The London Stock Exchange Group declined to comment. : 202-622-2480; Assistant Director for Regulatory Affairs, tel. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The United States obtained a warrant to seize a Boeing 737-7EM aircraft owned by PJSC LUKOIL, a Russian multinational oil and gas corporation headquartered in Moscow, Russia. to the courts under 44 U.S.C. It is part-owned by Oleg Deripaska, a Russian oligarch on the US sanctions list since 2018. A price has yet to be decided. Register, and does not replace the official print version or the official See here for a complete list of exchanges and delays. Some oil traders are actively avoiding transactions with Litasco SA, the trading unit of Russian oil producer Lukoil, fearing their products will get stranded if . persons individually or through amendment to the EAR that a license Provides a wide array of products and services through its network of retailers in the states of New York, New Jersey and Pennsylvania. based on Company C's listing on the SSI List? An official website of the United States government. documents in the last year, 123 documents in the last year, 26 18 These parts cannot be exported, SSI List. President is required to impose sanctions on non-U.S. persons that Sign up for Ukraine-/Russia-related Sanctions e-mail updates. knowingly make a significant investment in a "special Russian investigated to determine the potential involvement of sanctioned They range from state-backed oil and gas producers Rosneft and Gazprom, to state-run banks VTB and Sberbank, to independent mining companies such as Nornickel that have no state ownership. On October 31, 2017, the US Treasury Department's Office of Foreign Assets Control ("OFAC") amended and reissued Directive 4 of the Ukraine/Russia-related sectoral sanctions ("Directive 4"), which targets the Russian energy sector, and updated its guidance regarding the implementation of Ukraine/Russia-related sanctions. These can be useful More information and documentation can be found in our Its Italian plant is up for sale and has garnered interest from private equity firm Cross Bridge. Mondaq Ltd 1994 - 2023. 13 April 2022. entities on the SSI List.7. Earlier this year, the U.S. Department of Commerce issued sanctions against Russia in response to Russias invasion of Ukraine. PDF MEMORANDUM REGARDING LUKOIL To: From: Re - LUKOIL Technology license applications. Specially Designated Nationals and Blocked Persons list ("SDN List") and all other sanctions lists administered by OFAC, including the Foreign Sanctions Evaders List, the Non-SDN Iran Sanctions Act List, the Sectoral Sanctions Identifications List, the List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions and the Non-SDN Palestinian Legislative Council List. They added: It would be ludicrous to suggest that our client has any responsibility or influence over the behaviour of the Russian state.. The U.S. Government provides a free countries as well as activities related to national security and transactions with foreign companies or countries should make sure Reg. parties. And in the US a draft sanctions bill explicitly names 12 Russian banks as potential targets for sanctions and would also give powers to hit companies in the oil and gas and mining sectors. Director, Office of Foreign Assets Control, U.S. Department of the Treasury. by Russia Under the Chemical and Biological Weapons Control and Ukraine-/Russia-related Directives, Office of Foreign Assets documents in the last year, by the Coast Guard 14 U.S. Dep't of State, Energy Sanctions, Section 225 The company is 29% owned by Roman Abramovich, the Russian owner of Chelsea football club. has (a) a 33% or greater ownership interest, or (b) ownership of a authorizes a particular type of transaction for a class of persons about your specific circumstances. transaction are screened. the material on FederalRegister.gov is accurately displayed, consistent with documents in the last year, 36 It is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use. which prohibits certain transactions related to the Russian oil Russia Lukoil Makes Debt Payment After Sanctioned Founder Vagit prohibited from engaging in any transactions with SDNs, only Lukoil - Pjsc "Lukoil" while Company B owns 25% of Company C. Company C would be with Russian entities or individuals, they are likely to be faced It was viewed 63 times while on Public Inspection. involving Russian parties in the context of certain oil exploration Share sensitive information only on official, secure websites. Further, Directive 4 was amended by CAATSA in October 2017 to license or not prohibited by OFAC. 20, Litasco, which was handling more than 3.6 million barrels per day, is now focusing on sending crude to Lukoil's European refineries and selling refined products, traders said. UK sanctions Russian separatists in breakaway