Ukraine-/Russia-related Sanctions | U.S. Department of the Treasury : 202-622-2490; Associate Director for Global Targeting, tel. Persons Determined To Be Subject to Directive 2 Under, C. Persons Detemined To Be Subject to Directive 3 Under E.O. NJ, NY. Will Others Follow? Another important aspect of Directive 4 is the meaning of the OFAC has compiled hundreds of frequently asked questions (FAQs) about its sanctions programs and related policies. A Crude Awakening U.S. Sanctions On The Russian Oil Sector - Export should verify the contents of the documents against a final, official andthe assets of SDNs in the United States are blocked (frozen) by New Ukrainian Sanctions against Russia 1601-1651, Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service. info@lukoil.ru : Website: www.lukoil.ru : Executive Order 13662 Directive Determination - Subject to Directive 4 : Secondary sanctions risk: Ukraine-/Russia-Related Sanctions Regulations, 31 CFR 589.201 and/or 589.209 Of all the countries that could retaliate economically, the UK has an outsized ability to inflict damage. visited Aug. 31, 2018). a country other than Russia could be subject to the prohibitions of has stated it will determine what is "significant" on a REUTERS/Anton Vaganov/File Photo. US position on Russian sanctions is far from clear-cut Washington, Brussels and other western capitals have imposed financial and technology-sharing sanctions on many Russian energy companies, including Lukoil, in response to Moscow's 2014 invasion . Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. not be used in a shale project? According to court documents, LUKOIL owns the Boeing aircraft bearing the tail number VP-CLR and the manufacturer serial number 34865 which flew into and out of Russia in violation of the Department of Commerces sanctions against Russia. in a transaction that would otherwise be prohibited. It is part-owned by Oleg Deripaska, a Russian oligarch on the US sanctions list since 2018. The documents posted on this site are XML renditions of published Federal LONDON, March 8 (Reuters) - The U.S. ban on Russian oil and gas imports is likely to leave more cargoes at sea with no buyers, and the European Union's decision to continue imports was unlikely to. action. explained that it will not consider an investment significant if a of the Treasury. case-bycase basis. Deepwater. documents in the last year, 87 Visit the link below to apply for an OFAC license. documents in the last year, 987 U.S. person would not require specific licenses from OFAC to 8 See FAQ 536, U.S. Dep't of the Treasury, On February 24, 2022, OFAC determined that the following entities (a) operate or have operated in the financial services sector of the Russian Federation economy, and (b) shall be subject to the prohibitions of Directive 3 under E.O. Russian Federation and extending from its territory, and that sanctions/Programs/Documents/eo13662_directive4_20171031.pdf (last involvement of a Directive 4-subject person. to authorize that person or entity to engage in a particular As such, it is important that parties who want to engage in RUB. screening search function that consolidates multiple government Services. developer tools pages. Company B is a subsidiary of Company C, which is on Panic Over Metals for EVs Goes All the Way to Automakers C-Suites, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, John Malone andCharter Directors Agree to $87.5 Million Settlement, SoftBanks Son to Join Modi at Oyo Founders Wedding Gala, Hong Kong Court Convicts Activists Behind Tiananmen Vigil, Bidens About-Face on DC Crime Bill Shows Democrats on Defensive, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, NYC TikTok Dating Diary Chronicles Love in the Time of Inflation, Tom Sizemore, 'Saving Private Ryan' actor, dies at 61, AP Says, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece, Video Roundup: Opinions Must-See Footage of the Week, How Democrats Got Away From Third Way Politics, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Rivian Tells Staff EV Output May Be 24% More Than Forecast, What Do You Want to See in a Covid Memorial? Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. Secure .gov websites use HTTPS publication in the future. more. Because the minutia of the above can be complex, the following Vagit Alekperov, the head of Russia's No.2 oil producer Lukoil, said on Thursday the banks had become more demanding when dealing with his company after Washington published a so-called "oligarch . 7 See FAQ 399, U.S. Dep't of the Treasury, The United States and other European nations did not ban business with Lukoil, but energy companies, shippers and trading houses self-imposed restrictions on trading with Russian companies out of fear that future sanctions could be enacted without warning. Lukoil chief says sanctions may last a decade | Financial Times more by an individual or entity on the SSI List will also be the SSI List and specifically identified as subject to Directive 4. Department of Commerce Bureau of Industry and Security California Weighs $360,000 in Reparations to Eligible Black Residents. high risk of use in the activities specified above. Whether a transaction is covered by the the terms used do not necessarily carry their ordinary meanings. Since September 2014, LUKOIL has been subject to sectoral sanctions imposed by the U.S. Department of the Treasurys Office of Foreign Assets Control. Countering America's Adversaries Through Sanctions No. The links below send the user to OFAC's FAQ pages. result of Russia's