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OFSI adds 3 airlines to Russia sanctions, corrects 2 other listings

UK regulators have added the following entities:

1. JSC ROSSIYA AIRLINES
Address: 18/4 Pilotov St., Saint Petersburg, Russia, 196210. Other Information: (UK Sanctions List Ref): RUS1445 (UK Statement of Reasons):JSC Rossiya Airlines is one of Russia’s largest airlines and part of Aeroflot Group. It is obtaining a benefit from and supporting the Government of Russia by carrying on business in a sector of strategic significance, the transport sector, and as part of Aeroflot Group, it is also carrying on business as a Government of Russia-affiliated entity. (Phone number): +7 (812) 6-333- 999 (Website): www.rossiya-airlines.com (Type of entity):Joint Stock Company (Parent company):PJSC Aeroflot Listed on: 19/05/2022 UK Sanctions List Date Designated: 19/05/2022 Last Updated: 19/05/2022 Group ID: 15396.

2. JSC URAL AIRLINES
Address: 4 Sverdlov St, Ekaterinburg, Russia. Other Information: (UK Sanctions List Ref): RUS1446 (UK Statement of Reasons): JSC Ural Airlines is one of Russia’s largest airlines. It is obtaining a benefit from and supporting the Government of Russia by carrying on business in a sector of strategic significance, namely the transport sector. (Phone number): +7 (499) 920 22 52 (Website): https://www.uralairlines.ru/en/ (Type of entity): Joint Stock Company (Parent company): Ural Wings Listed on: 19/05/2022 UK Sanctions List Date Designated: 19/05/2022 Last Updated: 19/05/2022 Group ID: 15397.

3. PJSC AEROFLOT
Address: 1 Arbat St, Moscow, Russia, 119019. Other Information: (UK Sanctions List Ref): RUS1444 (UK Statement of Reasons): PJSC Aeroflot is the largest airline in Russia. It is obtaining a benefit from and supporting the Government of Russia by carrying on business in a sector of strategic significance, the transport sector, and as it is owned by the Russian state it is also carrying on business as a Government of Russia-affiliated entity. (Website):https://www.aeroflot.ru/ru-en (Type of entity):Public Joint Stock Company (Subsidiaries):(1) Pobeda Airlines Limited Liability Company (2) Rossiya Airlines Joint-Stock Company (3) Sherotel Joint-Stock Company (4) Aeromar Joint-Stock Company (5) Aeroflot Aviation School, Private Professional Educational Organisation (6) Aeroflot – Finance Limited Liability Company (7) A-Technics Limited Liability Company (Parent company):Federal Agency for State Property Management (Business Reg No):29063984 Listed on: 19/05/2022 UK Sanctions List Date Designated: 19/05/2022 Last Updated: 19/05/2022 Group ID: 15395.

to its Russia sanctions, and corrected the following existing designations:

1. GARANTEX EUROPE OU
Address: (1) Harju maakond, Lasnamae linnaosa, Peterburi tee 47, Tallinn, Estonia, 11415. (2) Harju maakond, Kesklinna linnaosa, J., Poska tn 51a/1-3, Tallinn, Estonia, 10150. Other Information: (UK Sanctions List Ref): RUS1421 Digital Currency Address: XBT 3Lpoy53K625zVeE47ZasiG5jGkAxJ27kh1 Digital Currency Address: ETH 0x7FF9cFad3877F21d41Da833E2F775dB0569eE3D9 Digital Currency Address: USDT 3E6ZCKRrsdPc35chA9Eftp1h3DLW18NFNV (UK Statement of Reasons): Designated for the purposes of an asset freeze under the Russia (Sanctions) (EU Exit) Regulations 2019. The designation is made as a designation by name under the urgent procedure. The relevant provision by reference to which the Minister considers that condition B is met is Executive Order 14024. The purposes of this provision correspond or are similar to the purposes of the UK’s Russia (Sanctions) (EU Exit) Regulations 2019, which have as their purposes to encourage Russia to cease actions destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine. The Minister considers that it is in the public interest to designate (condition C). (Website): garantex.io (Business Reg No): Business Registration Number 14850239 (Estonia) Listed on: 04/05/2022 UK Sanctions List Date Designated: 04/05/2022 Last Updated: 04/05/2022 19/05/2022 Group ID: 15329.

