On December 22, 2023, President Joseph Biden amended, among other things, Executive Order (EO) 14068, by additionally authorizing the prohibition on the importation and entry into the United States, including a foreign trade zone located in the United States, of the following products of Russian Federation origin: fish, seafood, and preparations thereof, as well as diamonds. The scope of this prohibition includes such products that were mined, extracted, produced, or manufactured wholly or in part in the Russian Federation, or harvested in waters under the jurisdiction of the Russian Federation or by Russia-flagged vessels, notwithstanding whether such products have been incorporated or substantially transformed into other products outside of the Russian Federation.

It is important to note that this amendment authorizes the Department of the Treasury via the Office of Foreign Assets Control (OFAC) to prohibit the importation of products that have been processed or substantially transformed in third countries regarding Russian seafood and diamond products. So items may be of a third country of origin for import purposes, but still be captured within the scope of this ban. This EO effectively amends an earlier Executive Order dated March 11, 2022 that did not restrict seafood imports that were processed outside of Russia and allowed Russian rough and polished diamonds to enter the country if they were “substantially transformed” elsewhere. See Update of March 14, 2022.

Seafood Imports

Accordingly, OFAC has issued a Determination Pursuant to EO 14068, that prohibits the importation following categories of Russian fish, seafood, and preparations thereof: salmon, cod, pollock, and crab. In FAQ 1157, OFAC provides further clarifying information on the scope of these categories by setting forth multiple Harmonized Tariff Schedule of the United States (HTSUS) subheadings that are applicable.

These import restrictions are effective as of December 22, 2023, except to the extent provided by law, or unless licensed or otherwise authorized by OFAC. However, OFAC has issued Russia-related General License (GL) 83, authorizing certain transactions that are ordinarily incident and necessary to the importation into the United States of seafood derivative products, pursuant to written contracts or written agreements entered into prior to December 22, 2023 until 12:01 a.m. eastern standard time, February 21, 2024. In FAQ 1156, OFAC also clarifies that individuals and entities may also find new buyers or re-direct such shipments to other countries, as OFAC seafood determination “does not prohibit U.S. persons from engaging in transactions to sell or re-direct shipments outside the United States that were previously destined for the United States.”

Diamond Imports

In amending EO 14068, the White House noted in a Fact Sheet that “[i]n the coming months, the United States and our partners intend to introduce import restrictions on certain diamonds mined, processed, or produced in Russia, building on an existing U.S. ban on the importation of Russian-origin diamonds. Today’s E.O. amends Executive Order 14068 to provide the authority to ban, following a determination from appropriate U.S. departments and agencies, the importation of certain products mined, extracted, produced, or manufactured wholly or in part in Russia, even if these products are then transformed in a third country.”

While the amended EO now authorizes the prohibition of imports of Russian diamonds processed in third countries, OFAC has not yet issued any implementing determination. OFAC has noted that it intends to do so “in the near term” and that such actions will be in support of commitments made in the G7 Leaders’ Statement of December 6, 2023. However, the amended EO, does define the term” diamond” to include “any diamonds classifiable under subheadings 7102.10, 7102.31, and 7102.39” of the HTSUS and “under any other subheadings of the Harmonized Tariff Schedule of the United States specified in determinations made” by the Department of the Treasury.

The temporary trade truce between the United States and European Union (EU) will continue after the EU issued a press release on December 19, 2023 announcing the customs union would suspend the reimposition of certain retaliatory tariffs on U.S. imports until March 31, 2025. The EU’s retaliatory tariffs, which were scheduled to resume January 1, 2024 in accordance with a deadline set in a 2021 temporary suspension agreement with the Biden administration, were initially levied in response to duties the United States, under the Trump administration, had imposed on steel and aluminum imports in 2018 citing the national security provisions of Section 232 of the Trade Expansion Act of 1962. The EU’s implementing regulation to continue the suspension of these tariffs is available here.