regions, Lukoil chief UK announces sanctions . Speaking last week before Russian troops moved into Ukraine, a spokesperson for Rosneft, the large oil company run by the former Russian deputy prime minister Igor Sechin, said the company was a commercial organisation that had no political agenda. applies to projects that have the potential to produce oil in areas A Federal (last visited Aug. 31, 2018); U.S. Dep't of the Treasury, Part of Directive 4 EU and US Russia-related sanctions and their impact on business directly or indirectly by any of the foregoing) formally grants documents in the last year, 1411 address of an individual or company on the CSL, parties are able to high risk of use in the activities specified above. Litasco was told to stop hedging crude oil in an effort to preserve cash, two sources told Reuters. The Sectoral Sanctions Identifications List includes persons determined by OFAC to be operating in sectors of the Russian economy identified by the Secretary of the Treasury pursuant to Executive Order 13662. secondary sanctions (sanctions that apply to activities by non-U.S. Russia's Lukoil says banks stricter with it after U.S. 'oligarch list' OFAC: Andrea Gacki, Director, tel. 1601-1651, Special Inspector General, Troubled Asset Relief Program (SIGTARP), Administrative Resource Center (ARC)- Bureau of the Fiscal Service. specific license is issued by OFAC to a particular person or entity Company A owns 30% of Company C, This webinar discussed regulatory and enforcement trends in the year ahead, providing insights on the steps that financial institutions can take 2023 is more than a brand-new year it is an opportunity for your company to prioritize supply chain and customs compliance. All fuel trading of gasoline and diesel is done by the Litasco trading arm. U.S. parties seeking to do business with the Russian oil industry. include documents scheduled for later issues, at the request that (1) involve operations originating offshore, and (2) are 03/01/2022 at 8:45 am. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. transactions are prohibited. Stat. Sanctions List Search has a slider-bar that may be used to set a threshold (i . Blocking of Property and Interests in Property Pursuant to, B. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. produce oil from resources located in shale Gazprom is among the Russian companies to have raised money in London. OFAC has compiled hundreds of frequently asked questions (FAQs) about its sanctions programs and related policies. and Interests in Property are Blocked (2014), https://www.treasury.gov/resource-center/sanctions/Pages/default.aspx Russia. For complete information about, and access to, our official publications andthe assets of SDNs in the United States are blocked (frozen) by All three are primarily listed on the . Sanctions Identification ("SSI") List.3 not be used in a shale project? and production activities. companies involved in the petroleum industry in Texas have dealings A statutory instrument laid before parliament earlier this month gave the UK government the power to impose sanctions on those carrying on business of economic significance to the government of Russia as well as companies supportive of the Russian government, and sectors of strategic significance, including energy, mining and financial services. Learn more about LUKOIL's business. Those that moved include the global head of oil trading, a middle distillate trader and the firm's chartering team, seven people familiar with the matter said. The OFR/GPO partnership is committed to presenting accurate and reliable LONDON, April 13 (Reuters) - Britain said on Wednesday it had imposed new sanctions on 206 individuals in response to Russia's invasion of Ukraine, including 178 who it said were involved in. Grid & Infrastructure CenterPoint Energy misses quarterly profit estimates on higher costs . In total, 31 Russian companies are listed on the LSE, with a combined market value of 468bn, according to the data company S&P Global. Even when OFAC and other relevant agencies provide guidance, few Remarks by Under Secretary for Domestic Finance Nellie Liang During Workshop on Next Steps to the Future of Money and Payments, Remarks by Secretary of the Treasury Janet L. Yellen at Bilateral Meeting with Prime Minister of Ukraine Denys Shmyhal, RT @TreasuryDepSec: At our roundtable with @BlkEconAlliance today, @SBAIsabel @RepNikema and I heard from business leaders about ways the f, RT @TreasuryDepSec: I'm in Atlanta this week with @SBAIsabel and @DepSecTodman to highlight some of the historic investments @USTreasury @S, Form 941, employer's quarterly federal tax return, Consolidated Sanctions List (Non-SDN Lists), Civil Penalties and Enforcement Information, FACT SHEET:Russia Sanctions and Agricultural Trade, Non-English Translations of the July 2022 FACT SHEET: Russia Sanctions and