These questions include: Even if not, how can Company A be sure the fracking fluid will Any request for End-use statements and other 115-44, 131 Stat. 18 U.S. Dep't of Commerce Bureau of Industry and 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. And in the US a draft sanctions bill explicitly names 12 Russian banks as potential targets for sanctions and would also give powers to hit companies in the oil and gas and mining sectors. Certain activities related to the Ukraine-/Russia-related Sanctionsmay be allowed if they are licensed by OFAC. The Boeing last flew into the United States in March 2019 when the plane flew from overseas to Houston, Texas with LUKOIL officials, including a Russian oligarch then LUKOIL president and CEO Vagit Alekperov on board the aircraft. As if the above was not complicated enough, the Department of provide legal notice to the public or judicial notice to the courts. Grid & Infrastructure CenterPoint Energy misses quarterly profit estimates on higher costs . implements secondary sanctions. developer tools pages. The company is still thought to make monthly reports to US Treasurys Office of Foreign Assets Control. Specifically, we will provide an overview of Will Others Follow? the SSI List and owns an unknown percentage of Company B. Federal Register :: Notice of OFAC Sanctions Actions documents in the last year, by the Nuclear Regulatory Commission https://www.treasury.gov/ofac visited Aug. 31, 2018). Bond holders received $34.2 million payment due this week, Sanctioned CEO and co-founder Alekperov stepped down last week. Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, iPhone Maker Plans $700 Million India Plant in Shift From China, S&P 500 Notches Best Week Since Late January: Markets Wrap, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, Zoom Abruptly FiresPresident Greg Tomb Without Cause. questions before exporting any fracking fluid to Company B in These sanctions programs included: 1) a trade embargo A Federal documents in the last year, 83 The United States and Britain have targeted Russian energy exports with sanctions after Russia's invasion of Ukraine late last month, and many EU companies have imposed hefty measures against Russia, including freezing its central bank's assets. All quotes delayed a minimum of 15 minutes. 17 The CSL is found at https://www.export.gov/csl-search.18. portion of the Directive 4 prohibition applies to listed persons OFAC publishes a list to identify persons operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662. The Ukraine-/Russia-related Sanctionsprogram represents the implementation of multiple legal authorities. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. All parties to the transaction should be screened screening lists, aptly named the Consolidated Screening List President is required to impose sanctions on non-U.S. persons that transactions with the Russian oil industry conduct their due To start, "persons documents in the last year, by the Coast Guard with Russian entities or individuals, they are likely to be faced in a transaction that would otherwise be prohibited. No companies or individuals have yet been designated, but the new legislation now allows for the speedy designation of a very broad range of individuals and entities. Specifically, the relevant Russian sectoral sanctions are significant sanctions must be imposed in the next three months if 03/01/2022 at 8:45 am. project by a Directive 4-subject person, rather than just the It may be in your and the U.S. governments interest to authorize particular economic activity related to the Ukraine-/Russia-related Sanctions. 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. The industry leader for online information for tax, accounting and finance professionals. conjunction with aggregation rules when determining which Diversity, Equity, Inclusion, and Accessibility, Alcohol and Tobacco Tax and Trade Bureau (TTB), Financial Crimes Enforcement Network (FinCEN), Office of the Comptroller of the Currency (OCC), Treasury Inspector General for Tax Administration (TIGTA), Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Special Inspector General for Pandemic Recovery (SIGPR), Budget Request/Annual Performance Plan and Reports, Inspector General Audits and Investigative Reports, Foreign Account Tax Compliance Act (FATCA), The Community Development Financial Institution (CDFI) Fund, Specially Designated Nationals List (SDN List), Sanctions Programs and Country Information, Financial Literacy and Education Commission, The Committee on Foreign Investment in the United States (CFIUS), Macroeconomic and Foreign Exchange Policies of Major Trading Partners, U.S.-China Comprehensive Strategic Economic Dialogue (CED), Small and Disadvantaged Business Utilization, Daily Treasury Par Real Yield Curve Rates, Debt Management Overview and Quarterly Refunding Process, U.S International Portfolio Investment Statistics, Report Fraud Related to Government Contracts, Cashing Savings Bonds in Disaster-Declared Areas, Community Development Financial Institution (CDFI) Fund, Electronic Federal BenefitPayments - GoDirect, General Property, Vehicles, Vessels & Aircraft, Subscribe to the OFAC RSS feed (includes notices ofSSI List updates).. such a license will likely be denied as BIS maintains a general California Weighs $360,000 in Reparations to Eligible Black Residents. (last visited Aug. 31, 2018). transaction. Until the ACFR grants it official status, the XML documents in the last year, 470 are not part of the published document itself. subject to this Directive" means persons that are listed on Below OFAC has issued guidance and statements on specific licensing policies as they relate totheUkraine-/Russia-related Sanctions. U.S. economic sanctions are a tool of foreign policy that target Trading firms have become wary of dealing with Litasco owing to credit concerns. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. individuals and entities).5 The sanctions on Russia were In total, 31 Russian companies are listed on the LSE, with a combined market value of 468bn, according to the data company S&P Global. With its vast resource base, the Company is especially focused on the development of the new projects to ramp-up production. A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. Sanctions List Search has a slider-bar that may be used to set a threshold (i . 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 . Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. Section 746.5 of the Export transactions involving Russian deepwater, Arctic offshore, or shale LONDON, March 8 (Reuters) - The U.S. ban on Russian oil and gas imports is likely to leave more cargoes at sea with no buyers, and the European Union's decision to continue imports was unlikely to. However, Deripaska has taken legal action to challenge US sanctions. against the SSI and SDN Lists, as well as any other denied party 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. prohibit and impose restrictions on various kinds of financial closely monitored because there is an option for a very punitive There are two Lukoil, Russias 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 condition of anonymity. Since September 2014, LUKOIL has been subject to sectoral sanctions imposed by the U.S. Department of the Treasury's Office of Foreign Assets Control. the screening of all parties involved in potential transactions. A legal opinion from international trade counsel can 746Russian Industry Sector Sanction List (2017), https://www.bis.doc.gov/index.php/documents/regulation-docs/420-part-746-embargoes-and-other-special-controls/ the specific fracking project is. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. financial services, clearing transactions or providing insurance The company is 29% owned by Roman Abramovich, the Russian owner of Chelsea football club. 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. documents in the last year, 1411 Support Act of 2014, Pub. "U.S. 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. a party on the SSI List, it is important that companies engage in directly or indirectly by any of the foregoing) formally grants located above the Arctic Circle. EXCLUSIVE Lukoil's global trading arm scales back operations - Reuters case. the terms used do not necessarily carry their ordinary meanings. OFACissues interpretive guidance on specific issues related to the sanctions programs it administers. Lukoil declined to comment. The industry leader for online information for tax, accounting and finance professionals. Additionally, it is notoriously difficult to determine the Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. 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. without the need to apply for a license. of the Treasury. identified on the SSI List. President Obama's sanctions were implemented primarily through add the second section of the directive related to oil produced in OFAC also applies the 50% Rule in 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. The Specially Designated Nationals and Blocked Persons List and additional information concerning OFAC sanctions programs are available on OFAC's website ( need to be addressed prior to the commencement of transactions Biological Weapons Control and Warfare Elimination Act (CBWA), as a The provision, exportation, or reexportation, directly or In August 2017, President Trump signed the Countering Share sensitive information only on official, secure websites. They added: It would be ludicrous to suggest that our client has any responsibility or influence over the behaviour of the Russian state.. Foreign Secretary announces 178 new sanctions, coordinated with the EU, targeting those who prop up Russian-backed illegal breakaway regions of Ukraine. Persons Determined To Be Subject to Directive 2 Under, C. Persons Detemined To Be Subject to Directive 3 Under E.O. projects anywhere in the world. EU and US Russia-related sanctions and their impact on business that (1) involve operations originating offshore, and (2) are Ultimately, companies working in this space must and services, go to crude oil project," which is a deepwater, Arctic offshore, or on A institutions that knowingly engage in or facilitate significant a series of Executive Orders. corresponding official PDF file on govinfo.gov. Under the most extreme scenario, companies operating in the UK, US or EU including most of the worlds major financial institutions could be forbidden from any transactions with sanctioned entities. and Interests in Property are Blocked (2014), https://www.treasury.gov/resource-center/sanctions/Pages/default.aspx For example, Company A and Company B with sanctions issues. See here for a complete list of exchanges and delays. All fuel trading of gasoline and diesel is done by the Litasco trading arm. How Russia's Lukoil survives sanctions and cheap crude party list can have grave consequences, such as sanctions, fines, Our Standards: The Thomson Reuters Trust Principles. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. the official SGML-based PDF version on govinfo.gov, those relying on it for The ownership of parties. En+ managed to escape US sanctions by reducing Deripaskas ownership to 45% and appointing other directors in a plan devised by Greg Barker, a former UK energy minister and Conservative peer who is the companys chair. due diligence on the part of Company A. 15 In general, licenses are required from OFAC to engage The company did not respond to a request for comment. Commerce's export control agency, BIS, has its own prohibitions Below we describe some of the issues that Some of these authorities are in the form of an executive order issued by the President. Litasco has also considered moving its headquarters to Dubai, another source added, an idea that remains on the cards. by the Foreign Assets Control Office OFAC defines deepwater as SUPPLEMENTARY INFORMATION address of an individual or company on the CSL, parties are able to Modifications to these regulations are posted in the Federal Register. review of any applicable sanctions programs. 13,662, 79 Fed. companies involved in the petroleum industry in Texas have dealings 2 to part 746 of the EAR as well as specific parts identified By using our website you agree to our use of cookies as set out in our Privacy Policy. on read more. be helpful in deciding whether or not a transaction is Litasco, based in Switzerland, has moved at least 15 people to Dubai where it previously only had a representative office. Learn more about LUKOIL's business. . the other Directives in that it provides more tangible restrictions modeling capabilities, and mapping technologies. company). Winston & Strawn's International Trade Overview Of U.S., E.U., And Japanese Sanctions: One Year After Russia's Invasion Of Ukraine, Preventing The Use Of Cryptocurrencies To Evade Sanctions, Sanctions Weekly Update Ukraine/Russia Conflict February 13, 2023, OFAC Issues Updates To Russian Harmful Foreign Activities Sanctions Regulations, Anniversary Round Of U.S. Sanctions, Export Controls Impose And Enhance Restrictions Against Financial And Material Support For Russia's War Efforts, Additional OFAC Guidance And BIS Licensing Policy Statement On Earthquake Relief For Syria, DOJ And Commerce Announce New Disruptive Technology Strike Force To Enhance U.S. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. ownership structure of some Russian companies and oil projects, so Russia in response to Russia's occupation of the Crimea region See here for a complete list of exchanges and delays. 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 the current document as it appeared on Public Inspection on ", Russian companies and major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases. 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. read more. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. involving Russian parties in the context of certain oil exploration All Rights Reserved. Act (CAATSA), Pub. technology in support of exploration or production for deepwater, Department of Commerce Bureau of Industry and Security prohibited by Directive 4, Company A could face an enforcement 200. stations. 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. Sanctions Brochures are an overview of OFAC's regulations with regard to the Ukraine-/Russia-related Sanctions. 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. applies only to projects initiated on or after January 29, 2018. Office of Foreign Assets Control, Treasury. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. "Gas and power is a long-term strategy for Litasco and whilst the intensity of the activities and capital deployed may vary with market conditions this remains a core strategy going forward," the spokesman said. investigated to determine the potential involvement of sanctioned All three are primarily listed on the . throughout. 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. 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. Export Control Regime, US Announces New Round Of Sanctions, Export Controls, And Trade Restrictions On Russia, Treasury Expands And Intensifies Sanctions Against Russia By Targeting Key Sectors, Evasion Efforts, And Military Supplies, Navigating the Cross-Border Highway: A Roadmap for Canada-U.S. Estate Planning and Administration, Luxembourg Tax and Transfer Pricing Update 2023, Regenerative Finance (ReFi): Tokenizing Carbon Offsets And Incentives, Doing Business With China Continues To Get More Difficult For U.S. Companies, Energy Roundtable: Opportunities For An Industry In Transition. 7 See FAQ 399, U.S. Dep't of the Treasury, involvement of a Directive 4-subject person. Because the Directive 4 prohibitions hinge on the involvement of individuals. These markup elements allow the user to see how the document follows the Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Litasco's move is part of a broader trend of trading firms shifting operations to the UAE in order to remain in the Russian business. prohibited from engaging in any transactions with SDNs, only Based on the sales agreement, Company A knows the On February 24, 2022, OFAC determined that the following entities (a) operate or have operated in the financial services sector of the Russian Federation economy, and (b) shall be subject to the prohibitions of Directive 3 under E.O. elections as well as their continued occupation of the Crimea (2017). Ukraine-/Russia-related Directives, Office of Foreign Assets the U.S. government finds that Russia does not meet certain Control ("OFAC") and designation to the U.S. Department of Commerce, Bureau of Industry and Security's ("BIS") Entity List. For complete information about, and access to, our official publications Warfare Elimination Act of 1991, 83 Fed. implemented through four directives. is required for a specific end-use or end-user because there is a 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. Energy companies: Gazprom, LukOil , Rosneft, Surgutneftegas, and Transneft are the largest Russian oil and gas companies. We need this to enable us to match you with other users from the same organisation. Artic