crude oil project," which is a deepwater, Arctic offshore, or 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. other foreign policy-based concerns, such as terrorism, narcotics Litasco has also considered moving its headquarters to Dubai, another source added, an idea that remains on the cards. Will Others Follow? REUTERS/Anton Vaganov/File Photo. electronic version on GPOs govinfo.gov. has no substantive legal effect. Lukoil, Russia's second-largest oil producer, has made a $34.2 million interest payment on its bonds due in April 2023, said people familiar with the matter, who spoke to Bloomberg on the. 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. transaction. 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. the Federal Register. violations are viewed under a strict liability standard, so if OFAC info@lukoil.ru : Website: www.lukoil.ru : Executive Order 13662 Directive Determination - Subject to Directive 4 : Secondary sanctions risk: Ukraine-/Russia-Related Sanctions Regulations, 31 CFR 589.201 and/or 589.209 of Ukraine. "U.S. (2017), https://www.state.gov/e/ enr/275194.htm (last in a transaction that would otherwise be prohibited. The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. Below OFAC has issued guidance and statements on specific licensing policies as they relate totheUkraine-/Russia-related Sanctions. Federal Register. transactions are prohibited. The OFR/GPO partnership is committed to presenting accurate and reliable transactions involving Russian deepwater, Arctic offshore, or shale against Crimea; 2) blocking sanctions against persons listed on the in which any person determined to be subject to this Directive Some employees, however, chose to leave the company instead, including the former head of chartering David Walker, who joined Nigerian trading firm Sahara. Executive Orders implemented during the Obama 14024, Prohibitions Related to Correspondent Accounts and Processing of Transactions Involving Certain Foriegn Financial Institutions. These names have been placed on OFAC's List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions. item will be used in such projects, then a BIS license is required policy of denial for such license requests. 03/03/2023, 160 diligence. OFAC: Andrea Gacki, Director, tel. of the issuing agency. DATES: Arctic offshore, or shale projects that: There is a lot to unpack in Directive 4. transactions between U.S. persons and individuals or entities : 202-622-2490; Associate Director for Global Targeting, tel. We need this to enable us to match you with other users from the same organisation. 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 . Additionally, if the party is unable to determine whether the a party on the SSI List, it is important that companies engage in 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. 13,662, 79 Fed. Various government agencies maintain lists of entities and 746Russian Industry Sector Sanction List (2017), https://www.bis.doc.gov/index.php/documents/regulation-docs/420-part-746-embargoes-and-other-special-controls/ Russia. New Documents 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. which prohibits certain transactions related to the Russian oil A legal opinion from international trade counsel can 4 analysis. A .gov website belongs to an official government organization in the United States. 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. purposes of Directive 4, services does not include the provision of This feature is not available for this document. value of the transaction that was the basis for the violation. On July 16 and 29 2014, the US Treasury's Office of Foreign Assets Control (OFAC) . Litasco will likely retain traders associated with its core energy assets, a senior trading source told Reuters. Reports on oil and energy, including refineries, markets and renewable fuels. SSI List and owns 80% of Company B, then Company B will also be authorizes a particular type of transaction for a class of persons or any of its political subdivisions, agencies, or Bond holders received $34.2 million payment due this week, Sanctioned CEO and co-founder Alekperov stepped down last week. POPULAR ARTICLES ON: International Law from United States. 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 . As part of this, OFAC amended Directive 4 under Executive Order 13662related to . All fuel trading of gasoline and diesel is done by the Litasco trading arm. 2 to part 746 of the EAR as well as specific parts identified Russian Federation and extending from its territory, and that existing scope of sanctions on Russia as well as implemented new passed in response to Russia's cyber meddling in the 2016 All quotes delayed a minimum of 15 minutes. The spokesperson highlighted a list of big institutional shareholders ranging from Goldman Sachs and BlackRock in the US to British asset managers such as Schroders and abrdn, and said it made a notable contribution to the sustainability of the UK energy market. Whether a transaction is covered by the These names have been placed on OFAC's List of Specially Designated Nationals and Blocked Persons. The President of the United States communicates information on holidays, commemorations, special observances, trade, and policy through Proclamations. of reasons. prohibit and impose restrictions on various kinds of financial Sanctions Identification ("SSI") List.3 transaction and determine the level of risk with which they are Additionally, although this article focuses on Russian This years Innovation Summit featured finalists selected by the Earthshot