EFTA Document EFTA01453397

Viktorovich Bushmin, deputy speaker of the Federation Council of the Russian Federation; Andrei Fursenko, an aide to Putin; Vladimir Yakunin, chief executive officer of OAO Russian Railways; billionaire Gennady Timchenko, a co-founder of oil trader Gunvor Group Ltd; businessman Arkady Rotenberg, a former judo partner of Putin whose companies won more than S7 billion of contracts for the 2014 Winter Olympics in Sochi, and his brother, Boris, and Yuri Kovalchuk, a partner at Bank Rossiya, according to a list released by the Treasury Department. Eight of the 20 were previously designated by the EU. The sanctions, based on an executive order issued March 17, ban the individuals' entry, freeze any personal assets they may have in the U.S. and bar them from doing business with any U.S. company or financial institution. A U.S. official, who briefed reporters on condition of anonymity to discuss the details, said the individuals won't have access to any U.S. financial services and will have difficulty conducting transactions in dollars. Bank Rossiya also will be frozen out of dollar transactions. Russian Economy Obama also signed a new executive order, his third in response to the Ukraine crisis, authorizing though not implementing economic sanctions affecting parts of the Russian economy. They included financial services, energy, metals and mining, defense and engineering. "This is not our preferred outcome," he said. "These sanctions would not only have a significant impact on the Russian economy, but also could be disruptive to the global economy." Russian stocks traded in New York fell the most in more than two weeks after Obama's announcement. The Bloomberg Russia- U.S. Equity index of the most-traded Russian shares in the U.S. dropped 3.3 percent to 80.10 at 4 p.m. in New York. Standard & Poor's cut its outlook for Russia to negative because of the risks posed by the conflict, affirming Russia's credit rated at BBB, the second-lowest investment grade. Russia's Reaction Kremlin spokesman Dmitry Peskov said Russia was surprised by some of the names on today's list, and considers the use of sanctions unacceptable. It's not true that Putin is an investor in Gunvor as the U.S. alleges, he said. In retaliation for the new U.S. sanctions, the Russian government barred entry of nine U.S. officials, including House Speaker John Boehner of Ohio and Senate Foreign Relations Committee Chairman Robert Menendez of New Jersey. "The speaker is proud to be included on a list of those willing to stand against Putin's aggression," Boehner's spokesman, Michael Steel, said in an e-mail. Edward J. Krauland, a partner at the law firm Steptoe & Johnson who's a specialist on international sanctions, said targeting individuals probably won't have a big an impact on Russia's actions. Hitting Russian economic sectors would. "I don't even think if they targeted Putin it would bring Mr. Putin to the table," Krauland said. "If you can isolate particular sectors of a country's economy that are significant, disproportionate parts of the economy, you're going to impose a hurt on that country." EU Debate CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0110961 CONFIDENTIAL SDNY_GM_00257145 EFTA01453397