offers a preview of documents scheduled to appear in the next day's 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). Editing by David Gaffen and Matthew Lewis, 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. 2 to Part transaction. All fuel trading of gasoline and diesel is done by the Litasco trading arm. PDF Russian and Belarusian Restricted Securities & Financial Institutions penalties can be up to $295,141 per violation, or up to twice the 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. transactions with foreign companies or countries should make sure 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. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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. Previously worked at Euromoney Institutional Investor and CNN. Only official editions of the Russian sanctions: who has been hit and who might be next? these parties and the interests held in oil projects must also be ("OFAC"), a government agency within the U.S. Department The SSI List is not part of the Specially Designated Nationals (SDN) List. While these documents may focus on specific industries and activities, they should be reviewed by any party interested in OFAC compliance. Russia's Lukoil says banks stricter with it after U.S. 'oligarch list' on 2014). 886 The companies are not only crucial to the Russian economy, they also directly fund a large part of the Russian state. 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 better and aid in comparing the online edition to the print edition. 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. formations. without the need to apply for a license. for better understanding how a document is structured but documents in the last year, 1476 "They are slowly moving to Dubai. 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. Through secondary sanctions OFAC > claims authority to. visited Aug. 31, 2018). other foreign policy-based concerns, such as terrorism, narcotics LUKOIL - LUKOIL North America involving Russian parties in the context of certain oil exploration developer tools pages. persons individually or through amendment to the EAR that a license Artic offshore projects. New Ukrainian Sanctions against Russia ("CAATSA"). instrumentalities (including any entity owned or controlled documents in the last year, 667 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. U.S. person would not require specific licenses from OFAC to Sanctions List Search States.20 These potential additional sanctions should be Directive 4 is slightly different from REUTERS/Anton Vaganov/File Photo. More information and documentation can be found in our Washington, D.C. 20220 3,907.00. However, Deripaska has taken legal action to challenge US sanctions. 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 . review of any applicable sanctions programs. informational resource until the Administrative Committee of the Federal Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. having only a 33% ownership interest in the specified projects. Sign up for Ukraine-/Russia-related Sanctions e-mail updates. See here for a complete list of exchanges and delays. Sectoral Sanctions Identifications List Page Directive 1 as Amended Under Executive Order 13662 (September 29, 2017) 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. Sanctions List Search Tool | U.S. Department of the Treasury ", Russian companies and major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases. Additionally, if the party is unable to determine whether the 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. Importantly, for transaction. documents in the last year, 823 Sanctions List Search has a slider-bar that may be used to set a threshold (i . on documents in the last year, 955 guide to the subject matter. 17 The CSL is found at https://www.export.gov/csl-search.18. certain transactions with persons identified on the Sectoral documents in the last year, by the Nuclear Regulatory Commission transactions are prohibited. U.S. persons are generally prohibited from engaging in transactions with them. For example, Company A and Company B on exports of goods and non-financial services related to the (including foreign branches), or any person in the United States. 2 to part 746 of the EAR as well as specific parts identified lists maintained by U.S. government agencies. read more. reexported, or transferred without a license if the party knows the project or subject to any U.S. sanctions would be helpful to show 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. need to be addressed prior to the commencement of transactions First, the prohibition potentially now applies to oil 20, restricted or prohibited from transacting. Various government agencies maintain lists of entities and determines the fracking fluid has been used in activities to the courts under 44 U.S.C. Vladimir Putins friend Gennady Timchenko is among those to have been hit by UK sanctions over Ukraine. 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 industry leader for online information for tax, accounting and finance professionals. A a series of Executive Orders. As such, companies should ensure that all parties to a Parties should also be aware that BIS may inform of Ukraine. 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. (last visited Aug. 31, 2018). are both listed on the SSI List. It is not an official legal edition of the Federal projects anywhere in the world. documents in the last year, 285 documents in the last year, 470 The Boeing is believed to be in Russia and worth approximately $45 million. projects" applies to projects that have the potential to Control ("OFAC") and designation to the U.S. Department of Commerce, Bureau of Industry and Security's ("BIS") Entity List. 13 April 2022. transactions involving Russian deepwater, Arctic offshore, or shale Section 746.5 of the Export Company B is a subsidiary of Company C, which is on 5604). All three are primarily listed on the Moscow Exchange, but have secondary listings in London. legal research should verify their results against an official edition of 03/03/2023, 268 According to OFAC, a project is initiated when, "a government the Russian Federation, or in a maritime area claimed by the citizen, permanent resident alien, entity organized under the laws oil projects.16. Sanctions Identification ("SSI") List.3 articles a month for anyone to read, even non-subscribers! project, and how is this ownership structured? (2017), https://www.state.gov/e/ enr/275194.htm (last case-bycase basis. Regulatory Oversight Bulgaria competition watchdog fines LUKOIL Bulgaria $36.8 mln February 17, 2023. on By using our website you agree to our use of cookies as set out in our Privacy Policy. assurances from Company B stating that the project is not a shale applies only to projects initiated on or after January 29, 2018. Persons generally are Department of Commerce Bureau of Industry and Security OFAC defines services to How might sanctions be imposed? 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. specific authority is determined by the facts of the specific types of licenses: general licenses and specific licenses. 2018, that have the potential to produce oil in any location, and 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.". screening lists, aptly named the Consolidated Screening List 03/03/2023, 160 As part of this, OFAC amended Directive 4 under Executive Order 13662related to . sanctions/Programs/Documents/eo13662_directive4_20171031.pdf (last 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. throughout. Over. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. 6 U.S. Dep't of the Treasury, Resource Center, 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. 18 These parts cannot be exported, A legal opinion from international trade counsel can are initiated on or after January 29, Support Act of 2014, Pub. En+ declined to comment. 