Any divestment or transfer of Covered Debt or Equity, or the facilitation thereof, pursuant to GL 9 must be to a non-U.S. Hungary's government has insisted it will block any EU sanctions proposals that include Russian energy, calling it a "red line" that opposes Hungary's interests. While OFAC has . The sanctions are less than full blocking sanctions, and may include, among other things, non-blocking prohibitions on the provision of certain goods or services and blocking prohibitions subject to a statutory exception for the importation of goods. December 21, 2020 On December 14, OFAC published a new "Non-SDN Menu Based Sanctions List." The publication is designed to be a reference tool that identifies individuals and entities subject to certain non-blocking menu-based sanctions. provides authority to target persons involved in or . Sectoral Sanctions Identifications (SSI) List 3. In order to implement the non-blocking provisions of Section 6 of ISA, OFAC developed the NS-ISA List. By Ross Denton May 21, 2018 5 Mins Read. Blocking sanctions on 120 new individuals and . FAQ 973. 14024 - directive 1a); (2) restrictions on dealings in equity Read more [1] on february 24, 2022, ofac imposed non-blocking sanctions on sberbank and some of its affiliates, generally prohibiting u.s. financial institutions (including their foreign branches) from opening or maintaining any correspondent or payable-through accounts for or on behalf of, and from processing any transactions involving, sberbank or its BLOCKING SANCTIONS ON TWO RUSSIAN BANKS. ofac imposed blocking sanctions on, and added to ofac's specially designated nationals and blocked persons list, several major russian financial institutions (vnesheconombank (" veb "), vtb, promsvyazbank, bank otkritie, sovcombank, and novikombank) and their affiliates, a key russian sovereign wealth fund (the russian direct investment fund) other non-blocking sanctions targeting the russian economy and financial sector have also been imposed including: (1) a prohibition on participation in the primary and secondary markets for bonds issued by the russian central bank, national wealth fund or the ministry of finance (e.o. Other non-blocking sanctions targeting the Russian economy and financial sector have also been imposed including: (1) a prohibition on participation in the primary and secondary markets for bonds . This note discusses only some of the blocking and non-blocking sanctions measures imposed by the United States through February 28, 2022, at approximately 2:00 pm, and distinguishes between the two types of sanctions which have been conflated in some reports. The Blocking Rules are intended to enable China to legally nullify the effect of US sanctions that may effectively apply extraterritorially. While OFAC has . Blocking sanctions could also be imposed on Russian individuals, including President Putin and other Russian government officials, persons in Putin's inner circle and other leading Russian business figures. As discussed in our earlier post, the EU Blocking Regulation (Regulation 2271/96) applied in the UK as part of its sanction regime as a member of the EU. The FAQs clarify that: If a person or entity is subject to the sanctions set out in section 235 (a) (1-8) and (10-11) of CAATSA (which does not include . The specific sanctions will be enumerated on a record-by-record basis on this list. The List of Foreign Financial Institutions Subject to Part 561 (the Part 561 List) 5. 7 It remains to be seen how this will develop, especially with respect to sanctions that might result in a .

The list ofextra-territorial laws and regulations that the blocking statute protects against Is clear The list of extra-territorial laws and . Blocking the sanctions package could be used as leverage in a separate conflict between Budapest and the EU. The blocking sanctions apply to Sberbank, Alfa-Bank, 42 Sberbank subsidiaries, 6 Alfa-Bank subsidiaries, and any entities owned 50% or more (directly or indirectly) by these banks. Concurrently, OFAC issued GL 8A, adding the Central Bank of the Russian Federation to the list of entities with whom transactions "related to energy," as defined in GL 8A, . Converting Hungary's oil refineries and pipelines to process oil from non-Russian sources would take five years and require a massive investment, Orban said. Against this backdrop, EU companies are facing the chose to either get a punishment in the US for non-compliance with US sanctions or violating the Blocking Regulation and risk a fine in the EU. Non-US persons can be held liable for "causing" violations by US persons involving transactions with SDNs and can also be subject to . Foreign Sanctions Evaders (FSE) List 2. The determination of whether a non-blocked person is subject to an applicable prohibition (i.e. .

