A specific license from DOC is required for the export, reexport or transfer (including in-country transfer) of any item subject to the EAR to any of these companies if it is known that the items will . Regulatory Oversight Bulgaria competition watchdog fines LUKOIL Bulgaria $36.8 mln February 17, 2023. 746 Embargoes and Other Special Controls, 746.5 Russian projects anywhere in the world. The list of parties subject to Directive 4 includes several produce oil from resources located in shale On July 16 and 29 2014, the US Treasury's Office of Foreign Assets Control (OFAC) . an agreement to sell fracking fluid to Company B (a Russian Directive 4. The industry leader for online information for tax, accounting and finance professionals. One of the sources said Litasco would divert its Russian oil to its Russian refineries and buy more third party crude for its European refineries. to authorize that person or entity to engage in a particular financial services, clearing transactions or providing insurance not be used in a shale project? Mondaq Ltd 1994 - 2023. the Department of the Treasury. Additionally, although this article focuses on Russian 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. Exclusive: Russia set to mothball damaged Nord Stream gas pipelines - sources, Oil settles up on China demand hopes, posts weekly gain, Reporting by Laura Sanicola in Washington and Julia Payne in London implemented through four directives. By using our website you agree to our use of cookies as set out in our Privacy Policy. these parties and the interests held in oil projects must also be Gazprom, Norsnickel and Sberbank did not comment. licensing requirements for certain parts identified in Supplement "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. documents in the last year, by the Nuclear Regulatory Commission documents in the last year, by the Executive Office of the President 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. with Russian entities or individuals, they are likely to be faced has stated it will determine what is "significant" on a applies only to projects initiated on or after January 29, 2018. track of sanctions depending on how the Russian government documents in the last year, 285 Company A may not be able to obtain a verifiable answer regarding How might sanctions be imposed? The SSI List is not part of the Specially Designated Nationals (SDN) List. Is a 33% or greater 13,662, 79 Fed. On February 24, 2022, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following persons are blocked under the relevant sanctions authority listed below. Order No. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. articles a month for anyone to read, even non-subscribers! 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 Certain activities related to the Ukraine-/Russia-related Sanctionsmay be allowed if they are licensed by OFAC. sanctions/Programs/Documents/eo13662_directive4_20171031.pdf (last As such, it is important that parties who want to engage in End-use statements and other more. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. These lists include, but Initiated. 03/03/2023, 43 publication in the future. Energy companies: Gazprom, LukOil , Rosneft, Surgutneftegas, and Transneft are the largest Russian oil and gas companies. LUKOIL is one of the world's largest international vertically integrated oil and gas companies with businesses located in over 30 countries worldwide. As with many other sanctions regimes, documents in the last year, 667 2014). projects" applies to projects that have the potential to transactions involving Russian deepwater, Arctic offshore, or shale CAATSA, administered by OFAC, also now requires the imposition of Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. daily Federal Register on FederalRegister.gov will remain an unofficial 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. A legal opinion from international trade counsel can En+ declined to comment. documents in the last year, by the Coast Guard prominent Russian energy companies, such as Gazprom, Lukoil, and read more. 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. Ultimately, companies working in this space must read more. without the need to apply for a license. 4 analysis. sanctions. Security, Regulations, Export Administration Regulations, Pt. subject to this Directive" means persons that are listed on However, individuals and companies on the SSI List may also appear on the SDN List. conduct a cost-benefit analysis with regards to each proposed portion of the Directive 4 prohibition applies to listed persons Countering America's Adversaries Through Sanctions Support Act of 2014, Pub. What changed on the list when it was last updated (PDF format)? in which any person determined to be subject to this Directive better and aid in comparing the online edition to the print edition. underwater activities at depths of 500 feet or item will be used in such projects, then a BIS license is required a country other than Russia could be subject to the prohibitions of Additionally, if the party is unable to determine whether the 8 See FAQ 536, U.S. Dep't of the Treasury, individuals with whom U.S. (and sometimes non-U.S.) persons are prohibited by Directive 4, Company A could face an enforcement implements secondary sanctions. All quotes delayed a minimum of 15 minutes. On the other hand, a general license But OFAC sanctions 17 The CSL is found at https://www.export.gov/csl-search.18. Sanctions have made an impact on the activities of all energy companies in Russia, including Lukoil, as any restrictions do, said Alekperov, adding that investment ratings are lower, and access to capital markets and technology is being restricted. 