Sanctions Developments Resulting From the Conflict in Ukraine - United States

May 19, 2022

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Table of Contents:

  1. Summary

    In response to the ongoing military conflict in Ukraine, the United States has adopted various economic sanctions and trade and investment restrictions.  Those measures are summarized and described in further detail below.  Note that the new, additional and/or enhanced sanctions and restrictions are in addition to U.S. measures that were in place prior to the recent ongoing military conflict in Ukraine (those pre-existing measures are not addressed below).

    • Territorial sanctions relating to the Donetsk and Luhansk regions of Ukraine (the Crimea region of Ukraine previously was subject to similar territorial sanctions);
    • Blocking sanctions on major Russian companies (including major Russian financial institutions and defense companies), Russian President Vladimir Putin, senior Russian government officials, Russian legislators, and major Russian businesspeople (including so-called “oligarchs”), and relating to the Nord Stream 2 pipeline;
    • Non-blocking sanctions, including an expanded prohibition on dealings in Russian sovereign debt, new debt and equity restrictions on major Russian companies, a prohibition on the ability of U.S. persons to engage in transactions with (but not blocking sanctions on) the Central Bank of the Russian Federation (“Russian Central Bank”), the Russian Ministry of Finance and the Russian National Wealth Fund;
    • A ban on new investments by U.S. persons in Russia, the facilitation by U.S. persons of new investments by non-U.S. persons in Russia that would be prohibited if conducted by U.S. persons, and the exportation, reexportation, sale or supply of certain (as of the date of this publication, accounting, trust and corporate formation, and management consulting) services to persons in Russia;
    • A ban on the importation of Russian-origin energy/oil and certain other products from Russia; and
    • Enhanced export control restrictions on Russia and Belarus.

    Additionally, in connection with these measures, the United States has issued a number of related general licenses (“GLs”) permitting certain otherwise prohibited transactions.  Those general licenses, some of which have already expired, are also described below.

    2. Economic Sanctions

    2.1. Donetsk and Luhansk Territorial Sanctions

    Executive Order 14065 (“Blocking Property of Certain Persons and Prohibiting Certain Transactions With Respect to Continued Russian Efforts to Undermine the Sovereignty and Territorial Integrity of Ukraine”), issued on February 21, 2022, imposes sanctions on the so-called Donetsk People’s Republic (“DNR”), the so-called Luhansk People’s Republic (“LNR”) and any other regions of Ukraine as may be determined by the Secretary of the Treasury (collectively, the “Covered Regions”).[1]

    • Territorial Sanctions. Executive Order 14065 effectively extends existing U.S. comprehensive sanctions against the Crimea region of Ukraine to the Covered Regions by prohibiting U.S. persons from dealing with, in or relating to the Covered Regions, including:  (i) new investment in the Covered Regions, (ii) the importation into the United States of any goods, services or technology from the Covered Regions, (iii) the exportation, reexportation, sale or supply of any goods, services or technology from the United States to the Covered Regions, and (iv) any approval, financing, facilitation or guarantee of such prohibited dealings.
      • OFAC has issued guidance stating that Executive Order 14065 targets only the DNR, LNR and other Covered Regions determined by the Secretary of the Treasury, and not the entire Donetsk and Luhansk oblasts.[2]
      • Executive Order 14065 also includes standard language prohibiting transactions that evade or avoid, have the purpose of evading or avoiding, cause violations of or attempt to violate the other prohibitions described in Executive Order 14065.
    • Designation Criteria. Executive Order 14065 also authorizes the imposition of blocking sanctions on any person determined to:  (1) operate or have operated in the Covered Regions after February 21, 2022, (2) be a leader, official, senior executive officer or member of the board of directors of an entity operating in the Covered Regions after February 21, 2022, (3) be owned or controlled by, or to have acted or purported to act for or on behalf of a person designated for blocking sanctions under Executive Order 14065, and (4) have materially assisted, sponsored or provided financial, material or technological support for, or goods or services to or in support of, a person designated for blocking sanctions under Executive Order 14065.

    2.2. Blocking Sanctions

    Since February 21, 2022, OFAC has designated a significant number of Russian persons and entities as “specially designated nationals” (“SDNs”) subject to blocking sanctions.  U.S. persons generally are prohibited from engaging in any transactions or other dealings with or involving parties subject to blocking sanctions.  Additionally, U.S. persons are required to block the property and interests in property of SDNs in their possession or control.  These blocking sanctions generally also apply to any entity owned 50% or more by an SDN (or multiple SDNs).  OFAC has made these SDN designations pursuant to a variety of Russia-related Executive Orders and other authorizations, but most of the designations have been made pursuant to Executive Order 14024 (“Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation”), a pre-existing Russia-related Executive Order dated April 19, 2021.[3]  The following entities and individuals have been designated by OFAC as SDNs subject to blocking sanctions (this list is not intended to be comprehensive):

    • Major Russian financial institutions, including Sberbank, Alfa Bank, Vnesheconombank (“VEB”), Promsvyazbank (“PSB”), VTB Bank, Otkritie, Sovcombank, Novikombank, and Transkapitalbank, and certain of their subsidiaries;[4]
    • In connection with a Determination Pursuant to Section 1(a)(i) of Executive Order 14024 issued by the Secretary of the Treasury,[5] certain major Russian aerospace, electronics and marine companies, including OOO Serniya Engineering, AO NII-Vektor, T-Platforms, Joint Stock Company Mikron and Molecular Electronics Research Institute;[6]
    • The Russian Direct Investment Fund (“RDIF”), Russia’s sovereign wealth fund, two RDIF-affiliated entities and RDIF Chief Executive Officer Kirill Aleksandrovich;[7]
    • Certain Russian defense companies, including Tactical Missiles Corporation JSC, JSC NPO High Precision Systems, NPK Tekhmash OAO, Joint Stock Company Russian Helicopters and Joint Stock Company Kronshtadt;[8]
    • Other Russian state-owned enterprises, including Alrosa, the diamond mining company, and United Shipbuilding Corporation;[9]
    • Nord Stream 2 AG, the company behind the Nord Stream 2 pipeline, and Matthias Warnig, the CEO of Nord Stream 2 AG;[10] and
    • Russian President Putin (and members of his family), Russian Minster of Foreign Affairs Sergei Viktorovich Lavrov, senior Russian military officials Valery Gerasimov and Sergei Shoigu and elites, so-called “oligarchs” and political and national security leaders with close ties to Russian President Putin (including Russian billionaire Alisher Burhanovich Usmanov, Aleksander Mikheev, the Director General of Rosoboronexport, the Russian state-owned defense-related export/import company, Herman Oskarovich Gref, the CEO of Sberbank, and 328 members of the Russian legislature and the Russian State Duma itself as an entity).[11]

    The United States has also, citing Belarus’s support for, and facilitation of, Russian military activity in Ukraine, designated 24 Belarusian individuals and entities, including Belarusian defense officials and Belinvestbank, Bank Dabrabyt and various entities active in the Belarusian defense and security sectors, as SDNs subject to blocking sanctions.[12]  Belarusian President Lukashenka and various members of his family have also been designated or re-designated, as applicable, as SDNs subject to blocking sanctions for corruption-related conduct not specifically connected to the conflict in Ukraine.[13]

    2.3. Non-Blocking Sanctions

    In addition to the above-described SDN designations, the United States has adopted the following non-blocking sanctions that prohibit or restrict certain dealings and transactions in certain sectors or with certain Russian parties.

