Viktor Fedorovych; DOB 09 Jul 1950; POB Yenakiyeve, Donetsk Region, Ukraine; alt. POB Makiivka, Donbas, Ukraine; Former President of Ukraine (individual) [UKRAINE].

BUSHMIN, Evgeni Viktorovich (a.k.a. BUSHMIN, Evgeny; a.k.a. BUSHMIN, Yevgeny); DOB 10 Oct 1958; POB Lopatino, Sergachiisky Region, Russia; Deputy Speaker of the Federation Council of the Russian Federation; Chairman of the Council of the Federation Budget and Financial Markets Committee (individual) [UKRAINE2].

DZHABAROV, Vladimir Michailovich; DOB 29 Sep 1952; First Deputy Chairman of the International Affairs Committee of the Federation Council of the Russian Federation (individual) [UKRAINE2].

FURSENKO, Andrei Alexandrovich (a.k.a. FURSENKO, Andrei; a.k.a. FURSENKO, Andrey); DOB 17 Jul 1949; POB St. Petersburg, Russia; Aide to the President of the Russian Federation (individual) [UKRAINE2].

GROMOV, Alexei; DOB 1960; POB Zagorsk (Sergiev, Posad), Moscow Region, Russia; First Deputy Chief of Staff of the Presidential Executive Office; First Deputy Head of Presidential Administration; First Deputy Presidential Chief of Staff (individual) [UKRAINE2].

IVANOV, Sergei (a.k.a. IVANOV, Sergey); DOB 31 Jan 1953; POB St. Petersburg, Russia; Chief of Staff of the Presidential Executive Office (individual) [UKRAINE2].

IVANOV, Victor Petrovich (a.k.a. IVANOV, Viktor); DOB 12 May 1950; alt. DOB 1952; POB Novgorod, Russia (individual) [UKRAINE2].

KOZHIN, Vladimir Igorevich; DOB 28 Feb 1959; POB Troitsk, Chelyabinsk Oblast, Russia (individual) [UKRAINE2].

KOVALCHUK, Yuri Valentinovich (a.k.a. KOVALCHUK, Yury Valentinovich); DOB 25 Jul 1951; POB Saint Petersburg, Russia (individual) [UKRAINE2].

MIRONOV, Sergei Mikhailovich (a.k.a. MIRONOV, Sergei); DOB 14 Feb 1953; POB Pushkin, Saint Petersburg, Russia; Member of the Council of the State Duma; Leader of A Just Russia Party; Member of the State Duma Committee on Housing Policy and Housing and Communal Services (individual) [UKRAINE2].

NARYSHKIN, Sergey Yevgenyevich (a.k.a. NARYSHKIN, Sergei); DOB 27 Oct 1954; POB Saint Petersburg, Russia (individual) [UKRAINE2].

OZEROV, Viktor Alekseevich (a.k.a. OZEROV, Viktor Alexeyevich); DOB 05 Jan 1958; POB Abakan, Khakassia, Russia; Chairman of the Security and Defense Federation Council of the Russian Federation (individual) [UKRAINE2].

PANTELEEV, Oleg Evgenevich (a.k.a. PANTELEEV, Oleg); DOB 21 Jul 1952; POB Zhitnikovskoe, Kurgan Region, Russia; First Deputy Chairman of the Committee on Parliamentary Issues (individual) [UKRAINE2].

ROTENBERG, Arkady; DOB 15 Dec 1951; POB St. Petersburg, Russia (individual) [UKRAINE2].

ROTENBERG, Boris; DOB 03 Jan 1957; POB St. Petersburg, Russia (individual) [UKRAINE2].

RYZHKOV, Nikolai Ivanovich (a.k.a. RYZHKOV, Nikolai); DOB 28 Sep 1929; POB Duleevka, Donetsk Region, Ukraine; Senator in the Russian Upper House of Parliament; Member of the Committee for Federal Issues, Regional Politics and the North of the Federation Council of the Russian Federation (individual) [UKRAINE2].