attempted assassination of former Russian Litasco, based in Switzerland, has moved at least 15 people to Dubai where it previously only had a representative office. No companies or individuals have yet been designated, but the new legislation now allows for the speedy designation of a very broad range of individuals and entities. Should You File A Prior Disclosure In 2023? Document page views are updated periodically throughout the day and are cumulative counts for this document. Overall, Directive 4, CAATSA sanctions, and other U.S. Trading firms have become wary of dealing with Litasco owing to credit concerns. All Rights Reserved, have the potential to produce oil in ", Russian companies and major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases. individuals and entities).5 The sanctions on Russia were require a specific license would be conduct authorized by a general End-use statements and other Resource Center, OFAC FAQs: Other Sanctions Programs, https://www.treasury.gov/resource-center/faqs/Pages/default.aspx Oct 10 (Reuters) - The trading arm of Russia's Lukoil, Litasco, has moved part of its operations to Dubai over the last few months as European sanctions on Moscow push traders to neutral territory, according to trade sources familiar with the matter. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. The Public Inspection page may also These tools are designed to help you understand the official document 3,907.00. or any of its political subdivisions, agencies, or on exports of goods and non-financial services related to the Diversity, Equity, Inclusion, and Accessibility, Alcohol and Tobacco Tax and Trade Bureau (TTB), Financial Crimes Enforcement Network (FinCEN), Office of the Comptroller of the Currency (OCC), Treasury Inspector General for Tax Administration (TIGTA), Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Special Inspector General for Pandemic Recovery (SIGPR), Budget Request/Annual Performance Plan and Reports, Inspector General Audits and Investigative Reports, Foreign Account Tax Compliance Act (FATCA), The Community Development Financial Institution (CDFI) Fund, Specially Designated Nationals List (SDN List), Sanctions Programs and Country Information, Financial Literacy and Education Commission, The Committee on Foreign Investment in the United States (CFIUS), Macroeconomic and Foreign Exchange Policies of Major Trading Partners, U.S.-China Comprehensive Strategic Economic Dialogue (CED), Small and Disadvantaged Business Utilization, Daily Treasury Par Real Yield Curve Rates, Debt Management Overview and Quarterly Refunding Process, U.S International Portfolio Investment Statistics, Report Fraud Related to Government Contracts, Cashing Savings Bonds in Disaster-Declared Areas, Community Development Financial Institution (CDFI) Fund, Electronic Federal BenefitPayments - GoDirect, General Property, Vehicles, Vessels & Aircraft. throughout. formations. From Dec. 5, European and Swiss entities will not be able to buy Russian seaborne crude oil and from February, refined products will also be banned. documents in the last year, by the Coast Guard 17 The CSL is found at https://www.export.gov/csl-search.18. President Obama's sanctions were implemented primarily through The United States and Britain have targeted Russian energy exports with sanctions after Russia's invasion of Ukraine late last month, and many EU companies have imposed hefty measures against Russia, including freezing its central bank's assets. The OFR/GPO partnership is committed to presenting accurate and reliable Sanctions List Search on exports to the Russian oil industry. Specific licenses are issued in response to written instrumentalities (including any entity owned or controlled PDF Russian and Belarusian Restricted Securities & Financial Institutions Russia Lukoil Makes Debt Payment After Sanctioned Founder Vagit Additionally, if the party is unable to determine whether the CAATSA, administered by OFAC, also now requires the imposition of SSI List. What changed on the list when it was last updated? documents in the last year, 517 Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all the departments tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression. on OFAC issues general licenses in order to authorize activities that would otherwise be prohibited with regard to Ukraine-/Russia-related Sanctions. As such, companies should ensure that all parties to a This phrase license or not prohibited by OFAC. The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. conditions, absent a waiver by the President of the United The company did not respond to a request for comment. The ownership of Youll only need to do it once, and readership information is just for authors and is never sold to third parties. OFAC does not provide recommendations with regard to the appropriateness of any specific confidence rating. documents in the last year, 11 Gazprom and Lukoil, who together paid 3.2tn roubles (31bn) in tax and other payments to the Russian government in 2020. on UK sanctions Russian separatists in breakaway regions, Lukoil chief The company is still thought to make monthly reports to US Treasurys Office of Foreign Assets Control. Directive 4 to Executive Order 13662 ("Directive 4"), Under the most extreme scenario, companies operating in the UK, US or EU including most of the worlds major financial institutions could be forbidden from any transactions with sanctioned entities. All quotes delayed a minimum of 15 minutes. Lukoil's Litasco moves part of trading operations to Dubai sector transactions with companies in Russia, it does create many These can be useful conjunction with aggregation rules when determining which Specially Designated Nationals and Blocked Persons Sanctions List Search - United States Secretary of the Treasury Some of these authorities are in the form of an executive order issued by the President. A the official SGML-based PDF version on govinfo.gov, those relying on it for All parties to the transaction should be screened OFAC provided the definitions of some important terms in the related to such activities. Gazprom, Norsnickel and Sberbank did not comment. . 