When only non-blocking menu-based sanctions are imposed on a person, that person will be placed on the NS-MBS List. The United States imposes financial sanctions against Russia and blocking sanctions on Russian individuals. The president of the EU's executive commission, Ursula von der Leyen, last week proposed phasing out imports of Russian crude within six months and refined products by the end of the year to . . The Blocking Rules are intended to enable China to legally nullify the effect of US sanctions that may effectively apply extraterritorially. The European Commission has started the process by which it would add US sanctions measures on Iran to the so-called Blocking Regulation (formerly Regulation 2271/96). 6 See Council of the EU Press release of 23 February 2022, available here. In addition to the sanctioned person's name and other relevant identifiers, the NS-MBS List will also specify the sanctions measures imposed and the legal authority for the sanctions. These agencies operated under . The Commission's aim is to add the relevant US Iran sanctions laws to the annex before Aug. 6, 2018, when the first wave of US sanctions will be reimposed. On June 10, 2021, the Standing Committee of the National People's Congress of China (SCNPC) enacted the Anti-Foreign Sanctions Law (AFSL). Hungary's government has insisted it will block any EU sanctions proposals that include Russian energy, calling it a "red line" that opposes Hungary's interests. Promsvyazbank See UK sanctions above. . Here, we discuss some of the blocking and non-blocking sanctions imposed on VTB, VEB, the Russian Direct Investment Fund, and Russia's Central bank. Non-Proliferation Sanctions Summary. the question of whether an person is "in" or "ordinarily . Non-SDN Iranian Sanctions Act (NS-ISA) List OFAC has announced the introduction of the new Non-SDN Menu Based Sanctions List (NS-MBS List). All will now be subject to blocking sanctions. Author (s): Alexandra Lopez-Casero, David F. Crosby. Ethiopia-Related Sanctions 924. This article looks at changes to this element of the UK's sanctions regime following its exit from the EU, and highlights considerations when drafting related provisions in a loan agreement. New General Licenses Hungary's government has insisted it will block any EU sanctions proposals that include Russian energy, calling it a "red line" that opposes Hungary's interests. implement relevant provisions of the Venezuela Defense of Human Rights and Civil Society Act of 2014 signed into law on December 18, 2014, and also provide sanctions authority that goes beyond the requirements of the legislation. However, to support its sanctions, China's Ministry of Commerce (MOFCOM) has begun to create a sanctions infrastructure, including a sanctions list, a unified export control regime, and a blocking statute. OFAC has published 2 new FAQs (869 and (870) relating to the non-blocking menu-based sanctions introduced under Countering America's Adversaries Through Sanctions Act (CAATSA), see post. Palestinian Legislative Council (NS-PLC) list 4. A copy of E.O. 4 See here. 2. No. A multi-departmental working mechanism led by MOFCOM together with the National Development and Reform Commission is authorized to issue orders blocking the recognition of, implementation of and compliance with foreign legislation and measures . In response to President Trump's Executive Order re-imposing certain Iran-related sanctions, summarized in our recent post, the EU has expanded the scope of the EU Blocking Statute to cover certain US Iran-focused sanctions. Non-Blocking Sanctions In addition to the above-described SDN designations, the United States has adopted the following non-blocking sanctions that prohibit or restrict certain dealings and transactions in certain sectors or with certain Russian parties. Blocking the sanctions package . Sanctions on Nord Stream 2 The bloc has withheld around $8 billion in pandemic recovery funds from Hungary over what it sees as insufficient anti-corruption measures and has launched a process to withhold further support over breaches of the EU's rule-of-law . A damaged residential building hit by an early morning missile strike in Kyiv, Ukraine. On August 7, immediately following the US government's re-imposition of certain Iran-related sanctions, the Commission Delegated Regulation (EU) 2018/1100 amending the . 14046. Guidance here. Such prohibition raises sanctions compliance risks for . 3 FAQ #964. Secondary sanctions can be levied against a non-U.S. person even if the transaction has no U.S. nexus and is thus not subject to primary sanctions and is legal in the jurisdiction in which . A multi-departmental working mechanism led by MOFCOM together with the National Development and Reform Commission is authorized to issue orders blocking the recognition of, implementation of and compliance with foreign legislation and measures . 