The U.S. Treasury Department has added the Kalashnikov Concern to its Office of Foreign Assets Control (OFAC) list of specially designated nationals (SDN), effectively ceasing importation of Kalashnikov Concern Products to the U.S. The SDN is a list of foreign individuals, groups and entities with whom U.S. persons are generally prohibited from conducting business.
The addition of Kalashnikov Concern to the SDN list is part of a larger effort established by Executive Order (E.O.) 13662 to place Ukraine-related sanctions on specified sectors of the Russian economy. The Treasury Department announced the changes to the list, which includes a number of other Russian businesses and organizations, on their website.
Although the move halts further importation of all Kalashnikov Concern Products, individuals can still sell and trade existing firearms normally. Per the Treasury Department’s FAQ page:
“If a U.S. person is in possession of a Kalashnikov Concern product that was bought and fully paid for prior to the date of designation (i.e., no payment remains due to Kalashnikov Concern), then that product is not blocked and OFAC sanctions would not prohibit the U.S. person from keeping or selling the product in the secondary market, so long as Kalashnikov Concern has no interest in the transaction. New transactions by U.S. persons with Kalashnikov Concern are prohibited, however, and any property in which Kalashnikov Concern has an interest is blocked pursuant to OFAC’s designation of Kalashnikov Concern on July 16, 2014. If a U.S. person has an inventory of Kalashnikov Concern products in which Kalashnikov Concern has an interest (for example, the products are not fully paid for or are being sold on consignment), we advise that U.S. person to contact OFAC for further guidance on handling of the inventory. [7-16-2014]”
The situation for dealers, especially those who may not own the products outright, is less clear. Again, from the Treasury Department’s FAQ page:
“If a U.S. person has an inventory of Kalashnikov Concern products in which Kalashnikov Concern has an interest (for example, the products are not fully paid for or are being sold on consignment), we advise that U.S. person to contact OFAC for further guidance on handling of the inventory. [7-16-2014]”
The Kalashnikov Concern consists of a group of Russian Arms manufacturers, including Izhmash and Izhevsk. The companies produce and import a number of AK-style and other firearms, including the popular Saiga rifles and shotguns.
It is unclear how long these sanctions will be in effect and if the Kalashnikov Concern could be removed from the SDN list at a later date.
Look for Guns & Ammo’s Book of the AK47 soon for more coverage.