Biden administration imposes fresh sanctions on top Russian nuclear company executives

The Biden administration designated senior officials of Rosatom, the Russian state-owned nuclear power corporation, as part of an eleventh round of sanctions against targets in Russia's energy sector, "the primary source of revenue fueling Russia's war against Ukraine," the US Department of State said Jan. 10.

Those officials include CEO Alexey Likhachev and members of Rosatom's management board, according to a department fact sheet.

"Senior Rosatom officials have publicly stated that Rosatom enterprises are developing weapons systems, including for use in Russia's war against Ukraine," State said.

It noted that Rosatom subsidiaries have provided the Russian defense industry military-applicable armaments, components and advanced technologies to further Russia's war against Ukraine.

State said that its Jan. 10 actions "bring the total number of Rosatom-related designations by the US to nearly 70 subsidiaries and related individuals."

Such actions "serve to align our actions with past designations of Rosatom board members" by the UK and Canada, the department said, noting that the designations are consistent with G7 commitments to reduce Russian nuclear energy supplies and services.

The UK also targeted the Russian energy sector in imposing sanctions "to curb Russia's ability to fund its illegal war against Ukraine," State said.

Besides Likhachev, the new Rosatom sanctions list includes Nikolay Spassky, deputy general director for international relations and Kirill Komarov, first deputy general director for development and international business. Both play key roles in promoting Rosatom civilian products and services to international customers.

The department said the individuals designated Jan. 10 "enable Rosatom's involvement in Russia's nuclear weapons complex and defense sector, nuclear power plant construction exports, development of advanced technologies and materials, non-uranium extractive industries and associated businesses, and malign activities including the occupation of Zaporizhzhia Nuclear Power Plant in Ukraine."

The sanctions include freezing the US assets of the sanctioned entities and banning American citizens and companies from transacting with them.

The Rosatom press office did not immediately reply to a request for comment by S&P Global Commodity Insights.

The largest sanctions package against Rosatom to date was introduced in April 2023. In it the Department of the Treasury's Office of Foreign Assets Control targeted 25 individuals and 29 entities: Atomstroy, Rosatom's subsidiary responsible for resource management; Kovrov Mechanical Plant, a division manufacturing centrifuges for uranium enrichment, and Rusatom Overseas, a part of Rosatom involved in promoting Russian nuclear technologies to overseas customers.

Those restrictions targeted minor Rosatom subsidiaries and were expected to have a moderate impact, limited to Rosatom's small modular reactor export potential, Russian analysts told S&P Global Commodity Insights at that time.

The Department of the Treasury Jan. 10 concurrently sanctioned more than 150 entities and individuals, including major Russian oil producers Gazprom Neft and Surgutneftegas, Russian insurance companies, and shadow fleet vessels, State said.