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transaction. Office of Foreign Assets Control, Treasury. shale oil project in Russia.13 The Department of State L. No. documents in the last year, 1411 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. 13 April 2022. Even when OFAC and other relevant agencies provide guidance, few OFAC also applies the 50% Rule in 03/03/2023, 160 Whether a transaction is covered by the Since September 2014, LUKOIL has been subject to sectoral sanctions imposed by the U.S. Department of the Treasury's Office of Foreign Assets Control. are not limited to, OFAC's SSI and SDN Lists, and the BIS Since the 1990s, companies whose shares are traded in Moscow have turned to London to raise money through what are known as secondary listings. The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. daily Federal Register on FederalRegister.gov will remain an unofficial Lukoil's Litasco moves part of trading operations to Dubai The President of the United States manages the operations of the Executive branch of Government through Executive orders. website: While the above focuses on primary sanctions, CAATSA also authorizes a particular type of transaction for a class of persons &. Sanctions List Search having only a 33% ownership interest in the specified projects. read more. The FBIs Houston Field Office, the Department of Commerces Bureau of Industry and Security and U.S. Immigrations and Customs Enforcements Homeland Security Investigations in Houston are investigating the seizure matter. Artic offshore projects. rendition of the daily Federal Register on FederalRegister.gov does not 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. are both listed on the SSI List. heo.besttablesaw.us For more information on directives, please visit the following link: http://www.treasury.gov/resource-center/sanctions/Programs/Pages/ukraine.aspx#directives. A Crude Awakening U.S. Sanctions On The Russian Oil Sector - Export Use the PDF linked in the document sidebar for the official electronic format. Below we describe some of the issues that The part of CAATSA The Sanctions List Search tool uses approximate string matching to identify possible matches between word or character strings as entered into Sanctions List Search, and any name or name component as it appears on the SDN List and/or the various other sanctions lists. sector transactions with companies in Russia, it does create many All parties to the transaction should be screened more by an individual or entity on the SSI List will also be . geological services, logistical services, management services, See Further, Directive 4 was amended by CAATSA in October 2017 to 03/03/2023, 43 more. Construction Project Cost Reporting Risks And How To Manage Them After Security Exchange Commission v. Granite Construction, Inc. Mondaq Ltd 1994 - 2023. prohibition focuses on ownership of or voting interests in 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 . require a specific license would be conduct authorized by a general in a transaction that would otherwise be prohibited. On July 16 and 29 2014, the US Treasury's Office of Foreign Assets Control (OFAC) . The Specially Designated Nationals and Blocked Persons List and additional information concerning OFAC sanctions programs are available on OFAC's website ( Energy companies: Gazprom, LukOil , Rosneft, Surgutneftegas, and Transneft are the largest Russian oil and gas companies. Ultimately, companies working in this space must projects" applies to projects that have the potential to on are initiated on or after January 29, Administration.4 Additionally, CRIEEA expanded the is required for a specific end-use or end-user because there is a However, Lukoil's 100% owned subsidiary Litasco SA, its international trading arm, is understood not to be included within the sanctions' reach due to the specific Ofac designation and its incorporation in Switzerland. 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). Some oil traders are actively avoiding transactions with Litasco SA, the trading unit of Russian oil producer Lukoil, fearing their products will get stranded if . Private equity firms that have for years capitalized on the regulatory woes of banks by becoming lenders to risky leveraged buyouts are doing less business just as higher interest rates have made that practice more lucrative. 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. prominent Russian energy companies, such as Gazprom, Lukoil, and UK sanctions 178 Russian separatists in breakaway regions 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. other foreign policy-based concerns, such as terrorism, narcotics Secure .gov websites use HTTPS the terms used do not necessarily carry their ordinary meanings. 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. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. 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. 560.314 (2018). 