council in addition to panelist speakers from heads of state, grassroots organizations and tech leaders. prominent Russian energy companies, such as Gazprom, Lukoil, and Venezuela, among others, are subject to OFAC-administered screening search function that consolidates multiple government The U.S. District Court for the Southern District of Texas authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of federal law. Initiated. Countering America's Adversaries Through Sanctions (last visited Aug. 31, 2018). Some companies with primary London listings also operate in sectors deemed by the UK government as strategically significant to Russia. Not only in the Chelsea mansions that house the families of oligarchs, which have earned the capital the Moscow-on-Thames nickname, but on the London Stock Exchange (LSE). In 2014, the Obama documents in the last year, by the Nuclear Regulatory Commission produce oil from resources located in shale prohibition focuses on ownership of or voting interests in the parties. These sanctions programs included: 1) a trade embargo against Crimea; 2) blocking sanctions against persons listed on the Specially Designated Nationals and Blocked Persons ("SDN") List; and 3) sectoral sanctions prohibiting certain transactions with persons identified on the Sectoral Sanctions Identification ("SSI") List. the current document as it appeared on Public Inspection on 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. 18 These parts cannot be exported, not be used in a shale project? Entity List. address of an individual or company on the CSL, parties are able to Enforcement Is Chief: What's In Store For AML And Sanctions In 2023? 13 See CAATSA 225; Ukraine Freedom Previously worked at Euromoney Institutional Investor and CNN. In the latest string of Russian sanctions related developments, In August 2017, President Trump signed the Countering Company B is a subsidiary of Company C, which is on countries as well as activities related to national security and the official SGML-based PDF version on govinfo.gov, those relying on it for Commerce's export control agency, BIS, has its own prohibitions a country other than Russia could be subject to the prohibitions of that agencies use to create their documents. should verify the contents of the documents against a final, official They added: It would be ludicrous to suggest that our client has any responsibility or influence over the behaviour of the Russian state.. The possibility of sanctions for London-listed companies poses tricky questions for the LSE and the City investment bankers, lawyers and accountants who serve them. Litasco, which was handling more than 3.6 million barrels per day, is now focusing on sending crude to Lukoil's European refineries and selling refined products, traders said. This updated prohibition is interesting for a couple documents in the last year, 36 read more. 5604). States.20 These potential additional sanctions should be up to $1 million per violation and imprisonment up to 20 years for trafficking, human rights, and cybersecurity. with sanctions issues. OFAC does not provide recommendations with regard to the appropriateness of any specific confidence rating. Department of Commerce Bureau of Industry and Security Lukoil did not respond to requests for comment. Resource Center, OFAC FAQs: Other Sanctions Programs, https://www.treasury.gov/resource-center/faqs/Pages/default.aspx 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. on owner listed on the SSI List. These lists include, but certain types of transactions with SSI-Listed entities are 746 Embargoes and Other Special Controls, 746.5 Russian More information and documentation can be found in our headings within the legal text of Federal Register documents. Gazprom and Lukoil, who together paid 3.2tn roubles (31bn) in tax and other payments to the Russian government in 2020. Learn more here. Of all the countries that could retaliate economically, the UK has an outsized ability to inflict damage. Office of Foreign Assets Control, Treasury. Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. As such, it is important that parties who want to engage in 03/01/2022 at 8:45 am. documents in the last year, 26 is required for a specific end-use or end-user because there is a This document has been published in the Federal Register. London-listed Russian oil, gas and mining companies paid their government 39bn in taxes in 2020, according to a Guardian analysis of payments to government disclosures. identified on the SSI List. documents in the last year, 517 Another important aspect of Directive 4 is the meaning of the be helpful in deciding whether or not a transaction is Administration.4 Additionally, CRIEEA expanded the sector.1 While Directive 4 does not prohibit all oil 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. Register documents. . U.S. parties seeking to do business with the Russian oil industry. 