The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned five entities and 19 individuals it has identified as engaging in Russian cyber activity, including “attempted interference in U.S. elections, destructive cyber-attacks, and intrusions targeting critical infrastructure,” according to Treasury Secretary Steven Mnuchin. The Treasury Department indicated that these sanctions were in response to interference in the 2016 U.S. election and the execution of destructive cyber-attacks, including the NotPetya attack attributed to the Russian military that is believed to be the most destructive and costly attack in history. The sanctions are also in response to continuing efforts by Russian government cyber actors who have targeted U.S. government entities and multiple critical U.S. infrastructure sectors, including energy, nuclear and commercial facilities and the water, aviation and critical manufacturing sectors. The White House also joined France, Germany and the United Kingdom in condemning the recent use of a military-grade nerve agent in an attempt to murder two UK citizens and noted that this incident further demonstrates the reckless and irresponsible conduct of the Russian government.
The sanctions are being implemented pursuant to Executive Order 13694, which targets malicious cyber actors, and under the Countering America’s Adversaries Through Sanctions Act (CAATSA). Particularly, the sanctions include the Federal Security Service (FSB) and Main Intelligence Directorate (GRU), a Russian military intelligence organization, which have both been key actors in Russia’s ongoing efforts to undermine cybersecurity. As a result of these designations, all property and interests in property of the designated entities/persons subject to U.S. jurisdiction are blocked and U.S. persons are generally prohibited from engaging in transactions with them.