SERGUN, Igor Dmitrievich; DOB 28 Mar 1957; Lieutenant General; Chief of the Main Directorate of the General Staff (GRU); Deputy Chief of the General Staff (individual) [UKRAINE2].

TIMCHENKO, Gennady (a.k.a. TIMCHENKO, Gennadiy Nikolayevich; a.k.a. TIMCHENKO, Gennady Nikolayevich; a.k.a. TIMTCHENKO, Guennadi), Geneva, Switzerland; DOB 09 Nov 1952; POB Leninakan, Armenia; alt. POB Gyumri, Armenia; nationality Finland; alt. nationality Russia; alt. nationality Armenia (individual) [UKRAINE2].

TOTOONOV, Aleksandr Borisovich (a.k.a. TOTOONOV, Alexander; a.k.a. TOTOONOV, Alexander B.); DOB 03 Mar 1957; POB Ordzhonikidze, North Ossetia, Russia; alt. POB Vladikavkaz, North Ossetia, Russia; Member of the Committee on Culture, Science, and Information, Federation Council of the Russian Federation (individual) [UKRAINE2].

YAKUNIN, Vladimir; DOB 30 Jun 1948; POB Vladimir Oblast, Russia (individual) [UKRAINE2].

ZHELEZNYAK, Sergei Vladimirovich (a.k.a. ZHELEZNYAK, Sergei; a.k.a. ZHELEZNYAK, Sergey); DOB 30 Jul 1970; POB Saint Petersburg, Russia; Deputy Speaker of the State Duma of the Russian Federation (individual) [UKRAINE2].

The following entity has been added to OFAC’s SDN List:

BANK ROSSIYA (f.k.a. AKTSIONERNY BANK RUSSIAN FEDERATION), 2 Liter A Pl. Rastrelli, Saint Petersburg 191124, Russia; SWIFT/BIC ROSY RU 2P; Website www.abr.ru; Email Address [email protected] [UKRAINE2].

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Mar

19

UN Calls Foul on Dennis Rodman

Posted by Clif Burns at 11:45 pm on March 19, 2014

By Copyright Steve Lipofsky Basketballphoto.com [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons http://commons.wikimedia.org/wiki/File%3ARodman_Lipofsky.jpg There has been a ton of publicity regarding Dennis Rodman’s preposterous Happy Birthday Mr. Dictator tour on which Rodman visited North Korea’s paunchy dictator Kim Jong-Un to wish him many happy returns and many more years of human rights violations. Of course, no dictator’s birthday celebration would be complete without bottles of vodka and other gifts of tribute from has-been basketball stars.

The U.N. Panel report, which we previously reported here, included Rodman’s swag bags for Kim Jong-Un as violations of U.N. sanctions on North Korea, singling out bottles of vodka, Irish whisky, crystal decanters and glassware and a Mulberry handbag. Â The Panel made clear that these all fell within the sanction’s definition of luxury goods which covers spirits, high-quality lead crystal glassware and high-quality handbags. Of course, notwithstanding the sanctions, I’d like to see a picture of Kim Jong-Un sporting the Mulberry handbag.

But the U.N. Panel also took the opportunity to swat the United States on the matter, noting that the United States had not reported these gifts to the panel. Paragraph 26 of Security Council Resolution 2094 requires member states to report evidence that the states have of non-compliance with the U.N. sanctions on North Korea. The United States was mum on the Rodman gifts, just as the United Kingdom did not report the sale of a Princess luxury yacht manufactured in Plymouth, England, to the Nork dictator.

