Treasury Announces Significant Sanctions against Russian Entities, Individuals

The Treasury Department today announced a number of sanctions against Russian entities and individuals, following an executive order from President Biden. Among other things, these actions include the implementation of new prohibitions on certain dealings in Russian sovereign debt.

U.S. financial institutions will generally be prohibited from participating in the primary market for ruble or non-ruble denominated bonds issued after June 14, by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation or the Ministry of Finance of the Russian Federation. In addition, banks may not lend ruble or non-ruble denominated funds to these entities. This directive expands on existing prohibitions that have been in place since August 2019.

The U.S. also targeted sanctions against technology companies that support the Russian government’s efforts to carry out malicious cyber activities against the U.S., and against several Russian individuals in the Crimea region of Ukraine.