In response to Russia’s aggressive actions in Ukraine, the U.S. government has issued a number of new sanctions against Russian companies. Among the companies targeted is Kalashnikov Concern, the arms manufacturing company that makes AK-47s.
Under the new sanctions, Americans who own a Kalashnikov Concern product, like an AK-47, that was “bought and fully paid for prior to the date of designation (i.e., no payment remains due to Kalashnikov Concern), then that product is not blocked and OFAC sanctions would not prohibit the U.S. person from keeping or selling the product in the secondary market, so long as Kalashnikov Concern has no interest in the transaction,” according to the Treasury Department.
However, individuals and companies can no longer order products directly from Kalashnikov Concern or from other sellers in which the Russian firm has an “interest.” Further, Americans who own a Kalashnikov Concern product that has not been fully paid for are advised to contact the U.S. Office of Foreign Assets Control for more information.
The Treasury Department also advises companies or individuals with Kalashnikov Concern products in their inventory to contact the OFAC for more information if the products are “not fully paid for or are being sold on consignment.” In other situations where the Russian firm doesn’t “have an interest,” it appears the products can still be sold in the U.S.
Read part of the executive order issued by the Obama administration that slaps sanctions on Kalashnikov Concern and other Russian firms [emphasis added]:
Today, OFAC is introducing the Sectoral Sanctions Identifications List to identify persons operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662. Directives found within the list describe prohibitions on dealings with the persons identified.
KALASHNIKOV CONCERN (a.k.a. CONCERN KALASHNIKOV; a.k.a. IZHEVSKIY MASHINOSTROITEL’NYI ZAVOD OAO; f.k.a. IZHMASH R&D CENTER; f.k.a. JSC NPO IZHMASH; f.k.a. NPO IZHMASH OAO; a.k.a. OJSC CONCERN KALASHNIKOV; f.k.a. OJSC IZHMASH; f.k.a. SCIENTIFIC PRODUCTION ASSOCIATION IZHMASH JOINT STOCK COMPANY), 3, Derjabin Pr., Izhevsk, Udmurt Republic 426006, Russia; Registration ID 1111832003018 [UKRAINE2].
To review the full executive order, click here.
(H/T: Business Insider)