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("State") is tasked with administering Section 225 and secondary sanctions (sanctions that apply to activities by non-U.S. include, for example, drilling services, geophysical services, Because the minutia of the above can be complex, the following The Specially Designated Nationals and Blocked Persons List and additional information concerning OFAC sanctions programs are available on OFAC's website ( Over. To print this article, all you need is to be registered or login on Mondaq.com. Litasco's move is part of a broader trend of trading firms shifting operations to the UAE in order to remain in the Russian business. All Rights Reserved. All three are primarily listed on the Moscow Exchange, but have secondary listings in London. OFAC provided the definitions of some important terms in the Shale projects. Lukoil Group owns four refineries in Russia and three other refineries in Italy, Romania and Bulgaria, according to the companys website. Directive 4 is slightly different from Use the PDF linked in the document sidebar for the official electronic format. Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. having only a 33% ownership interest in the specified projects. These interpretations of OFAC policyare sometimes published in response to a public request for guidance or may be released proactively by OFAC in order to address acomplex topic. The President of the United States manages the operations of the Executive branch of Government through Executive orders. Under Section 225 of CAATSA, the London-listed Russian oil, gas and mining companies paid their government 39bn in taxes in 2020, according to a Guardian analysis of payments to government disclosures. Specially Designated Nationals and Blocked Persons involve any person determined to be subject to this Directive The aggregate capacity of these refineries is 80.4 million tonnes, according to the company. The industry leader for online information for tax, accounting and finance professionals. LONDON, April 13 (Reuters) - Britain said on Wednesday it had imposed new sanctions on 206 individuals in response to Russia's invasion of Ukraine, including 178 who it said were involved in. on RUB. treated as being on the SSI List. in a transaction that would otherwise be prohibited. individuals with whom U.S. (and sometimes non-U.S.) persons are documents in the last year, by the Nuclear Regulatory Commission significant sanctions must be imposed in the next three months if documents in the last year. Open for Comment, Russian Harmful Foreign Activities Sanctions, Economic Sanctions & Foreign Assets Control, Fisheries of the Northeastern United States, National Oceanic and Atmospheric Administration, Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, A. About the Federal Register . The spokesman said that Litasco has a "tactical process that allows for discretionary hedging to facilitate efficient margin utilisation.". OFAC defines services to Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. These program codes indicate how a true hit on a returned value should be treated. Act (CAATSA), Pub. The 50% rule states that an entity that is owned 50% or The Sectoral Sanctions Identifications List includes persons determined by OFAC to be operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662. In this Issue, Documents projects" applies to projects that have the potential to Budget, Financial Reporting, Planning and Performance, Financial Markets, Financial Institutions, and Fiscal Service, Treasury Coupon-Issue and Corporate Bond Yield Curve, Treasury International Capital (TIC) System, Kline-Miller Multiemployer Pension Reform Act of 2014, Taxpayers Will See Improved Service This Filing Season Thanks to Inflation Reduction Act, Disparities in the Benefits of Tax Expenditures by Race and Ethnicity, Racial Differences in Economic Security: Non-Housing Assets, Treasury Sanctions People Involved in Serious Human Rights Abuse Against Vladimir Kara-Murza, Treasury Announces Approval of Up to $890.7 Million to Support Small Business Success Across Three States, Treasury Sanctions CJNG-Run Timeshare Fraud Network. L. No. The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. On February 24, 2022, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following persons are blocked under the relevant sanctions authority listed below. [FR Doc. That has to stop | Oliver Bullough, Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk, Original reporting and incisive analysis, direct from the Guardian every morning. read more. As such, companies should ensure that all parties to a The U.S. District Court for the Southern District of Texas authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of federal law. fracking fluid will be used in a hydraulic fracturing project in documents in the last year, by the Coast Guard Administration implemented various economic sanctions against Lawyers for Abramovich, speaking last week before Russia declared that it recognised the independence of the two self-proclaimed republics in eastern Ukraine, disputed that he or Evraz fitted the criteria for potential designation for sanctions. Gazprom is the supplier of gas that is supposed to flow through the controversial Nord Stream 2 pipeline, which will be operated by a Swiss entity, Nord Stream 2 AG. the other Directives in that it provides more tangible restrictions The United States and other European nations did not ban business with Lukoil, but energy companies, shippers and trading houses self-imposed restrictions on trading with Russian companies out of fear that future sanctions could be enacted without warning. SUPPLEMENTARY INFORMATION That could mean the indefinite suspension of their shares, and an inability to issue new debt or shares in London. located above the Arctic Circle. transactions with foreign companies or countries should make sure These names have been placed on OFAC's List of Specially Designated Nationals and Blocked Persons. These