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. Continue Reading Treasury Extends Wind-down Period for United Company RUSAL plc and Issues Additional Guidance
On April 6, 2018, the U.S. Department of the Treasury’s (“Treasury”) Office of Foreign Assets Control (“OFAC”), in consultation with the U.S. Department of State, designated three dozen Russian “oligarchs,” government officials, and related entities as specially designated nationals (“SDNs”). All were designated under pre-existing Ukraine/Russia-related authorities provided by Executive Order (“E.O.”) 13661, relating to (among others) senior officials of the Government of the Russian Federation and their supporters, and E.O. 13662, relating to persons and entities operating in specified sectors of the Russian economy. Effective today, the newly designated persons and entities are included on OFAC’s list of SDNs (the “SDN List”). Treasury also designated the Russian state-owned arms export monopoly and a related financial institution as SDNs because of their activities relating to the Syrian conflict.
OFAC simultaneously released two general licenses, General Licenses 12 (“GL 12”) and 13 (“GL 13”), that authorize a two-month wind-down period for operations involving many of the specified entities and a one-month period to dispose of holdings in three of the new SDNs that are publicly listed companies. OFAC also released new Frequently Asked Questions related to both the designations and the general licenses.
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On February 12, 2018, the Office of Foreign Assets Control (OFAC) issued two new Venezuela-related frequently asked questions (FAQs) providing additional guidance on how late payments will be treated for purposes of the prohibitions on dealing in “new debt” of the Government of Venezuela and of state-owned entities. Most notably, the new guidance prohibits acceptance of late payments on post-sanctions debt of Government of Venezuela entities if those payments are received outside the applicable 30- or 90-day limit under Executive Order 13808, even if the failure to pay was not consented to by the lender and violates the underlying agreement. This guidance likely also has implications for the similar prohibitions on dealings in “new debt” under Russian sectoral sanctions. Continue Reading OFAC Issues Guidance on Payments under Venezuelan “New Debt”; Likely to Affect Russian Sectoral Sanctions as Well
The Treasury Department today released the much-anticipated list of “the most significant senior foreign political figures and oligarchs in the Russian Federation” required by Section 241 of CAATSA. As we have long advised, the list has no immediate legal impact, and it appears that at least in the short to medium term it is unlikely to affect U.S. sanctions policy. The list is a mechanical compilation of 210 names using objective criteria and, at least in its unclassified version, provides little basis to single individuals out for sanctions.
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On December 14, 2017, Cleary Gottlieb partner Paul Marquardt led a presentation titled, “Developments in U.S. Sanctions Against Iran, Russia, and Venezuela” as part of PLI’s Coping With U.S. Export Controls and Sanctions 2017 conference.
To view the full presentation, click here.
For additional information regarding the conference, please visit the event’s website.