TREASURY LEVELS SANCTIONS ON RUSSIAN COMPANIES
July 16, 2018
As part of the Countering America’s Adversaries Through Sanctions Act, the Treasury Department’s Office of Foreign Assets Control has imposed new economic sanctions on five businesses and individuals found to have aided Russia’s Federal Security Service (“FSB”) increase their offensive cyber capabilities. These businesses and individuals assisted the FSB’s cyber and underwater capabilities – the FSB has been activity engaged in tracking undersea communications.
The sanctions will bar Americans from doing business with the subject entities and individuals, as well as freeze their assets. The sanctions are a response to the June 2017 cyber-attack known as NotPetya, which disabled part of Ukraine’s infrastructure and damaged computers worldwide, and other attacks on the U.S. energy grid. The sanctions are also intended to scuttle Russian efforts to track underwater communications cables that transmit much of the world’s data.
The sanctioned entities include:
- Digital Security, a Moscow based cybersecurity firm, and its two U.S. subsidiaries;
- Kvant Scientific Research Institute; and
- Divetechnoservices, a St. Petersburg based firm, along with three of its top executives.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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