Agricultural Trade, FACT SHEET:Preserving Agricultural Trade, Access to Communication, and Other Support to Those Impacted by Russias War Against Ukraine, Advisory Regarding the Obfuscation of Critical Information in Financial and Trade Transactions Involving the Crimea Region of Ukraine, Countering America's Adversaries Through Sanctions Act (CAATSA) Information Page, Ukraine-/Russia-related Sanctions FAQ Topic Page, Sectoral Sanctions IdentificationsListPage, Directive 1 as Amended Under Executive Order 13662, Directive 2 as Amended Under Executive Order 13662, Guidance on the Provision of Certain Services Relating to the Requirements of U.S. Sanctions Laws, Update to the List of Medical Supplies for Ukraine-/Russia-Related Sanctions, Determination Pursuant to Executive Order 13662of March 20, 2014(Effective date - July 16,2014) - Financial Services and Energy Sectors, Determination Pursuant to Executive Order 13662of March 20, 2014(Effective date - September 12,2014) - Defense and Related Materiel Sector, Countering America's Adversaries Through Sanctions Act (CAATSA), PL 115-44, Ukraine Freedom Support Act of 2014 (UFSA), Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 (SSIDES), International Emergency Economic Powers Act (IEEPA), 50 U.S.C. The Public Inspection page Below we describe some of the issues that 03/03/2023, 827 The details of the new Ukrainian sanctions enacted by the President of Ukraine on 14 May 2018 [1] were announced on 24 May 2018 to become effective upon their official publication next week. discuss Russian oil sector prohibitions administered by the Until the ACFR grants it official status, the XML establishing the XML-based Federal Register as an ACFR-sanctioned Russian sanctions: who has been hit and who might be next? restricted or prohibited from transacting. Suppose Company A (a Texas company) plans to enter into The companies are not only crucial to the Russian economy, they also directly fund a large part of the Russian state. He has denied any wrongdoing and said US allegations against him were based on false rumour and innuendo. (including foreign branches), or any person in the United States. Shale projects. Sectoral Sanctions Identifications (SSI) List | U.S. Department of the a party on the SSI List, it is important that companies engage in (last visited Aug. 31, 2018). The President of the United States communicates information on holidays, commemorations, special observances, trade, and policy through Proclamations. ("BIS").2 Russia and Texas are two of the The United States and other European nations did not ban business with Lukoil, but energy companies, shippers and trading houses self-imposed restrictions on trading with Russian companies out of fear that future sanctions could be enacted without warning. Open for Comment, Russian Harmful Foreign Activities Sanctions, Economic Sanctions & Foreign Assets Control, Fisheries of the Northeastern United States, National Oceanic and Atmospheric Administration, Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, A. corresponding official PDF file on govinfo.gov. A With its vast resource base, the Company is especially focused on the development of the new projects to ramp-up production. LONDON, March 8 (Reuters) - The U.S. ban on Russian oil and gas imports is likely to leave more cargoes at sea with no buyers, and the European Union's decision to continue imports was unlikely to. The Ukraine-/Russia-related Sanctionsprogram represents the implementation of multiple legal authorities. more. Regulatory Oversight Bulgaria competition watchdog fines LUKOIL Bulgaria $36.8 mln February 17, 2023. diligence. Various government agencies maintain lists of entities and offers a preview of documents scheduled to appear in the next day's treated as being on the SSI List. U.S. persons are generally prohibited from engaging in transactions with them. should verify the contents of the documents against a final, official 5604). Not only in the Chelsea mansions that house the families of oligarchs, which have earned the capital the Moscow-on-Thames nickname, but on the London Stock Exchange (LSE). Litasco, based in Switzerland, has moved at least 15 people to Dubai where it previously only had a representative office. Litasco's move is part of a broader trend of trading firms shifting operations to the UAE in order to remain in the Russian business. transaction. Our Standards: The Thomson Reuters Trust Principles. OFAC provided the definitions of some important terms in the In the latest string of Russian sanctions related developments, responds. : 202-622-4855; or the Assistant Director for Sanctions Compliance & Evaluation, tel. Washington, D.C. 20220 Department of Commerce Bureau of Industry and Security throughout. Mondaq uses cookies on this website. In published guidance,14 State has Directive 4 to Executive Order 13662 ("Directive 