Five Singapore-based firms sanctioned by the US for enabling Russia’s war effort

SINGAPORE: Five Singapore-based firms have been sanctioned by the United States for their roles in enabling Russia’s efforts in the ongoing Ukraine war, the US government said on Wednesday (Oct 30).
They have also been added to the list of Specially Designated Nationals by the US Treasury Department’s Office of Foreign Assets Control (OFAC).
The US on Wednesday took action against nearly 400 entities and individuals globally for “enabling Russia’s prosecution of its illegal war”, said the US Department of State.
“The department seeks to disrupt the networks and channels through which Russia procures technology and equipment from entities in third countries to support its war effort,” it added.
It said that Wednesday’s designations targeted “producers, exporters, and importers of items critical to Russia’s military-industrial base”.
Russia invaded its neighbour Ukraine in February 2022 – a war that has claimed hundreds of thousands of lives.
Five Singapore-based firms were named in Wednesday’s round of sanctions by the US government.
Powerman International, which designs and produces electrical equipment, was identified for “operating or having operated in the technology sector of the Russian Federation economy”, said the US State Department.
The firm, based in Prudential Tower in Cecil Street, had shipped approximately US$4.5 million worth of common high-priority list items – including motherboards and uninterruptible power supply systems originating from the European Union – to Russia-based companies between March 2023 and February this year, the department said.
CNA has contacted Powerman International for comment.
Another four local firms were also identified as being part of a network of shipping companies which helped Novatek, Russia’s largest LNG producer, procure vessels for its operations.
“The Arctic LNG 2 project has relied on foreign service companies’ technology and maritime logistics support,” the US State Department said of the project in which Novatek is the controlling shareholder.
To circumvent US sanctions, Russian firms have procured secondhand LNG tankers, mostly through front companies in third-country jurisdictions, to make up for a critical shortage of available tankers for the project, said the State Department.
Singapore-based firms LNG Alpha Shipping, LNG Beta Shipping, LNG Delta Shipping and LNG Gamma Shipping, are all majority-owned by New Transhipment FZE, a Novatek subsidiary based in the United Arab Emirates.
Of the four, LNG Alpha Shipping is directed by Russian nationals, according to the State Department.
They are all registered to the same address at Fortune Centre in Middle Road.
The four are the registered owners of LNG carriers North Air, North Mountain, North Way and North Sky respectively – vessels which had previously been identified as being part of Russia’s “dark fleet”.
None of the four firms have publicly available contact information.
CNA has contacted the Ministry of Trade and Industry for comment.
“Unlike United Nations’ sanctions, US sanctions are unilateral,” explained S Rajaratnam School of International Studies research fellow Muhammad Faizal Abdul Rahman.
“But they carry significant weight as the US is the largest economy in the world by GDP (gross domestic product) and it is the global power that dominates the international financial system.”
He said that foreign firms under US sanctions would find it difficult to do business with American entities or individuals, and sell or procure goods and services from the US market.
Such sanctions would also isolate these companies from the international financial system, said Mr Faizal.
“These sanctions could also function as indirect political pressure on other countries, especially those in the non-western world, to do more to rein in the sanctioned companies and be more aligned with the West in efforts to weaken the Russian economy and military-industry complex,” he said.
Dr Shashi Jayakumar, executive director of security consultancy SJK Geostrategic Advisory, noted that this is not the first time that Singapore entities or individuals have been designated under the OFAC sanctions list.
“Singapore entities and individuals have been designated under OFAC in the past on account of their links with, or dealings with, North Korea, Iran or Myanmar,” he said.
In March 2022, Singapore imposed financial measures targeted at designated Russian banks, entities and activities in Russia, as well as fundraising activities benefiting the Russian government.
The Singapore government also imposed export controls on items that can be “directly used as weapons to inflict harm on or to subjugate the Ukrainians”, as well as items that can contribute to offensive cyber operations, the Ministry of Foreign Affairs said then.