Tetyana GUCHAKOVA Andrii KLYMENKO Olha KORBUT Tetyana Guchakova is a Crimean economic expert and journalist, the co- founder and general manager of the BlackSeaNews online publication, www.blackseanews.net. The author holds a degree in engineering economics. Before the occupation of Crimea, she lived and worked in Yalta. T. Guchakova is a business consultant, the author of many Crimea development strategies, including those for the peninsula's major cities and industries. She is currently being persecuted by the FSB for resisting the occupation of Crimea. Since 2015, together with the rest of the BlackSeaNews editorial staff, T. Guchakova THE REAL IMPACT has been working in Kyiv. In 2015, she joined the Maidan of Foreign Affairs' Crimean Department as a leading expert. Since 2017, the author has been OF CRIMEAN SANCTIONS working as an expert of the Monitoring Group that focuses on the issues of compliance with international sanctions against the RF imposed for the occupation and illegal annexation of Crimea. Since 2019, T. Guchakova has Issue 2 been the Chairwoman of the Black Sea Institute of Strategic Studies. March 2020 Andrii Klymenko is a Crimean expert and journalist, the co-founder and editor- in-chief of the BlackSeaNews online publication, www.blackseanews.net. The author holds a degree in automatic systems engineering. Before the occupation of Crimea, he lived and worked in Yalta. A. Klymenko is the author of many development strategies for the Crimean cities, economy sectors, and the peninsula as a whole. Economist Emeritus of the Autonomous Republic of Crimea. A. Klymenko is currently being persecuted by the FSB for resisting the occupation of Crimea and is on the Russian Federation's official list of terrorists and extremists. Since 2014, together with the rest of the BlackSeaNews editorial staff, he has been working in Kyiv. In 2014, the author joined the Maidan of Foreign Affairs as Chairman of the Supervisory Board and Head of the Crimean Department. Since 2017, A. Klymenko has been the Head of the Monitoring Group of the Black Sea Institute of Strategic Studies that focuses on the issues of compliance with international sanctions against the RF imposed for the occupation and illegal annexation of Crimea. Olha Korbut is a leading expert on sanctions. In 2014, she joined the Maidan of Foreign Affairs' Crimean Department. Since 2017, O. Korbut has been working as an expert of the Monitoring Group of the Black Sea Institute of Strategic Studies and the BlackSeaNews online publication, www.blackseanews.net. A philosophy graduate of the National University of Kyiv-Mohyla Academy, O. Korbut also holds a degree in NGO management from the Ukrainian Catholic University. Tetyana GUCHAKOVA Andrii KLYMENKO Olha KORBUT THE REAL IMPACT OF CRIMEAN SANCTIONS Issue 2 March 2020 © T. GUCHAKOVA, A. KLYMENKO, O. KORBUT The Real Impact of Crimean Sancons. Issue 2. Based on the monitoring results of the joint Monitoring Group of the Black Sea Instute of Strategic Studies and the BlackSeaNews online publicaon, www.blackseanews.net. Translated from Ukrainian by Hanna Klymenko. Edited by Andrii Klymenko and Tetyana Guchakova. – Kyiv, 2020. – 28 p.: ill. The monitoring of violaons of internaonal sancons against Russia and of the legal regime of the Crimean temporarily occupied territory, as well as the publicaon of this book, have been supported by the European Program of the Internaonal Renaissance Foundaon. The views of the authors do not necessarily reflect the posion of the Internaonal Renaissance Foundaon. Tetyana GUCHAKOVA Andrii KLYMENKO Olha KORBUT THE REAL IMPACT OF CRIMEAN SANCTIONS Issue 2 March 2020 © T. GUCHAKOVA, A. KLYMENKO, O. KORBUT The Real Impact of Crimean Sancons. Issue 2. Based on the monitoring results of the joint Monitoring Group of the Black Sea Instute of Strategic Studies and the BlackSeaNews online publicaon, www.blackseanews.net. Translated from Ukrainian by Hanna Klymenko. Edited by Andrii Klymenko and Tetyana Guchakova. – Kyiv, 2020. – 28 p.: ill. The monitoring of violaons of internaonal sancons against Russia and of the legal regime of the Crimean temporarily occupied territory, as well as the publicaon of this book, have been supported by the European Program of the Internaonal Renaissance Foundaon. The views of the authors do not necessarily reflect the posion of the Internaonal Renaissance Foundaon. A. Klymenko, T. Guchakova, O. Korbut. The Real Impact of Crimean Sancons A. Klymenko, T. Guchakova, O. Korbut. The Real Impact of Crimean Sancons On 20 March 2014, Execuve Order 13662 Crimea Occupaon, Sancons, introduced the sectoral sancons against Russia. The and Blockade decree imposed sancons on individual enes operang in the military and other sectors of the The occupaon and subsequent illegal annexaon of