On December 28, 2023, President Joseph Biden, noting “substantial progress” in negotiations, reciprocated by signing two Presidential Proclamations to extend the EU’s access to U.S. tariff rate quotas (TRQs) for steel and aluminum for two additional years. This extension, combined with the EU’s continued suspension on tariffs on U.S. goods, will give both sides additional time to negotiate a global arrangement that addresses carbon intensity and non-market capacity in the steel and aluminum industries. The TRQ extension will take effect on January 1, 2024 and last until December 31, 2025. For background information on the Section 232 tariffs and how they relate to steel and aluminum imports from the EU, see Update of November 1, 2021.

The extension of the trans-Atlantic truce is welcome news to U.S. and EU negotiators who hope to produce a standard-setting agreement known as the Global Arrangement on Steel and Aluminum, but whose negotiations over the past two years have stalled as of late. The joint initiative aims to incentivize environmentally sustainable production of steel and aluminum, while also addressing steel overcapacity globally. According to U.S. Trade Representative Katherine Tai: “Our goal [with the EU] is to forge a forward-looking arrangement that will allow us to join forces economically to incentivize fair and clean production and trade in the steel and aluminum sectors…I am glad the EU has announced that it is taking steps to join us in extending the time for these negotiations and will [do so] by continuing to suspend its tariffs on U.S. products.” When the TRQ extensions were announced, Ambassador Tai further noted that, “[b]y extending the European Union’s steel and aluminum TRQs for an additional two years, we can continue negotiations on a forward-looking, high-standard arrangement, while providing predictability and stability to steel and aluminum workers and their families on both sides of the Atlantic.”

On December 29, 2023, the Office of the U.S. Trade Representative (USTR) issued a Federal Register notice further extending certain China-related Section 301 product exclusions through May 31, 2024. This action extends 352 exclusions previously reinstated in December 2022 through September 30, 2023, and 77 COVID-related exclusions previously extended in May 2023 through September 30, 2023. For additional information, see Updates of December 16, 2022May 15, 2023 and September 7, 2023. The USTR stated that the “extension will enable the orderly review of the exclusions consistent with statutory factors and objectives to identify in which cases additional time would enable shifts in sourcing to the United States or third countries. The extension will also facilitate the alignment of further decisions on these exclusions with the ongoing four-year review.” These extended product exclusions remain available for any product that meets the description in the product exclusion.

The USTR also announced the opening of a docket for public comments on whether to further extend particular product exclusions. This docket will open on January 22, 2024 on the web portal at http://comments.USTR.gov. The focus of the USTR’s evaluation of any comments on exclusions will be on the availability of products covered by the exclusion from sources outside of China, efforts undertaken to source products covered by the exclusion from the United States or third countries, why additional time is needed, and on what timeline, if any, the sourcing of products covered by an exclusion is likely to shift outside of China. Instructions on how to submit a comment on a particular exclusion are detailed in the Federal Register notice.  The comment period will close on February 21, 2024.

On December 19, 2023, the Department of Commerce’s Bureau of Industry and Security (BIS) issued a Final Rule adding 13 entities to its Unverified List (UVL). The UVL contains the names and addresses of foreign persons who are or have been parties to a transaction involving the export, reexport, or transfer (in-country) of items subject to the Export Administration Regulations (EAR), and whose bona fides could not be verified via end-use checks or post-shipment verifications (i.e., BIS could not verify the legitimate end use and end user of items subject to the EAR).

The 13 newly listed entities are all located in China. BIS’ inability to confirm the bona fides of these persons and entities “raises concerns about the suitability of such persons as participants in future exports, reexports, or transfers (in-country) of items subject to the EAR; it also indicates a risk that such items may be diverted to prohibited end uses and/or end users.” Specific details on each entity, including names and addresses, are available in the Final Rule. These additions to the Unverified List are effective as of December 19, 2023. 

The use of license exceptions is suspended for transactions involving persons and entities on the UVL. Additionally, exporters, reexporters, and transferors must obtain a UVL statement from a party or parties to the transaction who are listed on the UVL before proceeding with exports, reexports, and transfers (in-country) to such persons. However, shipments to any of the new designees on the Unverified List that were en route aboard a carrier on December 19, 2023, pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) so long as the items have been exported from the United States before January 18, 2024. 