    2.3.1. Russian Sovereign Debt Restrictions

    Russia-related Directive 1A Under Executive Order 14024 (“Prohibitions Related to Certain Sovereign Debt of the Russian Federation”), issued on February 23, 2022, expands existing U.S. restrictions on dealings by U.S. financial institutions in Russian sovereign debt (described in our earlier blog post[14]) to prohibit U.S. financial institutions from participating in the secondary market for ruble or non-ruble denominated bonds issued after March 1, 2022 by the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund.[15]  Directive 1A further updates the definition of “U.S. financial institutions” to include money services businesses, operators of credit card systems, insurance companies and dealers in precious metals, stones or jewels.  OFAC has issued guidance stating that the 50 Percent Rule[16] does not apply to Directive 1A.[17]

    2.3.2. Correspondent or Payable-Through Accounts Restrictions

    Russia-related Directive 2 Under Executive Order 14024 (“Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions”), issued on February 24, 2022, prohibits, beginning on March 26, 2022, “U.S. financial institutions”[18] from opening or maintaining correspondent accounts or payable-through accounts for or on behalf of, or processing transactions involving, certain foreign financial institutions designated in the Annex to Directive 2, which currently is limited to Sberbank and 25 Sberbank subsidiaries and/or affiliates.[19]  OFAC has issued guidance stating that the 50 Percent Rule does apply to Directive 2.[20]

    2.3.3. Debt and Equity Restrictions

    Russia-related Directive 3 Under Executive Order 14024, (“Prohibitions Related to New Debt and Equity of Certain Russia-related Entities”), issued on February 24, 2022, prohibits transactions in, provision of financing for and other dealings involving U.S. persons or within U.S. jurisdiction in new debt with longer than a 14-day maturity or new equity issued after 12:01 AM EST on March 26, 2022 by certain entities designated in the Annex to Directive 3.[21]  OFAC has issued guidance stating that the 50 Percent Rule does apply to Directive 3.[22]

    • The Annex to Directive 3 currently includes 13 entities in total. Five of the 13 entities (Gazprombank, Russian Agricultural Bank, Gazprom Neft, Sberbank and Transneft) were already subject to similar sanctions under Directives 1 and 2 of Executive Order 13662.  The Annex also includes seven entities (Credit Bank of Moscow, Alfa-Bank, Sovcomflot, Russian Railways, Alrosa, Rostelecom and Rushydro) that were not previously subject to such sanctions.

    2.3.4. Restrictions on Dealings with Russian State Financial Institutions

    Russia-related Directive 4 Under Executive Order 14024 (“Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation”), issued on February 28, 2022, prohibits U.S. persons from engaging in any transaction, direct or indirect,[23] involving the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund, including any transfer of assets to such entities and any foreign exchange transaction for or on behalf of such entities.[24]  Related measures have also been implemented by the European Union and the United Kingdom, as discussed below.  Although similar to blocking sanctions in some respects in that U.S. persons generally are prohibited from engaging in transactions with the designated entities, the designations of the Russian Central Bank, the Russian Ministry of Finance and the Russian National Wealth Fund under Directive 4 do not require U.S. persons to block the property of, or property in which an interest is held by, the Russian Central Bank, the Russian Ministry of Finance and the Russian National Wealth Fund that comes within their possession or control or within the United States.[25]

    • OFAC has issued guidance clarifying that (1) the 50 Percent Rule does not apply to Directive 4,[26] and (2) Directive 4 does not prohibit trading in the secondary markets for debt or equity issued by the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund so long as none of the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund is a counterparty to such transactions and subject to the restrictions on U.S. financial institutions in Russia-related Directive 1A.[27]
    • As described below, OFAC has issued revised Russia-related GL-8A, which adds the Russian Central Bank (but not RDIF, the Russian Ministry of Finance or the Russian National Wealth Fund) to the list of entities with which otherwise prohibited transactions “related to energy” may be conducted.[28]

    2.3.5. Importation and Investment Restrictions

    Executive Order 14066 (“Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts to Undermine the Sovereignty and Territorial Integrity of Ukraine”), issued on March 8, 2022, prohibits (1) the importation of certain Russian Federation-origin energy/oil products (including crude oil, petroleum, petroleum fuels, oils and products of their distillation, liquefied natural gas, coal and coal products) into the United States, and (2) new investment by U.S. persons, wherever located, in the energy sector in the Russian Federation.[29]  OFAC guidance provides that “new investment in the energy sector” means a commitment or contribution of funds or other assets for, or a loan or other extension of credit to, new energy sector activities (excluding maintenance or repair) located or occurring in the Russian Federation on or after March 8, 2022.[30]

    Executive Order 14068 (“Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression”), issued on March 11, 2022, prohibits (1) the importation of Russian Federation-origin fish, seafood, and preparations thereof; alcoholic beverages; and non-industrial diamonds into the United States, (2) the exportation, reexportation, sale, or supply, directly or indirectly, of luxury goods from the United States or by a U.S. person, wherever located, to any person located in the Russian Federation, and (3) the exportation, reexportation, sale, or supply, directly or indirectly, of U.S. dollar-denominated banknotes from the United States or by a U.S. person, wherever located, to the Russian government or any person located in the Russian Federation.[31]  Additionally, the Executive Order 14068 authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to prohibit new investments in sectors of the Russian economy (as discussed above, new investments in the energy sector are already prohibited).  It also provides relevant U.S. government agencies with the authority to impose import and export restrictions on additional products and items.

    Executive Order 14071 (“Prohibiting New Investment in and Certain Services to the Russian Federation in Response to Continued Russian Federation Aggression”), issued on April 6, 2022, prohibits (1) new investments in the Russian Federation by U.S. persons, (2) the exportation, reexportation, sale or supply, directly or indirectly, of any category of services as may be determined by the Secretary of the Treasury from the United States or by U.S. persons to any person located in the Russian Federation, and (3) any approval, financing, facilitation or guarantee by U.S. persons of transactions conducted by foreign persons that would be prohibited by (1) or (2) if performed by U.S. persons or within the United States.[32]  As of the date of this publication, OFAC has not defined or issued guidance regarding the scope of the new investments ban -- however, prohibitions on making or facilitating new investments in a particular country under prior sanctions programs have been interpreted and applied broadly by OFAC.

    • OFAC issued a Determination Pursuant to Section 1(a)(ii) of Executive Order 14071 identifying accounting, trust and corporate formation, and management consulting services as being subject to the exportation of services ban in Executive Order 14071 ((2) above). Pursuant to that Determination, such services are excepted from the exportation of services ban when they are provided (1) to an entity in Russia that is owned or controlled by a U.S. person, or (2) in connection with the wind down or divestiture of an entity in Russia that is not owned or controlled by a Russian person.  The Determination takes effect at 12:01 AM EDT on June 7, 2022.  OFAC has issued guidance defining accounting, trust and corporate formation, and management consulting services for purposes of the exportation of services ban.[33]  OFAC also issued two general licenses – Russia-related GL-34 and Russia-related GL-35, discussed further below - authorizing certain services covered by the Determination for certain periods of time.

