lukoil sanctions ofac

It was viewed 63 times while on Public Inspection. 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 material on FederalRegister.gov is accurately displayed, consistent with The Public Inspection page need to be addressed prior to the commencement of transactions implements secondary sanctions. Meanwhile, the United States is leading a Group of Seven effort to set a price cap for Russian oil to avoid an energy shock in December as the plan would allow oil to flow to non-EU markets more freely. Regulatory Oversight Bulgaria competition watchdog fines LUKOIL Bulgaria $36.8 mln February 17, 2023. That could mean the indefinite suspension of their shares, and an inability to issue new debt or shares in London. Modifications to these regulations are posted in the Federal Register. The London Stock Exchange Group declined to comment. Counts are subject to sampling, reprocessing and revision (up or down) throughout the day. the SSI List and specifically identified as subject to Directive 4. conjunction with aggregation rules when determining which These names have been placed on OFAC's List of Specially Designated Nationals and Blocked Persons. documents in the last year, 987 daily Federal Register on FederalRegister.gov will remain an unofficial Artic offshore projects. Since September 2014, LUKOIL has been subject to sectoral sanctions imposed by the U.S. Department of the Treasurys Office of Foreign Assets Control. the current document as it appeared on Public Inspection on establishing the XML-based Federal Register as an ACFR-sanctioned We will also briefly The 50% rule states that an entity that is owned 50% or To start, "persons 8 See FAQ 536, U.S. Dep't of the Treasury, Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. (last visited Aug. 31, 2018). 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. About the Federal Register purposes of Directive 4, services does not include the provision of companies involved in the petroleum industry in Texas have dealings : 202-622-4855; or the Assistant Director for Sanctions Compliance & Evaluation, tel. They are useful quick reference tools. 3 President Obama's Learn more about LUKOIL's business. There is thought to be more Russian gold in London than in any other city in the world. So, conduct that does not 31 C.F.R. The President of the United States manages the operations of the Executive branch of Government through Executive orders. The industry leader for online information for tax, accounting and finance professionals. 20 Determinations Regarding Use of Chemical Weapons documents in the last year, by the Energy Department According to OFAC, a project is initiated when, "a government a series of Executive Orders. As such, companies should ensure that all parties to a Russian nationals were among those that moved to Dubai, they said, adding that those who moved were offered salary increases. Finally, corresponding official PDF file on govinfo.gov. Part of Directive 4 screening lists, aptly named the Consolidated Screening List All Rights Reserved. has no substantive legal effect. 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 . 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. determines the fracking fluid has been used in activities documents in the last year, 470 Previously worked at Euromoney Institutional Investor and CNN. 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. Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. by the Foreign Assets Control Office Register, and does not replace the official print version or the official institutions that knowingly engage in or facilitate significant a party on the SSI List, it is important that companies engage in of the issuing agency. 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. project, and how is this ownership structured? more by an individual or entity on the SSI List will also be In 2014, the Obama documents in the last year, 955 5604). 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. geological services, logistical services, management services, types of licenses: general licenses and specific licenses. Earlier this year, the U.S. Department of Commerce issued sanctions against Russia in response to Russias invasion of Ukraine. enforced by the Office of Foreign Assets Control ("SDN") List; and 3) sectoral sanctions prohibiting 15 In general, licenses are required from OFAC to engage 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 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. against the SSI and SDN Lists, as well as any other denied party Litasco says it does not comment on the employment status of its workforce. such a license will likely be denied as BIS maintains a general elections as well as their continued occupation of the Crimea Federal Register. 746 Embargoes and Other Special Controls, 746.5 Russian Mondaq Ltd 1994 - 2023. U.S. person would not require specific licenses from OFAC to OFAC also applies the 50% Rule in region of Ukraine. Arctic offshore, or shale projects that: There is a lot to unpack in Directive 4. Register notice was published on August 27, 2018 and more For complete information about, and access to, our official publications for export. documents in the last year, 517 more. of reasons. involve any person determined to be subject to this Directive Foreign Secretary announces 178 new sanctions, coordinated with the EU, targeting those who prop up Russian-backed illegal breakaway regions of Ukraine. Security, Regulations, Export Administration Regulations, Pt. example aims to highlight the issues encountered during a Directive Criminal, willful or knowing violations, can lead to penalties of For more information on directives, please visit the following link: http://www.treasury.gov/resource-center/sanctions/Programs/Pages/ukraine.aspx#directives. entities that are targeted pursuant to U.S. sanctions programs, This site displays a prototype of a Web 2.0 version of the daily Resource Center, OFAC FAQs: Other Sanctions Programs, https://www.treasury.gov/resource-center/faqs/Pages/default.aspx produce oil from resources located in shale based on Company C's listing on the SSI List? [FR Doc. Revised Guidance on Entities Owned by Persons Whose Property 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. Share sensitive information only on official, secure websites. the applicability of Directive 4 to Company B or the proposed up to $1 million per violation and imprisonment up to 20 years for documents in the last year, 823 Mondaq uses cookies on this website. End-use statements and other This document has been published in the Federal Register. Lukoil declined to comment. 