Washington, D.C. (October 22, 2024) - On
September 30, the U.S. Department of the Treasury's Office of
Foreign Assets Control ("OFAC") issued a new General
License ("GL") and updated its Specially Designated Nationals
("SDN") and Sectoral Sanctions Identifications
("SSI") Lists. Earlier in September, OFAC issued two
additional GLs, an updated Russia-related Frequently Asked Question
("FAQ"), and a Final Rule.
Russia-related GL13K, issued on September 30, replaces GL 13J
and authorizes, through 12:01 a.m. EST, January 8, 2025, U.S.
persons, or entities owned or controlled directly or indirectly by
a U.S. person, to pay certain taxes, fees, or import duties, or to
purchase or receive permits, licenses, registrations,
certifications, or tax refunds otherwise prohibited by Directive 4 under Executive Order 14024.
Directive 4 largely prohibits U.S. persons from engaging in
transactions with the Central Bank of the Russian Federation, the
National Wealth Fund of the Russian Federation, or the Ministry of
Finance of the Russian Federation.
Importantly, GL 13K authorizes administrative transactions only
where "ordinarily incident and necessary to the day-to-day
operations in the Russian Federation of such U.S. persons or
entities," and does not authorize "any debit to an
account on the books of a U.S. financial institution" of the
Russian Central Bank, National Wealth Fund, or Ministry of Finance,
or any transactions otherwise prohibited by the Russian Harmful
Foreign Activities Sanctions Regulations ("RuHSR").
The same day, OFAC deleted several notable entities from the SDN
List, including the financial institution Prominvestbank, and
altered the SSI List entry for Prominvestbank to reflect its
removal from the SDN List.
These actions follow OFAC's September 13 issuance of GLs 109
and 25F, updated FAQ 1040, and a new Final Rule:
- GL 109 authorizes, through 12:01 a.m. EST,
November 13, 2024, certain wind down transactions with (1) Federal
State Unitary Enterprise International Information Agency Rossiya
Segodnya; (2) Autonomous Non Profit Organization TV Novosti; or (3)
any entity in which either own, directly or indirectly,
individually or in the aggregate, a 50 percent or greater
interest.
- GL 25F replaces GL 25E and authorizes certain
transactions ordinarily incident and necessary for the receipt or
transmission of telecommunications and internet communications with
Russia that are otherwise prohibited by the RuHSR. Notably,
however, GL 25F does not authorize transactions involving, among
other entities, Joint Stock Company Channel One Russia, Joint Stock
Company NTV Broadcasting Company, Television Station Russia-1,
Limited Liability Company Algoritm, New Eastern Outlook, Oriental
Review, Garantex Europe OU, Autonomous Non-Profit Organization
Dialog, Autonomous Non-Profit Organization Dialog Regions, Federal
State Unitary Enterprise International Information Agency Rossiya
Segodnya, or Autonomous Non-Profit Organization TV Novosti.
- The updated FAQ 1040 reflects the issuance of, and adds
additional information related to the authorizations under, GL 25F.
Among other clarifications, FAQ 1040 identifies that GL 25F
"authorizes the exportation or reexportation, sale, or
supply" of software, hardware, or technology incident to the
exchange of communications over the internet. However, this
authorization is subject to the specific limitations identified by
GL 25.
- OFAC issued a Final Rule, effective September 17, 2024, which adds explanatory notes to 35 of OFAC's sanctions regulations. The explanatory notes identify the types of actions OFAC can take, the forms of notices it may yse, and how affected individuals can contact OFAC to inquire about these actions. Further, the Final Rule clarifies an existing explanatory note, specifying that OFAC may not necessarily publish the names of persons blocked during the pendency of an investigation, and explains the procedures for seeking release of blocked property or administrative reconsideration of OFAC actions to add information about additional unblocking procedures available to blocked or otherwise affected persons.
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