On April 23, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) extended the authorized period for activities within U.S. jurisdiction ordinarily incident to maintenance or winding-down of business involving United Company Rusal plc (RUSAL) and its direct and indirect subsidiaries until October 23, 2018. This extension is implemented through both the issuance of new General License 14 (GL 14) and revisions to previously issued General License 12, now re-issued as General License 12A. OFAC also provided guidance on GL 14 through new FAQs.
Of note, U.S. persons are no longer required to place payments owed to or for RUSAL and its subsidiaries into blocked accounts (See FAQ 578). Additionally, GL 14 clarified (as GL 12 and 12A already provided) that blocked funds of the newly designated entities are available for maintenance or wind-down activities during the permitted period.
As noted in the press release and in new FAQ 576, RUSAL has apparently requested de-listing; OFAC indicated that RUSAL would only be delisted after Oleg Deripaska divests his ownership in and relinquishes control of RUSAL (consistent with the original designation notice, which stated that RUSAL was being designated for being controlled by EN+, which in turn was designated for being controlled by Mr. Deripaska, and with prior OFAC practice).
Neither the FAQs nor the updated General License 12A change the existing authorizations for dealings with other newly designated SDNs and their related entities within U.S. jurisdiction. Further OFAC guidance is, however, expected in the near term.