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Mar

18

University Medical Researcher Prosecuted for Sending Medical Device to Iran

Posted by Clif Burns at 8:21 pm on March 18, 2014

Category: Criminal Penalties • Iran Sanctions • OFAC

By Erin! Nekervis [CC-BY-SA-2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons http://commons.wikimedia.org/wiki/File%3APlanking_on_an_MRI_machine.jpg According to this article in the San Diego Union Tribune, MohamadÂ Nazemzadeh, who was a Research Fellow in the Neurology Department of the University of Michigan at the time of his arrest, is being prosecuted for sending a medical device to Iran. At issue is a coil for a magnetic resonance imaging (MRI) machine. The coil is the assembly of wires that generates the necessary radio signals when electricity flows through them to permit imaging the part of the body within the coil. Mr. Nazemzadeh is currently a researcher at the Henry Ford hospital in Detroit and his area of specialty is, not surprisingly, magnetic resonance imaging.

A part for an MRI machine would, under the Trade Sanctions Reform and Export Enhancement Act of 2000, be eligible for an export license notwithstanding the embargo on Iran. Nazemzadeh’s failure to obtain a license would, of course, be a violation of the embargo. Even assuming that it was a criminal violation in his case, one has to wonder why prosecutorial resources are being consumed to prosecute a researcher for trying to send life-saving medical equipment to Iran. Aren’t there dangerous people out there with guns and bombs who might warrant the attention instead?

An affidavit in support of a search warrant for Nazemzadeh’s mobile phone provides more detail on the case than the Union-Tribune article and casts some doubt on whether Nazemzadeh actually had the criminal intent necessary to support a criminal prosecution for the attempted export of the MRI part. According to the affidavit, Nazemzadeh was negotiating with the undercover federal agent (who had been tipped off by the used medical device company that Nazemzadeh had contacted) to ship the MRI coil to Iran through a company in the Netherlands. As is often the case, it is not uncommon for people to believe (incorrectly) that if it is legal to ship an item to a particular country, no laws are broken if the item is then re-exported to a prohibited destination. Here, according to the affidavit, Mr. Nazemzadeh continued to say to the undercover agent that he believed the transaction was legal and says this is true because the export from the United States is to the Netherlands, not Iran.

Just tell that, you sold that item to some company in the Netherlands, and you have theÂ request so you’re, you issued pro forma form for them and they sent money from the bank account to you, everything is legal between you[r] two companies …. [T]here’s nothing to do with Iran. You actually have sold that coil to one company in Netherland [sic], ok?

Granted that isn’t a true statement of the law, but a good faith legal mistake is not a criminal act. Instead, this is precisely the sort of case that ought to be handled as an administrative matter by OFAC. Such a proceeding could result in the imposition of substantial civilÂ penalties on Mr. Nazemzadeh notwithstanding his mistaken belief that the transaction did not violate U.S. law.

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Mar

13

Daily News Attempts Export Humor; Bombs

Posted by Clif Burns at 4:25 pm on March 13, 2014

Category: BIS • CCL • North Korea Sanctions

By Jared Kofsky (Own work) [CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons http://commons.wikimedia.org/wiki/File%3ADaily_News_Building-_WPIX_CW_11.JPG It must have been a slow news day on Tuesday for the New York Daily News, because the aging tabloid decided to try its hand at export humor. As you might imagine, things did not go well for the paper.

The attempt occurred in a feature called “Your Cheat Sheet,” which appears in a blog called “The Swamp” and looks at important events in DC. You know, so-and-so is testifying on the Hill, Prime Minister Muckety-Muck of Lower Lithovakia meets with USDA officials, etc. Â With that in mind, we present the joke in full:

Breaking News, so let’s parachute Anderson Cooper into: the Commerce Departmentâ€™s Bureau of Industry and Security holds a meeting of the Materials Processing Equipment Technical Advisory Committee to â€œdiscuss technical questions that affect the level of export controls applicable to materials processing equipment and related technology.â€

[Insert sad trombone sound here.]

