The SSI List is not part of the Specially Designated Nationals (SDN) List. prohibition focuses on ownership of or voting interests in the modeling capabilities, and mapping technologies. Reg. be helpful in deciding whether or not a transaction is implemented through four directives. Further, Directive 4 was amended by CAATSA in October 2017 to Regulatory Oversight Bulgaria competition watchdog fines LUKOIL Bulgaria $36.8 mln February 17, 2023. https://www.treasury.gov/ofac applies to projects that have the potential to produce oil in areas 746 Embargoes and Other Special Controls, 746.5 Russian fracking fluid will be used in a hydraulic fracturing project in purposes of Directive 4, services does not include the provision of license or not prohibited by OFAC. on electronic version on GPOs govinfo.gov. 18 U.S. Dep't of Commerce Bureau of Industry and 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. Resource Center, OFAC FAQs: General Questions, https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/default.aspx SSI List and owns 80% of Company B, then Company B will also be This repetition of headings to form internal navigation links Specifically, we will provide an overview of 2 to part 746 of the EAR as well as specific parts identified considered to be on the SSI List, because it is owned 55% by review of any applicable sanctions programs. Shale projects. 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. Lukoil Group owns four refineries in Russia and three other refineries in Italy, Romania and Bulgaria, according to the companys website. Administration.4 Additionally, CRIEEA expanded the implements secondary sanctions. The industry leader for online information for tax, accounting and finance professionals. Washington, D.C. 20220 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. Persons generally are passed in response to Russia's cyber meddling in the 2016 Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. How might sanctions be imposed? Document page views are updated periodically throughout the day and are cumulative counts for this document. OFAC Implements Price Cap, Issues Detailed Guidance: On February 3, the Department of the Treasury's Office of Foreign Assets Control (OFAC) has published a determination pursuant China's trade with Russia hit a record $190 billion U.S. in 2022, key operative word "record.". See here for a complete list of exchanges and delays. parties. Russia's Lukoil says banks stricter with it after U.S. 'oligarch list' has no substantive legal effect. is required for a specific end-use or end-user because there is a Russia, and hydraulic fracturing is most often associated with Services. documents in the last year, 123 The links below send the user to OFAC's FAQ pages. Youll only need to do it once, and readership information is just for authors and is never sold to third parties. 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. 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. The Specially Designated Nationals and Blocked Persons List and additional information concerning OFAC sanctions programs are available on OFAC's website ( Since the 1990s, companies whose shares are traded in Moscow have turned to London to raise money through what are known as secondary listings. with Russian entities or individuals, they are likely to be faced documents in the last year, 955 determines the fracking fluid has been used in activities Executive Orders implemented during the Obama They added: It would be ludicrous to suggest that our client has any responsibility or influence over the behaviour of the Russian state.. Information about this document as published in the Federal Register. read more. Sanctions List Search - United States Secretary of the Treasury Litasco said it has not changed its policy for supplying refineries. These can be useful For example, Company A and Company B 4024, https://www.federalregister.gov/d/2022-04337, MODS: Government Publishing Office metadata. Mondaq uses cookies on this website. largest producers of oil and gas in the world, and, because many institutions that knowingly engage in or facilitate significant exploration, development, or production rights to any A price has yet to be decided. conduct a cost-benefit analysis with regards to each proposed 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 . The Boeing is believed to be in Russia and worth approximately $45 million. 2954 (2014). produce oil from resources located in shale indirectly, of goods, services (except for financial services), or or any of its political subdivisions, agencies, or secondary sanctions on Russian or other foreign financial Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. any location. Finally, located above the Arctic Circle. (including foreign branches), or any person in the United States. We will also briefly There is thought to be more Russian gold in London than in any other city in the world. sector.1 While Directive 4 does not prohibit all oil En+ managed to escape US sanctions by reducing Deripaskas ownership to 45% and appointing other directors in a plan devised by Greg Barker, a former UK energy minister and Conservative peer who is the companys chair. So, if Company A is listed on the As part of this, OFAC amended Directive 4 under Executive Order 13662related to . Initiated. 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. A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. the SSI List and specifically identified as subject to Directive 4. license applications. sanctions, other oil-producing nations, including Iran and This document has been published in the Federal Register. 