    2.4. General Licenses

     2.4.1. Ukraine-Related GLs

    In connection with the above-described territorial sanctions on the DNR and LNR, OFAC has issued the following Ukraine GLs (some of which are similar to the GLs that OFAC has issued in connection with other comprehensive sanctions programs) permitting certain otherwise prohibited transactions:

    • Ukraine GL-13R: ordinarily incident and necessary (1) to divest or transfer debt, equity or other holdings in (a) GAZ Group, or (b) GAZ Group or any entities 50 percent or more owned by GAZ Group issued by GAZ Auto Plant (such debt, equity, or other holdings, “GAZ Group and Other Issuer Holdings”), to a non-U.S. person, or (2) to facilitate the transfer of GAZ Group and Other Issuer Holdings by a non-U.S. person to another non-U.S. person, through 12:01 AM EDT on May 25, 2022, subject to certain restrictions and reporting requirements;[34]
    • Ukraine GL-15L: ordinarily incident and necessary to the wind down of transactions involving GAZ Group or any entities 50 percent or more owned by GAZ Group through 12:01 AM EDT on May 25, 2022, so long as such transactions do not involve any debit to an account on the books of a U.S. financial institution of GAZ Group or any entities 50 percent or more owned by GAZ Group or are otherwise prohibited by the Ukraine Related Sanctions Regulations or involve any other blocked persons;[35]
    • Ukraine GL-17: ordinarily incident and necessary to wind-down transactions relating to the Covered Regions, including the divestiture or transfer to a non-U.S. person of a U.S. person’s share of ownership in any pre-February 21, 2022 investment located in the DNR or LNR, so long as no individual or entity designated for blocking sanctions under Executive Order 14065 is involved in the transactions, until 12:01 AM EST on March 23, 2022;[36]
    • Ukraine GL-18: ordinarily incident and necessary to (1) the exportation or reexportation of agricultural commodities, medicine, medical devices, replacement parts and components for medical devices or software updates for medical devices to the Covered Regions, or (2) the prevention, diagnosis or treatment of COVID-19 (including research or clinical studies) in the Covered Regions;[37]
    • Ukraine GL-19: ordinarily incident and necessary to the receipt or transmission of telecommunications (but not the provision, sale or lease of telecommunications equipment or technology or capacity on telecommunications transmission facilities) involving the Covered Regions;[38]
    • Ukraine GL-20: for the official business of certain international organizations and entities, including conduct by employees, grantees or contractors;[39]
    • Ukraine GL-21: ordinarily incident and necessary to (1) noncommercial, personal remittances (charitable donations or funds to benefit entities or in support of businesses (including family-owned businesses) are expressly excluded), or (2) maintaining, operating or closing an account for individuals ordinarily resident in the Covered Regions (as long as the person is not designated for blocking sanctions pursuant to Executive Order 14065), provided that the transactions processed through the account are noncommercial, personal remittances that are of a personal nature and not for the benefit of an entity, including supporting or operating a business;[40]
    • Ukraine GL-22: the exportation or reexportation to persons in the Covered Regions of certain services incident to the exchange of personal internet-based communications (including instant messaging, chat and email, social networking, sharing of photos and movies, web browsing and blogging) or software necessary to enable such services (provided that the software satisfies certain criteria);[41]
    • Ukraine GL-23: ordinarily incident and necessary to certain humanitarian, democracy building, educational, noncommercial development, and environmental activities by nongovernmental organizations, including the processing and transfer of funds, payment of taxes, fees, and import duties, and purchase or receipt of permits, licenses, or public utility services.[42]  Note that GL-23 was issued on March 11, 2022, while GLs 19-22 were issued on February 21, 2022;
    • Ukraine GL-24: the provision or receipt of civil maritime services performed by individuals ordinarily resident in the Covered Regions so long as the services are performed outside the Covered Regions and the services are not performed on behalf of any entity located or organized in the Covered Regions, and an amended FAQ;[43]
    • Ukraine GL-25: ordinarily incident and necessary in the Covered Regions by U.S. news organizations and U.S. journalists and related personnel to support their journalistic activities (including, for example, hiring and paying support staff, leasing office space and purchasing necessary goods and services).[44]

    2.4.2. Russia-Related GLs

    In connection with the above-described blocking and non-blocking sanctions, OFAC has issued the following Russia-related GLs permitting certain otherwise prohibited transactions:

    • Russia-related GL-2: ordinarily incident and necessary to the servicing of bonds issued before March 1, 2022 by the Russian Central Bank, National Wealth Fund or Ministry of Finance (that are not otherwise prohibited under Directive 1A, described below);[45]
    • Russia-related GL-3: ordinarily incident and necessary to the wind down of transactions through March 24, 2022 (see also the discussion of Russia-related GL-9 below regarding divestment).[46]
    • Russia-related GL-4: ordinarily incident and necessary to the wind down of transactions involving Nord Stream 2 AG or any entity owned directly or indirectly 50% or more by Nord Stream 2 AG, so long as such transactions do not involve any other person or entity, other than Nord Stream 2 AG, designated for blocking sanctions under Executive Order 14039, before 12:01 AM EST on March 2, 2022.[47]
    • Russia-related GL-5: for the official business of certain international organizations and entities, including conduct by employees, grantees or contractors;[48]
    • Russia-related GL-6A: ordinarily incident and necessary to (1) the exportation or reexportation of agricultural commodities, medicine, medical devices, replacement parts and components for medical devices or software updates for medical devices to, from or transiting Russia, (2) the prevention, diagnosis or treatment of COVID-19 (including research or clinical studies), or (3) ongoing clinical trials and other medical research activities that were in effect prior to March 24, 2022[49];[50]
    • Russia-related GL-7A: ordinarily incident and necessary to (1) the receipt of, and payment of charges for, services rendered in connection with overflights of Russia or emergency landings in Russia by aircraft registered in the United States or owned or controlled by, or chartered to, U.S. persons, and (2) air ambulance and related medical services, including medical evacuation, to individuals in Russia, so long as such transactions are not prohibited by Directive 2 under Executive Order 14024 and do not involve any debit to an account on the books of a U.S. financial institution of the Russian Central Bank, Russian Ministry of Finance or Russian National Wealth Fund[51];[52]
    • Russia-related GL-8B: with VEB, Otkritie, Sovcombank, Sberbank, VTB Bank, Alfa-Bank[53] or their majority-owned subsidiaries or the Russian Central Bank[54] “related to energy,” so long as the transactions do not involve the opening or maintaining of a correspondent account or payable-through account for or on behalf of the entities listed in the Annex to the above-referenced Directive 2 or involve any other persons blocked pursuant to Executive Order 14024 (GL-8B is valid until June 24, 2022, unless it is renewed);[55]
    • Russia-related GL-9C: ordinarily incident and necessary to (1) dealings in debt or equity of VEB, Otkritie, Sovcombank, Sberbank, VTB Bank or their majority-owned subsidiaries (“Tranche 1 Debt or Equity”) issued prior to February 24, 2022 until 12:01 AM EST on May 25, 2022, debt or equity of Alfa-Bank or its majority-owned subsidiaries (“Alfa-Bank Debt or Equity”) issued prior to April 6, 2022 until 12:01 AM EDT on June 30, 2022,[56] or debt or equity of Alrosa or its majority-owned subsidiaries (“Alrosa Debt or Equity”) issued prior to April 7, 2022 until 12:01 AM EDT on July 1, 2022,[57] provided that any divestment or transfer of, or facilitation of divestment or transfer of, such debt or equity must be to a non-U.S. person and so long as the transactions do not involve the opening or maintaining of a correspondent account or payable-through account or involve any other persons blocked pursuant to Executive Order 14024, (2) facilitating, clearing and settling trades of Tranche 1 Debt or Equity through 12:01 AM EST on May 25, 2022, provided such trades were placed prior to 4:00 pm EST on February 24, 2022, Alfa-Bank Debt or Equity through 12:01 AM EDT on June 30, 2022, provided such trades were placed prior to 4:00 PM EDT on April 6, 2022, or Alrosa Debt or Equity through 12:01 AM EDT on July 1, 2022, provided such trades were placed prior to 4:00 PM EDT on April 7, 2022, and (3) the receipt of interest, dividend or maturity payments in connection with debt or equity issued before March 1, 2022 of the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund until 12:01 AM EST on May 25, 2022,[58] so long as the transactions do not involve the opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to the above-referenced Directive 2 under Executive Order 14024, any debit to an account on the books of a U.S. financial institution of the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund, or transactions prohibited under Executive Order 14024, including transactions involving any persons blocked pursuant to Executive Order 14024;[59]
    • Russia-related GL-10C: ordinarily incident and necessary to (1) the wind down of derivative contracts entered into prior to 4:00 PM EST on February 24, 2022 that (i) include VEB, Otkritie, Sovcombank, Sberbank, VTB Bank or any of their majority-owned subsidiaries as a counterparty (“Covered Entities”), or (ii) are linked to debt or equity of the Covered Entities, until 12:01 AM EST on May 25, 2022, (2) the wind down of derivative contracts entered into prior to 4:00 PM EDT on April 6, 2022 that (i) include Alfa-Bank or its majority-owned subsidiaries as a counterparty, or (ii) are linked to debt or equity of an Alfa-Bank entity, until 12:01 AM EDT on June 30, 2022,[60] (3) the wind down of derivative contracts entered into prior to 4:00 PM EDT on April 7, 2022 that (i) include Alrosa or its majority-owned subsidiaries as a counterparty, or (ii) are linked to debt or equity of an Alrosa entity, until 12:01 AM EDT on July 1, 2022,[61] and (4) the wind down of derivative contracts, repurchase agreements or reverse repurchase agreements entered into prior to 12:01 AM EST on March 2, 2022 that include the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund as a counterparty,[62] until 12:01 AM EST on May 25, 2022, so long as the transactions do not involve the opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to the above-referenced Directive 2 under Executive Order 14024, any debit to an account on the books of a U.S. financial institution of the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund, or any transactions prohibited by Executive Order 14024, including transactions involving any persons blocked pursuant to Executive Order 14024;[63]
    • Russia-related GL-11: ordinarily incident and necessary to the wind down of transactions involving Otkritie, Sovcombank, VTB Bank or any of their majority-owned subsidiaries as a counterparty until 12:01 AM EST on March 26, 2022, so long as the transactions do not involve any other persons blocked pursuant to Executive Order 14024;[64]
    • Russia-related GL-12: to reject (rather than block) all transactions involving Otkritie, Sovcombank, VTB Bank or any of their majority-owned subsidiaries until 12:01 AM EST on March 26, 2022, so long as the transactions do not involve any other persons blocked pursuant to Executive Order 14024;[65]
    • Russia-related GL-13: pay taxes, fees or import duties, and purchase or receive permits, licenses, registrations or certifications provided such transactions are ordinarily incident and necessary to such U.S. persons’ day-to-day operations in Russia (to the extent such transactions are prohibited by Russia-related Directive 4) until 12:01 AM EST on June 24, 2022;[66]
    • Russia-related GL-14: engage in all transactions that would otherwise be prohibited by Russia-related Directive 4 involving the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund’s where their sole function is to act as an operator of a clearing and settlement system, so long as (1) there is no transfer of assets to or from the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund, unless separately authorized, and (2) none of the Russian Central Bank, the Russian Ministry of Finance and the Russian National Wealth Fund is either a counterparty or a beneficiary of the transaction, unless separately authorized;[67]
    • Russia-related GL-15: which excepts entities owned 50 percent or more, directly or indirectly, by Usmanov that are not separately designated for blocking sanctions from application of the 50 Percent Rule, meaning that transactions with such entities that would otherwise have been prohibited are authorized (so long as no other blocked persons designated under Executive Order 14024, including Usmanov, are involved in such transactions) and the property and interests in property of such entities are unblocked;[68]
    • Russia-related GL-16: ordinarily incident and necessary to the importation into the United States of Russian Federation-origin energy/oil products pursuant to written contracts or agreements entered into prior to March 8, 2022 through 12:01 AM EST on April 22, 2022;[69]
    • Russia-related GL-17A: ordinarily incident and necessary to the importation into the United States of Russian Federation-origin alcoholic beverages or non-industrial diamonds pursuant to written contracts or written agreements entered into prior to March 11, 2022 through 12:01 AM EST on March 25, 2022, and transactions ordinarily incident and necessary to the importation into the United States of Russian Federation-origin fish, seafood and preparations thereof pursuant to written contracts or written agreements entered into prior to March 11, 2022 through 12:01 AM EST on June 23, 2022[70];[71]
    • Russia-related GL-18: ordinarily incident and necessary to the transfer of U.S. dollar-denominated banknote noncommercial, personal remittances from: (i) the United States or a U.S. person, wherever located, to an individual located in the Russian Federation, or (ii) a U.S. person who is an individual located in the Russian Federation;[72]
    • Russia-related GL-19: individuals who are U.S. persons located in the Russian Federation to engage in transactions ordinarily incident and necessary to their personal maintenance within the Russian Federation, including payment of housing expenses, acquisition of goods or services for personal use, payment of taxes or fees, and purchase or receipt of permits, licenses, or public utility services;[73]
    • Russia-related GL-20: ordinarily incident and necessary to the official business of third-country diplomatic or consular missions located in the Russian Federation that are otherwise prohibited by Executive Order 14024 or Executive Order 14068;[74]
    • Russia-related GL-21A: ordinarily incident and necessary to the wind down of Sberbank CIB USA, Inc., Alrosa USA, Inc.,[75] or their majority-owned subsidiaries (including the processing and payment of salaries, severance, and expenses, payments to vendors and landlords, and closing of accounts) through 12:01 AM EDT on June 7, 2022;[76]
    • Russia-related GL-22: ordinarily incident and necessary to the wind down of transactions involving Sberbank or its majority-owned subsidiaries through 12:01 AM EDT on April 13, 2022, so long as the transactions do not involve the opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to the above-referenced Directive 2 under Executive Order 14024 or any other persons blocked pursuant to Executive Order 14024;[77]
    • Russia-related GL-23: ordinarily incident and necessary to the wind down of transactions involving Alfa-Bank or its majority-owned subsidiaries through 12:01 AM EDT on May 6, 2022, so long as the transactions do not involve any other persons blocked pursuant to Executive Order 14024;[78]
    • Russia-related GL-24: ordinarily incident and necessary to the wind down of transactions involving Alrosa or its majority-owned subsidiaries through 12:01 AM EDT on May 7, 2022, so long as the transactions do not involve any other persons blocked pursuant to Executive Order 14024;[79]
    • Russia-related GL-25A: (1) ordinarily incident and necessary to the receipt or transmission of telecommunications involving the Russian Federation, and (2) the exportation or reexportation, sale or supply, directly or indirectly, from the United States or by U.S. person, wherever located, of services, software, hardware, or technology incident to the exchange of communications over the internet (such as instant messaging, videoconferencing, chat and email, social networking, sharing of photos, movies, and documents, web browsing, blogging, web hosting, and domain name registration services) to the Russian Federation, so long as such transactions do not involve the opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to the above-referenced Directive 2 under Executive Order 14024, do not involve any debit to an account on the books of a U.S. financial institution of the Russian Central Bank, Russian Ministry of Finance or Russian National Wealth Fund, are not otherwise prohibited by Executive Orders 14066 or 14068, or involve Channel One Russia, NTV Broadcasting Company, or Television Station Russia-1 (unless separately authorized)[80];[81]
    • Russia-related GL-26A: ordinarily incident and necessary to the wind down of transactions involving SB Sberbank Kazakhstan, Sberbank Europe AG, Sberbank (Switzerland) AG[82] or their majority-owned subsidiaries through 12:01 AM EDT July 12, 2022, so long as such transactions do not involve the opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to the above-referenced Directive 2 under Executive Order 14024, do not involve any transactions prohibited by Directive 4 under Executive Order 14024 (targeting the Russian Central Bank, the Russian Ministry of Finance or the Russian National Wealth Fund), or are not otherwise prohibited by Executive Order 14024;[83]
    • Russia-related GL-27: ordinarily incident and necessary to certain activities of nongovernmental organizations (activities to support humanitarian projects to meet basic human needs, democracy, education, non-commercial development projects, and environmental and natural resource protection in Ukraine or Russia), so long as such transactions are not prohibited by Directive 2 under Executive Order 14024, do not involve any debit to an account on the books of a U.S. financial institution of the Russian Central Bank, Russian Ministry of Finance or Russian National Wealth Fund, or are not otherwise prohibited by Executive Orders 14066 or 14068;[84]
    • Russia-related GL-28: transactions involving Transkapitalbank or entities 50 percent or more owned by Transkapitalbank that are ultimately destined for or originating from Afghanistan, and the opening of correspondent accounts for Transkapitalbank or entities 50 percent or more owned by Transkapitalbank to be used solely to effect such transactions, so long as such transactions or correspondent accounts openings are not prohibited by Directive 2 under Executive Order 14024, are not prohibited by Directive 4 under Executive Order 14024, or are not otherwise prohibited by Executive Order 14024;[85]
    • Russia-related GL-29: ordinarily incident and necessary to the wind down of transactions involving Transkapitalbank or entities 50 percent or more owned by Transkapitalbank through 12:01 AM EDT on May 20, 2022, so long as such transactions are not prohibited by Directive 2 under Executive Order 14024, are not prohibited by Directive 4 under Executive Order 14024, or are not otherwise prohibited by Executive Order 14024;[86]
    • Russia-related GL-30: transactions involving Gazprom Germania GmbH or entities 50 percent or more owned by Gazprom Germania GmbH that are otherwise prohibited by Directive 3 under Executive Order 14024 through 12:01 AM EDT on September 30, 2022, so long as such transactions are not otherwise prohibited by Executive Order 14024;[87]
    • Russia-related GL-31: certain transactions in connection with a patent, trademark, copyright, or other form of intellectual property protection in the United States or Russia that are otherwise prohibited by Executive Order 14024, so long as such transactions are not prohibited by Directive 2 under Executive Order 14024, do not involve any debit to an account on the books of a U.S. financial institution of the Russian Central Bank, Russian Ministry of Finance or Russian National Wealth Fund, or are not otherwise prohibited by Executive Orders 14066 or 14068;[88]
    • Russia-related GL-32: ordinarily incident and necessary to the wind down of transactions involving Amsterdam Trade Bank NV or entities 50 percent or more owned by Amsterdam Trade Bank NV through 12:01 AM EDT on July 12, 2022, so long as such transactions or correspondent accounts openings are not prohibited by Directive 2 under Executive Order 14024, are not prohibited by Directive 4 under Executive Order 14024, or are not otherwise prohibited by Executive Order 14024;[89]
    • Russia-related GL-33: ordinarily incident and necessary to the wind down of operations, contracts or other agreements with Channel One Russia, NTV Broadcasting Company, Television Station Russia-1 or their majority-owned subsidiaries (provided any payments be made into a blocked account in the United States) through 12:01 AM EDT on June 7, 2022, so long as such transactions or correspondent accounts openings are not prohibited by Directive 2 under Executive Order 14024, are not prohibited by Directive 4 under Executive Order 14024, or are not otherwise prohibited by Executive Order 14024;[90]
    • Russia-related GL-34: ordinarily incident and necessary to the wind down of the direct or indirect exportation, reexportation, sale or supply from the United States or by a U.S. person to Russia of accounting, trust and corporate formation or management consulting services through 12:01 AM EDT on July 7, 2022, so long as such transactions are not otherwise prohibited by Executive Order 14024;[91] and
    • Russia-related GL-35: ordinarily incident and necessary to the wind down of the direct or indirect exportation, reexportation, sale or supply from the United States or by a U.S. person to Russia of credit rating or auditing services through 12:01 AM EDT on August 20, 2022, so long as such transactions are not otherwise prohibited by Executive Order 14024.[92]