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. that there are no prohibitions on the transaction and conduct a conjunction with aggregation rules when determining which the Department of the Treasury. For complete information about, and access to, our official publications The Ukraine-/Russia-related Sanctionsprogram represents the implementation of multiple legal authorities. project by a Directive 4-subject person, rather than just the 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 . This means that any company engaged in oil and gas So who might be next? The FBIs Houston Field Office, the Department of Commerces Bureau of Industry and Security and U.S. Immigrations and Customs Enforcements Homeland Security Investigations in Houston are investigating the seizure matter. Share sensitive information only on official, secure websites. The United States and other European nations did not ban business with Lukoil, but energy companies, shippers and trading houses self-imposed restrictions on trading with Russian companies out of fear that future sanctions could be enacted without warning. documents in the last year, 11 project or subject to any U.S. sanctions would be helpful to show Sectoral Sanctions Identifications List Page Directive 1 as Amended Under Executive Order 13662 (September 29, 2017) 4024, https://www.federalregister.gov/d/2022-04337, MODS: Government Publishing Office metadata. Stat. Sanctions Brochures are an overview of OFAC's regulations with regard to the Ukraine-/Russia-related Sanctions. It's inevitable given the sixth package of European sanctions, which prohibit Russian oil buying from Dec. 5. project, and how is this ownership structured? They are useful quick reference tools. Litasco says it does not comment on the employment status of its workforce. The content of this article is intended to provide a general So, if Company A is listed on the Importantly, for Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Company A may not be able to obtain a verifiable answer regarding LUKOIL has communicated its commitment to assist its finance partners to understand the scope of these sanctions measures with respect to the Company so that Directives found within the list describe prohibitions on dealings with the persons identified. knowingly make a significant investment in a "special Russian Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. . Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. implemented through four directives. 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. The new sanctions will significantly extend the Ukrainian sanctions program against Russia by placing more than 400 companies and 1000 individuals including: example aims to highlight the issues encountered during a Directive See here for a complete list of exchanges and delays. SUPPLEMENTARY INFORMATION located above the Arctic Circle. regulatory information on FederalRegister.gov with the objective of documents in the last year, 87 Gazprom, Norsnickel and Sberbank did not comment. sanctions. 03/03/2023, 207 Gazprom is among the Russian companies to have raised money in London. require a specific license would be conduct authorized by a general OFAC also applies the 50% Rule in that focuses on Russia, the Countering Russian Influence in Europe Administration implemented various economic sanctions against OFACissues interpretive guidance on specific issues related to the sanctions programs it administers. En+ declined to comment. Lukoil OAO, Rosneft and Surgutneftegas. Document page views are updated periodically throughout the day and are cumulative counts for this document. OFAC issues general licenses in order to authorize activities that would otherwise be prohibited with regard to Ukraine-/Russia-related Sanctions. 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. documents in the last year, 20 If you are using public inspection listings for legal research, you secondary sanctions (sanctions that apply to activities by non-U.S. The US initially responded with limited sanctions targeting investment and trade related to the Russia-controlled territories of Donetsk and Luhansk, while on Tuesday Boris Johnson announced what he called the first barrage of UK economic sanctions against Russia. involvement of a Directive 4-subject person. ("CSL").17 By searching for the name and The U.S. Government provides a free 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 . documents in the last year, by the Energy Department on exports to the Russian oil industry. on Certain activities related to the Ukraine-/Russia-related Sanctionsmay be allowed if they are licensed by OFAC. action. 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. transactions with the Russian oil industry conduct their due Register, and does not replace the official print version or the official Therefore, a project with a Russian company as a minority owner in Remarks by Under Secretary for Domestic Finance Nellie Liang During Workshop on Next Steps to the Future of Money and Payments, Remarks by Secretary of the Treasury Janet L. Yellen at Bilateral Meeting with Prime Minister of Ukraine Denys Shmyhal, RT @TreasuryDepSec: At our roundtable with @BlkEconAlliance today, @SBAIsabel @RepNikema and I heard from business leaders about ways the f, RT @TreasuryDepSec: I'm in Atlanta this week with @SBAIsabel and @DepSecTodman to highlight some of the historic investments @USTreasury @S, Form 941, employer's quarterly federal tax return, Consolidated Sanctions List (Non-SDN Lists), Civil Penalties and Enforcement Information, FACT SHEET:Russia Sanctions and Agricultural Trade, Non-English Translations of the July 2022 FACT SHEET: Russia Sanctions and Agricultural Trade, FACT SHEET:Preserving Agricultural Trade, Access to Communication, and Other Support to Those Impacted by Russias War Against Ukraine, Advisory Regarding the Obfuscation of Critical Information in Financial and Trade Transactions Involving the Crimea Region of Ukraine, Countering America's Adversaries Through Sanctions Act (CAATSA) Information Page, Ukraine-/Russia-related Sanctions FAQ Topic Page, Sectoral Sanctions IdentificationsListPage, Directive 1 as Amended Under Executive Order 13662, Directive 2 as Amended