SANCTIONS

Sanctions with respect to the Ukraine/Russia-related sanctions program fall into the following three broad categories,
as set forth in greater detail below:

(1) Blocking sanctions against individuals and entities designated pursuant to E.O. 13660, E.O. 13661, E.O. 13662, or E.O. 13685 and listed on the List of Specially Designated Nationals and Blocked Persons (SDN List);

(2) Sectoral sanctions against entities operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to E.O. 13662 and listed on the Sectoral Sanctions Identification List (SSI List); and

(3) A new investment ban and prohibition on the exportation or importation of goods, technology, or services to or from the Crimea region of Ukraine.

Blocking sanctions

Unless otherwise authorized or exempt, transactions by U.S. persons or in the United States are prohibited if they involve transferring, paying, exporting, withdrawing, or otherwise dealing in the property or interests in property of an entity or individual listed on OFAC’s SDN List. The property and interests in property of an entity that is 50 percent or more owned, whether individually or in the aggregate, directly or indirectly, by one or more persons whose property and interests in property are blocked pursuant to any part of 31 C.F.R. chapter V are also blocked, regardless of whether the entity itself is listed. For details please see:

http://www.treasury.gov/resource-center/sanctions/Documents/licensing_guidance.pdf.

Sectoral sanctions

The sectoral sanctions imposed on specified persons operating in the Russian economy identified by the Secretary of the Treasury were implemented under E.O. 13662 through Directives issued by OFAC pursuant to its delegated authorities. Those Directives impose prohibitions on U.S. persons and within the United States for certain specified transactions with entities made subject to the relevant Directive, as identified on the SSI List. The property and interests in property of an entity that is 50 percent or more owned, whether individually or in the aggregate, directly or indirectly, by one or more sanctioned persons are also sanctioned, regardless of whether the entity itself is listed on the SSI List. The property and interests in property of these persons are not blocked, nor are transactions with them prohibited beyond these restrictions.

• Directive 1, as amended, prohibits the following transactions by U.S. persons and within the United States: (1) all transactions in, provisions of financing for, and other dealings in new debt of longer than 30 days maturity or new equity of persons determined to be subject to Directive 1, their property, or their interests in property; and (2) all activities related to debt or equity issued before September 12, 2014, that would have been prohibited by the prior version of Directive 1 (which extended to activities involving debt of longer than 90 days maturity or equity if that debt or equity was issued on or after the date a person was determined to be subject to Directive 1).

• Directive 2, as amended, prohibits the following transactions by U.S. persons and within the United States: transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity of the persons subject to Directive 2, their property, or their interests in property.

• Directive 3 prohibits the following transactions by U.S. persons and within the United States: transacting in, providing financing for, or otherwise dealing in new debt of longer than 30 days maturity of the persons subject to Directive 3, their property, or their interests in property.

• Directive 4 prohibits the following transactions by U.S. persons and within the United States: providing, exporting, or reexporting, directly or indirectly, goods, services (except for financial services), or technology in support of exploration or production for deep-water, Arctic offshore, or shale projects that have the potential to produce oil in the Russian Federation, or in maritime area claimed by the Russian Federation and extending from its territory, and that involve any person subject to Directive 4, its property, or its interests in property.

The names of those persons and entities listed in an Annex to, or designated pursuant to, E.O. 13660, E.O. 13661, E.O. 13662, and E.O. 13685, whose property and interests in property are blocked, are published in the Federal Register and incorporated into OFAC’s SDN List with the prefix “UKRAINE” in the program tag associated with each listing. The names of those entities that are subject to Directives 1, 2, 3, or 4, pursuant to E.O. 13662, are published in the Federal Register and incorporated into OFAC’s SSI List with the prefix “UKRAINE-EO 13662” in the program tag associated with each listings. The consolidated SDN and SSI Lists are available on OFAC’s website at http://www.treasury.gov/sdn.

New investment ban and trade embargo

The following transactions involving the Crimea region of Ukraine are generally prohibited:

• New investment in the Crimea region of Ukraine by a U.S. person, wherever located;

• The importation into the United States, directly or indirectly, of any goods, services, or technology from the Crimea region of Ukraine;

• The exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a U.S. person, wherever located, of any goods, services, or technology to the Crimea region of Ukraine; and

• Any approval, financing, facilitation, or guarantee by a U.S. person, wherever located, of a transaction by a foreign person where the transaction by that foreign person would be prohibited if performed by a U.S. person or within the United States.