The US Office of Foreign Assets Control (OFAC) has designated Abakan Air (S5, Moscow Sheremetyevo) for "conducting arms deliveries on behalf of Russia's defence industrial base" while transporting "other Russian military equipment".

The US authorities also alleged that the Russian cargo specialist had operated in various Sub-Saharan African countries on behalf of the private military company Wagner, formerly associated with the now deceased Yevgeniy Prigozhin. Abakan Air was included in a new swathe of sanctions targeting over 300 new entities and individuals, which the US issued shortly before the planned latest G7 Summit.

Abakan Air is not sanctioned in any other jurisdiction. The company operates two Il-76TD freighters, of which one is currently active on charters out of Fujairah and the other is stored. The carrier has retired two other Il-76TDs since the start of Russia's invasion of Ukraine in February 2022, transferring them to MAK.KG Airlines and Burkina Faso's Liz Aviation. The airline also operates Mi-8 and Mi-26 Mil Helicopters.

The airline is owned by Moscow-based company Avialeasing-Invest, which has a paid-up capital of just RUB10,000 rubles (USD113) and belongs to one Yulia Anatolyevna Ilyina, who does not appear to have any other investments or functions in the aviation industry.

While no other airlines were included in this round of US sanctions, OFAC also designated unnmanned aerial vehicle manufacturer Aero-HIT and its commercial partner in China, which was allegedly used to circumvent sanctions. The US also designated Dubai-based firm ORG Logistics FZE for supplying banned goods to Russia by air. Sanctions were also applied to the Russian financial sector, including the Moscow Exchange.