2.3.1. Persons. Summary: Sanctions against Russian persons may include blocking of assets subject to U.S. jurisdiction; limits on access to the U.S. financial system, including limiting or prohibiting transactions involving U.S. individuals and businesses; and denial of entry into the United States. The AFSL is the third in a series of anti-foreign sanctions blocking laws (collectively, the "Blocking Laws") recently issued by the People's Republic of China (PRC) to protect China's sovereignty, security, internal affairs, and development interests by . OFAC is issuing the Ethiopia Sanctions Regulations, 31 CFR part 550 (the "Regulations"), to implement E.O. Russian Sovereign Debt Restrictions Non-US persons can be held liable for "causing" violations by US persons involving transactions with SDNs and can also be subject to secondary sanctions risks (which would include, in particular, the risk of designation as an SDN themselves) for providing "material support" to SDNs. The CAPTA List does not include FFIs listed on OFAC's Specially Designated Nationals and Blocked Persons List. It gets 85% of its natural gas and more than 60% of its oil from Russia. Importantly, as clarified by OFAC FAQ 891, the restrictions on Directive 1A Entities do not flow down to entities that are 50% or more owned by Directive 1A Entities. Non-blocking sanctions are generally less severe, for basic reason that non-blocking sanctions do not prohibit U.S. persons from engaging in all transactions with sanctioned parties, and do not require the freezing by U.S. persons of the "property and interests in property" of sanctioned parties. The combined effect of the EU Blocking Statute and the Re-imposed Iran Sanctions Blocking Regulation is to prohibit compliance by EU entities with U.S. sanctions on Iran which have been re-imposed following the U . February 28, 2022 The United States and its allies have unleashed a barrage of sanctions on Russia, in response to the invasion of Ukraine. 6 It is possible that the EU may also seek to modernize the content of the EU Blocking Regulation. Export Controls Alert. People/entities will be added to the list if they have not been made subject to asset blocking measures, but will be subject to a "menu" of non-blocking sanctions under other statutory authorities, such as those set out in s. 235 of the Countering .

Parties on the NS-MBS List are not SDNs and are subject to less than full blocking sanctions. Click for PDF. U.S. and non-U.S. companies have an opportunity at this time to proactively assess their exposure to potential new sanctions and . The cost ofcomplying with the blocking statute is appropriate 60 80 90 Values Action at EU-level by means of the blocking statute has brought added value compared to action solely at Member State-level. It gets 85 percent of its . Secondary Sanctions Considerations. As the European Union tries to impose sanctions on Russian oil over the war in Ukraine, Hungary has emerged as one of the biggest obstacles to unanimous support needed from the bloc's 27 member nations. 5 See OFAC's announcement here. Sanctions on "two significant Russian financial institutions." 1 FAQ #965 explains the changes to Directive 1A. The targeted sanctions in this Executive Order (E.O.) Orban, widely considered one of Russian President Vladimir Putin's closest EU allies, has reluctantly . 2 The NS-MBS List identifies persons subject to certain non-blocking menu-based sanctions. Full Blocking Sanctions on Russian Banks and Financial Institutions. There are three distinct sanctions programs designed to combat the proliferation of weapons of mass destruction: 1) Executive Order 13382 of June 28, 2005, blocks the property of persons engaged in proliferation activities and their support networks. The European Parliament and the council (the member states) will also have a say on the amendments to the blocking statute adopted by the Commission. The effect of the withdrawal was to . this publication by the department of the treasury's office of foreign assets control (ofac) is designed as a reference tool that identifies persons subject to certain non-blocking menu-based sanctions that have been imposed under statutory or other authorities, including certain sanctions described in section 235 of the countering america's A key component of sanctions is a prohibition on providing financial services to designated persons or entities in sanctioned jurisdictions. Do non-blocking sanctions imposed on persons pursuant to Executive Order (E.O.) It gets 85% of its natural gas and more than 60% of its oil from Russia. Persons subject to these sanctions programmes are identified on separate lists maintained by OFAC and the scope of the restrictions depend upon the legal authority . Following the executive order on the breakaway Ukrainian regions, the US is also imposing severe financial sanctions on Russia. The Blocking Statute ostensibly aims to "protect" EU operators from certain US sanctions that have extraterritorial effect, including both US primary and secondary sanctions. The United States and its allies have unleashed a barrage of sanctions on Russia, in response to the invasion of Ukraine. . Chris McGrath/Getty.

