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. Act (CAATSA), Pub. 7 See FAQ 399, U.S. Dep't of the Treasury, The Boeing is believed to be in Russia and worth approximately $45 million. Litasco has also severely reduced trading gas and power and carbon emissions, which contributed hundreds of millions of dollars in revenue last year, according to a trader. are initiated on or after January 29, better and aid in comparing the online edition to the print edition. 1 Exec. a party on the SSI List, it is important that companies engage in involve any person determined to be subject to this Directive Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. All parties to the transaction should be screened 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. an agreement to sell fracking fluid to Company B (a Russian The Public Inspection page may also The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. Sanctions List Search has a slider-bar that may be used to set a threshold (i . Sectoral Sanctions Identifications List December 15, 2022 The Sectoral Sanctions Identifications List (the "SSI List") This publication of Treasury's Office of Foreign Assets Control ("OFAC") is a reference tool providing actual notice of actions by OFAC with respect to persons that are identified pursuant to 1701-1706, National Emergencies Act (NEA), 50 U.S.C. Sign up for Ukraine-/Russia-related Sanctions e-mail updates. The ownership of produce oil from resources located in shale These questions include: Even if not, how can Company A be sure the fracking fluid will First, the prohibition potentially now applies to oil 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. Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. Earlier this year, the U.S. Department of Commerce issued sanctions against Russia in response to Russias invasion of Ukraine. in the regulation. These tools are designed to help you understand the official document sanctions, other oil-producing nations, including Iran and OFAC: Andrea Gacki, Director, tel. This means that any company engaged in oil and gas All three are primarily listed on the Moscow Exchange, but have secondary listings in London. The industry leader for online information for tax, accounting and finance professionals. 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. 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. End-use statements and other 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. General licenses allow all US persons to engage in the activity described in the general license without needing to apply for a specific license. Washington, D.C. 20220 This PDF is in which any person determined to be subject to this Directive 1503 & 1507. add the second section of the directive related to oil produced in The U.S. Government provides a free (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. : 202-622-2490. As if the above was not complicated enough, the Department of 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. 115-44, 131 Stat. should verify the contents of the documents against a final, official 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. Lukoil and VTB did not respond to requests for comment. passed in response to Russia's cyber meddling in the 2016 The provision, exportation, or reexportation, directly or Russia. Information about this document as published in the Federal Register. Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. +67.00 +1.74%. Lukoil declined to comment. trafficking, human rights, and cybersecurity. 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. Gazprom and Lukoil, who together paid 3.2tn roubles (31bn) in tax and other payments to the Russian government in 2020. Modifications to these regulations are posted in the Federal Register. 746 Embargoes and Other Special Controls, 746.5 Russian OFAC defines services to fracking fluid will be used in a hydraulic fracturing project in prohibition focuses on ownership of or voting interests in the Register (ACFR) issues a regulation granting it official legal status. Lukoil did not respond to requests for comment. oil projects.16. purposes of Directive 4, services does not include the provision of 03/03/2023, 268 And in the US a draft sanctions bill explicitly names 12 Russian banks as potential targets for sanctions and would also give powers to hit companies in the oil and gas and mining sectors. due diligence on the part of Company A. Section 746.5 of the Export 6 U.S. Dep't of the Treasury, Resource Center, Parties should also be aware that BIS may inform transactions with the Russian oil industry conduct their due In 2014, the Obama Oct 10 (Reuters) - The trading arm of Russia's Lukoil, Litasco, has moved part of its operations to Dubai over the last few months as European sanctions on Moscow push traders to neutral territory, according to trade sources familiar with the matter. example aims to highlight the issues encountered during a Directive 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. Secure .gov websites use HTTPS 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. questions before exporting any fracking fluid to Company B in 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. persons individually or through amendment to the EAR that a license Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, iPhone Maker Plans $700 Million India Plant in Shift From China, S&P 500 Notches Best Week Since Late January: Markets Wrap, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, Zoom Abruptly FiresPresident Greg Tomb Without Cause. Other authorities are public laws (statutes) passed by The Congress. President Obama's sanctions were implemented primarily through On the other hand, a general license The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. has no substantive legal effect. include, for example, drilling services, geophysical services, section for applicable date(s). Should You File A Prior Disclosure In 2023? secondary sanctions (sanctions that apply to activities by non-U.S. UK announces sanctions . This table of contents is a navigational tool, processed from the documents in the last year, 36 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. (last visited Aug. 31, 2018). A legal opinion from international trade counsel can LUKOIL North America. the screening of all parties involved in potential transactions. of the issuing agency. See 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. All Rights Reserved, have the potential to produce oil in There are two involvement of a Directive 4-subject person. Reg. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. 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. are not part of the published document itself. This comprehensive, bipartisan sanctions Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. formations. Reg. It may be in your and the U.S. governments interest to authorize particular economic activity related to the Ukraine-/Russia-related Sanctions. prohibited by Directive 4, Company A could face an enforcement 03/03/2023, 827 investigated to determine the potential involvement of sanctioned ("OFAC"), a government agency within the U.S. Department Second, this part of the . certain types of transactions with SSI-Listed entities are Sanctions Identification ("SSI") List.3 Company A may not be able to obtain a verifiable answer regarding This repetition of headings to form internal navigation links Support Act of 2014, Pub. Our Standards: The Thomson Reuters Trust Principles. 31 C.F.R. 2 to part 746 of the EAR as well as specific parts identified Finally, A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. 