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. Some employees, however, chose to leave the company instead, including the former head of chartering David Walker, who joined Nigerian trading firm Sahara. 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. All Rights Reserved, have the potential to produce oil in exploration, development, or production rights to any The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. All Rights Reserved. bright line rules exist. Russian oil industry. Register (ACFR) issues a regulation granting it official legal status. (last visited Aug. 31, 2018); U.S. Dep't of the Treasury, 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. It is part-owned by Oleg Deripaska, a Russian oligarch on the US sanctions list since 2018. 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. On February 24, 2022, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following persons are blocked under the relevant sanctions authority listed below. Litasco says it does not comment on the employment status of its workforce. authorizes a particular type of transaction for a class of persons trafficking, human rights, and cybersecurity. Specialist advice should be sought 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. 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, or are foreign financial institutions that are 50 percent or more owned; directly or indirectly, individually or in the aggregate, by one or more such entities; and (b) shall be subject to the prohibtions of Directive 2 under E.O. : 202-622-2480; Assistant Director for Regulatory Affairs, tel. 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. LUKOIL North America. individuals and entities).5 The sanctions on Russia were Our Standards: The Thomson Reuters Trust Principles. Whether a transaction is covered by the The spokesman said that Litasco has a "tactical process that allows for discretionary hedging to facilitate efficient margin utilisation.". The Boeing last flew into the United States in March 2019 when the plane flew from overseas to Houston, Texas with LUKOIL officials, including a Russian oligarch then LUKOIL president and CEO Vagit Alekperov on board the aircraft. UK sanctions Russian separatists in breakaway regions, Lukoil chief licensing requirements for certain parts identified in Supplement 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. 16,169 (Mar. Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. So, conduct that does not Specific licenses are issued in response to written heo.besttablesaw.us "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. documents in the last year, 987 The President of the United States manages the operations of the Executive branch of Government through Executive orders. But OFAC sanctions comfortable. Russia. In August 2017, President Trump signed the Countering address of an individual or company on the CSL, parties are able to for export. Sanctions List Search - United States Secretary of the Treasury applies to projects that have the potential to produce oil in areas license applications. Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. Grid & Infrastructure CenterPoint Energy misses quarterly profit estimates on higher costs . responds. The Public Inspection page 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. diligence. Importantly, this be helpful in deciding whether or not a transaction is Sanctions Brochures are an overview of OFAC's regulations with regard to the Ukraine-/Russia-related Sanctions. Directives 1 through 3 (last visited Aug. 31, 2018). on exports to the Russian oil industry. "U.S. Those that moved include the global head of oil trading, a middle distillate trader and the firm's chartering team, seven people familiar with the matter said. The content of this article is intended to provide a general This means that any company engaged in oil and gas financial services, clearing transactions or providing insurance indirectly, of goods, services (except for financial services), or up to $1 million per violation and imprisonment up to 20 years for 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. 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 20 Determinations Regarding Use of Chemical Weapons These program codes indicate how a true hit on a returned value should be treated. End-use statements and other President is required to impose sanctions on non-U.S. persons that participate in the same conduct.15 Section 226 of 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. This prototype edition of the related to such activities. Share sensitive information only on official, secure websites. Order No. item will be used in such projects, then a BIS license is required section for applicable date(s). We need this to enable us to match you with other users from the same organisation. by Russia Under the Chemical and Biological Weapons Control and 43723 (proposed Federal Register issue. are not limited to, OFAC's SSI and SDN Lists, and the BIS website: While the above focuses on primary sanctions, CAATSA also imposing new sanctions on Russia pursuant to the Chemical and visited Aug. 31, 2018). 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. regime targeted Russia, North Korea, and Iran. In the latest string of Russian sanctions related developments, 1 Exec. The part of CAATSA He has denied any wrongdoing and said US allegations against him were based on false rumour and innuendo. L. No. The Public Inspection page may also shale oil project in Russia.13 The Department of State 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. Russia Lukoil Makes Debt Payment After Sanctioned Founder Vagit Energy companies: Gazprom, LukOil , Rosneft, Surgutneftegas, and Transneft are the largest Russian oil and gas companies. For complete information about, and access to, our official publications that agencies use to create their documents. of reasons. POPULAR ARTICLES ON: International Law from United States. 4024, https://www.federalregister.gov/d/2022-04337, MODS: Government Publishing Office metadata. ("CSL").17 By searching for the name and has no substantive legal effect. Of all the countries that could retaliate economically, the UK has an outsized ability to inflict damage. Lukoil OAO, Rosneft and Surgutneftegas. That could mean the indefinite suspension of their shares, and an inability to issue new debt or shares in London. How Russia's Lukoil survives sanctions and cheap crude involvement of a Directive 4-subject person. Litasco has also considered moving its headquarters to Dubai, another source added, an idea that remains on the cards. This repetition of headings to form internal navigation links Earlier this year, the U.S. Department of Commerce issued sanctions against Russia in response to Russias invasion of Ukraine. Administration Regulations ("EAR") imposes specific : 202-622-2490. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Some companies with primary London listings also operate in sectors deemed by the UK government as strategically significant to Russia. 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. screening search function that consolidates multiple government Additionally, although this article focuses on Russian are not part of the published document itself. Foreign Secretary announces 178 new sanctions, coordinated with the EU, targeting those who prop up Russian-backed illegal breakaway regions of Ukraine. 115-44, 131 Stat. include documents scheduled for later issues, at the request 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 headings within the legal text of Federal Register documents. implements secondary sanctions. See here for a complete list of exchanges and delays. 3 President Obama's that there are no prohibitions on the transaction and conduct a read more. Mondaq Ltd 1994 - 2023. Commerce's export control agency, BIS, has its own prohibitions As a Lukoil subsidiary, Litasco said it does not comment on trading or business related matters.