Pursuant to a Federal Register Notice posted by the Department of Homeland Security (DHS), effective December 11, 2023, three entities have been added to the UFLPA Entity List. These entities have been identified by DHS as entities working with the government of the Xinjiang Uyghur Autonomous Region to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the Xinjiang Uyghur Autonomous Region. The entities are:

  • Anhui Xinya New Materials Co., Ltd. (formerly known as Chaohu Youngor Color Spinning Technology Co., Ltd. and Chaohu Xinya Color Spinning Technology Co., Ltd.);
  • COFCO Sugar Holdings Co., Ltd.; and,
  • Sichuan Jingweida Technology Group Co., Ltd. (also known as Sichuan Mianyang Jingweida Technology Co., Ltd. and JWD Technology; and formerly known as Mianyang High-tech Zone Jingweida Technology Co., Ltd.).

Notably, two of these entities are located outside of the Xinjiang region. As a result of being placed on the UFLPA Entity List, effective December 11, 2023, goods produced by these three entities will be restricted from entering the United States as a result of the companies’ participation in business practices that target members of persecuted groups, including Uyghur minorities in China. Additional information on these companies and the scope of products each may produce is available in a DHS press release.

For general background information on the Uyghur Forced Labor Prevention Act (UFLPA), see Thompson Hine’s International Trade Update of June 2022.

On December 12, 2023, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of State announced sanctions designating numerous additional Russian individuals and entities who have been determined to be assisting in the war against Ukraine and for efforts to evade U.S. sanctions and export controls on Russia. OFAC also identified and designated third-country individuals, entities, and networks that facilitate, arrange, and enable the transfer of key technology, equipment, and inputs to Russian military-industrial base end-users.

These Specially Designated Nationals (SDN) List designations include entities involved in Russia’s metals and mining sector, financial sector, future energy production and export capacity sector, and other sectors. The sanctions also designate entities supporting the Russian Federation’s defense industry, including various weapons and ammunition manufacturing facilities.  

The sanctioned parties include third-country networks facilitating sanctions evasion and circumvention, including entities based in China, Hong Kong, Turkiye, Pakistan, Switzerland, Singapore, and the UAE that continue to send items critical to Russia’s defense-industrial base, common “high priority” items (see Thompson Hine update of September 26, 2023), electronics, circuits, aviation spare parts, and other important goods to Russia, including critical components that Russia relies on for its weapons systems. In addition, several shipping companies that have been involved in the transfer of munitions between the Democratic People’s Republic of Korea and Russia were designated.

Additional detail and identifying information on these individuals and entities is available here. A Treasury Department press release providing additional background on these entities and persons is available here. A similarly helpful State Department press release is available here.

As a result of these actions, all property and interests in property of the persons and entities placed on OFAC’s SDN List that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50% or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.

New Russia General Licenses

With these latest additions to the SDN List, OFAC has issued related General Licenses to allow certain limited activities. Certain transactions remain unauthorized under these general licenses and therefore require close analysis.

  • Russia General License (GL) 79 – Authorizes transactions ordinarily incident and necessary to the wind down of transactions involving certain entities designated on December 12, 2023 until March 11, 2024.
  • Russia GL 80 – Authorizing certain transactions related to the divestment or transfer of debt or equity of, or derivative contracts involving a certain Russian mining company purchased prior to December 12, 2023, and allowing such activities until March 11, 2024.

On December 5, 2023, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce’s Bureau of Industry and Security (BIS) imposed sanctions on numerous entities and individuals in order to place additional pressure on both Belarus and Russia. The OFAC sanctions focus on Belarus’ “authoritarian regime” and for its continued support of Russia’s war against Ukraine. The BIS additions to the Entity List focus on parties that have engaged in efforts to procure and transship U.S.-origin items to Russia or contribute to Russia’s military/defense industrial base. These new designations either completely block or severely restrict engaging in transactions with the identified parties.

OFAC Sanctions

OFAC has designated 11 entities and eight individuals in Belarus to “increase the pressure on Alyaksandr Lukashenka’s authoritarian regime for its brutal suppression of Belarus’s democratic civil society, corrupt financial enrichment of the Lukashenka family, and complicity in Russia’s unjustified war against Ukraine.” The designations target numerous members of Belarus President Lukashenka’s inner circle and their companies that act as revenue generators for the regime and who have assisted in the facilitation of Russia’s war against Ukraine. Entities placed on OFAC’s Specially Designated Nationals (SDN) List include, companies that offer defense technology to the Lukashenka regime as well as state-owned enterprises that have acted for or on behalf of, directly or indirectly, the Government of Belarus. OFAC also sanctioned two of Belarus’ richest oligarchs and their tobacco company for engaging in a cigarette smuggling scheme into Russia. 