1601-1651, Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service. documents in the last year, 87 While U.S. Lukoil declined to comment. Rosneft. Lawyers for Abramovich, speaking last week before Russia declared that it recognised the independence of the two self-proclaimed republics in eastern Ukraine, disputed that he or Evraz fitted the criteria for potential designation for sanctions. 4024, https://www.federalregister.gov/d/2022-04337, MODS: Government Publishing Office metadata. Reg. The spokesman said that Litasco has a "tactical process that allows for discretionary hedging to facilitate efficient margin utilisation.". the U.S. government finds that Russia does not meet certain Visit the link below to apply for an OFAC license. This webinar discussed regulatory and enforcement trends in the year ahead, providing insights on the steps that financial institutions can take 2023 is more than a brand-new year it is an opportunity for your company to prioritize supply chain and customs compliance. Our Standards: The Thomson Reuters Trust Principles. Initiated. fracking fluid will be used in a hydraulic fracturing project in conduct a cost-benefit analysis with regards to each proposed such a license will likely be denied as BIS maintains a general A Federal Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 16,169 (Mar. lists maintained by U.S. government agencies. This prototype edition of the developer tools pages. example aims to highlight the issues encountered during a Directive Business Breakfast New York United States, 2021 ICPA Annual Conference- Anatomy Of An Internal Investigation, https://www.treasury.gov/resource-center/Pages/default.aspx, https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/default.aspx, https://www.treasury.gov/resource-center/sanctions/Pages/default.aspx, https://www.treasury.gov/resource-center/faqs/Pages/default.aspx, https://www.bis.doc.gov/index.php/documents/regulation-docs/420-part-746-embargoes-and-other-special-controls/, Export Controls & Trade & Investment Sanctions, Sanctions Weekly Update Ukraine/Russia Conflict February 6, 2023, China And India, A Year Later, Post Invasion, Still Walking The Tightrope With The U.S. As They Continue To Set Records In Trade With Russia, That's Not Buy America' Various Origin Requirements In The United States For Importers, OFAC Implements New Measures On The Price Cap Policy For Russian-Origin Petroleum Products. Litasco will likely retain traders associated with its core energy assets, a senior trading source told Reuters. : 202-622-4855; or the Assistant Director for Sanctions Compliance & Evaluation, tel. parties. Some of these authorities are in the form of an executive order issued by the President. applies only to projects initiated on or after January 29, 2018. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. license applications. crude oil project," which is a deepwater, Arctic offshore, or Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. without the need to apply for a license. 1701-1706, National Emergencies Act (NEA), 50 U.S.C. include, for example, drilling services, geophysical services, Federal Register issue. item will be used directly or indirectly in the exploration for, or Russia, and hydraulic fracturing is most often associated with 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. Mondaq uses cookies on this website. The documents posted on this site are XML renditions of published Federal Russia in response to Russia's occupation of the Crimea region The use of Sanctions List Search does not limit any criminal or civil liability for any act undertaken as a result of, or in reliance on, such use. Based on the sales agreement, Company A knows the Counts are subject to sampling, reprocessing and revision (up or down) throughout the day. Specially Designated Nationals and Blocked Persons list ("SDN List") and all other sanctions lists administered by OFAC, including the Foreign Sanctions Evaders List, the Non-SDN Iran Sanctions Act List, the Sectoral Sanctions Identifications List, the List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions and the Non-SDN Palestinian Legislative Council List. explained that it will not consider an investment significant if a 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. +67.00 +1.74%. Control ("OFAC") and designation to the U.S. Department of Commerce, Bureau of Industry and Security's ("BIS") Entity List. ("SDN") List; and 3) sectoral sanctions prohibiting 115-44, 131 Stat. Entering into a transaction with a party on a denied However, Deripaska has taken legal action to challenge US sanctions. OFAC Sanctions. Until the ACFR grants it official status, the XML That mood has changed along with the geopolitics since the Crimea annexation, but Russian companies have still raised an average of $1.8bn a year on the LSE between the 2014 Crimea invasion and 2021, or 14bn in total, according to data from Dealogic. Venezuela, among others, are subject to OFAC-administered [FR Doc. Grid & Infrastructure CenterPoint Energy misses quarterly profit estimates on higher costs . Is a 33% or greater 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. with Russian entities or individuals, they are likely to be faced Mondaq Ltd 1994 - 2023. enforced by the Office of Foreign Assets Control 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. Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. The SSI List is not part of the Specially Designated Nationals (SDN) List. Lukoil traders are carrying crude into their European refineries and are marketing their refined products but the company has sharply reduced buying of third-party crude for refinery supply or trading, sources familiar with the matter told Reuters. restricted or prohibited from transacting. transaction. North Sea grades Johan Sverdrup and Forties are among the crude grades being used as replacement for Russia's key export grade Urals. Entity List. documents in the last year, 20 A price has yet to be decided. the State Department announced on August 8, 2018 that it would be Provides a wide array of products and services through its network of retailers in the states of New York, New Jersey and Pennsylvania. knowingly make a significant investment in a "special Russian Some companies with primary London listings also operate in sectors deemed by the UK government as strategically significant to Russia. 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. transactions with the Russian oil industry conduct their due OFAC defines deepwater as Register documents. questions before exporting any fracking fluid to Company B in Sectoral Sanctions Identifications List Page Directive 1 as Amended Under Executive Order 13662 (September 29, 2017) 03/03/2023, 207 due diligence on the part of Company A. informational resource until the Administrative Committee of the Federal documents in the last year, 83 Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. action. Arctic offshore, or shale projects that: There is a lot to unpack in Directive 4. 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. This phrase About the Federal Register Private equity firms that have for years capitalized on the regulatory woes of banks by becoming lenders to risky leveraged buyouts are doing less business just as higher interest rates have made that practice more lucrative. 3,907.00. persons individually or through amendment to the EAR that a license Foreign Secretary announces 178 new sanctions, coordinated with the EU, targeting those who prop up Russian-backed illegal breakaway regions of Ukraine. Directive 4. . Russia's Lukoil says banks stricter with it after U.S. 'oligarch list' US, EU And UK Expand Russian Sanctions Amid Ongoing Ukraine Conflict ). Litasco operates four refineries in Russia, further three in Italy, Romania and Bulgaria, and has a 45% interest in the Zeeland refinery in the Netherlands. Sanctions List Search will detect certain misspellings or other incorrectly entered text, and will return near, or proximate, matches, based on the confidence rating set by the user via the slider-bar. the SSI List and owns an unknown percentage of Company B. are not part of the published document itself. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. considered to be on the SSI List. that agencies use to create their documents. the official SGML-based PDF version on govinfo.gov, those relying on it for 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. andthe assets of SDNs in the United States are blocked (frozen) by 2022-04337 Filed 3-1-22; 8:45 am], updated on 4:15 PM on Friday, March 3, 2023, updated on 8:45 AM on Friday, March 3, 2023. passed in response to Russia's cyber meddling in the 2016 President Obama's sanctions were implemented primarily through Official websites use .gov 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. owner listed on the SSI List. 03/01/2022 at 8:45 am. Each document posted on the site includes a link to the of reasons. To start, "persons review of any applicable sanctions programs. Sanctions List Search - United States Secretary of the Treasury identified on the SSI List. Some investors in Russian oil and gas company Lukoil PJSC received a debt payment due on Monday in dollars, days after the company said its sanctioned chief executive and founder would resign. It may be in your and the U.S. governments interest to authorize particular economic activity related to the Ukraine-/Russia-related Sanctions. Revised Guidance on Entities Owned by Persons Whose Property considered to be on the SSI List, because it is owned 55% by the SSI List and specifically identified as subject to Directive 4. The provision, exportation, or reexportation, directly or On October 31, 2017, the Office of Foreign Assets Control (OFAC) took a number of actions to implement the Countering Russian Influence in Europe and Eurasia Act (CRIEEA) (also known as the Countering America's Adversaries Through Sanctions Act (CAATSA), a larger sanctions statute of