United States Treasury Announces Sanctions on the Russian federation, under the Chemical and Biological Weapons Control and Warfare Elimination Act
Washington (STL.News) – 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. This action follows the Department of State’s determination that the Government of the Russian Federation failed to comply with the conditions described in the CBW Act. Treasury is imposing a prohibition related to certain U.S. bank loans and will oppose multilateral development bank assistance to the Russian Federation.
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. The CBW Act Directive will become effective on August 26, 2019, following a Congressional notification period required by the CBW Act. OFAC is publishing a list of Frequently Asked Questions (FAQs) to provide guidance to the public on the CBW Act Directive.
Treasury will also ensure that the U.S. Government’s existing policy of opposing multilateral development bank assistance to the Russian Federation remains permanently in place until Russia complies with the requirements of the CBW Act.