Additional detail and identifying information on these individuals and entities is available here. A helpful Treasury Department press release is available here. OFAC has issued Belarus General License (GL) 10 authorizing transactions that are ordinarily incident and necessary to the wind down of any transaction involving Tabak Invest LLC, or any entity in which Tabak Invest owns, directly or indirectly, a 50% or greater interest, are authorized through 12:01 a.m. eastern standard time, February 2, 2024. Certain transactions remain unauthorized under this general license and therefore requires close analysis.

As a result of these actions, all property and interests in property of the persons and entities placed on OFAC’s SDN List that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50% or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.

BIS Export Controls

BIS has issued a Final Rule placing 42 entities on the Entity List after determining that they were “acting contrary to the national security or foreign policy interests of the United States.”  These entities are listed under the countries of Armenia (3), Belarus (1), Belgium (3), China, People’s Republic of (China) (1), Cyprus (4), Germany (1), Kazakhstan (1), Netherlands (1), Russia (28), and the United Arab Emirates (1). Two entities are added to the Entity List under two country destinations. 

The majority of these companies are being placed on the Entity List for posing a risk of diversion of items subject to the Export Administration Regulations (EAR) to Russia and for ongoing efforts to circumvent U.S. export controls on sensitive military electronics and avionics equipment. Other designated entities have performed contracts for Russian government entities, including Russia’s defense sector; these entities have also now been designated as Russian or Belarusian “military end users.” The remaining entities are designated based on information that they contribute to Russia’s military and/or defense industrial base in connection with the development of military-grade drones in Russia. For all of these entities, BIS has imposed a license requirement for all items subject to the EAR and will review license applications under a presumption of denial.

The effective date for this rule is December 7, 2023. Shipments of items removed from eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) as a result of these Entity List designations that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on December 7, 2023, pursuant to actual orders, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) before January 6, 2024. Any such items not actually exported, reexported or transferred (in-country) before midnight, on January 6, 2024, require a license from BIS.

On November 16, 2023, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Venezuela-related General License 8M, extending authorization until May 16, 2024 for certain activities previously authorized under General License 8L. General License 8M authorizes the continuation of transactions and activities “ordinarily incident and necessary to the limited maintenance of essential operations, contracts, or other agreements,” that:

  1. are for safety or the preservation of assets in Venezuela;
  2. involve Petróleos de Venezuela, S.A. (PdVSA) or any entity in which PdVSA owns, directly or indirectly, a 50% or greater interest; and
  3. were in effect prior to July 26, 2019, for the following entities and their subsidiaries:
    • Halliburton
    • Schlumberger Limited
    • Baker Hughes Holdings LLC
    • Weatherford International, Public Limited Company

The term “safety or the preservation of assets” covers transactions and activities necessary “to ensure the safety of personnel, or the integrity of operations and assets in Venezuela; participation in shareholder and board of directors meetings; making payments on third-party invoices for transactions and activities authorized” under this general license (or prior to April 21, 2020, if such activity was authorized at that time) as well as “payment of local taxes and purchase of utility services in Venezuela; and payment of salaries for employees and contractors in Venezuela.” The general license authorizes such activities involving PdVSA and the other listed entities through 12:01 a.m. EST, May 16, 2024.

As with past extensions, General License 8M does not authorize any activities related to Venezuelan-origin petroleum or petroleum products; the provision or receipt of insurance or reinsurance for such products; the design, construction or work on wells or other facilities or infrastructure in Venezuela; contracting any additional personnel or services (except as required for safety); or the payment of any dividends to PdVSA. Further, this General License does not authorize transactions related to the export or re-export of diluents to Venezuela; the issuance of any loans to, or accrual of additional debt by, or subsidization of PdVSA; or any transactions otherwise prohibited by OFAC’s Venezuela Sanctions Regulations (31 C.F.R. part 591) or with any blocked persons other than those identified in this General License.