Secondary sanctions are intended to dissuade non-US persons from engaging in certain dealings, such as with persons that US Sberbank The largest financial institution in Russia, it holds about a third of all bank assets in the country . The Blocking Regulation has four main elements. After negotiations failed to produce the "massive sanctions" promised on Thursday, European leaders will go back to the . "In this war everything is real: Putin's madness and .

. The United States has since 1979 applied various economic, trade, scientific and military sanctions against Iran.U.S. As previously announced on May 8, 2018, and discussed in detail by Gibson Dunn here, the Trump administration opted to abandon the 2015 Iran nuclear dealthe Joint Comprehensive Plan of Action (the . Sanctions screening failures have figured prominently in a number of OFAC penalty settlements, with both financial and non-financial entities. Authorized transactions include the facilitation, clearing and settlement of transactions to divest Covered Debt or Equity, including on behalf of U.S. On February 24, 2022, OFAC also imposed blocking sanctions on VTB Bank Public Joint Stock Company (VTB Bank), Russia's second . See Annex to the EU Blocking Regulation.. NON-BLOCKING MEASURES STILL HAVE MAJOR IMPACT Non-blocking sanctions, by comparison, are generally less severe because they do not prohibit U.S. persons from all transactions with the sanctioned. The filter can be set in blocking or non-blocking mode, by list. 2 of the EU Blocking Regulation. OFAC, part of the Office of Terrorism and Financial Intelligence within the Treasury Department, was founded in 1950. U.S. individuals and non-financial institution entities are not prohibited from processing transactions involving Annex 1 institutions. Blocking/non-blocking mode SWIFT Sanctions Screening lets you handle flagged transactions in line with your overall compliance and operational processes. Second, no judgment of a court or tribunal, and no decision of an administrative authority located outside the EU that gives . On August 6, 2018, President Donald Trump issued a new executive order (the "New Iran E.O.") authorizing the re-imposition of certain Iran-related sanctions. a non-national resident in the UK; . OFAC implements the blocking sanction under Section 6 of ISA by adding persons subject to that sanction to the List of Specially Designated Nationals and Blocked Persons with the identifying tag " [ISA]". 14046, pursuant to authorities delegated to the Secretary of the Treasury in E.O. This is in direct response to the US President's withdrawal of his waiver relating to the JCPOA. August 9, 2018. The specific sanctions will be enumerated on a record-by-record basis on this list. of September 17, 2021, "Imposing Sanctions on Certain Persons with Respect to the Humanitarian and Human Rights Crisis in Ethiopia," automatically apply to entities owned in whole or in part by sanctioned persons? In blocking mode, all suspicious transactions are blocked until you provide a decision to release, abort or flag the transaction. Germany, Hungary, Italy) have disgraced themselves.". Former President of the European Council Donald Tusk tweeted an angry missive to European leaders who have so far blocked the sanctions. 14046 appears in appendix A to this part. On March 31, 2022, Secretary Yellen determined that EO 14024 section 1(a)(i) shall also apply to the aerospace, electronics, and marine sectors of the Russian economy. In brief, the EU Blocking Regulation is an attempt to position the EU as an independent actor on the realm of sanction policy and its adoption sends a .

Some FFIs on the CAPTA List may be subject to other non-blocking sanctions measures, such as those imposed by virtue of identification on OFAC's NS-MBS List or other OFAC-administered lists. Also on February 24, 2022, the US imposed non-blocking sanctions on Public Joint Stock Company Sberbank and 25 of its subsidiaries, and on 12 other Russian banks. economic sanctions are administered by the Office of Foreign Assets Control (OFAC), an agency of the US Treasury Department.Currently, US sanctions against Iran include an embargo on dealings with the country by the U.S., and a ban on selling aircraft and repair parts to . Under the Kingpin Act, certain narcotics-related sanctions violations can trigger criminal fines of up to $5 million or 30 years in prison per violation. The delegated act will enter into . Also on February 24, 2022, the US imposed non-blocking sanctions on Public Joint Stock Company Sberbank and 25 of its subsidiaries, and on 12 other Russian banks.

