U.S. OFAC issues Russia-related determination, general licenses, and FAQs
Treasury is targeting the architecture of Russia’s financial system
Treasury is targeting the architecture of Russia’s financial system
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today issued a release announcing several updates to Russia-related sanctions.
- Determination pursuant to Section 1 (a)(ii) of Executive Order 14071: The determination concerns the prohibition on certain information technology and software services.
- General licenses: OFAC has issued several Russia-related general licenses, including those facilitating agricultural and medical transactions, energy-related transactions, telecommunications, and internet-based communications.
- Russia-related General License 6D—"Transactions Related to Agricultural Commodities, Medicine, Medical Devices, Replacement Parts and Components, or Software Updates, the Coronavirus Disease 2019 (COVID-19) Pandemic, or Clinical Trials"
- Russia-related General License 8J—"Authorizing Transactions Related to Energy"
- Russia-related General License 25D—"Authorizing Transactions Related to Telecommunications and Certain Internet-Based Communications"
- Russia-related General License 98—"Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on June 12, 2024"
- Russia-related General License 99—"Authorizing the Wind Down of Transactions and Certain Transactions Related to Debt or Equity of, or Derivative Contracts Involving, MOEX, NCC, or NSD"
- Russia-related General License 100—"Authorizing Certain Transactions Related to Debt or Equity or the Conversion of Currencies Involving MOEX, NCC, or NSD"
- “Frequently asked questions” (FAQs): New and amended FAQs concern the scope and application of the Russia-related sanctions.
- Eight new FAQs (1181 - 1188)
- 10 amended FAQs (976, 1040, 1068, 1122, 1128, 1146, 1147, 1148, 1151, 1152)
- New designations and updates: OFAC has added new individuals and entities to its specially designated nationals (SDN) list. These additions include various individuals and companies across multiple countries linked to Russia's technology, military, and financial sectors.
A related Treasury release (June 12, 2024) explains that Treasury is targeting the architecture of Russia’s financial system. Treasury is also targeting more than a dozen transnational networks laundering gold for a designated Russian gold producer, supporting Russia’s production of unmanned aerial vehicles (UAVs), and procuring sensitive and critical items such as materials for Russia’s chemical and biological weapons program, anti-UAV equipment, machine tools, industrial machinery, and microelectronics. Today’s action also takes further steps to limit Russia’s future revenue from liquefied natural gas.
In addition, the State Department is targeting over 100 entities and individuals engaged in the development of Russia’s future energy, metals, and mining production and export capacity; sanctions evasion and circumvention; and furthering Russia’s ability to wage its war against Ukraine.
For more information, contact a professional with KPMG Trade & Customs services:
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