Russian economy. the Crimean peninsula by the Russian Federaon (hereinaer referred to as "the RF") in February-March On 27 March 2014, Resoluon A/RES/68/262 2014 and Russia's further aggression against Ukraine "Territorial integrity of Ukraine" was adopted at the Contents have become a turning point in the global history of UN General Assembly 68th session 80th plenary sancons. meeng. It called upon "all States, internaonal Crimea Occupaon, Sancons, and Blockade...........................................3 organizaons and specialized agencies not to Certainly, the use of various restricve measures in recognize any alteraon of the status of the an aempt to coerce a parcular state to change its Autonomous Republic of Crimea and the city of The State of the Sancons Regime as of 1 February 2020..........................5 policies is a centuries-old pracce. But the problem Sevastopol... and to refrain from any acon or dealing that we all have been facing since 2014 raises the stakes that might be interpreted as recognizing any such considerably. It challenges us to answer whether, in the altered status." The Impact of Sancons on the Crimean Banking.....................................7 3rd millennium, the civilised world is capable of changing the aggressive policy of a nuclear power, a This resoluon set the basis for the system of founder and permanent member of the UN Security The Impact of Sancons on Marime Connecons internaonal legal acts on the annexaon of Crimea Council, without the applicaon of military force. with the Occupied Crimean Peninsula......................................................8 and the related sancons. The authors hope that the results of our work that Missed Deadlines for the Producon of Karakurt Missile has spanned the 6 years of the occupaon of Crimea On 25 June 2014, the first European Union Regulaon 692/2014 came into force, which banned Corvees at the Morye Shipyard in Feodosia..........................................12 and remains ongoing will make a valid contribuon to the understanding of the subject. the import of goods from Crimea and Sevastopol to the EU countries as well as the direct or indirect The Imposion of U.S. Sancons against Russian Plants * * * provision of financial services for such import, over the Producon of Warships in Crimea.............................................14 including the insurance and reinsurance services. In the spring and summer of 2014, the first decisions on sancons related to the occupaon of On 19 December 2014, the U.S. President signed The Peculiaries of Economic Processes in Russia Crimea became effecve. The acve military phase of another Execuve Order, No 13685, directly related and Occupied Crimea under Sancons...................................................18 the Russian Crimea operaon began on 20 February to the Russian occupaon of Crimea. The decree 2014 and ended on 18 March 2014 with legimising prohibits the import or export of goods, services or Russia's Investment in Fixed Capital the fake "referendum", which was held in already technologies from or to Crimea, as well as any new occupied Crimea on 16 March 2014, in the RF. investment in the Crimea region of Ukraine by a in Occupied Crimea and Sevastopol........................................................19 United States person, wherever located. The programme of U.S. sancons over Russia's What Russian Investment Money is Spent aggression against Ukraine began on 6 March 2014, on in Crimea and Sevastopol..................................................................21 when U.S. President Barack Obama issued an Execuve The Crimean sancons Order (EO 13660) "Blocking Property of Certain Persons Contribung to the Situaon in Ukraine". prohibit flights of aircra and The Heavily Subsidised Budget Model of Crimea and Sevastopol.......................................................................22 The decree declared the state of emergency and calls by sea-going vessels, imposed personal sancons: blocked assets and banned entry into the United States of persons export and import of products The Updated "Crimean Sancons Package"...........................................24 responsible for or those who had directly or indirectly parcipated in the acons that undermined the and services to/from the The Policy of Non-recognion of the Aempt democrac order in Ukraine and threatened peace, security, stability, sovereignty, and territorial integrity of territory of Crimea, including to Annex the Crimean Peninsula............................................................26 Ukraine. financial services, insurance, The Cost of the Occupaon to Russia Execuve Order 13661 of 16 March 2014, signed by leasing, investment, tourism, and What Awaits Crimea and Sevastopol...............................................28