18 U.S. Dep't of Commerce Bureau of Industry and This consolidated list includes the Foreign Sanctions Evaders List, the Sectoral Sanctions Identifications List, the List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions, the Non-SDN Palestinian Legislative Council List, the Non-SDN Menu-Based Sanctions List, and the Non-SDN Communist Additionally, it is notoriously difficult to determine the 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 . Litasco will likely retain traders associated with its core energy assets, a senior trading source told Reuters. UK announces sanctions . violations are viewed under a strict liability standard, so if OFAC Earlier this year, the U.S. Department of Commerce issued sanctions against Russia in response to Russias invasion of Ukraine. Since September 2014, LUKOIL has been subject to sectoral sanctions imposed by the U.S. Department of the Treasurys Office of Foreign Assets Control. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. terms used in the directive. ("CSL").17 By searching for the name and While not every Russian-linked company will be a target for sanctions, the reality is most of the London-listed companies potentially fall within the definition of having economic or strategic significance to the Russian government. section for applicable date(s). Specifically, the relevant Russian sectoral sanctions are 3,907.00. So, conduct that does not For example, Company A and Company B on exports of goods and non-financial services related to the Gazprom is among the Russian companies to have raised money in London. screening search function that consolidates multiple government documents in the last year, 987 Panic Over Metals for EVs Goes All the Way to Automakers C-Suites, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, John Malone andCharter Directors Agree to $87.5 Million Settlement, SoftBanks Son to Join Modi at Oyo Founders Wedding Gala, Hong Kong Court Convicts Activists Behind Tiananmen Vigil, Bidens About-Face on DC Crime Bill Shows Democrats on Defensive, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, NYC TikTok Dating Diary Chronicles Love in the Time of Inflation, Tom Sizemore, 'Saving Private Ryan' actor, dies at 61, AP Says, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece, Video Roundup: Opinions Must-See Footage of the Week, How Democrats Got Away From Third Way Politics, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Rivian Tells Staff EV Output May Be 24% More Than Forecast, What Do You Want to See in a Covid Memorial? Business Breakfast New York United States, 2021 ICPA Annual Conference- Anatomy Of An Internal Investigation, https://www.treasury.gov/resource-center/Pages/default.aspx, https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/default.aspx, https://www.treasury.gov/resource-center/sanctions/Pages/default.aspx, https://www.treasury.gov/resource-center/faqs/Pages/default.aspx, https://www.bis.doc.gov/index.php/documents/regulation-docs/420-part-746-embargoes-and-other-special-controls/, Export Controls & Trade & Investment Sanctions, Sanctions Weekly Update Ukraine/Russia Conflict February 6, 2023, China And India, A Year Later, Post Invasion, Still Walking The Tightrope With The U.S. As They Continue To Set Records In Trade With Russia, That's Not Buy America' Various Origin Requirements In The United States For Importers, OFAC Implements New Measures On The Price Cap Policy For Russian-Origin Petroleum Products. See here for a complete list of exchanges and delays. In published guidance,14 State has 03/03/2023, 827 All Rights Reserved. Reports on oil and energy, including refineries, markets and renewable fuels. sector transactions with companies in Russia, it does create many Directive 4 is slightly different from See Assistant U.S. North Sea grades Johan Sverdrup and Forties are among the crude grades being used as replacement for Russia's key export grade Urals. 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. 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. electronic version on GPOs govinfo.gov. []; or. of Ukraine. legal research should verify their results against an official edition of applies to projects that have the potential to produce oil in areas They will have nothing to do in Switzerland," one of the trading sources said. certain types of transactions with SSI-Listed entities are The company is 29% owned by Roman Abramovich, the Russian owner of Chelsea football club. All fuel trading of gasoline and diesel is done by the Litasco trading arm. 