Immediately after made by the US state Department statement the Department of training of the troops of the Central military Commission of China and its Director Lee Sanfo appeared in the sanctions list of the office for foreign assets control (OFAC) at the U.S. Treasury. This means that their assets in the U.S. will be blocked, access to the foreign exchange operations in us jurisdictions closed, and American companies and citizens are allowed to put the Chinese defense Department products and technologies.
In the same statement noted that a separate decision of the state Department sanctions are imposed in respect of the Department of training of the troops and the supply of the Central military Commission of the PRC and its head Whether Sanfu. The restrictions imposed on them for the purchase of 10 Russian su-35 in December 2017 and the acquisition of air defense systems s-400 in January 2018. Both transactions were committed after the entry into force in U.S. law CAATSA, which prohibits transactions with Rosoboronexport.
“Section 231 CAATSA and today’s actions are not aimed at undermining the military capacity or readiness of any country, but rather aims to lay responsibility on Russia for its interference in the electoral process in the United States, unacceptable behaviour in the East of Ukraine and other malicious acts,” reads the statement of the foreign Ministry.
Sanctions for ties with Russia
State Department spokesman at a briefing in Washington said that the sanctions directed against Russia, not against the defense of other countries. “The absolute purpose of these actions is to prevent the flow of funds to the Russian government”, – he stressed.
However, on Thursday the Washington Examiner reported, citing a senior representative of the American administration that the US can impose sanctions against other buyers of Russian anti-aircraft missile systems s-400. “We hope that this step demonstrates the seriousness of our intentions and maybe will make other countries think twice about cooperation with the Russian defense and intelligence sectors”, – quotes the edition of his words.
China became the first foreign customer of the su-35 and s-400. In November 2015, a contract was signed to supply China 24 su-35 fighters, the contract amount was $2 billion First batch of four aircraft was delivered in late 2016 and in 2017, Beijing got ten more fighters. The remaining ten were delivered in 2018.
The supply of six battalions of s-400 in excess of $3 billion, began in China in January 2018. In early September, President Recep Tayyip Erdogan said that Ankara has already agreed with Russia on buying s-400 and does not intend to ask permission from anyone. In response, Washington threatened to terminate the agreement with Turkey on the supply of F-35 and F-16. In may 2018 was agreed upon, a contract to supply s-400 to India for $6 billion In July this year, the transaction has received the approval of the Council for defence procurement of India. Also interest in buying s-400 shows in Qatar.
The Punishment Of Russia
The United States expanded the list of sanctions against 27 Russian individuals and 6 companies and organizations that are either part of or acting on behalf or on behalf of the intelligence or defense industry. “Any entity that knowingly engaged in significant transactions with someone from listed subject to sanctions under the law CAATSA”, – stated in the message.
Thus, in the expanded sanctions list was 36 individuals and 36 companies from Russia. Just a list of 72 positions, it follows from the documents published on the website of the US state Department.
Newcomers list were six Russian companies, including Gagarin aircraft factory in Komsomolsk-on-Amur, which produces military planes and civil Sukhoi aircraft Sukhoi Superjet 100, “Oboronsertifika” (logistics company, the Russian Ministry of defense) and private military company (PMC) Wagner. The list was also in St. Petersburg “online research,” Concord Catering (food plant “Concord”) and Concord Management and Consulting St. Petersburg businessman Evgeny Prigozhin (known as “the chef of the Kremlin” and “personal chef Vladimir Putin”).
State Department spokesman at a briefing in Washington said that the inclusion of the aircraft plant of Komsomolsk-on-Amur does not mean a ban on the supply of parts. “We don’t focus on such things as the supply of components and maintenance of airworthiness. Currently, this is not our priority,” he replied to the question about whether fall under the impact of new sanctions the supply of parts for aircraft (quoted by RIA news).
Among individuals in the list was the was the head of the Main Directorate of the General staff of Armed forces of Russia (former GRU) Igor Korobov and his Deputy Sergey Lizunov, another 12 people, which the U.S. Treasury believes the GRU officers, and 13 former employees of Internet research, which Washington believes are involved in the intervention in the US elections in 2016.
The inclusion of companies and individuals in the list does not mean automatic introduction of sanctions against them, but implies such a possibility in the future. In addition, under the restrictions can get the foreign partners of these individuals and companies.
Sanctions under CAATSA
2 August 2017, the US President, Donald trump has signed the law “On countering the enemies of America by sanctions” (CAATSA). The law entered into force on 29 January 2018. It provides the possibility of introducing additional restrictive measures in respect of any of the companies and individuals that have concluded a significant deal with the Russian defense industry complex.
The first defendants in the sanctions list within the framework of this law were 33 Russian companies and six departments, including concern “Kalashnikov”, “Izhmash”, “Tupolev”, “Almaz-Antey”, Rosoboronexport, rostec, “MiG”, “Sukhoi”, “Admiralty shipyards”, “Izhevsk mechanical plant”, “Oboronprom”, “Uralvagonzavod”, “Helicopters of Russia” and “Constellation”, as well as the FSB, SVR and GRU.
For cooperating with the defendants in this list article 235 of the law SAATA provides 12 variants of restrictive measures. Among them, the closure of access to financing, a ban on transactions in the domestic U.S. market and restrictions on entry into the United States.