concern kalashnikov

The Obama Administration imposed a new round of sanctions against Russian oil, natural gas, financial and defense companies for the nation’s continued involvement in the conflict in Ukraine. Among the defense companies targeted in Executive Order 13662 is Concern Kalshnikov:

KALASHNIKOV CONCERN (a.k.a. CONCERN KALASHNIKOV; a.k.a. IZHEVSKIY MASHINOSTROITEL’NYI ZAVOD OAO; f.k.a. IZHMASH R&D CENTER; f.k.a. JSC NPO IZHMASH; f.k.a. NPO IZHMASH OAO; a.k.a. OJSC CONCERN KALASHNIKOV; f.k.a. OJSC IZHMASH; f.k.a. SCIENTIFIC PRODUCTION ASSOCIATION IZHMASH JOINT STOCK COMPANY), 3, Derjabin Pr., Izhevsk, Udmurt Republic 426006, Russia; Registration ID 1111832003018 [UKRAINE2].

The Executive Order will impact RWC Group LLC, Concern Kalashnikov’s U.S. importer, almost immediately.

Izmash rifles, including rimfire and centerfire bolt-action rifles, and semi-automatic Saiga rifles and shotguns based off the famed Kalashnikov action, will be banned from import.

But what if you own a Saiga or Izmash rifle or shotgun, have one on order, or on layaway?

The Treasury Department has a statement on that, too:

374. If I own a Kalashnikov product, is that product blocked by sanctions?  Am I able to resell a Kalashnikov product at a gun show or other secondary market? 

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]

375. If I have Kalashnikov products in my inventory, can I sell them?

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]

It reads to me that if the gun is fully paid for either by an individual, retailer, or distributor and Concern Kalashnikov has already been paid, then the gun is free for you to do with as you will. Shoot or sell if you so desire. If the firearm is not fully paid for (on consignment from Concern Kalashnikov is one example), then things are going to get sticky, and those currently in possession of consignment guns need to contact the Treasury Department to discuss their particular situation.

Unfortunately for us, this includes the IZ132 SU2 that I was offered for testing and evaluation (it is a T&E  loaned gun, and not paid for).

Sigh.

Saiga-IZ132-SU2
Saiga-IZ132-SU2

Concern Kalashnikov’s U.S. distributor, RWC Group, will issue a statement on the impact of Executive Order 13662 within the next 24-48 hours.

These are American jobs affected by Obama’s sanctions.