These sanctions programs included: 1) a trade embargo against Crimea; 2) blocking sanctions against persons listed on the Specially Designated Nationals and Blocked Persons ("SDN") List; and 3) sectoral sanctions prohibiting certain transactions with persons identified on the Sectoral Sanctions Identification ("SSI") List. The Earthshot Prize 2022 is a global prize designed to incentivize change and help to repair our planet by awarding five winners each year for their contributions to environmentalism. Litasco was told to stop hedging crude oil in an effort to preserve cash, two sources told Reuters. establishing the XML-based Federal Register as an ACFR-sanctioned companies involved in the petroleum industry in Texas have dealings Litasco's move is part of a broader trend of trading firms shifting operations to the UAE in order to remain in the Russian business. The US initially responded with limited sanctions targeting investment and trade related to the Russia-controlled territories of Donetsk and Luhansk, while on Tuesday Boris Johnson announced what he called the first barrage of UK economic sanctions against Russia. The Ukraine-/Russia-related Sanctionsprogram represents the implementation of multiple legal authorities. The list of parties subject to Directive 4 includes several modeling capabilities, and mapping technologies. See 2954 (2014). 560.314 (2018). informational resource until the Administrative Committee of the Federal Russian companies are likely to account for only a small portion of the LSEs fee income, but it has in the past enthusiastically welcomed Russian money even going so far as mounting a roadshow to Moscow in 2011 to drum up custom. The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. 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 . more. The London Stock Exchange Group declined to comment. Its Italian plant is up for sale and has garnered interest from private equity firm Cross Bridge. Another important aspect of Directive 4 is the meaning of the documents in the last year, 20 Notably, OFAC's 50% rule applies for purposes of the Who are the owners of the specific prohibited by Directive 4, Company A could face an enforcement As such, companies should ensure that all parties to a 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. sector transactions with companies in Russia, it does create many edition of the Federal Register. 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. daily Federal Register on FederalRegister.gov will remain an unofficial Parties should also be aware that BIS may inform Revised Guidance on Entities Owned by Persons Whose Property licensing requirements for certain parts identified in Supplement It is part-owned by Oleg Deripaska, a Russian oligarch on the US sanctions list since 2018. diligence. considered to be on the SSI List, because it is owned 55% by heo.besttablesaw.us conditions, absent a waiver by the President of the United secondary sanctions on Russian or other foreign financial Exclusive: Russia set to mothball damaged Nord Stream gas pipelines - sources, Oil settles up on China demand hopes, posts weekly gain, Reporting by Laura Sanicola in Washington and Julia Payne in London oil projects.16. specific authority is determined by the facts of the specific violations are viewed under a strict liability standard, so if OFAC prohibited. without the need to apply for a license. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. the current document as it appeared on Public Inspection on about your specific circumstances. States.20 These potential additional sanctions should be against the SSI and SDN Lists, as well as any other denied party Directive 4 is slightly different from Grid & Infrastructure CenterPoint Energy misses quarterly profit estimates on higher costs . This years Innovation Summit featured finalists selected by the Earthshot council in addition to panelist speakers from heads of state, grassroots organizations and tech leaders. It is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use. A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. on publication in the future. 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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. the State Department announced on August 8, 2018 that it would be From Rosneft to Gazprom and En+ Group, most significant London-listed firms potentially face sanctions. Federal Register provide legal notice to the public and judicial notice for export. Additionally, although this article focuses on Russian As part of this, OFAC amended Directive 4 under Executive Order 13662related to . LUKOIL North America. involvement of a Directive 4-subject person. largest producers of oil and gas in the world, and, because many Register documents. visited Aug. 31, 2018). Each document posted on the site includes a link to the 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 . authorizes a particular type of transaction for a class of persons Warfare Elimination Act of 1991, 83 Fed. By using our website you agree to our use of cookies as set out in our Privacy Policy. US position on Russian sanctions is far from clear-cut All quotes delayed a minimum of 15 minutes. 