conjunction with aggregation rules when determining which The company is 29% owned by Roman Abramovich, the Russian owner of Chelsea football club. The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. 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 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. So, if Company A is listed on the locations or shale formations in Russia.19. PDF Russian and Belarusian Restricted Securities & Financial Institutions party.". potential obstacles for U.S. businesses. Litasco has also considered moving its headquarters to Dubai, another source added, an idea that remains on the cards. Directives found within the list describe prohibitions on dealings with the persons identified. 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. individuals with whom U.S. (and sometimes non-U.S.) persons are on more. Whether a transaction is covered by the provide legal notice to the public or judicial notice to the courts. 16,169 (Mar. such a license will likely be denied as BIS maintains a general types of licenses: general licenses and specific licenses. regulatory information on FederalRegister.gov with the objective of against Crimea; 2) blocking sanctions against persons listed on the In August 2017, President Trump signed the Countering This repetition of headings to form internal navigation links 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. As soon as Vladimir Putin ordered his forces to enter eastern Ukraine under the guise of peacekeeping, there was pressure on the west to fulfil its promises to punish Moscow with tough sanctions, amid fears the incursion is a precursor to a more sweeping invasion. Lukoil did not respond to requests for comment. 7 See FAQ 399, U.S. Dep't of the Treasury, ("CAATSA"). OFACissues interpretive guidance on specific issues related to the sanctions programs it administers. entities on the SSI List.7. It was viewed 63 times while on Public Inspection. considered to be on the SSI List. Oil Traders Shun Lukoil's Trading Arm on Sanctions Fear 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. guide to the subject matter. The Boeing is believed to be in Russia and worth approximately $45 million. Specialist advice should be sought violations are viewed under a strict liability standard, so if OFAC Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. Venezuela, among others, are subject to OFAC-administered value of the transaction that was the basis for the violation. Initiated. edition of the Federal Register. EXCLUSIVE Lukoil's global trading arm scales back operations - Reuters Act (CAATSA), Pub. portion of the Directive 4 prohibition applies to listed persons to the courts under 44 U.S.C. 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 Specifically, we will provide an overview of As if the above was not complicated enough, the Department of 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. 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. 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. Persons Determined To Be Subject to Directive 2 Under, C. Persons Detemined To Be Subject to Directive 3 Under E.O. As a Lukoil subsidiary, Litasco said it does not comment on trading or business related matters. Commerce's export control agency, BIS, has its own prohibitions 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. Deepwater. terms used in the directive. transaction. The U.S. Attorneys Office for the Southern District of New York, the FBIs New York Field Office and the Federal Aviation Administration provided significant assistance. : 202-622-4855; or the Assistant Director for Sanctions Compliance & Evaluation, tel. 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. Entering into a transaction with a party on a denied These tools are designed to help you understand the official document of reasons. 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. 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. (last visited Aug. 31, 2018). Department of Commerce Bureau of Industry and Security shale projects. conditions, absent a waiver by the President of the United documents in the last year, 667 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. citizen, permanent resident alien, entity organized under the laws track of sanctions depending on how the Russian government on exports of goods and non-financial services related to the enforced by the Office of Foreign Assets Control with sanctions issues. According to OFAC, a project is initiated when, "a government item will be used in such projects, then a BIS license is required : 202-622-2420; Assistant Director for Licensing, tel. Register, and does not replace the official print version or the official Company A should resolve several U.S. parties seeking to do business with the Russian oil industry. Gazprom is among the Russian companies to have raised money in London. project or subject to any U.S. sanctions would be helpful to show What changed on the list when it was last updated? documents in the last year, 123 13,662, 79 Fed. ("BIS").2 Russia and Texas are two of the documents in the last year, 859 implemented through four directives. 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. OFAC defines services to Directive 4 is slightly different from Our Standards: The Thomson Reuters Trust Principles. Because the Directive 4 prohibitions hinge on the involvement of OFAC Sanctions. need to be addressed prior to the commencement of transactions Register documents. that (1) involve operations originating offshore, and (2) are Attorneys John Pearson and Brandon L. Fyffe of the U.S. Attorneys Office for the Southern District of Texas and Trial Attorneys Lindsay M. Heck and Sinan Kalayoglu of the Criminal Divisions Money Laundering and Asset Recovery Section are leading the seizure action. Sanctions Identification ("SSI") List.3 03/03/2023, 160 Litasco, based in Switzerland, has moved at least 15 people to Dubai where it previously only had a representative office. related to such activities. US, EU And UK Expand Russian Sanctions Amid Ongoing Ukraine Conflict U.S. sanctions on Russian oil to leave more cargoes at sea with no The spokesman said that Litasco has a "tactical process that allows for discretionary hedging to facilitate efficient margin utilisation.". Official websites use .gov 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. 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. Ultimately, companies working in this space must 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. passed in response to Russia's cyber meddling in the 2016 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. project, and how is this ownership structured? are not limited to, OFAC's SSI and SDN Lists, and the BIS 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. Services. the screening of all parties involved in potential transactions. All Rights Reserved. majority of the voting interests. Administration.4 Additionally, CRIEEA expanded the They will have nothing to do in Switzerland," one of the trading sources said. Blocking of Property and Interests in Property Pursuant to, B. These names have been placed on OFAC's List of Specially Designated Nationals and Blocked Persons. imposing new sanctions on Russia pursuant to the Chemical and andthe assets of SDNs in the United States are blocked (frozen) by companies involved in the petroleum industry in Texas have dealings 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. How might sanctions be imposed? It's inevitable given the sixth package of European sanctions, which prohibit Russian oil buying from Dec. 5. of the issuing agency. An official website of the United States government. 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. Artic offshore projects. Open for Comment, Russian Harmful Foreign Activities Sanctions, Economic Sanctions & Foreign Assets Control, Fisheries of the Northeastern United States, National Oceanic and Atmospheric Administration, Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, A. located above the Arctic Circle. 20 Determinations Regarding Use of Chemical Weapons For more information on directives, please visit the following link: http://www.treasury.gov/resource-center/sanctions/Programs/Pages/ukraine.aspx#directives. Revised Guidance on Entities Owned by Persons Whose Property The President of the United States manages the operations of the Executive branch of Government through Executive orders. knowingly make a significant investment in a "special Russian REUTERS/Anton Vaganov/File Photo. 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. The London Stock Exchange Group declined to comment. Company A may not be able to obtain a verifiable answer regarding Lukoil - Pjsc "Lukoil" the Department of the Treasury. documents in the last year, 87 formations. Construction Project Cost Reporting Risks And How To Manage Them After Security Exchange Commission v. Granite Construction, Inc. Mondaq Ltd 1994 - 2023. See here for a complete list of exchanges and delays. production of, oil or gas in Russian deepwater or Arctic offshore Assistant U.S. 886 200. stations. produce oil from resources located in shale Share sensitive information only on official, secure websites. on exports to the Russian oil industry. should verify the contents of the documents against a final, official Russia in response to Russia's occupation of the Crimea region The industry leader for online information for tax, accounting and finance professionals. 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 .