USA Imposes Sanctions On The Chinese Entity Equipment Development Department (EDD)

 United States of America (USA) has imposed sanctions on Chinese entity Equipment Development Department (EDD) and its Director, Li Shangfu, for engaging in significant transactions with Russian companies and persons who are on List of Specified Persons (LSP) under Countering America's versaries Through Sanctions Act of 2017 (CAATSA).

As per details shared by U.S Department of State, se transactions involved Russia's transfer to China of Su-35 combat aircraft and S-400 surface-to-air missile system-related equipment.

Giving details on action initiated against EDD, US State Department said: " Secretary of State, in consultation with Secretary of Treasury, determined that EDD, formerly kwn as General Armaments Department (G), kwingly engd in significant transactions with a person that is a part of, or operates for or on behalf of, defence sector of Government of Russian Federation. China took delivery from Russia of ten Su-35 combat aircraft in December 2017 and an initial batch of S-400 (a.k.a. SA-21) surface-to-air missile system-related equipment in 2018. Both transactions resulted from pre-August 2, 2017, deals negotiated between EDD and Rosoboronexport (ROE), Russia's main arms export entity."

As part of se sanctions, re will be a denial of export licenses, a prohibition on foreign exchange transactions under United States jurisdiction, a prohibition on transactions with United States financial system, blocking of all property and interests in property within United States jurisdiction and imposition of sanctions on an EDD principal executive officer, its Director Li Shangfu, which include a prohibition on foreign exchange transactions under US jurisdiction, a prohibition on transactions with US financial system, blocking of all property and interests in property within US jurisdiction, and a visa ban. step, as per US Department of State, has been taken to furr impose costs on Russian Government for its malign activities.

Secretary of State has also ded 33 ditional persons to CAATSA Section 231 List of Specified Persons (LSP) informing about which press release states, "A person is eir an entity or an individual and is ded to list for being a part of, or operating for or on behalf of, defense or intelligence sectors of Government of Russian Federation. This action increases number of persons identified on LSP to 72. Any person who kwingly engs in a significant transaction with any of se persons is subject to mandatory sanctions under CAATSA section 231."

move follows President of America Donald Trump's new Executive Order "Authorizing Implementation of Certain Sanctions Set Forth in Countering Americas versaries Through Sanctions Act" to furr implementation of certain sanctions in Countering America's versaries Through Sanctions Act of 2017 (CAATSA) with respect to Russian Federation.

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Elaborating furr on se decisions, US Department of State has also clarified that se actions are t intended to undermine military capabilities or combat reiness of any country.

It said: "Section 231 of CAATSA and today's actions are t intended to undermine military capabilities or combat reiness of any country, but rar to impose costs on Russia in response to its interference in United States election process, its unacceptable behaviour in eastern Ukraine, and or malign activities. Today's actions furr demonstrate Department of State's continuing commitment to fully implement CAATSA section 231, which has alrey deterred billions of dollars worth of potential arms exports from Russia. state encours all persons to avoid engaging in transactions with entities on LSP that may risk sanctions, including high-value, major transactions for sophisticated weapons systems."

CAATSA Section 231 requires that at least five of twelve sanctions described in CAATSA section 235 be imposed on a person who kwingly engd in a significant transaction with a person that is a part of, or operates for or on behalf of, defence or intelligence sectors of Russian Government.