Overview
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) today issued Russia-related General License 135 (GL 135), “Authorizing Transactions Related to the Sale, Delivery, Offloading, and Importation of Diesel Fuel of Russian Federation Origin.” GL 135 authorizes, subject to the express limitation discussed below, certain transactions involving diesel fuel of Russian Federation origin through April 7, 2027.
Key features of GL 135
GL 135 authorizes all transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587, or the Ukraine-/Russia-Related Sanctions Regulations, 31 CFR part 589, that are related to the sale, delivery, offloading or importation of diesel fuel of Russian Federation origin. We note that the authorization expressly includes importation into the United States and remains in effect through 12:01 a.m. Eastern Daylight Time on April 7, 2027.
Notably, the authorization is subject to an express limitation. GL 135 does not authorize any debit to an account on the books of a US financial institution of the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation or the Ministry of Finance.
The scope of GL 135 is also important to note. The license specifically authorizes transactions otherwise prohibited under the two Russia-related sanctions programs identified above but does not provide authorization for separate prohibitions arising under other OFAC sanctions programs. OFAC FAQ 74 similarly explains that a general license authorizes certain categories of transactions that would otherwise be prohibited pursuant to a particular sanctions program.
Accordingly, we emphasize that where a counterparty is subject to sanctions under both an authority covered by GL 135 and a separate OFAC sanctions program, GL 135 would not itself authorize conduct that remains prohibited under the separate program. For example, if a counterparty were blocked under both a Russia-related authority covered by GL 135 and a separate Iran-related sanctions authority, GL 135 would not itself provide authorization for a transaction that remains prohibited under the applicable Iran-related sanctions program. Companies and financial institutions considering reliance on GL 135 should therefore consider whether other OFAC sanctions authorities independently restrict the proposed transaction.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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