Okay, so see the Daily News writer thought it was just hilarious that somebody would meet about “materials processing equipment and related technology.” That’s like a meeting, you know, on polynomial equations or plasma actuators or other silly egghead stuff for nerdy bureaucrats. Losers!!! Â Bring in that Anderson Cooper fellow to cover this really groundbreaking story, etc., etc.

One person who doesn’t think exports controls on “materials processing equipment and related technology” is a laughing matter is the Nork Dictator Kim-Jong Un. The UN Panel Report discussed in yesterday’s post noted that a key obstacle to Nork nuclear ambitions, and a key incentive for the country’s efforts to evade international sanctions, is that “it lacks sufficient domestic precision machine tool manufacturing capability” needed for building missiles and uranium enrichment facilities. That’s the equipment that’s in â€” yep, you got it â€” Category 2 of the Commerce Control List which covers “materials processing equipment and technology.”

The morale of this story is, of course, that export control humor should be left to the professionals.

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Mar

12

UN Panel Sticks Fork in Norks, Says They’re Done

Posted by Clif Burns at 9:53 pm on March 12, 2014

Category: North Korea Sanctions • U.N. Sanctions

Weapons found on Chong Chon Gang via http://www.un.org/ga/search/view_doc.asp?symbol=S/2014/147 [Fair Use] This blog has reported twice (here and here) on the seizure by the Panamanians of the Nork vessel, the Chong Chon Gang, by Panamanians after they discovered a boatload (so to speak) of Cuban weapons on the vessel headed for North Korea. Among the more telling aspects of the story is that the weapons were hidden under mountains of sugar and that the ship’s captain attempted suicide during the course of the search. Notwithstanding this, both the Cubans and the Norks steadfastly maintained that there was nothing to see here, that everything was on the up and up, and that everyone should just move on.

Well, the United Nations Panel of Experts convened to investigate compliance with U.N. sanctions against North Korea has decided that there was indeed plenty to see here. Its just-issued report highlights the Chong Chon Gang incident (as well as other Nork shenanigans) as evidence of persistent efforts by North Korea to evade U.N. Sanctions. Here are some interesting highlights used by the report to bolster its conclusion that the Chong Chon Gang shipment violated U.N. sanctions on the prohibition of shipments of arms and materiel by member states such as Cuba to North Korea.

The panel rejected Cuba’s risible, if not hilarious, argument that the sanction prohibiting “transfer” of arms and materiel to North Korea was not violated because Cuba retained ownership of the arms being shipped to North Korea for overhaul and maintenance. The Panel correctly pointed out that such a distinction would allow countries to lease weapons to North Korea, an absurd result inconsistent with the purpose of the sanctions.

More importantly, the panel rejected the argument by pointing to the evidence of elaborate attempts by Cuba and North Korea to conceal the nature of the shipment. This argument might be summarized as “If you don’t have anything to hide, why are you so busy trying to hide it?” Among the evasive tactics cited by the Panel (above and beyond burying the stuff under a mountain of sugar) were the following:

After discharging its cargo in Havana, the ship drifted for 10 days in the sea north of Cuba before sailing to Mariel where it took on the weapons cargo.
Although documents were found on the ship identifying the consignor and consignee of the sugar shipment, no such documents were found with respect to the concealed weapons.
The ship’s route and position were concealed by switching off the ship’s automatic identification system.
False documents were submitted to the Panama Canal Authority which omitted Mariel, where the weapons were loaded, from the list of prior ports visited.
The vessel ignored the standard practice of loading dangerous cargo, which included ammunition, rockets and explosives, at the top of the ship, Â loading it instead deep in the hold where it could be concealed by the sugar cargo. The weight of the sugar could have contributed to a catastrophic explosion, endangering the ship, its crew and nearby ships and their crew. Clearly concealment was a higher priority than safety.

There’s more in the Panel Report, including a detour involving Dennis Rodman’s Happy Birthday, Mr. Dictator celebrity tour, so stay tuned for future posts on Nork sanction evasion techniques.

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