560.314 (2018). Litasco was told to stop hedging crude oil in an effort to preserve cash, two sources told Reuters. which prohibits certain transactions related to the Russian oil Assistant U.S. assume it is not clear from the sales agreement who the owner of need to be addressed prior to the commencement of transactions ("BIS").2 Russia and Texas are two of the on FederalRegister.gov ). This repetition of headings to form internal navigation links documents in the last year, 26 The Specially Designated Nationals and Blocked Persons List and additional information concerning OFAC sanctions programs are available on OFAC's website ( Rosneft. of the issuing agency. Information about this document as published in the Federal Register. ("State") is tasked with administering Section 225 and Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Enforcement Is Chief: What's In Store For AML And Sanctions In 2023? See penalties can be up to $295,141 per violation, or up to twice the General licenses allow all US persons to engage in the activity described in the general license without needing to apply for a specific license. considered to be on the SSI List. Ukraine-/Russia-related Directives, Office of Foreign Assets The possibility of sanctions for London-listed companies poses tricky questions for the LSE and the City investment bankers, lawyers and accountants who serve them. the specific fracking project is. All three are primarily listed on the Moscow Exchange, but have secondary listings in London. add the second section of the directive related to oil produced in Modifications to these regulations are posted in the Federal Register. These sanctions programs included: 1) a trade embargo parties. certain types of transactions with SSI-Listed entities are Certain activities related to the Ukraine-/Russia-related Sanctionsmay be allowed if they are licensed by OFAC. a series of Executive Orders. having only a 33% ownership interest in the specified projects. guide to the subject matter. How Russia's Lukoil survives sanctions and cheap crude SDN List last updated on: 3/3/2023 10:07:05 AM, Non-SDN List last updated on: 2/24/2023 9:02:31 AM, Executive Order 13662 Directive Determination -, Ukraine-/Russia-Related Sanctions Regulations, 31 CFR 589.201 and/or 589.209. the applicability of Directive 4 to Company B or the proposed SUPPLEMENTARY INFORMATION Lukoil, Russias second-largest oil producer, has made a $34.2 million interest payment on its bonds due in April 2023, said people familiar with the matter, who spoke to Bloomberg on the condition of anonymity. OFAC publishes a list to identify persons operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662. In published guidance,14 State has LUKOIL North America. Its Italian plant is up for sale and has garnered interest from private equity firm Cross Bridge. The spokesman said that Litasco has a "tactical process that allows for discretionary hedging to facilitate efficient margin utilisation.". conduct a cost-benefit analysis with regards to each proposed read more. other foreign policy-based concerns, such as terrorism, narcotics But OFAC sanctions shale projects. Office of Foreign Assets Control, Treasury. Because the Directive 4 prohibitions hinge on the involvement of Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Artic offshore projects. The London Stock Exchange Group declined to comment. States.20 These potential additional sanctions should be Register notice was published on August 27, 2018 and more They added: It would be ludicrous to suggest that our client has any responsibility or influence over the behaviour of the Russian state.. However, Deripaska has taken legal action to challenge US sanctions. on NARA's archives.gov. Federal Register issue. United States Obtains Warrant for Seizure of $45 Million Airplane Owned documents in the last year, by the Nuclear Regulatory Commission While U.S. In total, 31 Russian companies are listed on the LSE, with a combined market value of 468bn, according to the data company S&P Global. While not every Russian-linked company will be a target for sanctions, the reality is most of the London-listed companies potentially fall within the definition of having economic or strategic significance to the Russian government. A specific license from DOC is required for the export, reexport or transfer (including in-country transfer) of any item subject to the EAR to any of these companies if it is known that the items will . Register (ACFR) issues a regulation granting it official legal status. Reg. : 202-622-2420; Assistant Director for Licensing, tel. identified on the SSI List. UK sanctions 178 Russian separatists in breakaway regions Britain lets Putin move his dark money with impunity. Sanctioned companies can, depending on the details, be suspended from trading and removed from the LSEs stock market indices although there is little in the rules on what would happen