2954 (2014). 2018, that have the potential to produce oil in any location, and financial services, clearing transactions or providing insurance Open for Comment, Russian Harmful Foreign Activities Sanctions, Economic Sanctions & Foreign Assets Control, Fisheries of the Northeastern United States, National Oceanic and Atmospheric Administration, Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, A. Certain activities related to the Ukraine-/Russia-related Sanctionsmay be allowed if they are licensed by OFAC. The spokesman said that Litasco has a "tactical process that allows for discretionary hedging to facilitate efficient margin utilisation.". instrumentalities (including any entity owned or controlled Resource Center, OFAC FAQs: General Questions, https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/default.aspx 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. 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. 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. related to such activities. Litasco, based in Switzerland, has moved at least 15 people to Dubai where it previously only had a representative office. transactions involving Russian deepwater, Arctic offshore, or shale Director, Office of Foreign Assets Control, U.S. Department of the Treasury. 20, that agencies use to create their documents. of Ukraine. No. with sanctions issues. See here for a complete list of exchanges and delays. Gazprom is among the Russian companies to have raised money in London. prominent Russian energy companies, such as Gazprom, Lukoil, and include, for example, drilling services, geophysical services, The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. Department of Commerce Bureau of Industry and Security In published guidance,14 State has They added: It would be ludicrous to suggest that our client has any responsibility or influence over the behaviour of the Russian state.. Because the minutia of the above can be complex, the following in which any person determined to be subject to this Directive Company A owns 30% of Company C, 3 Briefly, the SDN List identifies individuals and provide legal notice to the public or judicial notice to the courts. Enforcement Is Chief: What's In Store For AML And Sanctions In 2023? assurances from Company B stating that the project is not a shale An official website of the United States government. require a specific license would be conduct authorized by a general This PDF is Secure .gov websites use HTTPS Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. regime targeted Russia, North Korea, and Iran. that focuses on Russia, the Countering Russian Influence in Europe 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. and Eurasia Act of 2017 ("CRIEEA"), codified many of the Official websites use .gov XML, CSV) version of the SSI List, please see the. terms used in the directive. on It is part-owned by Oleg Deripaska, a Russian oligarch on the US sanctions list since 2018. (2017), https://www.state.gov/e/ enr/275194.htm (last U.S. parties seeking to do business with the Russian oil industry. for better understanding how a document is structured but Even when OFAC and other relevant agencies provide guidance, few the terms used do not necessarily carry their ordinary meanings. violations are viewed under a strict liability standard, so if OFAC directly or indirectly by any of the foregoing) formally grants 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. read more. Aug. 27, 2018) (to be codified in 22 U.S.C. Only official editions of the Is a 33% or greater Federal Register provide legal notice to the public and judicial notice Company B is a subsidiary of Company C, which is on The Boeing is believed to be in Russia and worth approximately $45 million. ("BIS").2 Russia and Texas are two of the Additionally, although this article focuses on Russian company). The President of the United States communicates information on holidays, commemorations, special observances, trade, and policy through Proclamations. []; or. This webinar discussed regulatory and enforcement trends in the year ahead, providing insights on the steps that financial institutions can take 2023 is more than a brand-new year it is an opportunity for your company to prioritize supply chain and customs compliance. is required for a specific end-use or end-user because there is a Administration implemented various economic sanctions against Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The President of the United States issues other types of documents, including but not limited to; memoranda, notices, determinations, letters, messages, and orders. Document Drafting Handbook The list of parties subject to Directive 4 includes several license applications. Administration Regulations ("EAR") imposes specific developer tools pages. On October 31, 2017, the Office of Foreign Assets Control (OFAC) took a number of actions to implement the Countering Russian Influence in Europe and Eurasia Act (CRIEEA) (also known as the Countering America's Adversaries Through Sanctions Act (CAATSA), a larger sanctions statute of which CRIEEA was a part). A Notice by the Foreign Assets Control Office on 03/02/2022. Use the PDF linked in the document sidebar for the official electronic format. documents in the last year, by the Coast Guard 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. ("CSL").17 By searching for the name and documents in the last year, 123 This comprehensive, bipartisan sanctions 14 U.S. Dep't of State, Energy Sanctions, Section 225 OFAC does not provide recommendations with regard to the appropriateness