The Office of Foreign Assets Control issued a new round of sanctions targeting Kremlin-connected elites and businesses that generate "substantial revenue for the Russian regime, OFAC said in an Aug. 2 news release. Thirteen individuals, 36 entities and two vessels were added to OFAC's Speacially Designated Nationals List.
The State Department’s Directorate of Defense Trade Controls this week issued 18 frequently asked questions to provide guidance on its new open general license pilot program (see 2207190008 and 2207200005). The FAQs clarify the parameters of the two open general licenses, describe what kinds of transactions and activities they cover, detail who can use the licenses and more. In one FAQ, DDTC said it may issue more open general licenses “depending on its experience with, and observations made during, the pilot program.”
The U.K.'s Office of Financial Sanctions Implementation on July 26 issued a general license, titled "Payment to UK Insurance Companies for Building and Engineering Insurance," under its autonomous sanctions regimes. The license indefinitely permits designated individuals and entities to use a frozen bank account to pay U.K. insurers insurance premiums, reinsurance premiums and broker commissions for building and engineering insurance coverage. The license further allows U.K. insurers to receive these payments and to make return payments to frozen U.K. bank accounts due to overpayments and the payment of funds due as a result of a claim made relating to the payments. Sanctioned parties can also receive return payments from U.K. insurers into frozen bank accounts.
The State Department’s new open general license concept is a “major step forward” in improving defense trade between the U.S. and the U.K., Canada and Australia, Steptoe said in a July alert. The firm also said the new licenses, announced earlier this month as an upcoming pilot program (see 2207200005 and 2207190008), are “indicative of a trend” within the Directorate of Defense Trade Controls and the broader government “of looking for ways to facilitate defense trade and investment with allies and partners.” The licenses, which will be valid Aug. 1 through July 31, 2023, will authorize certain retransfers and reexports to various parties, entities and people in the three countries.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The U.K. released a General License July 22 covering payments to British insurance companies for building and engineering insurance. Under the license, individuals and entities listed solely by the U.K. and not the U.N. may make permitted payments for an indefinite duration to U.K. insurers from a frozen U.K. bank account. The license further allows U.K. insurers to receive these payments. U.K. insurers can also make return payments to frozen bank accounts for the payment of funds due from a claim made relating to the permitted payments or due to overpayment, and the designated parties can receive return payments in the frozen account.
The Office of Foreign Assets Control on July 22 issued two new Russia-related general licenses.
The State Department’s Directorate of Defense Trade Controls posted its two new open general licenses on its website and issued a fact sheet to describe the new pilot program (see 2207190008). Open General License No. 1 and Open General License No. 2 will be valid for one year -- Aug. 1 through July 31, 2023 -- as DDTC tests the “viability and appropriateness of the open general license concept.”
The U.K. released a General License, "Investments in relation to Russia," that permits an individual to directly acquire ownership in Russian land, directly acquire ownership over a business connected with Russia, directly or indirectly establish a joint venture with a Russian individual and open a representative office or branch located in Russia. The license, effective July 19-26, also permits an individual to provide investment services directly related to the mentioned services and also wind down any transactions involving those activities.
The State Department’s Directorate of Defense Trade Controls this week published two open general licenses to authorize reexports and retransfers of certain defense items and services to Australia, Canada and the U.K. The two authorizations, which are the first open general licenses issued by DDTC, will be valid starting Aug. 1 through July 31, 2023, as part of a new pilot program.