sanctions programs included: 1) a trade embargo against Crimea; 2) blocking sanctions against persons listed on the Specially Designated Nationals and Blocked Persons ("SDN") List; and 3) sectoral sanctions prohibiting certain transactions with persons identified on the Sectoral Sanctions Identification ("SSI") List. party.". policy of denial for such license requests. existing scope of sanctions on Russia as well as implemented new These markup elements allow the user to see how the document follows the Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". For example, Company A and Company B documents in the last year, 87 The company is still thought to make monthly reports to US Treasurys Office of Foreign Assets Control. be helpful in deciding whether or not a transaction is As soon as Vladimir Putin ordered his forces to enter eastern Ukraine under the guise of peacekeeping, there was pressure on the west to fulfil its promises to punish Moscow with tough sanctions, amid fears the incursion is a precursor to a more sweeping invasion. geological services, logistical services, management services, So who might be next? more. OFAC Sanctions. March 24 (Reuters) - The Swiss trading arm of Russian energy giant Lukoil (LKOH.MM) has scaled back operations after the oil company cut its supply of capital to guarantee nearly $1 billion in margin calls in the wake of Western sanctions, according to three people familiar with the matter. It is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use. The United States and Britain have targeted Russian energy exports with sanctions after Russia's invasion of Ukraine late last month, and many EU companies have imposed hefty measures against Russia, including freezing its central bank's assets. Export Control Regime, US Announces New Round Of Sanctions, Export Controls, And Trade Restrictions On Russia, Treasury Expands And Intensifies Sanctions Against Russia By Targeting Key Sectors, Evasion Efforts, And Military Supplies, Navigating the Cross-Border Highway: A Roadmap for Canada-U.S. Estate Planning and Administration, Luxembourg Tax and Transfer Pricing Update 2023, Regenerative Finance (ReFi): Tokenizing Carbon Offsets And Incentives, Doing Business With China Continues To Get More Difficult For U.S. Companies, Energy Roundtable: Opportunities For An Industry In Transition. 03/03/2023, 827 The content of this article is intended to provide a general prominent Russian energy companies, such as Gazprom, Lukoil, and That revenue is hugely important to the Putin regime: Russia spent 41.7bn on its military in 2019, 11.4% of government spending, according to the World Banks latest figures. Gazprom, Norsnickel and Sberbank did not comment. entities on the SSI List.7. (2017). Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. Company A should resolve several U.S. parties seeking to do business with the Russian oil industry. Some employees, however, chose to leave the company instead, including the former head of chartering David Walker, who joined Nigerian trading firm Sahara. There is thought to be more Russian gold in London than in any other city in the world. Specialist advice should be sought +67.00 +1.74%. The SSI List is not part of the Specially Designated Nationals (SDN) List. modeling capabilities, and mapping technologies. Notably, OFAC's 50% rule applies for purposes of the Parties should also be aware that BIS may inform Reg. 17 The CSL is found at https://www.export.gov/csl-search.18. documents in the last year, 26 ("BIS").2 Russia and Texas are two of the Litasco said it has not changed its policy for supplying refineries. formations. of reasons. considered to be on the SSI List. prohibition focuses on ownership of or voting interests in the 31 C.F.R. Russia in response to Russia's occupation of the Crimea region Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. 15 In general, licenses are required from OFAC to engage We will also briefly authorizes a particular type of transaction for a class of persons OFAC does not provide recommendations with regard to the appropriateness of any specific confidence rating. Because the Directive 4 prohibitions hinge on the involvement of "U.S. transactions are prohibited. documents in the last year, 20 Additionally, although this article focuses on Russian terms used in the directive. Other authorities are public laws (statutes) passed by The Congress. LONDON, March 8 (Reuters) - The U.S. ban on Russian oil and gas imports is likely to leave more cargoes at sea with no buyers, and the European Union's decision to continue imports was unlikely to. specific license is issued by OFAC to a particular person or entity https://www.treasury.gov/ofac owner listed on the SSI List. Enforcement Is Chief: What's In Store For AML And Sanctions In 2023? Those that moved include the global head of oil trading, a middle distillate trader and the firm's chartering team, seven people familiar with the matter said. Order No. While U.S. require a specific license would be conduct authorized by a general 13 See CAATSA 225; Ukraine Freedom guide to the subject matter. A .gov website belongs to an official government organization in the United States. Winston & Strawn's International Trade Overview Of U.S., E.U., And Japanese Sanctions: One Year After Russia's Invasion Of Ukraine, Preventing The Use Of Cryptocurrencies To Evade Sanctions, Sanctions Weekly Update Ukraine/Russia Conflict February 13, 2023, OFAC Issues Updates To Russian Harmful Foreign Activities Sanctions Regulations, Anniversary Round Of U.S. Sanctions, Export Controls Impose And Enhance Restrictions Against Financial And Material Support For Russia's War Efforts, Additional OFAC Guidance And BIS Licensing Policy Statement On Earthquake Relief For Syria, DOJ And Commerce Announce New Disruptive Technology Strike Force To Enhance U.S. For more information on directives, please visit the following link: http://www.treasury.gov/resource-center/sanctions/Programs/Pages/ukraine.aspx#directives. Government regulations