Sanctions Tracker – Further U.S. Responses to the Crisis in Ukraine

We previously discussed Russia-related sanctions measures imposed by the United States on April 27, April 21, April 11, April 7, March 25, March 15, March 14, March 9, March 8, March 3, February 28, February 25, February 23, and February 4.  We also discussed recent sanctions measures related to the Russian energy sector in a podcast episode.

This post provides an update regarding further Russia-related sanctions measures in the United States.

New General Licenses

On May 2 and 5, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued a number of new General Licenses (“GLs”):

• GL 7A supersedes and replaces GL 7, and authorizes certain transactions ordinarily incident and necessary to the receipt of, and payment of charges for, services rendered in connection with overflights of Russia or emergency landings in Russia by aircraft registered in the United States or owned or controlled by, or chartered to, U.S. persons. It also authorizes certain transactions ordinarily incident and necessary to provide air ambulance and related medical services, including medical evacuation, to individuals in Russia.
• GL 26A supersedes and replaces GL 26, and authorizes certain transactions ordinarily incident and necessary to the wind-down of transactions involving Joint Stock Company SB Sberbank Kazakhstan, Sberbank Europe AG, or Sberbank (Switzerland) AG (collectively, “the blocked Sberbank subsidiaries"), or any entity owned 50% or more by the blocked Sberbank subsidiaries, until July 12, 2022.
• GL 30 authorizes all transactions involving Gazprom Germania GmbH, or any entity owned 50% or more by it, that are prohibited by Directive 3 under Executive Order 14024, Prohibitions Related to New Debt and Equity of Certain Russia-related Entities, until September 30, 2022.
• GL 31 authorizes the following transactions, with certain exceptions, in connection with a patent, trademark, copyright, or other form of intellectual property (“IP”) protection in the United States or Russia: (i) the filing and prosecution of any application to obtain IP; (ii) the receipt of IP; (iii) the renewal or maintenance of IP; and (iv) the filing and prosecution of any opposition or infringement proceeding with respect to IP, or the entrance of a defense to any such proceeding.
• GL 32 authorizes certain transactions ordinarily incident and necessary to the wind down of transactions involving Amsterdam Trade Bank NV, or any entity owned 50% or more by it, until July 12, 2022.

Additional Guidance Clarifications

OFAC also issued additional guidance related to the sanctions measures previously announced.  In particular, OFAC updated existing Frequently Asked Question (“FAQ”) 1009 to clarify that Executive Order (“E.O.”) 14065 does not block the entire Donetsk and Luhansk oblasts, only the so-called Donetsk People’s Republic and Luhansk People’s Republic regions of Ukraine, or such other regions of Ukraine as may be determined by the Secretary of the Treasury in consultation with the Secretary of State (collectively, the “Covered Regions”).  U.S. persons engaging in activity that does not involve the Covered Regions are not subject to the prohibitions of E.O. 14065.

In addition, OFAC issued new FAQ 1032, which clarifies the authorizations in Russia-related GL 28 and GL 29 concerning transactions involving Transkapitalbank.

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We will continue to monitor developments in this area and encourage you to subscribe to be kept informed of latest developments.  Please contact the authors or your usual Herbert Smith Freehills contacts for more information.