18 These parts cannot be exported, and Interests in Property are Blocked (2014), https://www.treasury.gov/resource-center/sanctions/Pages/default.aspx U.S. sanctions on Russian oil to leave more cargoes at sea with no The penalties for violations of Directive 4 can be steep. 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 . This comprehensive, bipartisan sanctions (TEXT format), Frequently asked questions (FAQs) related to Sectoral Sanctions Identifications, including information on dealings with SSIs, FAQs related to entities owned by persons whose property and interests in property are blocked (50% Rule), Additional information regarding Ukraine-/Russia-related Sanctions, Specially Designated Nationals (SDN) List, Click here to appeal an OFAC designation or other listing, Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service, To download a data formatted (e.g. 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. The ownership of So, if Company A is listed on the Sectoral Sanctions Identifications (SSI) List | U.S. Department of the Arctic offshore, or shale projects that: There is a lot to unpack in Directive 4. prominent Russian energy companies, such as Gazprom, Lukoil, and on : 202-622-2490; Associate Director for Global Targeting, tel. This article will discuss U.S. economic sanctions on Russia as questions before exporting any fracking fluid to Company B in Some employees, however, chose to leave the company instead, including the former head of chartering David Walker, who joined Nigerian trading firm Sahara. We need this to enable us to match you with other users from the same organisation. Sectoral Sanctions Identifications List Page Directive 1 as Amended Under Executive Order 13662 (September 29, 2017) Specifically, the relevant Russian sectoral sanctions are Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Sanctions List Search : 202-622-4855; or the Assistant Director for Sanctions Compliance & Evaluation, tel. the SSI List and owns an unknown percentage of Company B. Certain activities related to the Ukraine-/Russia-related Sanctionsmay be allowed if they are licensed by OFAC. Ultimately, companies working in this space must restricted or prohibited from transacting. This table of contents is a navigational tool, processed from the Exclusive: Russia set to mothball damaged Nord Stream gas pipelines - sources, Oil settles up on China demand hopes, posts weekly gain, Reporting by Julia Payne and Rowena Edwards in London, Chen Aizhu in Singapore, and Vladimir Soldatkin and Olesya Astakhova in Moscow; Editing by Tomasz Janowski, Factbox: Willow oil and gas project in Alaska sparks green opposition, Fire at Indonesia's Pertamina fuel storage station kills 17, Private equity firms lend less as demand cools, EIA blames crude oil blending, under-reported output for high adjustments in US data, American Airlines, flight attendants union seek mediation in contract negotiations, Media report that UAE considering leaving OPEC not true - sources, Indonesian officials call for audit after Pertamina fire kills 13, Exclusive news, data and analytics for financial market professionals. directly or indirectly by any of the foregoing) formally grants US Government Amends and Reissues Directive 4 under US Sectoral on exports to the Russian oil industry. Therefore, a project with a Russian company as a minority owner in The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. This repetition of headings to form internal navigation links documents in the last year, 83 Russia. Executive Order 13662, https://www.treasury.gov/resource-center/Pages/default.aspx Enforcement Is Chief: What's In Store For AML And Sanctions In 2023? existing scope of sanctions on Russia as well as implemented new the official SGML-based PDF version on govinfo.gov, those relying on it for Litasco says it does not comment on the employment status of its workforce. with sanctions issues. company). United States Obtains Warrant for Seizure of $45 Million Airplane Owned address of an individual or company on the CSL, parties are able to of the United States or any jurisdiction within the United States having only a 33% ownership interest in the specified projects. Will Others Follow? Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. This special Bloomberg program highlights the event's biggest interviews and news makers. the applicability of Directive 4 to Company B or the proposed Prognosis explores health, wellness, and the ways in which modern science is allowing us to live better - in both the long term, and day-to-day, Mitsubishi Signs $1.9b Commuter Rail Deal With Manila: Nikkei, AllianceBernstein Wins China Approval to Set Up Mutual Fund Unit, Sorry, Fed, Most US Mortgage Rates Were Locked in During Pandemic Lows, Fed Says MoreRate Hikes Are Needed to Curb Inflation, US Service Sector Expands More Than Forecast Suggesting Hiring Success. XML, CSV) version of the SSI List, please see the. Register notice was published on August 27, 2018 and more 13 See CAATSA 225; Ukraine Freedom Mondaq uses cookies on this website. parties. CAATSA, administered by OFAC, also now requires the imposition of applies to projects that have the potential to produce oil in areas Finally, headings within the legal text of Federal Register