General License 8M replaces and supersedes General License 8L. See also SmarTrade Update of May 24, 2023.

On November 14, 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued an important guidance document to ensure the provision of humanitarian aid to the Palestinian people in Gaza, while also maintaining strict controls to prevent funds from reaching Hamas. OFAC clarified that “U.S. sanctions do not stand in the way of legitimate humanitarian assistance to the Palestinian people.” This delicate balance is critical to support those in need without compromising the fight against terrorism. The guidance highlights the following:

  • Transactions with Blocked Persons: U.S. persons are generally prohibited from dealing with entities sanctioned under the Global Terrorism Sanctions Regulations (GTSR) or the Foreign Terrorist Organization Sanctions Regulations (FTOSR), which include groups like Hamas and Palestinian Islamic Jihad (PIJ). However, neither Gaza nor the West Bank are subject to jurisdiction-based sanctions or an embargo by OFAC.
  • NGO Activities: The “NGO general licenses” permit transactions typically prohibited by the GTSR and FTOSR, when such transactions are ordinarily incident and necessary to certain non-commercial, humanitarian activities by non-governmental organizations (NGOs). U.S. financial institutions may process transactions for humanitarian assistance, provided they have no knowledge or reason to believe such transactions are not authorized under the “NGO general licenses.”
  • Agricultural and Medical Aid: The U.S. does not enforce jurisdiction-based sanctions on Gaza or the West Bank, thus the provision of food, other agricultural commodities, medicine, and medical devices to Gaza or the West Bank is generally not prohibited under certain provisions of GTSR and FTOSR.
  • U.S. Government Official Business: Pursuant to GTSR and FTOSR, the “USG general licenses” authorize all transactions related to the conduct of official U.S. government business by employees, grantees, or contractors.
  • International Organizations (IO): Pursuant to GTSR and FTOSR, the “IO general licenses” authorize all transactions that may otherwise be prohibited that are for the conduct of the official business of certain international organizations and for such conduct by employees, contractors, or grantees thereof. The guidance provides the list of IOs authorized by the IO general licenses.

This guidance affirms that OFAC sanctions are not intended to impede legitimate humanitarian activities and that there are specific authorizations in place to allow for such work to continue, within a framework designed to prevent the diversion of funds to sanctioned entities or individuals.

Entities engaging in humanitarian efforts in the region should conduct these activities in strict adherence to OFAC regulations, ensuring compliance to avoid potential exposure to sanctions.

On November 2, 2023, the Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Department of State, and the Department of Commerce’s Bureau of Industry and Security (BIS) announced a combined effort to designate and sanction numerous additional Russian individuals and entities who have been determined to be assisting in the war against Ukraine and for efforts to evade U.S. sanctions and export controls on Russia. The Department of State and OFAC sanctions target Russia’s future energy production and revenue, metals and mining sector, defense procurement, and those involved in supporting the Russian government’s war effort. BIS’ actions focus on sanctioning entities supporting Russia’s military through the procurement, development, and proliferation of Russian unmanned aerial vehicles (UAVs).

OFAC and State Sanctions

OFAC stated that entities based in China, Türkiye (Turkey), and the United Arab Emirates (UAE) continue to send high-priority dual-use goods to Russia, including critical components that Russia relies on for its weapons systems (see Update of September 26, 2023 on “high-priority” items restricted for Russia). Despite continuing to work with these countries to address concerns, OFAC has sanctioned and placed on the Specially Designated Nationals (SDN) List multiple individuals and companies from these three countries that “have become hubs for exporting, reexporting, and transshipping to Russia foreign-made technology and equipment.” Most of these newly designated entities operate in the technology, electronics, and transportation sectors.

Sanctioned Turkish companies include those engaged in suppling high-quality foreign-made microelectronics, lithium-ion batteries, integrated circuits, machines for metalworking and machining tools, machines for reception, conversion and transmission of data, and trucking services. UAE companies include those providing logistics to ship machines for the reception, conversion, and transmission of data, aircraft and aviation parts, integrated circuits, machines for metalworking and machining tools. Several financial, engineering and investment firms in the UAE and their officers and/or owners have also been placed on the SDN List.

