2 new OFAC FAQs on Ukraine & Russia sanctions

OFAC has published 2 new FAQs relating to US sanctions on Ukraine & Russia. They are here.

The first FAQ addresses the ability of US persons to receive payments of principal and interest from blocked people listed in General Licences 12C, 14, and 15.  It states that this is authorised, provided the loan or bond existed before 6 April 2018 and the payments are in accordance with the pre-existing loan or bond contract. It adds that the General Licences would also generally authorise the receipt of accelerated payments or voluntary prepayments, in the circumstances set out above and where they are consistent with maintenance or wind-down activities.

The second FAQ says that whether OFAC will impose sanctions on a foreign entity for paying dividends to a blocked person, where that company is not itself blocked under the 50% rule, depends on whether OFAC views the transaction as significant (see FAQs 542545579, and 589). Where the payment of dividends is done in such a way as to provide no economic benefit this will not be considered significant.

This entry was posted in Russia, Ukraine, USA by Maya Lester QC. Bookmark the permalink.

About Maya Lester QC

Maya Lester QC has a wide ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions. As the most recent (2016) Chambers & Partners directory put it, she "owns the world of sanctions". She spent 2011-12 in New York at Columbia Law School lecturing and writing on sanctions. She represents and advises hundreds of companies and individuals before the European and English courts and has acted in most of the leading cases, including Kadi, Tay Za, Central Bank of Iran, NITC and IRISL.

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