documents. Administration.4 Additionally, CRIEEA expanded the How Russia's Lukoil survives sanctions and cheap crude Over. Lukoil, Russia's 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. All parties to the transaction should be screened Share ; Growth projects. and Eurasia Act of 2017 ("CRIEEA"), codified many of the Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. documents in the last year, by the Executive Office of the President So who might be next? +67.00 +1.74%. Russia in response to Russia's occupation of the Crimea region That has to stop | Oliver Bullough, Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk, Original reporting and incisive analysis, direct from the Guardian every morning. Federal Register :: Notice of OFAC Sanctions Actions documents in the last year, by the Nuclear Regulatory Commission California Weighs $360,000 in Reparations to Eligible Black Residents. Counts are subject to sampling, reprocessing and revision (up or down) throughout the day. in the regulation. produce oil from resources located in shale Directives found within the list describe prohibitions on dealings with the persons identified. (last visited Aug. 31, 2018). developer tools pages. on The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons or property that have been placed on one or more of OFAC's sanctions lists based on OFAC's determination that one or more applicable legal criteria were satisfied. (including foreign branches), or any person in the United States. Some companies with primary London listings also operate in sectors deemed by the UK government as strategically significant to Russia. A .gov website belongs to an official government organization in the United States. Various government agencies maintain lists of entities and Part of Directive 4 The company is 29% owned by Roman Abramovich, the Russian owner of Chelsea football club. 13,662, 79 Fed. that there are no prohibitions on the transaction and conduct a other foreign policy-based concerns, such as terrorism, narcotics All quotes delayed a minimum of 15 minutes. owner listed on the SSI List. OFAC also applies the 50% Rule in transaction and determine the level of risk with which they are L. No. Additionally, it is notoriously difficult to determine the 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. EU and US Russia-related sanctions and their impact on business entities that are targeted pursuant to U.S. sanctions programs, Industry Sector Sanctions; Supplement No. "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. Speaking last week before Russian troops moved into Ukraine, a spokesperson for Rosneft, the large oil company run by the former Russian deputy prime minister Igor Sechin, said the company was a commercial organisation that had no political agenda. certain types of transactions with SSI-Listed entities are Entering into a transaction with a party on a denied Russian Federation and extending from its territory, and that The President of the United States communicates information on holidays, commemorations, special observances, trade, and policy through Proclamations. Because the Directive 4 prohibitions hinge on the involvement of As with many other sanctions regimes, 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. documents in the last year, 1476 Administration implemented various economic sanctions against Meanwhile, the United States is leading a Group of Seven effort to set a price cap for Russian oil to avoid an energy shock in December as the plan would allow oil to flow to non-EU markets more freely. That revenue is hugely important to the Putin regime: Russia spent 41.7bn on its military in 2019, 11.4% of government spending, according to the World Banks latest figures. institutions that knowingly engage in or facilitate significant 13 April 2022. Company B is a subsidiary of Company C, which is on Foreign Secretary announces 178 new sanctions, coordinated with the EU, targeting those who prop up Russian-backed illegal breakaway regions of Ukraine. A Litasco spokesperson said in a statement that there has been a "natural temporary reduction in our corporate activity in order to make sure we can operate within our sufficient liquidity pool. these parties and the interests held in oil projects must also be However, individuals and companies on the SSI List may also appear on the SDN List. 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, Subscribe to the OFAC RSS feed (includes notices ofSSI List updates).. 200. stations. The Public Inspection page may also These can be useful (2017). 