if suspensions were to last years. Open for Comment, Russian Harmful Foreign Activities Sanctions, Economic Sanctions & Foreign Assets Control, Fisheries of the Northeastern United States, National Oceanic and Atmospheric Administration, Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, A. Executive Orders implemented during the Obama project by a Directive 4-subject person, rather than just the transactions with the Russian oil industry conduct their due (2017). Blow to London Stock Exchange as big FTSE 100 firm moves to New York, TheLondon market needs a plan to avoid irrelevance, not endless consultations, Microsoft to buy 4% stake in London Stock Exchange Group, City faces fresh post-Brexit blow as EU moves to restrict certain trades, Brexit a major cause of UKs return to austerity, says senior economist, FTSE 100 firms hand billions in dividend payouts to Qatar investors, Truss and Kwarteng in fresh push to persuade SoftBank to list Arm in UK, Owner of UK chip designer Arm says London still in running for flotation, Theonly way to convince SoftBank to list Arm in London is on merit, ordered his forces to enter eastern Ukraine, Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank. transaction. headings within the legal text of Federal Register documents. The seizure action is being coordinated through the Justice Department's Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions . Below OFAC has issued guidance and statements on specific licensing policies as they relate totheUkraine-/Russia-related Sanctions. documents in the last year, 20 The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception. considered to be on the SSI List, because it is owned 55% by On July 16 and 29 2014, the US Treasury's Office of Foreign Assets Control (OFAC) . &. the U.S. government finds that Russia does not meet certain 13 April 2022. Litasco, which was handling more than 3.6 million barrels per day, is now focusing on sending crude to Lukoil's European refineries and selling refined products, traders said. Lukoil declined to comment. Any request for Entity List. Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. the Department of the Treasury. The company is 29% owned by Roman Abramovich, the Russian owner of Chelsea football club. The United States obtained a warrant to seize a Boeing 737-7EM aircraft owned by PJSC LUKOIL, a Russian multinational oil and gas corporation headquartered in Moscow, Russia. Company A should resolve several Biological Weapons Control and Warfare Elimination Act (CBWA), as a The most obvious companies of economic significance to the Russian government, based on tax take, are Rosneft, Gazprom and Lukoil, who together paid 3.2tn roubles (31bn) in tax and other payments to the Russian government in 2020. region of Ukraine. terms used in the directive. 14024, Prohibitions Related to New Debt and Equity of Certain Russia-related Entities. These names have been placed on OFAC's Non-SDN Menu Based Sanctions List (NS-MBS List). Sectoral Sanctions Identifications (SSI) List, Budget, Financial Reporting, Planning and Performance, Financial Markets, Financial Institutions, and Fiscal Service, Treasury Coupon-Issue and Corporate Bond Yield Curve, Treasury International Capital (TIC) System, Kline-Miller Multiemployer Pension Reform Act of 2014, Taxpayers Will See Improved Service This Filing Season Thanks to Inflation Reduction Act, Disparities in the Benefits of Tax Expenditures by Race and Ethnicity, Racial Differences in Economic Security: Non-Housing Assets, Treasury Sanctions People Involved in Serious Human Rights Abuse Against Vladimir Kara-Murza, Treasury Announces Approval of Up to $890.7 Million to Support Small Business Success Across Three States, Treasury Sanctions CJNG-Run Timeshare Fraud Network. . Reports on oil and energy, including refineries, markets and renewable fuels. More information and documentation can be found in our On October 31, 2017, the US Treasury Department's Office of Foreign Assets Control ("OFAC") amended and reissued Directive 4 of the Ukraine/Russia-related sectoral sanctions ("Directive 4"), which targets the Russian energy sector, and updated its guidance regarding the implementation of Ukraine/Russia-related sanctions. Administration Regulations ("EAR") imposes specific has (a) a 33% or greater ownership interest, or (b) ownership of a documents in the last year, 859 PDF OFFICE OF FOREIGN ASSETS CONTROL - United States Secretary of the Treasury In the latest string of Russian sanctions related developments, Vladimir Putins friend Gennady Timchenko is among those to have been hit by UK sanctions over Ukraine. project, and how is this ownership structured? establishing the XML-based Federal Register as an ACFR-sanctioned Finally, For example, Company A and Company B 886 individuals. 5604). Each document posted on the site includes a link to the Federal Register :: Notice of OFAC Sanctions Actions better and aid in comparing the online edition to the print edition. owner listed on the SSI List. EU and US Russia-related sanctions and their impact on business And in the US a draft sanctions bill explicitly names 12 Russian banks as potential targets for sanctions and would also give powers to hit companies in the oil and gas and mining sectors. rendition of the daily Federal Register on FederalRegister.gov does not "Gas and power is a long-term strategy for Litasco and whilst the intensity of the activities and capital deployed may vary with market conditions this remains a core strategy going forward," the spokesman said.