Photo: Rostec
The latest round of sanctions announced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) goes to the roots of Vladimir Putin’s war machine, the infamous military-industrial conglomerate Rostec, targeting the country’s entire aerospace industry.
Russian officials were recently announcing grandiose plans to increase the number of domestically-produced aircraft operated by the country’s airlines to 80%. The country’s aviation sector was already badly affected by the lack of spare parts and maintenance services provided by foreign manufacturers as a result of the war. Now, the latest sanctions announced by the U.S. Treasury target this sector directly.
According to the official document, almost 100 targets are added to the list, including 70 entities and 29 individuals. The goal is to strike the country’s defense industry in an effort to weaken Putin’s war capabilities. Rostec, the giant state-owned enterprise with subsidiaries in strategic industries such as defense, aviation, automotive, and metals, is now sanctioned by the entire Western world (from the U.S., UK, and EU to Australia, New Zealand, and Canada), which further isolates Russia.
This will affect the production of all Russian aircraft, from the future airliner MC-21-300 to the military TU-214. United Aircraft Corporation (UAC), Irkut, Sukhoi, the Ilyushin Design Bureau, and the Tupolev Design Bureau are all targeted. Ch-aviation reports that transactions related to sanctioned entities “but located wholly outside of Russia and used solely for civilian purposes” are exempted.
Back in December 2021, Russia was proudly announcing the successful flight of the MC-21-300, a medium-haul airliner boasting domestically-developed composite wings. It was supposed to be a big step towards a robust aerospace local industry that would no longer depend on foreign aircraft parts. At the moment, it seems hard to believe that Kremlin will have the funds to boost this sector even more, as it recently boasted. And these recent sanctions are another blow that makes this even less likely.
According to the official document, almost 100 targets are added to the list, including 70 entities and 29 individuals. The goal is to strike the country’s defense industry in an effort to weaken Putin’s war capabilities. Rostec, the giant state-owned enterprise with subsidiaries in strategic industries such as defense, aviation, automotive, and metals, is now sanctioned by the entire Western world (from the U.S., UK, and EU to Australia, New Zealand, and Canada), which further isolates Russia.
This will affect the production of all Russian aircraft, from the future airliner MC-21-300 to the military TU-214. United Aircraft Corporation (UAC), Irkut, Sukhoi, the Ilyushin Design Bureau, and the Tupolev Design Bureau are all targeted. Ch-aviation reports that transactions related to sanctioned entities “but located wholly outside of Russia and used solely for civilian purposes” are exempted.
Back in December 2021, Russia was proudly announcing the successful flight of the MC-21-300, a medium-haul airliner boasting domestically-developed composite wings. It was supposed to be a big step towards a robust aerospace local industry that would no longer depend on foreign aircraft parts. At the moment, it seems hard to believe that Kremlin will have the funds to boost this sector even more, as it recently boasted. And these recent sanctions are another blow that makes this even less likely.
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