The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has updated its list of individuals and companies designated under the framework of sanctions on Russia, adding all state-owned civilian aircraft manufacturers controlled by Rostec and UAC United Aircraft Corporation.
The June 28, 2022, update includes, among scores of other companies and individuals, the following firms and all of their subsidiaries:
- UAC United Aircraft Corporation - the parent holding for all manufacturers controlled by state-owned industrial conglomerate Rostec,
- Irkut - the manufacturer of the MC-21-300 and the SSJ 100/95, and
- Ilyushin Design Bureau - the manufacturer of the Il-114-300 and its affiliated bank Ilyushin Finance,
- Tupolev Design Bureau - the manufacturer of the Tu-214.
Select transactions with Rostec and its subsidiaries will remain permitted through August 11, 2022. Those related to aircraft or other goods linked to the sanctioned entities but located wholly outside of Russia and used solely for civilian purposes are also exempted.
Yuri Slyusar, the CEO of UAC, has already been individually sanctioned. Sukhoi, which currently makes military aircraft and is no longer in charge of the SSJ100/95 programme, is also on the OFAC list.
The current sanctions are much stricter than the previous designation of UAC and its civilian and military subsidiaries as military end-users in December 2020. Military end-users can still buy goods from the US subject to special authorisation, while OFAC-sanctioned entities are covered by a blanket ban on any transactions involving US companies, individuals, or products.