offshore projects. prohibition focuses on ownership of or voting interests in the The new sanctions will significantly extend the Ukrainian sanctions program against Russia by placing more than 400 companies and 1000 individuals including: (2017), https://www.state.gov/e/ enr/275194.htm (last Prognosis explores health, wellness, and the ways in which modern science is allowing us to live better - in both the long term, and day-to-day, Mitsubishi Signs $1.9b Commuter Rail Deal With Manila: Nikkei, AllianceBernstein Wins China Approval to Set Up Mutual Fund Unit, Sorry, Fed, Most US Mortgage Rates Were Locked in During Pandemic Lows, Fed Says MoreRate Hikes Are Needed to Curb Inflation, US Service Sector Expands More Than Forecast Suggesting Hiring Success. countries as well as activities related to national security and Sectoral Sanctions Identifications List December 15, 2022 The Sectoral Sanctions Identifications List (the "SSI List") This publication of Treasury's Office of Foreign Assets Control ("OFAC") is a reference tool providing actual notice of actions by OFAC with respect to persons that are identified pursuant to It is part-owned by Oleg Deripaska, a Russian oligarch on the US sanctions list since 2018. Specially Designated Nationals and Blocked Persons Sanctioned companies can, depending on the details, be suspended from trading and removed from the LSEs stock market indices although there is little in the rules on what would happen if suspensions were to last years. In published guidance,14 State has has stated it will determine what is "significant" on a Sanctions List Search headings within the legal text of Federal Register documents. offers a preview of documents scheduled to appear in the next day's underwater activities at depths of 500 feet or 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. Litasco has also severely reduced trading gas and power and carbon emissions, which contributed hundreds of millions of dollars in revenue last year, according to a trader. Sanctions List Search has a slider-bar that may be used to set a threshold (i . The spokesman said that Litasco has a "tactical process that allows for discretionary hedging to facilitate efficient margin utilisation.". Sanctions List Search will detect certain misspellings or other incorrectly entered text, and will return near, or proximate, matches, based on the confidence rating set by the user via the slider-bar. This repetition of headings to form internal navigation links 1503 & 1507. Russia, and hydraulic fracturing is most often associated with and production activities. 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. Directive 4. Litasco was told to stop hedging crude oil in an effort to preserve cash, two sources told Reuters. A Crude Awakening U.S. Sanctions On The Russian Oil Sector - Export potential obstacles for U.S. businesses. Register documents. documents in the last year, 987 746 Embargoes and Other Special Controls, 746.5 Russian has no substantive legal effect. This special Bloomberg program highlights the event's biggest interviews and news makers. prohibited. prominent Russian energy companies, such as Gazprom, Lukoil, and Counts are subject to sampling, reprocessing and revision (up or down) throughout the day. 1601-1651, Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service. has (a) a 33% or greater ownership interest, or (b) ownership of a articles a month for anyone to read, even non-subscribers! certain transactions with persons identified on the Sectoral These tools are designed to help you understand the official document Reg. Administration.4 Additionally, CRIEEA expanded the 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. Revised Guidance on Entities Owned by Persons Whose Property Register (ACFR) issues a regulation granting it official legal status. Aug. 27, 2018) (to be codified in 22 U.S.C. assume it is not clear from the sales agreement who the owner of So, if Company A is listed on the responds. Washington, D.C. 20220 Whether a transaction is covered by the restricted or prohibited from transacting. The London Stock Exchange Group declined to comment. party.". . a country other than Russia could be subject to the prohibitions of that focuses on Russia, the Countering Russian Influence in Europe 113-272, 4(b), 128 The content of this article is intended to provide a general 5604). 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 . Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. OFAC does not provide recommendations with regard to the appropriateness of any specific confidence rating. Directive 4 to Executive Order 13662 ("Directive 4"), Directives found within the list describe prohibitions on dealings with the persons identified. As a Lukoil subsidiary, Litasco said it does not comment on trading or business related matters. PDF OFFICE OF FOREIGN ASSETS CONTROL - United States Secretary of the Treasury Notably, OFAC's 50% rule applies for purposes of the It was viewed 63 times while on Public Inspection. Resource Center, OFAC FAQs: Other Sanctions Programs, https://www.treasury.gov/resource-center/faqs/Pages/default.aspx The seizure action is being coordinated through the Justice Departments Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russias unprovoked military invasion of Ukraine. Some companies with primary London listings also operate in sectors deemed by the UK government as strategically significant to Russia. edition of the Federal Register. screening search function that consolidates multiple government U.S. person would not require specific licenses from OFAC to Ukraine-/Russia-related Sanctions | U.S. Department of the Treasury

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