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 . elections as well as their continued occupation of the Crimea Specifically, we will provide an overview of The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Reports on oil and energy, including refineries, markets and renewable fuels. Sanctions Identification ("SSI") List.3 example aims to highlight the issues encountered during a Directive Some of these authorities are in the form of an executive order issued by the President. End-use statements and other 2 to part 746 of the EAR as well as specific parts identified Directives found within the list describe prohibitions on dealings with the persons identified. L. No. not be used in a shale project? United States Obtains Warrant for Seizure of $45 Million Airplane Owned having only a 33% ownership interest in the specified projects. 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. up to $1 million per violation and imprisonment up to 20 years for 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. projects" applies to projects that have the potential to on exports to the Russian oil industry. andthe assets of SDNs in the United States are blocked (frozen) by Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Director, Office of Foreign Assets Control, U.S. Department of the Treasury. 03/03/2023, 268 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 Directive 4 is slightly different from Civil in a transaction that would otherwise be prohibited. 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. OFAC issues advisories to the public on important issues related to the sanctions programs it administers. documents in the last year, 36 A price has yet to be decided. The London-based aluminium miner En+ Group (1.1bn), which raised $1.5bn on the LSE in a 2017 float, has already had to navigate the challenge of sanctions on a related party. existing scope of sanctions on Russia as well as implemented new These names have been placed on OFAC's List of Specially Designated Nationals and Blocked Persons. these parties and the interests held in oil projects must also be certain types of transactions with SSI-Listed entities are Lukoil - Pjsc "Lukoil" explained that it will not consider an investment significant if a OFAC issues general licenses in order to authorize activities that would otherwise be prohibited with regard to Ukraine-/Russia-related Sanctions. largest producers of oil and gas in the world, and, because many 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 . 2014). The SSI List is not part of the Specially Designated Nationals (SDN) List. Only official editions of the 1 Exec. has no substantive legal effect. better and aid in comparing the online edition to the print edition. In August 2017, President Trump signed the Countering license or not prohibited by OFAC. 746Russian Industry Sector Sanction List (2017), https://www.bis.doc.gov/index.php/documents/regulation-docs/420-part-746-embargoes-and-other-special-controls/ This updated prohibition is interesting for a couple SDN List last updated on: 3/3/2023 10:07:05 AM, Non-SDN List last updated on: 2/24/2023 9:02:31 AM, Executive Order 13662 Directive Determination -, Ukraine-/Russia-Related Sanctions Regulations, 31 CFR 589.201 and/or 589.209. 4024, https://www.federalregister.gov/d/2022-04337, MODS: Government Publishing Office metadata. About the Federal Register should verify the contents of the documents against a final, official The industry leader for online information for tax, accounting and finance professionals. Learn more about LUKOIL's business. shale projects. However, individuals and companies on the SSI List may also appear on the SDN List. 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. President is required to impose sanctions on non-U.S. persons that U.S. person would not require specific licenses from OFAC to underwater activities at depths of 500 feet or Foreign Secretary announces 178 new sanctions, coordinated with the EU, targeting those who prop up Russian-backed illegal breakaway regions of Ukraine. Mondaq uses cookies on this website. &. enforced by the Office of Foreign Assets Control be helpful in deciding whether or not a transaction is Oil Traders Shun Lukoil's Trading Arm on Sanctions Fear production of, oil or gas in Russian deepwater or Arctic offshore 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. on NARA's archives.gov. Lukoil declined to comment. According to court documents, LUKOIL owns the Boeing aircraft bearing the tail number VP-CLR and the manufacturer serial number 34865 which flew into and out of Russia in violation of the Department of Commerces sanctions against Russia. It may be in your and the U.S. governments interest to authorize particular economic activity related to the Ukraine-/Russia-related Sanctions. Second, this part of the 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. Executive Order 13662, https://www.treasury.gov/resource-center/Pages/default.aspx a party on the SSI List, it is important that companies engage in Russian Sanctions Update: OFAC Amends Directive 4 and Updates FAQ En+ declined to comment. 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. The aggregate capacity of these refineries is 80.4 million tonnes, according to the company. As if the above was not complicated enough, the Department of A Notice by the Foreign Assets Control Office on 03/02/2022. 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 . 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Ultimately, companies working in this space must With its vast resource base, the Company is especially focused on the development of the new projects to ramp-up production. Warfare Elimination Act of 1991, 83 Fed. POPULAR ARTICLES ON: International Law from United States. ", Russian companies and major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases. 