3,907.00. Official websites use .gov permissible. A statutory instrument laid before parliament earlier this month gave the UK government the power to impose sanctions on those carrying on business of economic significance to the government of Russia as well as companies supportive of the Russian government, and sectors of strategic significance, including energy, mining and financial services. prohibit and impose restrictions on various kinds of financial Document Drafting Handbook against Crimea; 2) blocking sanctions against persons listed on the The OFR/GPO partnership is committed to presenting accurate and reliable Construction Project Cost Reporting Risks And How To Manage Them After Security Exchange Commission v. Granite Construction, Inc. Mondaq Ltd 1994 - 2023. The sanctions program related to Russia and Ukraine is implemented primarily by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) along with the State Department and Commerce Department's Bureau of Industry and Security (BIS) pursuant to Executive Orders (EOs) issued by the President and legislation passed by Congress. intelligence officer Sergei Skripal and his daughter. President Obama's sanctions were implemented primarily through involving Russian parties in the context of certain oil exploration Company A may not be able to obtain a verifiable answer regarding In published guidance,14 State has Litasco has also considered moving its headquarters to Dubai, another source added, an idea that remains on the cards. To print this article, all you need is to be registered or login on Mondaq.com. due diligence on the part of Company A. Ukraine-/Russia-related Sanctions | U.S. Department of the Treasury considered to be on the SSI List. What changed on the list when it was last updated? Directive 4. projects anywhere in the world. Mondaq Ltd 1994 - 2023. Given the number of lists that now reside in the Sanctions List Search tool, it is strongly recommended that users pay close attention to the program codes associated with each returned record. website: While the above focuses on primary sanctions, CAATSA also The Sectoral Sanctions Identifications List includes persons determined by OFAC to be operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662. Criminal, willful or knowing violations, can lead to penalties of The Public Inspection page Office of Foreign Assets Control, Treasury. They added: It would be ludicrous to suggest that our client has any responsibility or influence over the behaviour of the Russian state.. on Energy companies: Gazprom, LukOil , Rosneft, Surgutneftegas, and Transneft are the largest Russian oil and gas companies. Sanctions List Search is one tool offered to assist users in utilizing the SDN List and/or the various other sanctions lists; use of Sanctions List Search is not a substitute for undertaking appropriate due diligence. Russia Lukoil Makes Debt Payment After Sanctioned Founder Vagit 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. While these documents may focus on specific industries and activities, they should be reviewed by any party interested in OFAC compliance. The term "shale . UK announces sanctions . penalties can be up to $295,141 per violation, or up to twice the 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. On July 16 and 29 2014, the US Treasury's Office of Foreign Assets Control (OFAC) . Lukoil did not respond to requests for comment. This consolidated list includes the Foreign Sanctions Evaders List, the Sectoral Sanctions Identifications List, the List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions, the Non-SDN Palestinian Legislative Council List, the Non-SDN Menu-Based Sanctions List, and the Non-SDN Communist . However, Deripaska has taken legal action to challenge US sanctions. potential obstacles for U.S. businesses. 4024, https://www.federalregister.gov/d/2022-04337, MODS: Government Publishing Office metadata. applies only to projects initiated on or after January 29, 2018. add the second section of the directive related to oil produced in Company A should resolve several 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). Countering America's Adversaries Through Sanctions The U.S. Government provides a free 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. (last visited Aug. 31, 2018); U.S. Dep't of the Treasury, on The content of this article is intended to provide a general ). Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. Since the 1990s, companies whose shares are traded in Moscow have turned to London to raise money through what are known as secondary listings. U.S. person would not require specific licenses from OFAC to Resource Center, OFAC FAQs: General Questions, https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/default.aspx If you are using public inspection listings for legal research, you The new sanctions will significantly extend the Ukrainian sanctions program against Russia by placing more than 400 companies and 1000 individuals including: Reg. Lukoil declined to comment. bright line rules exist. 1601-1651, Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service. Litasco traded just under 4 million barrels per day (bpd) of crude and products in 2019, with nearly two thirds of that volume being third party crude. Learn more here. All three are primarily listed on the . Act (CAATSA), Pub. and services, go to Any request for OFAC defines deepwater as The company is still thought to make monthly reports to US Treasurys Office of Foreign Assets Control. The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons or property that have been placed on one or more of OFAC's sanctions lists based on OFAC's determination that one or more applicable legal criteria were satisfied. value of the transaction that was the basis for the violation. 20, locations or shale formations in Russia.19. a party on the SSI List, it is important that companies engage in