    2.4.3. Belarus-Related GLs

    In connection with the above-described blocking sanctions, OFAC has issued the following Belarus GLs permitting certain otherwise prohibited transactions:

    • Belarus GL-6: for the official business of the U.S. government, including conduct by employees, grantees or contractors;[93] and
    • Belarus GL-7: for the official business of certain international organizations and entities, including conduct by employees, grantees or contractors.[94]

    2.5. Additional OFAC Guidance

    Since February 21, 2022, OFAC has issued various guidance relating to the above-described blocking and non-blocking sanctions in the form of new Frequently Asked Questions (“FAQs”) and amended FAQs.  OFAC’s FAQs are available here.[95]

    3. Export Controls

    The United States has adopted enhanced export control measures on Russia and Belarus.  Since February 24, 2022, the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) has issued a series of final rules imposing enhanced export controls on Russia and Belarus under the Export Administration Regulations (“EAR”).[96]  The final rules include the following export control measures:

    • Expanded License Requirement:  A license is now required for the export, reexport or transfer (in country) of items to Russia that are (1) “subject to the EAR”[97] and (2) controlled under any export control classification number (“ECCN”) listed in the Commerce Control List under the EAR, as well as items classified as EAR99 but covered under certain Schedule B/Harmonized Tariff Schedule codes.
    • License Policy of Denial:  Most export license applications for Russia and Belarus will now be subject to a policy of denial.  Applications may be reviewed on a case-by-case basis if they relate to flight safety, maritime safety, humanitarian needs, civil telecommunications infrastructure, government space cooperation and government-to-government activities.
    • Foreign Direct Product (“FDP”) Rules:  The final rules create two new FDP rules that impose licensing requirements for (1) with respect to all of Russia and Belarus, FDPs of certain U.S.-origin software or technology, or plants or components that are FDPs of certain U.S.-origin software or technology (the “Russia/Belarus FDP Rule”), and (2) with respect to Russian and Belarusian military end users, FDPs of any controlled software or technology, or plant or components that are FDPs of controlled software or technology (the “Russia-Belarus-MEU FDP Rule”).[98]
    • Military End Use and End User Controls:  The final rules expand restrictions on the export, reexport or transfer (in country) of items for Russian and Belarusian military end uses and to certain military end users, including two Belarusian and 49 Russian entities to the Entity List (47 of which were previously on the Military End User List).
    • DNR and LNR Restrictions:  The final rules impose a license requirement for the export, reexport or transfer (in country) of “all items subject to the EAR” (except for certain food and medicine designated as EAR99 (the least restrictive ECCN) and certain software related to Internet-based personal communications) to the DNR and LNR.

    4. Other Measures

    On March 2, 2022, consistent with President Biden’s announcement during his State of the Union Address on March 1, 2022, the Federal Aviation Administration issued a notice banning all Russian air carriers and commercial operators, all Russian-registered aircraft, all Russian state aircraft and all Russian-owned, controlled, leased or operated aircraft from operating to, from, or within U.S. territorial airspace (with an exception for emergencies and certain authorized humanitarian/rescue and diplomatic operations).[99]

    In a March 11, 2022 statement with its G7 partners, the United States announced efforts to, among other things, revoke Russia’s Most-Favored Nation Status and to deny Russia’s borrowing privileges at multilateral financial institutions.[100]

    ***

    Special thanks to Haley Denler, a Law Clerk working in our Washington D.C. office, and Vincient Arnold, a Paralegal working in our Washington D.C. office, for their assistance on this project.

    [1] Exec. Order No. 14065, “Blocking Property of Certain Persons and Prohibiting Certain Transactions With Respect to Continued Russian Efforts To Undermine the Sovereignty and Territorial Integrity of Ukraine,” 87 Fed. Reg. 10293 (Feb. 21, 2022).

    [2] OFAC, FAQ 1009 (Mar. 2, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1009.

    [3] Exec. Order No. 14024, “Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation,” 86 Fed. Reg. 20249 (Apr. 15, 2021).

