The Bass, Berry & Sims international trade team is actively monitoring the situation in Russia and Ukraine and providing real-time advice to clients on managing the situation. This post summarizes new U.S. sanctions and export restrictions as of Thursday, May 5. This post supplements our previous summaries, which are available by following the links at the end of this blog post.
Commerce Department Adds to List of Russia/Belarus-Owned Aircraft that Operated in Violation of the EAR
On April 28, the U.S. Commerce Department, Bureau of Industry & Security (BIS) added six more Utair aircraft to its list of aircraft that have flown into Russia and/or Belarus in violation of the Export Administration Regulations (EAR). With these additions, BIS now has 159 aircraft on the list. BIS issued an initial list on March 18 and updated the list on March 30, April 8, April 14, and April 21.
OFAC Issues New GLs and Revises Certain Russia-Related GLs
The Office of Foreign Assets Control (OFAC) also recently issued new general licenses (GLs) and revised others as follows:
- GL 30, issued on May 2, authorizes all transactions involving Gazprom Germania GmbH or any entity 50% or more owned by Gazprom Germania GmbH. The expiration date for transactions is September 30, 2022.
- GL 31, issued on May 5, authorizes otherwise prohibited transactions in or involving Russia related to filings, renewals, receipts, and prosecutions of patents, trademarks, and copyrights. This is akin to intellectual property transactions and services authorized under most U.S. sanctions regulations.
- GL 32, issued on May 5, allows transactions that are ordinarily incident and necessary to wind down transactions involving Amsterdam Trade Bank NV or any entity that is 50% or more owned by Amsterdam Trade Bank NV. The expiration date for such transactions is July 12, 2022.
- GL 7A, issued on May 5, allows for receipt of and payment for charges or services rendered in connection with overflights of Russia or emergency landings in Russia by aircraft that are U.S.-registered or owned, or controlled by or chartered to U.S. persons. This revised GL supersedes GL 7, issued on February 24, 2022.
- GL 26A, issued on May 5, allows transactions that are ordinarily incident and necessary to wind down transactions involving Sberbank Kazakhstan, Sberbank Europe AG, or Sberbank (Switzerland), or any entity that is 50% or more owned by any of the these listed Sberbank entities. The expiration date for authorization under GL 26A is July 12, 2022. This revised GL supersedes GL 26, issued on April 12, 2022.
Also, on May 5, OFAC issued a new Frequently Asked Question (FAQ) related to Transkapitalbank and revised an FAQ related to the Donetsk and Luhansk areas of Ukraine. These and other FAQs that OFAC has issued provide useful guidance on how to interpret the restrictions and prohibitions that OFAC has implemented.
Lastly, on the clerical front, effective May 2, OFAC changed the heading of the Ukraine-Related Sanctions Regulations to the Ukraine-/Russia-Related Sanctions Regulations and replaced the Ukraine-Related Sanctions Regulations with a more comprehensive set of regulations that includes additional interpretive and definitional guidance, general licenses, and other regulatory provisions.
If you have any questions or need assistance related to this evolving situation or other international trade matters, please contact the authors. To read our previous coverage concerning the Russia-Ukraine situation, click the links below:
- Wednesday, April 27
- Monday, April 18
- Monday, April 11
- Thursday, April 7
- Wednesday, April 6
- Friday, April 1
- Thursday, March 31
- Thursday, March 24
- Monday, March 21
- Monday, March 14
- Tuesday, March 8
- Monday, March 7
- Thursday, March 3
- Monday, February 28
- Friday, February 25
- Thursday, February 24
- Wednesday, February 23