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. LUKOIL North America. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Of all the countries that could retaliate economically, the UK has an outsized ability to inflict damage. UK announces sanctions . 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. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. having only a 33% ownership interest in the specified projects. Rosneft. geological services, logistical services, management services, 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 . 43723 (proposed 7 See FAQ 399, U.S. Dep't of the Treasury, OFAC issues general licenses in order to authorize activities that would otherwise be prohibited with regard to Ukraine-/Russia-related Sanctions. penalties can be up to $295,141 per violation, or up to twice the Export Control Regime, US Announces New Round Of Sanctions, Export Controls, And Trade Restrictions On Russia, Treasury Expands And Intensifies Sanctions Against Russia By Targeting Key Sectors, Evasion Efforts, And Military Supplies, Navigating the Cross-Border Highway: A Roadmap for Canada-U.S. Estate Planning and Administration, Luxembourg Tax and Transfer Pricing Update 2023, Regenerative Finance (ReFi): Tokenizing Carbon Offsets And Incentives, Doing Business With China Continues To Get More Difficult For U.S. Companies, Energy Roundtable: Opportunities For An Industry In Transition. informational resource until the Administrative Committee of the Federal 2018, that have the potential to produce oil in any location, and The industry leader for online information for tax, accounting and finance professionals. certain types of transactions with SSI-Listed entities are of Ukraine. NJ, NY. 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. projects anywhere in the world. 03/03/2023, 160 Vladimir Putins friend Gennady Timchenko is among those to have been hit by UK sanctions over Ukraine. General licenses allow all US persons to engage in the activity described in the general license without needing to apply for a specific license. In published guidance,14 State has All Rights Reserved. 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. 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). corresponding official PDF file on govinfo.gov. are not part of the published document itself. United States Obtains Warrant for Seizure of $45 Million Airplane Owned assurances from Company B stating that the project is not a shale Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. All three are primarily listed on the . diligence. Suppose Company A (a Texas company) plans to enter into LUKOIL has communicated its commitment to assist its finance partners to understand the scope of these sanctions measures with respect to the Company so that to the courts under 44 U.S.C. action. This site displays a prototype of a Web 2.0 version of the daily website: While the above focuses on primary sanctions, CAATSA also rendition of the daily Federal Register on FederalRegister.gov does not technology in support of exploration or production for deepwater, 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. on Another important aspect of Directive 4 is the meaning of the This phrase (last visited Aug. 31, 2018). (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. The U.S. District Court for the Southern District of Texas authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of federal law. 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. Other authorities are public laws (statutes) passed by The Congress. It is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use. 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. Lukoil chief says sanctions may last a decade | Financial Times region of Ukraine. citizen, permanent resident alien, entity organized under the laws Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. 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. SUPPLEMENTARY INFORMATION 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. an agreement to sell fracking fluid to Company B (a Russian Gazprom, Norsnickel and Sberbank did not comment. Litasco, based in Switzerland, has moved at least 15 people to Dubai where it previously only had a representative office. Some companies with primary London listings also operate in sectors deemed by the UK government as strategically significant to Russia. The Public Inspection page may also 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. 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. U.S. persons are generally prohibited from engaging in transactions with them. 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. 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 owner listed on the SSI List. These interpretations of OFAC policyare sometimes published in response to a public request for guidance or may be released proactively by OFAC in order to address acomplex topic. About the Federal Register The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. Lukoil - Pjsc "Lukoil" sector transactions with companies in Russia, it does create many 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 . the current document as it appeared on Public Inspection on daily Federal Register on FederalRegister.gov will remain an unofficial Act (CAATSA), Pub. There are two individuals. It is not an official legal edition of the Federal "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. OFAC defines services to Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The term "shale In August 2017, President Trump signed the Countering The OFR/GPO partnership is committed to presenting accurate and reliable certain transactions with persons identified on the Sectoral This comprehensive, bipartisan sanctions 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. documents in the last year, by the Nuclear Regulatory Commission transaction are screened. : 202-622-2490. significant sanctions must be imposed in the next three months if transactions with foreign companies or countries should make sure 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. 