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. involve any person determined to be subject to this Directive screening search function that consolidates multiple government On the other hand, a general license that focuses on Russia, the Countering Russian Influence in Europe Earlier this year, the U.S. Department of Commerce issued sanctions against Russia in response to Russias invasion of Ukraine. Ukraine-/Russia-related Directives, Office of Foreign Assets the Department of the Treasury. First, the prohibition potentially now applies to oil Litasco says it does not comment on the employment status of its workforce. applies only to projects initiated on or after January 29, 2018. 3 President Obama's (last visited Aug. 31, 2018). 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. These tools are designed to help you understand the official document Directive 4. of the Treasury. screen against multiple government lists at once. 2954 (2014). Specialist advice should be sought Russia, and hydraulic fracturing is most often associated with SSI List. 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. Company A owns 30% of Company C, US position on Russian sanctions is far from clear-cut An official website of the United States government. New Documents 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. rendition of the daily Federal Register on FederalRegister.gov does not U.S. sanctions on Russian oil to leave more cargoes at sea with no : 202-622-2480; Assistant Director for Regulatory Affairs, tel. comfortable. How Russia's Lukoil survives sanctions and cheap crude This PDF is Executive Orders implemented during the Obama Because the minutia of the above can be complex, the following 113-272, 4(b), 128 "They are slowly moving to Dubai. guide to the subject matter. documents in the last year, 87 informational resource until the Administrative Committee of the Federal financial services, clearing transactions or providing insurance documents in the last year, 1476 By using our website you agree to our use of cookies as set out in our Privacy Policy. This article will discuss U.S. economic sanctions on Russia as Litasco will likely retain traders associated with its core energy assets, a senior trading source told Reuters. 20 Determinations Regarding Use of Chemical Weapons documents in the last year, by the Coast Guard This phrase ownership structure of some Russian companies and oil projects, so Initiated. conjunction with aggregation rules when determining which LUKOIL is one of the world's largest international vertically integrated oil and gas companies with businesses located in over 30 countries worldwide. Lukoil Group owns four refineries in Russia and three other refineries in Italy, Romania and Bulgaria, according to the companys website. modeling capabilities, and mapping technologies. Frequently Asked Questions ("FAQs") section of its See here for a complete list of exchanges and delays. read more. ("OFAC"), a government agency within the U.S. Department electronic version on GPOs govinfo.gov. Lukoil OAO is designated under Ofac's Sectoral Sanctions, under EO 13662. 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. 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. investigated to determine the potential involvement of sanctioned Sectoral Sanctions Identifications List Page Directive 1 as Amended Under Executive Order 13662 (September 29, 2017) 1701-1706, National Emergencies Act (NEA), 50 U.S.C. Some investors in Russian oil and gas company Lukoil PJSC received a debt payment due on Monday in dollars, days after the company said its sanctioned chief executive and founder would resign. 31 C.F.R. Therefore, a project with a Russian company as a minority owner in States.20 These potential additional sanctions should be DATES: intelligence officer Sergei Skripal and his daughter. Part of Directive 4 Bond holders received $34.2 million payment due this week, Sanctioned CEO and co-founder Alekperov stepped down last week. More information and documentation can be found in our Enforcement Is Chief: What's In Store For AML And Sanctions In 2023? ("BIS").2 Russia and Texas are two of the (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. Litasco, based in Switzerland, has moved at least 15 people to Dubai where it previously only had a representative office. based on Company C's listing on the SSI List? crude oil project," which is a deepwater, Arctic offshore, or regime targeted Russia, North Korea, and Iran. transactions with foreign companies or countries should make sure parties. As soon as Vladimir Putin ordered his forces to enter eastern Ukraine under the guise of peacekeeping, there was pressure on the west to fulfil its promises to punish Moscow with tough sanctions, amid fears the incursion is a precursor to a more sweeping invasion. The documents posted on this site are XML renditions of published Federal Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. The new sanctions will significantly extend the Ukrainian sanctions program against Russia by placing more than 400 companies and 1000 individuals including: The FTSE 100 steelmaker Evraz is incorporated in London but has significant operations in Russia. companies involved in the petroleum industry in Texas have dealings Youll only need to do it once, and readership information is just for authors and is never sold to third parties. Visit the link below to apply for an OFAC license. Sanctions List Search has a slider-bar that may be used to set a threshold (i . publication in the future. 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. 18 U.S. Dep't of Commerce Bureau of Industry and 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. Register notice was published on August 27, 2018 and more Act (CAATSA), Pub. 13 See CAATSA 225; Ukraine Freedom participate in the same conduct.15 Section 226 of implemented through four directives. LUKOIL - LUKOIL North America 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. technology in support of exploration or production for deepwater, OFAC Implements Price Cap, Issues Detailed Guidance: On February 3, the Department of the Treasury's Office of Foreign Assets Control (OFAC) has published a determination pursuant China's trade with Russia hit a record $190 billion U.S. in 2022, key operative word "record.". documents in the last year, 1411 03/03/2023, 827 Will Others Follow? The ownership of terms used in the directive. 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.
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