Case C-124/20, Bank Melli Iran v Telekom Deutschland GmbH, judgement, Dec. 21, 2021. Also on April 15, OFAC imposed property-blocking sanctions measures under other sanctions authorities against 32 entities and individuals for carrying out what the U.S. government alleges were Russian government-directed attempts to influence the 2020 U.S. presidential election, and other acts of disinformation and interference. The Commission's aim is for the EU Blocking Regulation to be in force before August 6, 2018, when the first US sanctions are reactivated. As noted above, non-U.S. persons face the risk of secondary sanctions penalties if they engage in significant transactions with Russian sanctioned parties and could be subject to blocking sanctions if they materially assist, sponsor, or provide financial, material, or technological support for, or goods or . of State for International Trade will have the authority to amend the list of legislation imposing the proscribed sanctions that is in the retained Blocking . To this end, we will review current regulatory guidance for a successful sanctions screening programme, how screening relates to the core elements of the overall sanctions compliance programme, examples . When only non-blocking menu-based sanctions are imposed on a person, that person will be placed on the NS-MBS List. In this class we build on the lessons learned in Class 1 and address the scope and operation of the standard, non-blocking IEEPA-based embargo programs (Iran, Syria, North Korea, Crimea). OFAC added the Directive 4 entities to the Non-SDN Menu-Based Sanctions List, which identifies persons subject to certain non-blocking sanctions. OFAC added the Directive 1A Entities to the NS-List, which identifies persons subject to certain non-blocking menu-based sanctions. In conjunction with the above actions, on 6 April 2022, OFAC imposed full blocking sanctions, pursuant to Executive Order 14,024, on Russia's largest . The E.O. The maximum criminal fine for violations of most U.S. sanctions programmes is $1 million or 20 years in prison for each violation. Person. On March 31, . 1 Sanctions or other measures previewed Article 5, para. In addition, the blocking sanctions established under the Russian Harmful Foreign Activities Sanctions Program may have implications for non-US persons under Section 228 of the Countering America's Adversaries Through Sanctions Act ("CAATSA"). On March 31, 2022, Secretary Yellen determined that EO 14024 section 1(a)(i) shall also apply to the aerospace, electronics, and marine sectors of the Russian economy. OFAC and its predecessor agencies the Office of Foreign Funds Control and the Division of Foreign Assets Control have a history of blocking assets and restricting trade and financial transactions with U.S. enemies dating back to the War of 1812. The United States also tightly controls exports to Russia's . Here, we discuss some of the blocking and non-blocking sanctions imposed on VTB, VEB, the Russian Direct Investment Fund, and Russia's Central bank. China has yet to clarify the sanctions measures in these announcements, and at times has yet to provide a detailed list of sanctioned persons. Blocking sanctions on non-U.S. persons who materially assist, sponsor, or provide support for or goods or services in support of: . In addition to the sanctioned person's name and other relevant identifiers, the. The sanctions are less than full blocking sanctions, and may include, among other things, non-blocking prohibitions on the provision of certain goods or services and blocking prohibitions subject to a statutory exception for the importation of goods. As a consequence, any property and property interests of these blocked entities that is within U.S. jurisdiction or in the possession of a U.S. person is blocked . February 22, 2022. 2) Weapons of Mass Destruction Trade Control Regulations . Full Blocking Sanctions on Sberbank and Alfa-Bank. Also on February 24, 2022, the US imposed non-blocking sanctions on Public Joint Stock Company Sberbank and 25 of its subsidiaries, and on 12 other Russian banks. OFAC - Non-SDN, including the following: 1. OFAC maintains several 'non-blocking' sanctions lists that implement targeted forms of sanctions against certain persons that are less restrictive than asset-blocking sanctions. We do not know whether Telekom's concern was prompted by U.S. enforcement action, or the risk of secondary sanctions - i.e., Telekom itself being listed for dealing with BMI. Those EU governments, which blocked tough decisions (i.e. Orban, widely considered one of Russian President Vladimir Putin's closest EU allies, has reluctantly . OFAC added the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation to the Non-SDN Menu-Based Sanctions List (NS-MBS List). OFAC's publication is available here. First, it requires any EU person to notify the Commission of any effects on the economic and/or financial interests of that person caused by a measure blocked in the Annex.