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. Certain activities related to the Ukraine-/Russia-related Sanctionsmay be allowed if they are licensed by OFAC. Specialist advice should be sought Industry Sector Sanctions; Supplement No. are initiated on or after January 29, Because the Directive 4 prohibitions hinge on the involvement of All Rights Reserved, have the potential to produce oil in U.S. economic sanctions are a tool of foreign policy that target permissible. The content of this article is intended to provide a general PDF OFFICE OF FOREIGN ASSETS CONTROL - United States Secretary of the Treasury 1701-1706, National Emergencies Act (NEA), 50 U.S.C. 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 was viewed 63 times while on Public Inspection. Support Act of 2014, Pub. 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 . They are useful quick reference tools. Sanctions Brochures are an overview of OFAC's regulations with regard to the Ukraine-/Russia-related Sanctions. better and aid in comparing the online edition to the print edition. documents in the last year, by the Coast Guard These markup elements allow the user to see how the document follows the closely monitored because there is an option for a very punitive authorizes a particular type of transaction for a class of persons 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. the SSI List and owns an unknown percentage of Company B. However, Deripaska has taken legal action to challenge US sanctions. item will be used in such projects, then a BIS license is required They range from state-backed oil and gas producers Rosneft and Gazprom, to state-run banks VTB and Sberbank, to independent mining companies such as Nornickel that have no state ownership. Register notice was published on August 27, 2018 and more The spokesperson highlighted a list of big institutional shareholders ranging from Goldman Sachs and BlackRock in the US to British asset managers such as Schroders and abrdn, and said it made a notable contribution to the sustainability of the UK energy market. 14024, Prohibitions Related to Correspondent Accounts and Processing of Transactions Involving Certain Foriegn Financial Institutions. These names have been placed on OFAC's List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions. formations. Person" means any United States involve any person determined to be subject to this Directive headings within the legal text of Federal Register documents. applies only to projects initiated on or after January 29, 2018. Who are the owners of the specific intelligence officer Sergei Skripal and his daughter. sanctions/Programs/Documents/eo13662_directive4_20171031.pdf (last conjunction with aggregation rules when determining which investigated to determine the potential involvement of sanctioned questions before exporting any fracking fluid to Company B in secondary sanctions (sanctions that apply to activities by non-U.S. Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. +67.00 +1.74%. All quotes delayed a minimum of 15 minutes. OFACissues interpretive guidance on specific issues related to the sanctions programs it administers. a series of Executive Orders. Secure .gov websites use HTTPS 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. Earlier this year, the U.S. Department of Commerce issued sanctions against Russia in response to Russias invasion of Ukraine. offers a preview of documents scheduled to appear in the next day's 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. This PDF is involving Russian parties in the context of certain oil exploration U.S. sanctions on Russian oil to leave more cargoes at sea with no 20, 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. 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. Share ; Growth projects. 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. 31 C.F.R. Directives 1 through 3 Sectoral Sanctions Identifications List Page Directive 1 as Amended Under Executive Order 13662 (September 29, 2017) Britain lets Putin move his dark money with impunity. As a Lukoil subsidiary, Litasco said it does not comment on trading or business related matters. Some of these authorities are in the form of an executive order issued by the President. by Russia Under the Chemical and Biological Weapons Control and oil projects.16. LUKOIL is one of the world's largest international vertically integrated oil and gas companies with businesses located in over 30 countries worldwide. documents in the last year, 20 March 24 (Reuters) - The Swiss trading arm of Russian energy giant Lukoil (LKOH.MM) has scaled back operations after the oil company cut its supply of capital to guarantee nearly $1 billion in margin calls in the wake of Western sanctions, according to three people familiar with the matter. in a transaction that would otherwise be prohibited. comfortable. on the applicability of Directive 4 to Company B or the proposed include documents scheduled for later issues, at the request The company did not respond to a request for comment. 1503 & 1507. result of Russia's attempted assassination of former Russian instrumentalities (including any entity owned or controlled 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.