    [4] OFAC, “Russia-related Designations; Issuance of Russia-related Directive 1A and General Licenses; Publication of new and updated Frequently Asked Questions” (Feb. 22, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220222; OFAC, “Russia-related Designations; Belarus Designations; Issuance of Russia-related Directive 2 and 3; Issuance of Russia-related and Belarus General Licenses; Publication of new and updated Frequently Asked Questions” (Feb. 24, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220224; OFAC, “Russia-related Designations and Designations Updates; Issuance of Russia-related General Licenses” (Apr. 6, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220406.

    [5] U.S. Department of the Treasury, Determination Pursuant to Section 1(a)(i) of Executive Order 14024 (Mar. 31, 2022), available at https://home.treasury.gov/news/press-releases/jy0692.

    [6] OFAC, “Russia-related Designations and Designation Removal; Cyber-related Designation; CAATSA - Russia-related Designations; Issuance of Russia-related Determination pursuant to Executive Order 14024” (Mar. 31, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220331.

    [7] OFAC, “Russia-related Designations; Issuance of Russia-related Directive 4 and Russia-related General License 8A” (Feb. 28, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220228.

    [8] OFAC, “Russia-related Designations; Publication of new Frequently Asked Question” (Mar. 24, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220324.

    [9] OFAC, “Russia-related Designations and Designations Updates; Issuance of Russia-related General Licenses” (Apr. 7, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220407.

    [10] OFAC, “PEESA Designations; Issuance of Russia-related General License 4” (Feb. 23, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220223_33.

    [11] OFAC, “Russia-related Designations” (Feb. 25, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220225_33; OFAC, “Russia-related Designations; Issuance of Russia-related General License” (Mar. 2, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220303; OFAC, “Issuance of new Russia-related Executive Order and related General Licenses; Publication of new and amended Frequently Asked Questions; Russia-related Designations; North Korea Designations” (Mar. 11, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220311; OFAC, “Russia-related Designations and Designation Update; Belarus Designation and Designation Update; Magnitsky-related Designations” (Mar. 15, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220315; OFAC, “Russia-related Designations; Publication of new Frequently Asked Question” (Mar. 24, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220324; OFAC, “Russia-related Designations” (Apr. 6, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220406_33.

    [12] OFAC, “U.S. Treasury Targets Belarusian Support for Russian Invasion of Ukraine” (Feb. 24, 2022), available at https://home.treasury.gov/news/press-releases/jy0607.

    [13] OFAC, “Russia-related Designations and Designation Update; Belarus Designation and Designation Update; Magnitsky-related Designations” (Mar. 15, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220315.

    [14] “Biden Administration Imposes New Restrictions on Russian Sovereign Debt, Authorizes Additional Sanctions,” Cleary Foreign Investment and International Trade Watch (Apr. 16, 2021), available at https://www.clearygottlieb.com/news-and-insights/publication-listing/biden-administration-imposes-new-restrictions-on-russian-sovereign-debt.

    [15] OFAC, Russia-related Directive 1A Under Executive Order 14024, “Prohibitions Related to Certain Sovereign Debt of the Russian Federation” (Feb. 22, 2022), available at https://home.treasury.gov/‌system/files/126/‌russia_directive_1a.pdf.

    [16] Under longstanding OFAC guidance, individual sanctions designations flow down to any entity 50 percent or more owned by one or more persons targeted under equivalent sanctions (SDNs, for example).  Under this rule, any entity that is owned, directly or indirectly, 50 percent or more by one or more designated persons is itself considered to be a designated person, regardless of whether the entity itself is listed on the SDN List.  If, however, an entity is not owned, directly or indirectly, 50 percent or more by one or more designated persons, that entity is not considered to be a sanctioned person under the 50 Percent Rule.

    [17] OFAC, FAQ 891 (last updated Feb. 22, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/891.

    [18] “U.S. financial institution” means any U.S. entity (including its foreign branches) that is engaged in the business of accepting deposits, making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, securities, futures or options, or procuring purchasers and sellers thereof, as principal or agent.  It includes depository institutions, banks, savings banks, money services businesses, operators of credit card systems, trust companies, insurance companies, securities brokers and dealers, futures and options brokers and dealers, forward contract and foreign exchange merchants, securities and commodities exchanges, clearing corporations, investment companies, employee benefit plans, dealers in precious metals, stones, or jewels, and U.S. holding companies, U.S. affiliates, or U.S. subsidiaries of any of the foregoing.  This term includes those branches, offices, and agencies of foreign financial institutions that are located in the United States, but not such institutions’ foreign branches, offices, or agencies.

    [19] OFAC, Directive 2 Under Executive Order 14024, “Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions” (Feb. 24, 2022), available at https://home.treasury.gov/system/files/126/correspondent_accounts_directive_2.pdf.

    [20] OFAC FAQ 969 (Feb. 24, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/969.

    [21] OFAC, Directive 3 Under Executive Order 14024, “Prohibitions Related to New Debt and Equity of Certain Russia-related Entities” (Feb. 24, 2022), available at https://home.treasury.gov/system/files/‌126/new_debt_and_equity_directive_3.pdf.

    [22] OFAC FAQ 985 (Feb. 24, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/985.

    [23] See OFAC, FAQ 1002 (Mar. 2, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1002.

    [24] OFAC, Directive 4 under Executive Order 14024, “Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation” (Feb. 28, 2022), available at https://home.treasury.gov/system/files/126/eo14024_directive_4_02282022.pdf.

    [25] OFAC, FAQ 1004 (Mar. 2, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1004.

    [26] OFAC, FAQ 1001 (Mar. 2, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1001.

    [27] OFAC, FAQ 1005 (Mar. 2, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1005.

    [28] OFAC, Russia-related General License No. 8A, “Authorizing Transactions Related to Energy” (Feb. 28, 2022), available at https://home.treasury.gov/system/files/126/russia_gl8a_1.pdf.

    [29] Exec. Order No. 14066, “Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts To Undermine the Sovereignty and Territorial Integrity of Ukraine,” 87 Fed. Reg. 13625 (Mar. 8, 2022).

    [30] OFAC, “Frequently Asked Questions - Recently Updated,” available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1019.

    [31] Exec. Order No. 14068, “Executive Order on Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression,” 87 Fed. Reg. 14381 (Mar. 11, 2022).

    [32] Exec. Order No. 14071, “Prohibiting New Investment in and Certain Services to the Russian Federation in Response to Continued Russian Federation Aggression” (Apr. 6, 2022), available at https://www.federalregister.gov/documents/2022/04/08/2022-07757/prohibiting-new-investment-in-and-certain-services-to-the-russian-federation-in-response-to.

    [33] See OFAC, FAQ 1034 (last updated May 11, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs/1034.

    [34] OFAC, Ukraine General License No. 13R, “Authorizing the Wind Down of Certain Transactions Necessary to Divest or Transfer Debt, Equity, or Other Holdings in GAZ Group” (Apr. 25, 2022), available at https://home.treasury.gov/system/files/126/ukraine_gl13r.pdf.

    [35] OFAC, Ukraine General License No. 15L, “Authorizing the Wind Down of Transactions Involving GAZ Group” (Apr. 25, 2022), available at https://home.treasury.gov/system/files/126/ukraine_gl15l.pdf.

    [36] OFAC, Ukraine General License No. 17, “Authorizing the Wind Down of Transactions Involving the So-called Donetsk People’s Republic or Luhansk People’s Republic Regions of Ukraine” (Feb. 21, 2022), available at https://home.treasury.gov/system/files/126/ukraine_gl17.pdf.