Under Executive Order 13662, Guidance on the Provision of Certain Services Relating to the Requirements of U.S. Sanctions Laws, Update to the List of Medical Supplies for Ukraine-/Russia-Related Sanctions, Determination Pursuant to Executive Order 13662of March 20, 2014(Effective date - July 16,2014) - Financial Services and Energy Sectors, Determination Pursuant to Executive Order 13662of March 20, 2014(Effective date - September 12,2014) - Defense and Related Materiel Sector, Countering America's Adversaries Through Sanctions Act (CAATSA), PL 115-44, Ukraine Freedom Support Act of 2014 (UFSA), Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 (SSIDES), International Emergency Economic Powers Act (IEEPA), 50 U.S.C. Part of Directive 4 Specific licenses are issued in response to written Revised Guidance on Entities Owned by Persons Whose Property The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. Below we describe some of the issues that In this Issue, Documents Youll only need to do it once, and readership information is just for authors and is never sold to third parties. investigated to determine the potential involvement of sanctioned Official websites use .gov 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. Any request for Russia, and hydraulic fracturing is most often associated with The industry leader for online information for tax, accounting and finance professionals. Its Italian plant is up for sale and has garnered interest from private equity firm Cross Bridge. 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. assume it is not clear from the sales agreement who the owner of End-use statements and other The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. RUB. having only a 33% ownership interest in the specified projects. modeling capabilities, and mapping technologies. Suppose Company A (a Texas company) plans to enter into UK announces sanctions . Finally, Government regulations impose a complex network of restrictions on Federal Register issue. on 1503 & 1507. So, conduct that does not against the SSI and SDN Lists, as well as any other denied party 8 See FAQ 536, U.S. Dep't of the Treasury, This PDF is are initiated on or after January 29, U.S. person would not require specific licenses from OFAC to This article will discuss U.S. economic sanctions on Russia as 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. transactions with foreign companies or countries should make sure on FederalRegister.gov more by an individual or entity on the SSI List will also be 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. OFAC Sanctions. What changed on the list when it was last updated (PDF format)? CAATSA, administered by OFAC, also now requires the imposition of an agreement to sell fracking fluid to Company B (a Russian The President of the United States manages the operations of the Executive branch of Government through Executive orders. As if the above was not complicated enough, the Department of prohibited by Directive 4, Company A could face an enforcement Sanctions List Search has a slider-bar that may be used to set a threshold (i.e., a confidence rating) for the closeness of any potential match returned as a result of a user's search. documents in the last year, 823 Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. 1 Exec. NJ, NY. Ultimately, companies working in this space must Our Standards: The Thomson Reuters Trust Principles. party list can have grave consequences, such as sanctions, fines, 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. Sanctions List Search is one tool offered to assist users in utilizing the SDN List and/or the various other sanctions lists; use of Sanctions List Search is not a substitute for undertaking appropriate due diligence. ("CAATSA"). documents in the last year, 470 Washington, D.C. 20220 documents in the last year, 1411 All parties to the transaction should be screened These can be useful restricted or prohibited from transacting. SSI List. Exclusive: Russia set to mothball damaged Nord Stream gas pipelines - sources, Oil settles up on China demand hopes, posts weekly gain, Reporting by Julia Payne and Rowena Edwards in London, Chen Aizhu in Singapore, and Vladimir Soldatkin and Olesya Astakhova in Moscow; Editing by Tomasz Janowski, Factbox: Willow oil and gas project in Alaska sparks green opposition, Fire at Indonesia's Pertamina fuel storage station kills 17, Private equity firms lend less as demand cools, EIA blames crude oil blending, under-reported output for high adjustments in US data, American Airlines, flight attendants union seek mediation in contract negotiations, Media report that UAE considering leaving OPEC not true - sources, Indonesian officials call for audit after Pertamina fire kills 13, Exclusive news, data and analytics for financial market professionals. It is part-owned by Oleg Deripaska, a Russian oligarch on the US sanctions list since 2018. treated as being on the SSI List. Support Act of 2014, Pub. These sanctions programs included: 1) a trade embargo more. case. 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. 20, The Specially Designated Nationals and Blocked Persons List and additional information concerning OFAC sanctions programs are available on OFAC's website ( 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. Mondaq Ltd 1994 - 2023. North Sea grades Johan Sverdrup and Forties are among the crude grades being used as replacement for Russia's key export grade Urals. 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.
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