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Friday, March 21, 2014

Facts on Executive Order 13661

We have seen some articles floating about stating that there is no need to panic concerning Russian ammo and this is certainly true in some respects. Can you expect some shortages of cheap ammo? Possibly. Hell, simply mentioning the possibility of sanctions can drive a panic unfortunately. This is typically preceded by some fancy Headline that is much more exciting than what we would bother to concoct. However, the writers stating that the latest Executive Orders will not effect Russian firearms and ammunition manufacturers are flatly wrong. The language in Executive Order 13661 is clear and we have had it clarified with the U.S. Treasury department. Facts are much more interesting to us than conjecture. 

Photo Courtesy: Eric Graves - Soldier Systems Daily 
In plain terms the Secretary of the Treasury now has the capability to block any business dealings of U.S. concerns with Russian arms manufacturers. This is now up to the discretion of the Secretary of State and Secretary of Treasury in regards to the current state of Russian actions and the response to the requests from the U.S. Government. Take that for what you will. Clearly there are manufacturers in other countries including the U.S. that can fill the gap for 7.62x39 ammunition as well as other calibers particularly steel case ammo that is sold on the cheap from the likes of Tula and Brown Bear. However when someone is accustomed to buying Tula and can no longer do so, all other variables being the same they are going to fill the gap for themselves by taking away from the supply of other manufacturers. You can see the response from the Treasury Department to us below. 

From the U.S. Treasury Office:

On background from a Treasury spokesperson, we have not yet sanctioned individuals or entities for operating in the arms or related materiel sector in the Russian Federation.  However, this Executive Order gives the Secretary of the Treasury, in consultation with the Secretary of State, the authority to do so.

Entities and individuals sanctioned under this E.O. will be placed on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals list.  Their property and interests in property under U.S. jurisdiction will be blocked and U.S. persons will be prohibited from doing business with them.  In addition, the order suspends entry into the United States of any alien designated pursuant to the order.