    [37] OFAC, Ukraine General License No. 18, “Authorizing the Exportation or Reexportation of Agricultural Commodities, Medicine, Medical Devices, Replacement Parts and Components, or Software Updates to Certain Regions of Ukraine and Transactions Related to the Coronavirus Disease 2019 (COVID-19) Pandemic” (Feb. 21, 2022), available at https://home.treasury.gov/‌‌system/files/126/ukraine_gl18.pdf.

    [38] OFAC, Ukraine General License No. 19, “Authorizing Transactions Related to Telecommunications and Mail” (Feb. 21, 2022), available at https://home.treasury.gov/system/files/126/ukraine_gl19.pdf.

    [39] OFAC, Ukraine General License No. 20, “Official Business of Certain International Organizations and Entities” (Feb. 21, 2022), available at https://home.treasury.gov/system/files/‌126/ukraine_gl20.pdf.

    [40] OFAC, Ukraine General License No. 21, “Authorizing Noncommercial, Personal Remittances and the Operation of Accounts” (Feb. 21, 2022), available at https://home.treasury.gov/system/files/126/‌ukraine_gl21.pdf.

    [41] OFAC, Ukraine General License No. 22, “Authorizing the Exportation of Certain Services and Software Incident to Internet-Based Communications” (Feb. 21, 2022), available at https://home.treasury.gov/system/files/126/ukraine_gl22.pdf.

    [42] OFAC, Ukraine General License No. 23, “Certain Transactions in Support of Nongovernmental Organizations’ Activities” (March 11, 2022), available at https://home.treasury.gov/system/files/126/ukraine_gl23.pdf

    [43] OFAC, “Issuance of Russia-related General License 24; Publication of amended Frequently Asked Question” (Mar. 18, 2022), available at https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220318_33.

    [44] OFAC, Ukraine/Russia-related General License No. 25, “Journalistic Activities and Establishment of News Bureaus in Certain Regions of Ukraine” (Mar. 24, 2022), available at https://home.treasury.gov/system/files/126/ukraine_gl25.pdf.

    [45] OFAC, Russia-related General License No. 2, “Authorizing Certain Servicing Transactions Involving State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank” (Feb. 22, 2021), available at https://home.treasury.gov/system/files/126/russia_gl2.pdf.

    [46]  OFAC, Russia-related General License No. 3, “Authorizing the Wind Down of Transactions Involving State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank” (Feb. 22, 2021), available at https://home.treasury.gov/system/files/126/russia_gl3.pdf.

    [47] OFAC, Russia-related General License No. 4, “Authorizing the Wind Down of Transactions Involving Nord Stream 2 AG” (Feb. 23, 2022), available at https://home.treasury.gov/system/files/126/peesa_gl4.pdf.

    [48] OFAC, Russia-related General License No. 5, “Official Business of Certain International Organizations and Entities” (Feb. 24, 2022), available at https://home.treasury.gov/system/files/126/russia_gl5.pdf.

    [49] On March 24, 2022, OFAC amended prior Russia-related GL-6 to cover ongoing clinical trials and other medical research activities that were in effect prior to March 24, 2022.

    [50] OFAC, Russia-related General License No. 6A, “Transactions Related to the Exportation or Reexportation of Agricultural Commodities,

    Medicine, Medical Devices, Replacement Parts and Components, or Software Updates, the

    Coronavirus Disease 2019 (COVID-19) Pandemic, or Clinical Trials” (Mar. 24, 2022), available at https://home.treasury.gov/system/files/126/russia_gl6a.pdf.

    [51] On May 5, 2022, OFAC amended prior Russia-related GL-7 to exclude any debit to an account on the books of a U.S. financial institution of the Russian Central Bank, Russian Ministry of Finance or Russian National Wealth Fund from the scope of the GL.

    [52] OFAC, Russia-related General License No. 7A, “Authorizing Overflight Payments, Emergency Landings, and Air Ambulance Services” (May 5, 2022), available at https://home.treasury.gov/system/files/126/russia_gl7a.pdf.

    [53] On April 6, 2022, OFAC amended prior Russia-related GL-8A to add Alfa-Bank to the list of covered entities.

    [54] On February 28, 2022, OFAC amended prior Russia-related GL-8 to add the Russian Central Bank.

    [55] OFAC, Russia-related General License No. 8B, “Authorizing Transactions Related to Energy” (Apr. 6, 2022), available at https://home.treasury.gov/system/files/126/russia_gl8b.pdf.

    [56] On April 6, 2022, OFAC amended prior Russia-related GL-9A to cover Alfa-Bank Debt or Equity.

    [57] On April 7, 2022, OFAC amended prior Russia-related GL-9B to cover Alrosa Debt or Equity.

    [58] On March 2, 2022, OFAC amended prior Russia-related GL-9 to add the authorization for (3) and the reference to debiting accounts in the section on what is not permitted by the GL.

    [59] OFAC, Russia-related General License No. 9C, “Authorizing Transactions Related to Dealings in Certain Debt or Equity” (Apr. 7, 2022), available at https://home.treasury.gov/system/files/126/russia_gl9c.pdf.  

    [60] On April 6, 2022, OFAC amended prior Russia-related GL-10A to cover Alfa-Bank-related transactions.

    [61] On April 7, 2022, OFAC amended prior Russia-related GL-10B to cover Alrosa-related transactions.

    [62] On March 2, 2022, OFAC amended prior Russia-related GL-10 to add the authorization for (2) and the reference to debiting accounts in the section on what is not permitted by the GL.

    [63] OFAC, Russia-related General License No. 10C, “Authorizing Certain Transactions Related to Derivative Contracts’ (Apr. 7, 2022), available at https://home.treasury.gov/system/files/126/russia_gl10c.pdf.

    [64] OFAC, Russia-related General License No. 11, “Authorizing the Wind Down of Transactions Involving Certain Blocked Persons” (Feb. 24, 2022), available at https://home.treasury.gov/system/files/126/russia_gl11.pdf.

    [65] OFAC, Russia-related General License No. 12, “Authorizing U.S. Persons to Reject Certain Transactions” (Feb. 24, 2022), available at https://home.treasury.gov/system/files/126/russia_gl12.pdf.

    [66] OFAC, Russia-related General License No. 13, “Authorizing Certain Administrative Transactions

    Prohibited by Directive 4 under Executive Order 14024” (Mar. 2, 2022), available at https://home.treasury.gov/system/files/126/russia_gl13.pdf.

    [67] OFAC, Russia-related General License No. 14, “Authorizing Certain Clearing and Settlement Transactions Prohibited by Directive 4 under Executive Order 14024” (Mar. 2, 2022), available at https://home.treasury.gov/system/files/126/russia_gl14.pdf.

    [68] OFAC, Russia-related General License No. 15, “Authorizing Transactions Involving Certain Blocked Entities Owned by Alisher Burhanovich Usmanov” (Mar. 3, 2022), available at https://home.treasury.gov/system/files/126/russia_gl15.pdf.

    [69] OFAC, Russia-related General License No. 16, “Authorizing Transactions Related to Certain Imports Prohibited by Executive Order of March 8, 2022 Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts to Undermine the Sovereignty and Territorial Integrity of Ukraine” (Mar. 8, 2022), available at https://home.treasury.gov/system/files/126/russia_gl16.pdf.

    [70] On March 24, 2022, OFAC extended the time period in prior Russia-related GL-17 with respect to the importation of Russian Federation-origin fish, seafood and preparations thereof.

    [71] OFAC, Russia-related General License No. 17A, “Authorizing Transactions Related to Certain Imports

    Prohibited by Executive Order 14068” (Mar. 24, 2022), available at https://home.treasury.gov/system/files/126/russia_gl17a.pdf.

