US imposes sanctions against Russia's military partners

 US imposes sanctions against Russia's military partners

The United States may impose sanctions against companies, organizations and individuals from all over the world participated in significant transactions with the Russian intelligence or defense sectors.

On August 2, 2017, the US President Donald Trump signed into law the 'Countering America's Adversaries Through Sanctions Act' (CAATSA). In October, the US Department of State released public guidance concerning energy sanctions relating to the Russian Federation.

The US government could theoretically impose sanctions on companies which were doing business after August 2 with those listed by the State Department. The list includes 39 entities that the US government considers to be part of, or operating for or on behalf of, Russia’s defense and intelligence sectors, including Rostec (Russian Technologies State Corporation), Rosoboronexport OJSC, Federal Security Service (FSB), Foreign Intelligence Service and Main Intelligence Directorate of the General Staff of the Russian Armed Forces.

It was noted that Russian companies participated in significant transactions with those listed entitles may also be sanctioned. That is why Alfa-Bank, Russia's largest commercial bank, said in January about suspension of cooperating with the defense sector.

The US foreign policy department said in October that they were closely following the transactions all over the world that could fall under the scope of sanctions. But it did not indicate whether one should waiting for the first sanctions already in late January, RBC reports.