May produced new developments, and new sanctions, in the ongoing crisis in the Ukraine. The European Union, Switzerland, and Canada all added new individuals and entities to their sanctions lists in May. The month ended with the relatively peaceful election of Petro Poroshenko, a billionaire widely considered pro-European, on May 25th, but a further descent into violence in Eastern Ukraine and the corresponding threat of new sanctions.
The EU agreed to sanction 13 new individuals on May 12th, along with 2 entities. As with previous sanctioning, the individuals targeted are Russian politicians or military officers, as well as Ukrainians seen as undermining the territorial integrity, sovereignty, and independence of Ukraine. The EU continues to avoid sanctioning businessmen.
Switzerland sanctioned 28 individuals and two entities, all of whom were already sanctioned by the EU. Under the Swiss program financial intermediaries may no longer enter into new business relationships with the sanctioned individuals. These same individuals also may not transfer assets to Switzerland; however, existing business relationships involving the sanctioned individuals are not subject to this ban, but these relationships must be notified to the State Secretariat for Economic Affairs. The travel restrictions imposed by the EU include Switzerland via the Schengen Association Agreement; therefore, no special measures were added.
Canada added 12 individuals and 16 entities to their sanctioned list.
Although Russia was not implicated in separatist efforts to keep individuals from voting in the May 25th Presidential election, the situation in eastern Ukraine remains quite fluid and additional sanctions are possible if the United States, the EU, or Canada identify new persons complicit in the escalating violence, which began only hours after the election. As Crowell & Moring noted last month, these sanctions represent only the beginning of a potential escalation and that the G-7 is prepared "to move to broader, coordinated sanctions, including sectoral measures should circumstances warrant." Companies are advised to closely monitor developments and to contact the authors, or their regular Crowell & Moring contacts, with any questions.
New EU Sanctioned Individuals
- VOLODIN, Vyacheslav [Sanctioned by U.S. on April 28]
- SHAMANOV, Vladimir – Commander of the Russian Airborne Troops.
- PLIGIN, Vladimir – Chair of the Duma Constitutional Law Committee.
- JAROSH, Petr – Acting Head of the Federal Migration Service office for Crimea.
- KOZYURA, Oleg – Acting Head of the Federal Migration Service office for Sevastopol.
- PONOMARIOV, Viacheslav – Self-declared Mayor of Slaviansk.
- BEZLER, Igor – One of the leaders of self-proclaimed militia of Horlivka.
- KAKIDZYANOV, Igor – One of the leaders of armed forces of the self-proclaimed "Donetsk People's Republic."
- TSARIOV, Oleg – Member of the Rada.
- LYAGIN, Roman – Head of the "Donetsk People's Republic" Central Electoral Commission.
- MALYKHIN, Aleksandr – Head of the "Lugansk People's Republic" Central Electoral Commission.
- POKLONSKAYA, Natalia – Prosecutor of Crimea.
- SHEVCHENKO, Igor – Acting Prosecutor of Sevastopol.
New EU Sanctioned Entities
- PJSC CHERNOMORNEFTEGAZ [Sanctioned by U.S. on April 11]
- FEODOSIA – Provides services for the handling of oil.
New Canadian Sanctioned Individuals
- BOLOTOV, Valeriy [Sanctioned by EU on April 28]
- GERASIMOV, Valery Vasilevich [Sanctioned by EU on April 28]
- GIRKIN, Igor [Sanctioned by EU on April 28, identified by the EU as STRELKOV, Igor]
- KOVATIDI, Olga Fedorovna [Sanctioned by EU on April 28]
- MENYAILO, Sergei Ivanovich [Sanctioned by EU on April 28]
- NEVEROV, Sergei Ivanovich [Sanctioned by EU on April 28]
- PROKOPIV, German [Sanctioned by EU on April 28]
- PURGIN, Andriy [Sanctioned by EU on April 28]
- PUSHYLIN, Denys [Sanctioned by EU on April 28]
- SAVELYEV, Oleg Genrikhovich [Sanctioned by EU on April 28]
- SHVETSOVA, Ludmila Ivanovna [Sanctioned by EU on April 28]
- TSYPLAKOV, Sergey Gennadevich [Sanctioned by EU on April 28, identified by the EU as GENNADEVICH, Tsyplakov Sergey]
New Canadian Sanctioned Entities [All sanctioned by U.S. on April 28]
- AQUANIKA – A Russian water and drink manufacturer.
- AVIA GROUP LLC – Involved in ground infrastructure for the Business Aviation Center at Sheremetyevo International Airport in Moscow.
- AVIA GROUP NORD LLC – Provides management services for corporate aviation at Pulkovo International Airport in Saint Petersburg, Russia.
- CJSC ZEST – Designated for being owned or controlled by Bank Rossiya.
- INVESTCAPITALBANK – Designated for being owned or controlled by Arkady and Boris Rotenberg.
- JSB SOBINBANK – Designated for being owned or controlled by Bank Rossiya.
- SAKHATRANS LLC – A transportation company engaged in the construction of the bulk terminal for coal and iron ore exports in Muchka Bay near Vanino in Russia's far east.
- SMP BANK – Owned or controlled by Arkady and Boris Rotenberg.
- STROYGAZMONTAZH – A gas pipeline construction company owned or controlled by Arkady Rotenberg. Rotenberg created SGM Group in 2008 after acquiring multiple Gazprom contractors.
- STROYTRANSGAZ GROUP – A Russian construction group, comprising a number of business entities that specialize in different aspects of the construction industry.
- STROYTRANSGAZ HOLDING – A holding company for construction assets.
- STROYTRANSGAZ LLC – An infrastructure construction company.
- STROYTRANSGAZ OJSC – An electricity construction company.
- STROYTRANSGAZ-M LLC – An industrial construction company focused on oil, gas, petrochemical, and other civil engineering projects.
- THE LIMITED LIABILITY COMPANY INVESTMENT COMPANY ABROS – Designated for being owned or controlled by Bank Rossiya.
- TRANSOIL – A Russian based rail freight operator specializing in the transportation of oil and oil products.
- VOLGA GROUP – A Luxembourg based investment vehicle which manages assets on behalf of Mr. Timchenko.