US Treasury explained new sanctions do not affect ‘state-owned enterprises of the Russian Federation’

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US Treasury Department issued a statement Saturday that new imposed sanctions against Russia are not applicable to the stated-owned enterprises and to the secondary sovereign debt market, reported Sputinik Sunday.

“For purposes of this Directive, the term ‘Russian sovereign’ means any ministry, agency, or sovereign fund of the Russian Federation, including the Central Bank of Russia, the National Wealth Fund, and the Ministry of Finance of the Russian Federation. This term does not include state-owned enterprises of the Russian Federation,” the document says.

The US imposed the second round of sanctions against Russia claiming that the country is responsible for the poisoning of Sergei and Yulia Skripals in March 2018, which Moscow has repeatedly denied. The new sanctions will reportedly go into effect on August 26.

“The U.S. Department of the Treasury announced today that it is implementing two sanctions on the Russian Federation as part of measures imposed by the U.S. government pursuant to the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, as amended (“CBW Act”), in response to Russia’s use of the “Novichok” nerve agent in Salisbury, United Kingdom (UK) in March 2018″, the statement said.

According to the Treasury Department, Russia violated CBW Act conditions.

“To implement the sanction related to U.S. bank loans, Treasury’s Office of Foreign Assets Control (OFAC) is issuing a Russia-related Directive (the “CBW Act Directive”) under the Executive Order (E.O.) of August 1, 2019. The CBW Act Directive prohibits U.S. banks from participating in the primary market for non-ruble denominated bonds issued by the Russian sovereign and also prohibits U.S. banks from lending non-ruble denominated funds to the Russian sovereign”

Under the imposed restrictions, the World Bank and the IMF, International Monetary Fund, are not allowed to provide loans to Russia.

The US is considering imposing more sanctions on Russia’s exports of equipment and various goods.

 


Natalia Veselnitskaya – official website

Natalia Veselnitskaya
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