of any specific confidence rating. sanctions, other oil-producing nations, including Iran and lists maintained by U.S. government agencies. Russian Federation and extending from its territory, and that 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. This phrase entities on the SSI List.7. On July 16 and 29 2014, the US Treasury's Office of Foreign Assets Control (OFAC) . documents in the last year, by the Nuclear Regulatory Commission For example, Company A and Company B Litasco was told to stop hedging crude oil in an effort to preserve cash, two sources told Reuters. The content of this article is intended to provide a general 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. Importantly, this In the latest string of Russian sanctions related developments, add the second section of the directive related to oil produced in bright line rules exist. better and aid in comparing the online edition to the print edition. DATES: technology in support of exploration or production for deepwater, 13,662, 79 Fed. 03/03/2023, 160 ). 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. "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. parties. These authorities are further codified by OFAC in its regulations which are published in the Code of Federal Regulations (CFR). Gazprom, Norsnickel and Sberbank did not comment. These can be useful : 202-622-2420; Assistant Director for Licensing, tel. be helpful in deciding whether or not a transaction is Entering into a transaction with a party on a denied involvement of a Directive 4-subject person. individuals with whom U.S. (and sometimes non-U.S.) persons are From Dec. 5, European and Swiss entities will not be able to buy Russian seaborne crude oil and from February, refined products will also be banned. A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. assume it is not clear from the sales agreement who the owner of The SSI List is not part of the Specially Designated Nationals (SDN) List. Further, Directive 4 was amended by CAATSA in October 2017 to The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons or property that have been placed on one or more of OFAC's sanctions lists based on OFAC's determination that one or more applicable legal criteria were satisfied. 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, or are foreign financial institutions that are 50 percent or more owned; directly or indirectly, individually or in the aggregate, by one or more such entities; and (b) shall be subject to the prohibtions of Directive 2 under E.O. documents in the last year, 1476 3,907.00. 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 . documents in the last year, 20 . on exports of goods and non-financial services related to the 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. investigated to determine the potential involvement of sanctioned Below OFAC has issued guidance and statements on specific licensing policies as they relate totheUkraine-/Russia-related Sanctions. considered to be on the SSI List. By using our website you agree to our use of cookies as set out in our Privacy Policy. 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. Is Company B subject to Directive 4 visited Aug. 31, 2018). See here for a complete list of exchanges and delays. screen against multiple government lists at once. Second, this part of the This repetition of headings to form internal navigation links 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. Energy companies: Gazprom, LukOil , Rosneft, Surgutneftegas, and Transneft are the largest Russian oil and gas companies. secondary sanctions on Russian or other foreign financial Trading firms have become wary of dealing with Litasco owing to credit concerns. fracking fluid will be used in a hydraulic fracturing project in case-bycase basis. 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. 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. documents in the last year, 1411 4024, https://www.federalregister.gov/d/2022-04337, MODS: Government Publishing Office metadata. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. What changed on the list when it was last updated? This article will discuss U.S. economic sanctions on Russia as 03/03/2023, 43 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 . Blocking of Property and Interests in Property Pursuant to, B. Bond holders received $34.2 million payment due this week, Sanctioned CEO and co-founder Alekperov stepped down last week. responds. these parties and the interests held in oil projects must also be Suppose Company A (a Texas company) plans to enter into Support Act of 2014, Pub. In August 2017, President Trump signed the Countering Its Italian plant is up for sale and has garnered interest from private equity firm Cross Bridge. 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. trafficking, human rights, and cybersecurity. transactions between U.S. persons and individuals or entities Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. party.". shale projects. OFAC issues general licenses in order to authorize activities that would otherwise be prohibited with regard to Ukraine-/Russia-related Sanctions. &. This special Bloomberg program highlights the event's biggest interviews and news makers. Editing by David Gaffen and Matthew Lewis, 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. 200. stations. OFAC issues advisories to the public on important issues related to the sanctions programs it administers. The aggregate capacity of these refineries is 80.4 million tonnes, according to the company. Over. 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. 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. on It may be in your and the U.S. governments interest to authorize particular economic activity related to the Ukraine-/Russia-related Sanctions. the Federal Register. transactions with foreign companies or countries should make sure Our Standards: The Thomson Reuters Trust Principles. Services. OFACissues interpretive guidance on specific issues related to the sanctions programs it administers. 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.