The Office of Foreign Assets Control is in charge of issuing economic sanctions against individuals, companies, groups, and countries that are accused of aiding terrorists, narcotics traffickers, or other enemies of the state. These sanctions usually block assets or restrict trade to accomplish various national security goals.
A recent action by the OFAC has done just that with a simple ban on the sale of a pretty niche product – turbine lubricants and additives. These sanctions were initiated right before the start of 2024, and they’re already having major impacts on global politics.
According to the agency’s logic, Russia doesn’t produce high-tech lubricants nationally. They are reliant on importing these goods. This is a bigger deal than you might initially think since these lubricants are a crucial component of power plants. That said, Russia relies on these lubricants to help maintain and build its arsenal of weapons, too.
You might think that Russia could simply switch out these lubricants for a cheaper version of the same product, but the reduction in quality would make a big impact on a power plant’s ability to produce power or do anything.
This recent sanction is only one of more that will likely come in the future, as the U.S. has begun an era of “smart sanctions”. Washington calls these economic actions the equivalent of “smart and highly accurate missiles.” Among these includes the recent sanctioning of any financial institution that has conducted or facilitated the sale, transfer, or supply of specific chemicals to Russia. These chemicals and other restricted items include nitrocellulose, turbine lubricant additives, fiber-optic gyroscopes, precision tools, and internal navigation systems.
According to the agency, all these materials are critical for Russia’s military advancement. That said, the smart sanctions target Russia’s biggest industrial weaknesses.
Have You Been Accused of Violating OFAC’s Sanctions?
Do you produce turbine lubricant or one of the other restricted products mentioned by OFAC? If so, then you need to be very careful about who you do business with. If you violate the OFAC sanctions and conduct business with a sanctioned party, then that is considered a very serious crime. OFAC could treat the violation as a threat to national security and foreign relations.
If convicted, then you could face substantial penalties including getting sentenced to serve up to 30 years in prison. You’ll also likely get significantly fined. Depending on the nature of the violation, these fines can exceed several million dollars when you’ve willingly done business with a sanctioned party.
The good news is that you have the right to hire a criminal defense attorney to represent you in court. Considering the nature of your allegations, it’s usually best to hire a global lawyer who is familiar with OFAC charges. Here at Bukh Global, our attorneys are confident that we can help you navigate your charges. We’ll fight to help secure the best possible legal outcome in your circumstances.
Are you ready to get started? Schedule a call with our office now to learn more about how we can help.