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:

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Sylvia Yi Sylvia Yi

Sylvia Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. Sylvia counsels public and private companies on day to day compliance challenges, and…

Sylvia Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. Sylvia counsels public and private companies on day to day compliance challenges, and supports clients in responding to criminal and government investigations. She is a regular contributor to the firm’s Government Contracts & International Trade Blog, where she provides insight on the demanding and ever-changing regulatory environment.

Photo of Thad McBride Thad McBride

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP)…

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP), and the Foreign Corrupt Practices Act (FCPA). He also advises clients on anti-boycott controls, and assists companies with matters involving the Committee on Foreign Investment in the United States (CFIUS). Thad supports international companies across a range of industries, including aviation, automotive, defense, energy, financial services, manufacturing, medical devices, oilfield services, professional services, research and development, retail, and technology. Beyond advising on day-to-day compliance matters, Thad regularly assists clients in investigations and enforcement actions brought by government agencies, including the U.S. Department of Justice (DOJ), the U.S. Treasury Department Office of Foreign Assets Control (OFAC), the U.S. State Department Directorate of Defense Trade Controls (DDTC), Customs and Border Protection (CBP), the U.S. Commerce Department Bureau of Industry & Security (BIS), and the Securities & Exchange Commission.

Photo of Mi-Yong Kim Mi-Yong Kim

Mi-Yong Kim has nearly 25 years of experience related to export controls and national security. Based on her extensive government service, she is uniquely well equipped to provide advice to help clients navigate the complex regulations related to export controls and national security…

Mi-Yong Kim has nearly 25 years of experience related to export controls and national security. Based on her extensive government service, she is uniquely well equipped to provide advice to help clients navigate the complex regulations related to export controls and national security, including matters related to compliance with the Export Administration Regulations (EAR); the International Traffic in Arms Regulations (ITAR); the Committee on Foreign Investment in the United States (CFIUS); and foreign ownership, control, or influence (FOCI) mitigation by the Defense Security Service. Mi-Yong is also an Adjunct Professor at the National Chengchi University (NCCU) in Taipei, Taiwan. She teaches a graduate-level class on export controls and related topics at the College of International Affairs of NCCU.