OFAC and the State Department have also targeted and designated a significant number of Russia-based industrial firms (as well as various related owners and officers) that produce, import, distribute, and repair industrial machinery, machine tools, spare parts, additive manufacturing (including 3D printing) equipment, ball bearings, and other industrial equipment and materials. 

Significantly, the agencies have placed on the SDN List Russia’s largest publicly-traded diversified holding company and a major entity involved in the development, operation, and ownership of Russia’s key Arctic LNG 2 liquified natural gas (LNG) project. In addition, OFAC continued its effort to identify and sanction entities operating in the financial services sector of the Russian by sanctioning seven Russia-based banks and one Russia-based financial infrastructure entity. Persons involved in several “sanctions evasion networks” and procurement networks were also sanctioned for their ongoing efforts to procure U.S.-origin goods and technology for Russia.

Additional detail and identifying information on these individuals and entities is available here. A helpful Treasury Department press release is available here. A helpful State Department press release is available here.

As a result of these actions, all property and interests in property of the persons and entities placed on OFAC’s SDN List that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50% or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person.

New Russia General Licenses

With these latest additions to the SDN List, OFAC has issued related General Licenses to allow certain limited activities.

  • Russia General License (GL) 74 – Authorizes transactions ordinarily incident and necessary to the wind down of transactions involving East-West United Bank until January 31, 2024. It also allows U.S. person to reject, rather than block, and return funds involving this bank until January 31, 2024.
  • Russia GL 75 – Authorizes all transactions prohibited by Executive Order (EO) 14024 that are ordinarily incident and necessary to the divestment or transfer, or the facilitation of the divestment or transfer, of debt or equity of the certain blocked entities, placed on the SDN List on November 2, 2023, to a non-U.S. person through January 31, 2024.
  • Russia GL 76 – Authorizes all transactions prohibited by EO 14024 that are ordinarily incident and necessary to the wind down of any transaction involving several of the blocked entities, placed on the SDN List on November 2, 2023, through January 31, 2024. UPDATE: On November 8, OFAC issued a revised General License (GL) 76A, “Authorizing the Wind Down of Transactions Involving Certain Entities Blocked on November 2, 2023.” This action amends Russia-related GL 76 to clarify that the license applies to Public Joint Stock Company Saint Petersburg Exchange. The November 2, 2023 GL listed the entity’s name as Saint Petersburg Stock Exchange. This GL is otherwise unchanged.

Certain transactions remain unauthorized under these general licenses and therefore require close analysis.

Revised Russia General License 13G

OFAC also extended previous Russia-related General License (GL) 13F by issuing a revised GL 13G, “Authorizing Certain Administrative Transactions Prohibited by Directive 4 under Executive Order 14024,” which states that U.S. persons are authorized to pay taxes, fees, or import duties and purchase or receive permits, licenses, registrations, or certifications, to the extent such transactions are prohibited by Directive 4, provided such transactions are ordinarily incident and necessary to such persons’ day-to-day operations in the Russian Federation. Directive 4 prohibits any transaction involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation, including any transfer of assets to such entities or any foreign exchange transaction for or on behalf of such entities. Previous GL 13F was set to expire on November 8, 2023; the new GL 13G is set to expire on January 31, 2024.

BIS Adds Companies to Entity List

On November 2, 2023, the Department of Commerce’s Bureau of Industry and Security (BIS) also issued a Final Rule placing 13 entities to the Entity List for supporting Russia’s military through the procurement, development, and proliferation of Russian unmanned aerial vehicles (UAVs). Twelve entities being added are located in Russia and one is located in Uzbekistan. BIS determined that their activities are contrary to the national security and foreign policy interests of the United States, and also determined that all 13 entities qualify as “military end users” for export control purposes. The entities are now subject to a license requirement for all items subject to the Export Administration Regulations (EAR) and a license review policy of denial.

The effective date for the rule is November 2, 2023. Shipments of items removed from eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) as a result of these Entity List designations that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on November 2, 2023, pursuant to actual orders, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) before December 4, 2023. Any such items not actually exported, reexported or transferred (in-country) before midnight, on November 2, 2023, require a license from BIS.

A helpful BIS press release is available here.