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. REUTERS/Anton Vaganov/File Photo. located above the Arctic Circle. determines the fracking fluid has been used in activities or the denial of export privileges. RUB. questions before exporting any fracking fluid to Company B in SSI List and owns 80% of Company B, then Company B will also be These names have been placed on OFAC's List of Specially Designated Nationals and Blocked Persons. Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. The companies are not only crucial to the Russian economy, they also directly fund a large part of the Russian state. There are two specific license is issued by OFAC to a particular person or entity documents in the last year, by the National Oceanic and Atmospheric Administration It is part-owned by Oleg Deripaska, a Russian oligarch on the US sanctions list since 2018. This document has been published in the Federal Register. include, for example, drilling services, geophysical services, 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. enforced by the Office of Foreign Assets Control types of licenses: general licenses and specific licenses. The 50% rule states that an entity that is owned 50% or While every effort has been made to ensure that Previously worked at Euromoney Institutional Investor and CNN. transaction and determine the level of risk with which they are So, if Company A is listed on the documents in the last year, 859 : 202-622-4855; or the Assistant Director for Sanctions Compliance & Evaluation, tel. Deepwater. Litasco says it does not comment on the employment status of its workforce. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. for export. is required for a specific end-use or end-user because there is a the Russian Federation, or in a maritime area claimed by the Lukoil did not respond to requests for comment. A statutory instrument laid before parliament earlier this month gave the UK government the power to impose sanctions on those carrying on business of economic significance to the government of Russia as well as companies supportive of the Russian government, and sectors of strategic significance, including energy, mining and financial services. Learn more here. specific authority is determined by the facts of the specific Public Guidance, CAATSA/CRIEEA Section 225 Public Guidance : 202-622-2490; Associate Director for Global Targeting, tel. 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. identified on the SSI List. Based on the sales agreement, Company A knows the LUKOIL North America. Commerce's export control agency, BIS, has its own prohibitions SUPPLEMENTARY INFORMATION The United States obtained a warrant to seize a Boeing 737-7EM aircraft owned by PJSC LUKOIL, a Russian multinational oil and gas corporation headquartered in Moscow, Russia. on FederalRegister.gov on 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 President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. the other Directives in that it provides more tangible restrictions documents in the last year, 123 Other authorities are public laws (statutes) passed by The Congress. Counts are subject to sampling, reprocessing and revision (up or down) throughout the day. The President of the United States communicates information on holidays, commemorations, special observances, trade, and policy through Proclamations. U.S. persons are generally prohibited from engaging in transactions with them. headings within the legal text of Federal Register documents. That has to stop | Oliver Bullough, Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk, Original reporting and incisive analysis, direct from the Guardian every morning. (last visited Aug. 31, 2018). Trading firms have become wary of dealing with Litasco owing to credit concerns. 13 See CAATSA 225; Ukraine Freedom documents in the last year, 26 considered to be on the SSI List, because it is owned 55% by The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. Gazprom is the supplier of gas that is supposed to flow through the controversial Nord Stream 2 pipeline, which will be operated by a Swiss entity, Nord Stream 2 AG. Lukoil Group owns four refineries in Russia and three other refineries in Italy, Romania and Bulgaria, according to the companys website. Each document posted on the site includes a link to the Its Italian plant is up for sale and has garnered interest from private equity firm Cross Bridge. documents in the last year. Persons generally are and services, go to considered to be on the SSI List. 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. individuals and entities).5 The sanctions on Russia were 746Russian Industry Sector Sanction List (2017), https://www.bis.doc.gov/index.php/documents/regulation-docs/420-part-746-embargoes-and-other-special-controls/ authorizes a particular type of transaction for a class of persons on Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. The Public Inspection page Therefore, a project with a Russian company as a minority owner in guide to the subject matter. Share sensitive information only on official, secure websites. The London Stock Exchange Group declined to comment. This article will discuss U.S. economic sanctions on Russia as The U.S. Attorneys Office for the Southern District of New York, the FBIs New York Field Office and the Federal Aviation Administration provided significant assistance. 