President Joseph R. Biden signed a new Executive Order ("E.O.") to expand the scope of prohibitions contained in E.O. 13405 ("Blocking Property of Certain Persons Undermining Democratic Processes or Institutions in Belarus"). The President stated that the new E.O. is a response, in part, to the "illicit and oppressive activities stemming from the August 9, 2020, fraudulent Belarusian presidential election."
The new E.O. blocks "all property and interests in property" within the United States of persons determined by the Secretary of the Treasury (in consultation with the Secretary of State) to:
- (i) threaten the "peace, stability, security, or territorial integrity," (ii) limit the exercise of human rights or fundamental freedoms, (iii) undermine electoral processes, (iv) circumvent U.S. sanctions or (v) engage in politic corruption in Belarus;
- serve in a senior capacity for an entity that has engaged in the above-enumerated activities, or materially assisted any such activity;
- be a political subdivision, official or former official of the Government of Belarus; or
- operate in, among others, the defense, security, energy or potassium chloride ("potash") sector, or other certain identified sectors of the economy of Belarus.
The E.O.'s prohibitions include (i) the making of or the receipt of funds, goods or services to or from any such blocked person and (ii) donations as defined in Section 203(b)(2) of the International Emergency Economic Powers Act to any blocked person.
In response to the new E.O., OFAC added individuals and entities to the Specially Designated Nationals List and, in General License ("GL") No. 4, authorized through December 8, 2021, all activities necessary to the wind down of transactions involving Belaruskali OAO (a state-owned company producing potash fertilizer). OFAC also issued new FAQs clarifying:
- the scope of the new E.O. (FAQ 916);
- that the identification of a sector of the Belarusian government does not "automatically block all persons operating in that sector," but rather provides notice of the risk exposure to sanctions (FAQ 917); and
- the scope of GL No. 4 (FAQ 918).
Primary Sources
- Executive Order on Blocking Property of Additional Persons Contributing to the Situation in Belarus
- OFAC General License No. 4: Authorizing the Wind Down of Transactions Involving Belaruskali OAO
- OFAC FAQ: Belarus Sanctions - 916
- OFAC FAQ: Belarus Sanctions - 917
- OFAC FAQ: Belarus Sanctions - 918
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