Are persons identified pursuant to Executive Order (E.O.) 13662 as subject to Directive 3 for operating in the defense and related materiel sector of the Russian Federation economy blocked pursuant to E.O. 14024?
OFAC's answer
Persons identified pursuant to [E.O. 13662](https://ofac.treasury.gov/media/5961/download?inline) as subject to Directive 3 for operating in the defense and related materiel sector of the Russian Federation economy are not subject to prohibitions under [E.O. 14024](https://ofac.treasury.gov/media/57936/download?inline) unless those persons are also sanctioned pursuant to E.O. 14024. For more information regarding Directive 3, please review applicable OFAC public guidance, such as [FAQ 411](https://ofac.treasury.gov/faqs/411). E.O. 14024 provides for blocking sanctions on persons operating in the technology sector or the defense and related materiel sector of the Russian Federation economy, or any other sectors determined by the Secretary of the Treasury, in consultation with the Secretary of State. The identification of a sector pursuant to E.O. 14024 provides notice that persons operating in the identified sector are exposed to sanctions risk; however, such identification does not automatically block all persons operating in the sector. Only persons designated pursuant to E.O. 14024 for operating in the defense and related materiel sector of the Russian economy (or any other sector identified under the E.O.) are subject to blocking sanctions and will appear on the SDN List. E.O. 14024, as amended by [E.O. 14114](https://ofac.treasury.gov/media/932441/download?inline), also authorizes the imposition of sanctions on foreign financial institutions that have conducted or facilitated certain transactions involving Russia’s military-industrial base. See FAQs [1147](https://ofac.treasury.gov/faqs/1147), [1148](https://ofac.treasury.gov/faqs/1148), [1149](https://ofac.treasury.gov/faqs/1149), [1150](https://ofac.treasury.gov/faqs/1150) and [1151](https://ofac.treasury.gov/faqs/1151) for information. Date Updated: February 23, 2024
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Related FAQs
- #411What does the prohibition contained in Directive 3 under Executive Order 13662 mean? What is the scope of prohibited services?
- #1147How does Executive Order (E.O.) 14114 amend E.O. 14024, “Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation”?
- #1148What activities could expose a foreign financial institution (FFI) to sanctions under section 11 of Executive Order (E.O.) 14024, as amended by E.O. 14114?
- #1149What sanctions can be imposed on a foreign financial institution (FFI) that engaged in conduct described in section 11 of Executive Order (E.O.) 14024, as amended by E.O. 14114? What are the obligations of U.S. financial institutions?
- #1150What does determination of December 22, 2023, "Determination Pursuant to Section 11(a)(ii) of Executive Order (E.O. 14024)" (Russia Critical Items Determination) do?
- #1151How does OFAC intend to interpret the following terms in Executive Order (E.O.) 14024, as amended by E.O. 14114: “foreign financial institution,” “Russia’s military-industrial base,” and “significant transaction or transactions”?