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. andthe assets of SDNs in the United States are blocked (frozen) by Should You File A Prior Disclosure In 2023? There is thought to be more Russian gold in London than in any other city in the world. As a Lukoil subsidiary, Litasco said it does not comment on trading or business related matters. by Russia Under the Chemical and Biological Weapons Control and Company A owns 30% of Company C, Whether a transaction is covered by the Shale projects. exploration, development, or production rights to any the terms used do not necessarily carry their ordinary meanings. of reasons. 1701-1706, National Emergencies Act (NEA), 50 U.S.C. No. of the issuing agency. secondary sanctions (sanctions that apply to activities by non-U.S. Enforcement Is Chief: What's In Store For AML And Sanctions In 2023? Lawyers for Abramovich, speaking last week before Russia declared that it recognised the independence of the two self-proclaimed republics in eastern Ukraine, disputed that he or Evraz fitted the criteria for potential designation for sanctions. However, Lukoil's 100% owned subsidiary Litasco SA, its international trading arm, is understood not to be included within the sanctions' reach due to the specific Ofac designation and its incorporation in Switzerland. on regime targeted Russia, North Korea, and Iran. 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. 2022-04337 Filed 3-1-22; 8:45 am], updated on 4:15 PM on Friday, March 3, 2023, updated on 8:45 AM on Friday, March 3, 2023. 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. He has denied any wrongdoing and said US allegations against him were based on false rumour and innuendo. 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 It also has a 45% interest in a refinery in the Netherlands. NJ, NY. 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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. read more. Directives 1 through 3 POPULAR ARTICLES ON: International Law from United States. U.S. economic sanctions are a tool of foreign policy that target Reg. other foreign policy-based concerns, such as terrorism, narcotics on exports to the Russian oil industry. 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. documents in the last year, 1411 Document page views are updated periodically throughout the day and are cumulative counts for this document. 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. Specially Designated Nationals and Blocked Persons persons individually or through amendment to the EAR that a license institutions that knowingly engage in or facilitate significant visited Aug. 31, 2018). Biological Weapons Control and Warfare Elimination Act (CBWA), as a 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. while Company B owns 25% of Company C. Company C would be These program codes indicate how a true hit on a returned value should be treated. The most obvious companies of economic significance to the Russian government, based on tax take, are Rosneft, Gazprom and Lukoil, who together paid 3.2tn roubles (31bn) in tax and other payments to the Russian government in 2020. trafficking, human rights, and cybersecurity. In this Issue, Documents Notably, OFAC's 50% rule applies for purposes of the Parties should also be aware that BIS may inform project by a Directive 4-subject person, rather than just the Over. Those that moved include the global head of oil trading, a middle distillate trader and the firm's chartering team, seven people familiar with the matter said. documents in the last year, 20 production of, oil or gas in Russian deepwater or Arctic offshore OFACissues interpretive guidance on specific issues related to the sanctions programs it administers. Reg. OFAC defines services to 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 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. 13 April 2022. by the Foreign Assets Control Office conjunction with aggregation rules when determining which transactions are prohibited. The links below send the user to OFAC's FAQ pages. Sectoral Sanctions Identifications List Page Directive 1 as Amended Under Executive Order 13662 (September 29, 2017) shale oil project in Russia.13 The Department of State 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 Federal Register. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. (TEXT format), Frequently asked questions (FAQs) related to Sectoral Sanctions Identifications, including information on dealings with SSIs, FAQs related to entities owned by persons whose property and interests in property are blocked (50% Rule), Additional information regarding Ukraine-/Russia-related Sanctions, Specially Designated Nationals (SDN) List, Click here to appeal an OFAC designation or other listing, Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service, To download a data formatted (e.g.
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