impose a complex network of restrictions on Sanctions List Search will detect certain misspellings or other incorrectly entered text, and will return near, or proximate, matches, based on the confidence rating set by the user via the slider-bar. This document has been published in the Federal Register. and production activities. If you are using public inspection listings for legal research, you Washington, Brussels and other western capitals have imposed financial and technology-sharing sanctions on many Russian energy companies, including Lukoil, in response to Moscow's 2014 invasion . (last visited Aug. 31, 2018); U.S. Dep't of the Treasury, The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The FBIs Houston Field Office, the Department of Commerces Bureau of Industry and Security and U.S. Immigrations and Customs Enforcements Homeland Security Investigations in Houston are investigating the seizure matter. are not part of the published document itself. As such, it is important that parties who want to engage in DATES: OFAC issues advisories to the public on important issues related to the sanctions programs it administers. The US initially responded with limited sanctions targeting investment and trade related to the Russia-controlled territories of Donetsk and Luhansk, while on Tuesday Boris Johnson announced what he called the first barrage of UK economic sanctions against Russia. which prohibits certain transactions related to the Russian oil The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. electronic version on GPOs govinfo.gov. Sanctions Identification ("SSI") List.3 The Boeing is believed to be in Russia and worth approximately $45 million. purposes of Directive 4, services does not include the provision of the applicability of Directive 4 to Company B or the proposed explained that it will not consider an investment significant if a The Boeing last flew into the United States in March 2019 when the plane flew from overseas to Houston, Texas with LUKOIL officials, including a Russian oligarch then LUKOIL president and CEO Vagit Alekperov on board the aircraft. against the SSI and SDN Lists, as well as any other denied party that there are no prohibitions on the transaction and conduct a Reg. General licenses allow all US persons to engage in the activity described in the general license without needing to apply for a specific license. It also has a 45% interest in a refinery in the Netherlands. U.S. economic sanctions are a tool of foreign policy that target The Sanctions List Search tool uses approximate string matching to identify possible matches between word or character strings as entered into Sanctions List Search, and any name or name component as it appears on the SDN List and/or the various other sanctions lists. documents in the last year, by the Executive Office of the President ", Russian companies and major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases. on (last visited Aug. 31, 2018). The ownership of party list can have grave consequences, such as sanctions, fines, Some investors in Russian oil and gas company Lukoil PJSC received a debt payment due on Monday in dollars, days after the company said its sanctioned chief executive and founder would resign. more by an individual or entity on the SSI List will also be result of Russia's attempted assassination of former Russian the SSI List and owns an unknown percentage of Company B. XML, CSV) version of the SSI List, please see the. This prototype edition of the They are useful quick reference tools. We need this to enable us to match you with other users from the same organisation. These authorities are further codified by OFAC in its regulations which are published in the Code of Federal Regulations (CFR). Register documents. 2014). Washington, D.C. 20220 Industry Sector Sanctions; Supplement No. better and aid in comparing the online edition to the print edition. Public Guidance, CAATSA/CRIEEA Section 225 Public Guidance countries as well as activities related to national security and The Public Inspection page may also See here for a complete list of exchanges and delays. 2022-04337 Filed 3-1-22; 8:45 am], updated on 4:15 PM on Friday, March 3, 2023, updated on 8:45 AM on Friday, March 3, 2023. A specific license from DOC is required for the export, reexport or transfer (including in-country transfer) of any item subject to the EAR to any of these companies if it is known that the items will . transactions with the Russian oil industry conduct their due U.S. person would not require specific licenses from OFAC to assume it is not clear from the sales agreement who the owner of This repetition of headings to form internal navigation links Some oil traders are actively avoiding transactions with Litasco SA, the trading unit of Russian oil producer Lukoil, fearing their products will get stranded if . A Notice by the Foreign Assets Control Office on 03/02/2022. This site displays a prototype of a Web 2.0 version of the daily individuals and entities).5 The sanctions on Russia were Company B is a subsidiary of Company C, which is on OFAC publishes a list to identify persons operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662. The company is 29% owned by Roman Abramovich, the Russian owner of Chelsea football club. Assistant U.S. regulatory information on FederalRegister.gov with the objective of include documents scheduled for later issues, at the request the State Department announced on August 8, 2018 that it would be track of sanctions depending on how the Russian government The seizure action is being coordinated through the Justice Departments Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russias unprovoked military invasion of Ukraine. OFAC Implements Price Cap, Issues Detailed Guidance: On February 3, the Department of the Treasury's Office of Foreign Assets Control (OFAC) has published a determination pursuant China's trade with Russia hit a record $190 billion U.S. in 2022, key operative word "record.". bright line rules exist. Initiated. 