The U.K. revoked the General License for GEFCO under the Russian sanctions regime following the sale of Russian Railways' position in GEFCO, a joint venture between Russian Railways and Stellantis. The license permitted business operations with the joint venture or its subsidiaries, but after Russian Railways' sale of its stake on April 8, GEFCO is no longer subject to U.K. sanctions. Also on April 8, French shipping group CMA CGM announced it had acquired nearly 100% of GEFCO, an auto transport company.
The Office of Foreign Assets Control April 12 issued Russia-related General License 26, allowing a wind-down period with Sberbank subsidiaries Joint Stock Company SB Sberbank Kazakhstan and Sberbank Europe AG. Certain transactions are authorized through 12:01 a.m. EDT July 12.
The U.K. revised its general license under its Russia sanctions regime permitting the provision of technical assistance, financial services and funds, and brokering services for certain vessels. The updated license includes aircraft and aeroengines and the provision of insurance services for aviation under the license, the Export Control Joint Unit said. The license came into effect April 5 and requires anyone seeking to rely on the license to register via the U.K.'s SPIRE export licensing system within 30 days of the first use of the license.
The Office of Foreign Assets Control issued additional sanctions on major Russian state-owned enterprises and five additional general licenses related to Russia. OFAC expanded sanctions against Alrosa, the world's largest diamond mining company, along with United Shipbuilding Corporation, which is responsible for the construction of almost all of Russia’s warships, OFAC said April 7. Alrosa was previously designated in February (see 2202240069).
The U.K. issued a new general license related to the mounting Russia sanctions, permitting until May 6 a wind-down period for positions with Credit Bank of Moscow. The license says that an individual can slowly drop its transactions, including closing out of any positions, to which it is a party involving the bank or one of its subsidiaries. The U.K. also updated the general license pertaining to winding down positions with Sberbank. The update said the bank remains under an asset freeze, but payments related to energy products for use in the U.K. can continue to be used.
The U.K. updated its General License pertaining to Russian banks to allow payments relating to insolvency proceedings with VTB's British subsidiary. The Office of Financial Sanctions Implementation said that under the license, anyone until April 3, 2023, "may make, receive or process any payments, or take any other action, in connection with any Insolvency Proceedings relating to the UK Subsidiary, whether prior to or after the commencement of such proceedings, including, without limitation, an insolvency practitioner for the purposes of his or her functions under or in connection with Insolvency Proceedings."
The U.S. on April 6 issued a series of new financial restrictions on Russian banks, including full blocking sanctions on Sberbank and Alfa Bank, two of the country's largest financial institutions. The wide-ranging designations also include full-blocking sanctions against a group of Russian state-owned entities "critical" to funding the war in Ukraine, the White House said. Sanctions were also levied against additional Russian government officials, oligarchs and their family members, including the adult children of Russian President Vladimir Putin and members of the Russian security council. President Biden also issued an executive order blocking new investment in Russia by Americans or American companies.
The U.K. released a General License permitting until June 30 the provision of financial services for receiving and transferring non-ruble denominated interest or maturity/principal payments from the Central Bank of Russia, the National Wealth Fund or the Russian Finance Ministry. The license also covers transactions in connection with debt issued before March 1 from individuals owned/controlled or acting on the behalf of the three listed entities.
The U.K.'s Office of Financial Sanctions Implementation released a General License permitting until May 15 the winding down of positions involving sanctioned Russian bank Sovcomflot and its subsidiaries.
The U.K. issued a General License, titled "Continuation of Business and Basic Needs of GEFCO UK Subsidiaries," which permits continuing business operations involving GEFCO -- a joint venture owned by Russian Railways and Stellantis -- or its subsidiaries, until May 23. The subsidiaries include GEFCO UK Ltd., GEFCO Forwarding UK, Auto XP Ltd. or XP Tech Ltd. Permitted activity under the license includes payments to or from the joint venture under contract or payments to or from a third parties needed to continue any obligations or contracts. The license also authorizes a subsidiary to make payments for reasonable fees stemming from routine holding and maintenance of its frozen funds.