2. KAMAZ
Address: 2 Avtozavodskiy Prospect, Naberezhnye Chelny, Republic of Tatarstan, Russia, 423827. Other Information: (UK Sanctions List Ref): RUS1422 (UK Statement of Reasons): Designated for the purposes of an asset freeze under the Russia (Sanctions) (EU Exit) Regulations 2019. The designation is made as a designation by name under the urgent procedure. The relevant provision by reference to which the Minister considers that condition B is met is the Autonomous Sanctions Regulations 2011 in respect of Australia’s Ukraine and Russia sanctions regimes. The purposes of this provision correspond or are similar to the purposes of the UK’s Russia (Sanctions) (EU Exit) Regulations 2019, which have as their purposes to encourage Russia to cease actions destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine. The Minister considers that it is in the public interest to designate (condition C). (Website): www.kamaz.ru Listed on: 04/05/2022 UK Sanctions List Date Designated: 04/05/2022 Last Updated: 04/05/2022 19/05/2022 Group ID: 15332.

Note: According to the OFSI notice, erroneous information was removed – but there are no strikeouts to show what used to be in the listings.

And FCDO issued the following press release:

Press release

UK targets Russian airlines with new sanctions

New sanctions on major Russian airlines will prevent them from cashing in on their UK landing slots.From:Foreign, Commonwealth & Development OfficeDepartment for TransportThe Rt Hon Elizabeth Truss MP, and The Rt Hon Grant Shapps MPPublished19 May 2022

Major Russian airlines sanctioned
  • new sanctions on major Russian airlines prevent them from cashing in on landing slots at major UK airports worth up to £50 million
  • sanctions are crippling Putin’s ability to wage war, disrupting vital supply chains

The UK Government has announced today (Thursday 19 May 2022) that it is introducing new sanctions against the Russian airline sector. State-owned Aeroflot, Russia’s largest airline, Ural Airlines and Rossiya Airlines will now be unable to sell their unused, lucrative landing slots at UK airports – preventing Russia from cashing in on an estimated £50 million.

Foreign Secretary Liz Truss said:

As long as Putin continues his barbarous assault on Ukraine, we will continue to target the Russian economy. We’ve already closed our airspace to Russian airlines. Today we’re making sure they can’t cash in their lucrative landing slots at our airports. Every economic sanction reinforces our clear message to Putin – we will not stop until Ukraine prevails.

The news comes as the Transport Secretary, Grant Shapps takes up Presidency of the International Transport Forum which he will use to call for a united response against Russia’s invasion of Ukraine.

Transport Secretary Grant Shapps said:

The UK was one of the first nations to implement sanctions on Putin and his allies; we forbade entrance to their ships and planes, strangling them of the privilege to benefit from global trade and commerce.

Today, the UK Government has built on the strong action  we have already taken against Russia’s flagship carrier Aeroflot, along with Rossiya and Ural Airlines. This means they will be unable to use their expensive landing slots at UK airports. Our actions will also prevent Russia from selling the slots, and cashing in on up to £50 million.

Today’s announcement is the latest round of UK sanctions to ensure that Russia cannot benefit from the UK’s world class aviation and transport industries – having previously banned Russia from the UK’s airspace and waters and banned the export of aviation goods and technology.

International sanctions are having a significant impact on Putin and his war machine. Russia’s own Central Bank has admitted that sanctions are a major challenge for Russian supply chains. Sanctions mean that:

  • several weapons manufacturers having to suspend their activity due to a lack of parts
  • defence company capabilities are restricted, limiting Russia’s ability to replace advanced tech, including drones
  • Russia’s domestic vehicle sales have dropped by 80% partly due to a lack of components – which is also reducing their ability to produce military vehicles

Russia’s vital exports of energy are also shrinking – with crude oil exports down 30% in April and expected to fall further as sanctions bite. Through co-ordinated action across the G7 to phase out oil imports, alongside the banning of critical oil refining and catalyst goods, international allies are tightening the vice on Putin’s most trusted revenue stream.

Hard hitting economic sanctions are also having a long term impact on Russia’s economy. While the Kremlin has managed to stabilise the rouble, Russia is still heading for the deepest recession since the collapse of the Soviet Union. Forecasts show Russia’s GDP shrinking by between 8.5% and 15% this year, with the IMF expecting the economy to shrink a further 2.3% in 2023.

Links:

OFSI Notice

FCDO Statement

Categories: OFSI Updates Russia sanctions Sanctions Lists

eric9to5

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