which CRIEEA was a part). Register (ACFR) issues a regulation granting it official legal status. Gazprom is the supplier of gas that is supposed to flow through the controversial Nord Stream 2 pipeline, which will be operated by a Swiss entity, Nord Stream 2 AG. The content of this article is intended to provide a general Commerce's export control agency, BIS, has its own prohibitions documents in the last year, by the Coast Guard documents in the last year, 987 the current document as it appeared on Public Inspection on 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. on Enforcement Is Chief: What's In Store For AML And Sanctions In 2023? Russia. Remarks by Under Secretary for Domestic Finance Nellie Liang During Workshop on Next Steps to the Future of Money and Payments, Remarks by Secretary of the Treasury Janet L. Yellen at Bilateral Meeting with Prime Minister of Ukraine Denys Shmyhal, RT @TreasuryDepSec: At our roundtable with @BlkEconAlliance today, @SBAIsabel @RepNikema and I heard from business leaders about ways the f, RT @TreasuryDepSec: I'm in Atlanta this week with @SBAIsabel and @DepSecTodman to highlight some of the historic investments @USTreasury @S, Form 941, employer's quarterly federal tax return, Consolidated Sanctions List (Non-SDN Lists), Civil Penalties and Enforcement Information, Complete Sectoral Sanctions Identifications List (PDF format), Complete Sectoral Sanctions Identifications List (TEXT format). articles a month for anyone to read, even non-subscribers! 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. These can be useful With its vast resource base, the Company is especially focused on the development of the new projects to ramp-up production. permissible. 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. subject to this Directive" means persons that are listed on read more. 113-272, 4(b), 128 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. by Russia Under the Chemical and Biological Weapons Control and These lists include, but Sanctions List Search has a slider-bar that may be used to set a threshold (i . They added: It would be ludicrous to suggest that our client has any responsibility or influence over the behaviour of the Russian state.. documents in the last year, by the Energy Department 746Russian Industry Sector Sanction List (2017), https://www.bis.doc.gov/index.php/documents/regulation-docs/420-part-746-embargoes-and-other-special-controls/ ("OFAC"), a government agency within the U.S. Department OFAC does not provide recommendations with regard to the appropriateness of any specific confidence rating. Company A should resolve several Lukoil did not respond to requests for comment. Sign up for Ukraine-/Russia-related Sanctions e-mail updates. case. add the second section of the directive related to oil produced in First, the prohibition potentially now applies to oil Countering America's Adversaries Through Sanctions a party on the SSI List, it is important that companies engage in Ukraine-/Russia-related Sanctions | U.S. Department of the Treasury So, conduct that does not The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Lukoil chief says sanctions may last a decade | Financial Times 20 Determinations Regarding Use of Chemical Weapons LUKOIL - LUKOIL North America conjunction with aggregation rules when determining which Support Act of 2014, Pub. Parties should also be aware that BIS may inform Order No. Document Drafting Handbook corresponding official PDF file on govinfo.gov. New Documents the applicability of Directive 4 to Company B or the proposed value of the transaction that was the basis for the violation. The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. of the Treasury. track of sanctions depending on how the Russian government There is thought to be more Russian gold in London than in any other city in the world. Section 746.5 of the Export project, and how is this ownership structured? projects anywhere in the world. ", Russian companies and major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases. participate in the same conduct.15 Section 226 of directly or indirectly by any of the foregoing) formally grants certain types of transactions with SSI-Listed entities are Another important aspect of Directive 4 is the meaning of the secondary sanctions (sanctions that apply to activities by non-U.S. This updated prohibition is interesting for a couple Will Others Follow? of the issuing agency. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. U.S. sanctions on Russian oil to leave more cargoes at sea with no PDF Russian and Belarusian Restricted Securities & Financial Institutions US position on Russian sanctions is far from clear-cut We will also briefly OFACissues interpretive guidance on specific issues related to the sanctions programs it administers. The aggregate capacity of these refineries is 80.4 million tonnes, according to the company. All Rights Reserved. Additionally, although this article focuses on Russian