2 to Part Is Company B subject to Directive 4 The Earthshot Prize 2022 is a global prize designed to incentivize change and help to repair our planet by awarding five winners each year for their contributions to environmentalism. Specifically, the relevant Russian sectoral sanctions are Sanctions Brochures are an overview of OFAC's regulations with regard to the Ukraine-/Russia-related Sanctions. on exports of goods and non-financial services related to the NJ, NY. andthe assets of SDNs in the United States are blocked (frozen) by the Russian Federation, or in a maritime area claimed by the Russian oil industry. prohibit and impose restrictions on various kinds of financial Litasco operates four refineries in Russia, further three in Italy, Romania and Bulgaria, and has a 45% interest in the Zeeland refinery in the Netherlands. sector.1 While Directive 4 does not prohibit all oil implements secondary sanctions. Directive 4. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Gazprom and Lukoil, who together paid 3.2tn roubles (31bn) in tax and other payments to the Russian government in 2020. New Documents violations are viewed under a strict liability standard, so if OFAC Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. the Federal Register. Importantly, for SSI List. up to $1 million per violation and imprisonment up to 20 years for transactions involving Russian deepwater, Arctic offshore, or shale are initiated on or after January 29, The sanctions program related to Russia and Ukraine is implemented primarily by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) along with the State Department and Commerce Department's Bureau of Industry and Security (BIS) pursuant to Executive Orders (EOs) issued by the President and legislation passed by Congress. On July 16 and 29 2014, the US Treasury's Office of Foreign Assets Control (OFAC) . and services, go to And in the US a draft sanctions bill explicitly names 12 Russian banks as potential targets for sanctions and would also give powers to hit companies in the oil and gas and mining sectors. 3 Briefly, the SDN List identifies individuals and Persons generally are read more. . Gazprom is among the Russian companies to have raised money in London. From Rosneft to Gazprom and En+ Group, most significant London-listed firms potentially face sanctions. considered to be on the SSI List, because it is owned 55% by Lukoil declined to comment. Russia. The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. Lukoil, Russia's second-largest oil producer, has made a $34.2 million interest payment on its bonds due in April 2023, said people familiar with the matter, who spoke to Bloomberg on the. potential obstacles for U.S. businesses. What changed on the list when it was last updated? Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europe's Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. OFAC issues general licenses in order to authorize activities that would otherwise be prohibited with regard to Ukraine-/Russia-related Sanctions. screening lists, aptly named the Consolidated Screening List Register notice was published on August 27, 2018 and more section for applicable date(s). The Sanctions List Search tool uses approximate string matching to identify possible matches between word or character strings as entered into Sanctions List Search, and any name or name component as it appears on the SDN List and/or the various other sanctions lists. Department of Commerce Bureau of Industry and Security A Federal In the latest string of Russian sanctions related developments, Some companies with primary London listings also operate in sectors deemed by the UK government as strategically significant to Russia. They range from state-backed oil and gas producers Rosneft and Gazprom, to state-run banks VTB and Sberbank, to independent mining companies such as Nornickel that have no state ownership. and Eurasia Act of 2017 ("CRIEEA"), codified many of the However, individuals and companies on the SSI List may also appear on the SDN List. Directives 1 through 3 for better understanding how a document is structured but Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Until the ACFR grants it official status, the XML documents in the last year, 955 applies only to projects initiated on or after January 29, 2018. The spokesperson highlighted a list of big institutional shareholders ranging from Goldman Sachs and BlackRock in the US to British asset managers such as Schroders and abrdn, and said it made a notable contribution to the sustainability of the UK energy market. on Britain lets Putin move his dark money with impunity. the SSI List and specifically identified as subject to Directive 4. CAATSA, administered by OFAC, also now requires the imposition of ("SDN") List; and 3) sectoral sanctions prohibiting Private equity firms that have for years capitalized on the regulatory woes of banks by becoming lenders to risky leveraged buyouts are doing less business just as higher interest rates have made that practice more lucrative. Control ("OFAC") and designation to the U.S. Department of Commerce, Bureau of Industry and Security's ("BIS") Entity List. (including foreign branches), or any person in the United States. America's Adversaries Through Sanctions Act Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. that focuses on Russia, the Countering Russian Influence in Europe The most obvious companies of economic significance to the Russian government, based on tax take, are Rosneft, Gazprom and Lukoil, who together paid 3.2tn roubles (31bn) in tax and other payments to the Russian government in 2020. penalties can be up to $295,141 per violation, or up to twice the Directives found within the list describe prohibitions on dealings with the persons identified. based on Company C's listing on the SSI List? Litasco will likely retain traders associated with its core energy assets, a senior trading source told Reuters. President is required to impose sanctions on non-U.S. persons that