    [72] OFAC, Russia-related General License No. 18, “Authorizing U.S. Dollar-Denominated Banknote Noncommercial, Personal Remittances Prohibited by Executive Order of March 11, 2022 Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression” (Mar. 11, 2022), available at https://home.treasury.gov/system/files/126/russia_gl18.pdf.

    [73] OFAC, Russia-related General License No. 19, “Authorizing Transactions Related to Personal Maintenance of U.S. Individuals Located in the Russian Federation Prohibited by Executive Order of March 11, 2022 Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression” (Mar. 11, 2022), available at https://home.treasury.gov/system/files/126/russia_gl19.pdf.

    [74] OFAC, Russia-related General License No. 20, “Authorizing Third-Country Diplomatic and Consular Funds Transfers” (Mar. 24, 2022), available at https://home.treasury.gov/system/files/126/russia_gl20.pdf.

    [75] On April 7, 2022, OFAC amended prior Russia-related GL-21 to cover Alrosa USA, Inc.

    [76] OFAC, Russia-related General License No. 21A, “Authorizing the Wind Down of Sberbank CIB USA, Inc. and Alrosa USA, Inc.” (Apr. 7, 2022), available at https://home.treasury.gov/system/files/126/russia_gl21a.pdf.

    [77] OFAC, Russia-related General License No. 22, “Authorizing the Wind Down of Transactions Involving Public Joint Stock Company Sberbank of Russia” (Apr. 6, 2022), available at https://home.treasury.gov/system/files/126/russia_gl22.pdf.

    [78] OFAC, Russia-related General License No. 23, “Authorizing the Wind Down of Transactions Involving Joint Stock Company Alfa-Bank” (Apr. 6, 2022), available at https://home.treasury.gov/system/files/126/russia_gl23.pdf.

    [79] OFAC, Russia-related General License No. 24, “Authorizing the Wind Down of Transactions Involving Public Joint Stock Company Alrosa” (Apr. 7, 2022), available at https://home.treasury.gov/system/files/126/russia_gl24.pdf.

    [80] On May 8, 2022, OFAC amended prior Russia-related GL-25 to exclude any transactions involving Channel One Russia, NTV Broadcasting Company, or Television Station Russia-1 (unless separately authorized) from the scope of the GL.

    [81] OFAC, Russia-related General License No. 25A, “Authorizing Transactions Related to Telecommunications and Certain Internet-Based Communications” (May 8, 2022), available at https://home.treasury.gov/system/files/126/russia_gl25a.pdf.

    [82] On May 5, 2022, OFAC amended prior Russia-related GL-26 to cover Sberbank (Switzerland) AG.

    [83] OFAC, Russia-related General License No. 26A, “Authorizing the Wind Down of Transactions Involving Joint Stock Company SB Sberbank Kazakhstan, Sberbank Europe AG, or Sberbank (Switzerland) AG “ (May 5, 2022), available at https://home.treasury.gov/system/files/126/russia_gl26a.pdf.

    [84] OFAC, Russia-related General License No. 27, “Certain Transactions in Support of Nongovernmental Organizations’ Activities” (Apr. 19, 2022), available at https://home.treasury.gov/system/files/126/russia_gl27.pdf.

    [85] OFAC, Russia-related General License No. 28, “Authorizing Certain Transactions Involving Public Joint Stock Company Transkapitalbank and Afghanistan” (Apr. 20, 2022), available at https://home.treasury.gov/system/files/126/russia_gl28.pdf.

    [86] OFAC, Russia-related General License No. 29, “Authorizing the Wind Down of Transactions Involving Public Joint Stock Company Transkapitalbank” (Apr. 20, 2022), available at https://home.treasury.gov/system/files/126/russia_gl29_0.pdf.

    [87] OFAC, Russia-related General License No. 30, “Authorizing Transactions Involving Gazprom Germania GmbH Prohibited by Directive 3 under Executive Order 14024” (May 2, 2022), available at https://home.treasury.gov/system/files/126/russia_gl30_0.pdf.

    [88] OFAC, Russia-related General License No. 31, “Authorizing Certain Transactions Related to Patents, Trademarks, and Copyrights” (May 5, 2022), available at https://home.treasury.gov/system/files/126/russia_gl31.pdf.

    [89] OFAC, Russia-related General License No. 32, “Authorizing the Wind Down of Transactions Involving Amsterdam Trade Bank NV” (May 5, 2022), available at https://home.treasury.gov/system/files/126/russia_gl32.pdf.

    [90] OFAC, Russia-related General License No. 33, “Authorizing the Wind Down of Operations or Existing Contracts Involving Certain Blocked Entities” (May 8, 2022), available at https://home.treasury.gov/system/files/126/russia_gl33.pdf.

    [91] OFAC, Russia-related General License No. 34, “Authorizing the Wind Down of Accounting, Trust and Corporate Formation, and Management Consulting Services” (May 8, 2022), available at https://home.treasury.gov/system/files/126/russia_gl34.pdf.

    [92] OFAC, Russia-related General License No. 35, “Authorizing Transactions Involving Credit Rating and Auditing Services” (May 8, 2022), available at https://home.treasury.gov/system/files/126/russia_gl35.pdf.

    [93] OFAC, Belarus General License No. 6, “Official Business of the United States Government” (Feb. 24, 2022), available at https://home.treasury.gov/system/files/126/belarus_gl6.pdf.

    [94] OFAC, Belarus General License No. 7, “Official Business of Certain International Organizations and Entities” (Feb. 24, 2022), available at https://home.treasury.gov/system/files/126/belarus_gl7.pdf.

    [95] OFAC, “Frequently Asked Questions,” available at https://home.treasury.gov/policy-issues/financial-sanctions/faqs.

    [96] U.S. Department of Commerce, Bureau of Industry and Security, Final Rule, “Implementation of Sanctions Against Russia Under the Export Administration Regulations” (Feb. 24, 2022), available at https://www.federalregister.gov/documents/2022/03/03/2022-04300/implementation-of-sanctions-against-russia-under-the-export-administration-regulations-ear; U.S. Department of Commerce, Bureau of Industry and Security, Final Rule, “Imposition of Sanctions Against Belarus Under the Export Administration Regulations” (Mar. 8, 2022), available at https://www.federalregister.gov/documents/2022/03/08/2022-04819/imposition-of-sanctions-against-belarus-under-the-export-administration-regulations-ear; U.S. Department of Commerce, Bureau of Industry and Security, Final Rule, “Expansion of Sanctions Against Russia and Belarus Under the Export Administration Regulations” (Scheduled to be Published on Apr. 14, 2022), available at https://public-inspection.federalregister.gov/2022-07937.pdf; U.S. Department of Commerce, Bureau of Industry and Security, Final Rule, “Expansion of Sanctions Against Russian Industry Sectors Under the Export Administration Regulations (EAR)” (May 9, 2022), available at https://www.federalregister.gov/documents/2022/05/11/2022-10099/expansion-of-sanctions-against-russian-industry-sectors-under-the-export-administration-regulations.

    [97] This includes all items in the United States and all U.S.-origin items, wherever located, foreign-made items that incorporate controlled U.S.-origin content above certain de minimis levels, and certain “foreign direct products” of U.S.-origin technology or software.

    [98] The new FDP Rules exempt the following countries from certain requirements:  Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, New Zealand, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

    [99] Federal Aviation Administration, Notice to Air Missions, “Prohibition on Russian Flight Operations in the Territorial Airspace of the United States” (Mar. 2, 2022), available at https://www.faa.gov/newsroom/notam-prohibition-russian-flight-operations-territorial-airspace-us.

    [100] White House, “FACT SHEET: United States, European Union, and G7 to Announce Further Economic Costs on Russia” (Mar. 11, 2022), available at https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/11/fact-sheet-united-states-european-union-and-g7-to-announce-further-economic-costs-on-russia/.