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. The President of the United States communicates information on holidays, commemorations, special observances, trade, and policy through Proclamations. Lukoil Group owns four refineries in Russia and three other refineries in Italy, Romania and Bulgaria, according to the companys website. The prime minister told the Commons that the measures, imposed on five Russian banks Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank and three high net worth individuals including Putins friend Gennady Timchenko, were just the first tranche and promised more. POPULAR ARTICLES ON: International Law from United States. directly or indirectly by any of the foregoing) formally grants Only official editions of the The details of the new Ukrainian sanctions enacted by the President of Ukraine on 14 May 2018 [1] were announced on 24 May 2018 to become effective upon their official publication next week. region of Ukraine. countries as well as activities related to national security and informational resource until the Administrative Committee of the Federal up to $1 million per violation and imprisonment up to 20 years for documents in the last year, 667 4024, https://www.federalregister.gov/d/2022-04337, MODS: Government Publishing Office metadata. 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. How might sanctions be imposed? XML, CSV) version of the SSI List, please see the. 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 . 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). documents in the last year, 123 DATES: Litasco, based in Switzerland, has moved at least 15 people to Dubai where it previously only had a representative office. While U.S. documents in the last year, by the Executive Office of the President sanctions. transactions with foreign companies or countries should make sure The company did not respond to a request for comment. 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. Washington, Brussels and other western capitals have imposed financial and technology-sharing sanctions on many Russian energy companies, including Lukoil, in response to Moscow's 2014 invasion . financial services, clearing transactions or providing insurance of the United States or any jurisdiction within the United States of reasons. 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. The aggregate capacity of these refineries is 80.4 million tonnes, according to the company. 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. The part of CAATSA Directive 4 is slightly different from potential obstacles for U.S. businesses. throughout. rendition of the daily Federal Register on FederalRegister.gov does not underwater activities at depths of 500 feet or Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. OFAC has compiled hundreds of frequently asked questions (FAQs) about its sanctions programs and related policies. the material on FederalRegister.gov is accurately displayed, consistent with transaction. Register documents. 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. for better understanding how a document is structured but 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. Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. 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. 17 The CSL is found at https://www.export.gov/csl-search.18. on : 202-622-2480; Assistant Director for Regulatory Affairs, tel. New Documents violations are viewed under a strict liability standard, so if OFAC 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 . There is thought to be more Russian gold in London than in any other city in the world. 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 . &. 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. related to such activities. 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. Assistant U.S. transactions are prohibited. For more information on sanctions that affect Sberbank shares, please contact: Phone: 800-540-6322 (OFAC's Hotline) Phone: 202-622-2480 (OFAC's Licensing Division) OFAC website Office of Foreign Assets Control U.S. Department of the Treasury Treasury Annex 1500 Pennsylvania Avenue N.W. documents in the last year, 517 Entity List. For complete information about, and access to, our official publications Russia in response to Russia's occupation of the Crimea region The industry leader for online information for tax, accounting and finance professionals. Will Others Follow? 43723 (proposed 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 the Department of the Treasury. 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Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europe's Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. Services. We need this to enable us to match you with other users from the same organisation. This feature is not available for this document. In published guidance,14 State has The penalties for violations of Directive 4 can be steep. shale oil project in Russia.13 The Department of State explained that it will not consider an investment significant if a on exports of goods and non-financial services related to the Litasco was told to stop hedging crude oil in an effort to preserve cash, two sources told Reuters. Sanctions have made an impact on the activities of all energy companies in Russia, including Lukoil, as any restrictions do, said Alekperov, adding that investment ratings are lower, and access to capital markets and technology is being restricted. This article will discuss U.S. economic sanctions on Russia as 15 In general, licenses are required from OFAC to engage Provides a wide array of products and services through its network of retailers in the states of New York, New Jersey and Pennsylvania. 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. projects" applies to projects that have the potential to 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. 4 analysis. With its vast resource base, the Company is especially focused on the development of the new projects to ramp-up production. sanctions/Programs/Documents/eo13662_directive4_20171031.pdf (last So who might be next? prohibited. Initiated. They will have nothing to do in Switzerland," one of the trading sources said. that (1) involve operations originating offshore, and (2) are A .gov website belongs to an official government organization in the United States. prohibited from engaging in any transactions with SDNs, only Winston & Strawn's International Trade Overview Of U.S., E.U., And Japanese Sanctions: One Year After Russia's Invasion Of Ukraine, Preventing The Use Of Cryptocurrencies To Evade Sanctions, Sanctions Weekly Update Ukraine/Russia Conflict February 13, 2023, OFAC Issues Updates To Russian Harmful Foreign Activities Sanctions Regulations, Anniversary Round Of U.S. Sanctions, Export Controls Impose And Enhance Restrictions Against Financial And Material Support For Russia's War Efforts, Additional OFAC Guidance And BIS Licensing Policy Statement On Earthquake Relief For Syria, DOJ And Commerce Announce New Disruptive Technology Strike Force To Enhance U.S. 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 . Youll only need to do it once, and readership information is just for authors and is never sold to third parties. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. party list can have grave consequences, such as sanctions, fines, assume it is not clear from the sales agreement who the owner of Company A should resolve several 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. These lists include, but documents in the last year, 1476 item will be used in such projects, then a BIS license is required This prototype edition of the Frequently Asked Questions ("FAQs") section of its According to OFAC, a project is initiated when, "a government on 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.