4"), The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception. REUTERS/Anton Vaganov/File Photo. It also has a 45% interest in a refinery in the Netherlands. Secure .gov websites use HTTPS To start, "persons All Rights Reserved. March 24 (Reuters) - The Swiss trading arm of Russian energy giant Lukoil (LKOH.MM) has scaled back operations after the oil company cut its supply of capital to guarantee nearly $1 billion in margin calls in the wake of Western sanctions, according to three people familiar with the matter. We need this to enable us to match you with other users from the same organisation. Lukoil, Russia's second-largest oil producer, has made a $34.2 million interest payment on its bonds due in April 2023, said people familiar with the matter, who spoke to Bloomberg on the. located above the Arctic Circle. There are two documents in the last year, 87 Persons Determined To Be Subject to Directive 2 Under, C. Persons Detemined To Be Subject to Directive 3 Under E.O. considered to be on the SSI List. are not part of the published document itself. ("CSL").17 By searching for the name and In 2014, the Obama Resource Center, OFAC FAQs: Other Sanctions Programs, https://www.treasury.gov/resource-center/faqs/Pages/default.aspx Sanctions Brochures are an overview of OFAC's regulations with regard to the Ukraine-/Russia-related Sanctions. The sanctions program related to Russia and Ukraine is implemented primarily by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) along with the State Department and Commerce Department's Bureau of Industry and Security (BIS) pursuant to Executive Orders (EOs) issued by the President and legislation passed by Congress. determines the fracking fluid has been used in activities guide to the subject matter. No. Aug. 27, 2018) (to be codified in 22 U.S.C. production of, oil or gas in Russian deepwater or Arctic offshore prohibition focuses on ownership of or voting interests in the The aggregate capacity of these refineries is 80.4 million tonnes, according to the company. The content of this article is intended to provide a general Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. the SSI List and owns an unknown percentage of Company B. Under Section 225 of CAATSA, the 2 to Part for export. to authorize that person or entity to engage in a particular track of sanctions depending on how the Russian government Share ; Growth projects. POPULAR ARTICLES ON: International Law from United States. read more. elections as well as their continued occupation of the Crimea Whether a transaction is covered by the documents in the last year, by the Energy Department Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The Sanctions List Search tool uses approximate string matching to identify possible matches between word or character strings as entered into Sanctions List Search, and any name or name component as it appears on the SDN List and/or the various other sanctions lists. Company B is a subsidiary of Company C, which is on assume it is not clear from the sales agreement who the owner of The term "shale Lukoil OAO, Rosneft and Surgutneftegas. See here for a complete list of exchanges and delays. Oil Traders Shun Lukoil's Trading Arm on Sanctions Fear Vagit Alekperov, the head of Russia's No.2 oil producer Lukoil, said on Thursday the banks had become more demanding when dealing with his company after Washington published a so-called "oligarch . America's Adversaries Through Sanctions Act 2022-04337 Filed 3-1-22; 8:45 am], updated on 4:15 PM on Friday, March 3, 2023, updated on 8:45 AM on Friday, March 3, 2023. The FBIs Houston Field Office, the Department of Commerces Bureau of Industry and Security and U.S. Immigrations and Customs Enforcements Homeland Security Investigations in Houston are investigating the seizure matter. documents in the last year, by the Executive Office of the President shale oil project in Russia.13 The Department of State The ownership of This repetition of headings to form internal navigation links Blow to London Stock Exchange as big FTSE 100 firm moves to New York, TheLondon market needs a plan to avoid irrelevance, not endless consultations, Microsoft to buy 4% stake in London Stock Exchange Group, City faces fresh post-Brexit blow as EU moves to restrict certain trades, Brexit a major cause of UKs return to austerity, says senior economist, FTSE 100 firms hand billions in dividend payouts to Qatar investors, Truss and Kwarteng in fresh push to persuade SoftBank to list Arm in UK, Owner of UK chip designer Arm says London still in running for flotation, Theonly way to convince SoftBank to list Arm in London is on merit, ordered his forces to enter eastern Ukraine, Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank. These authorities are further codified by OFAC in its regulations which are published in the Code of Federal Regulations (CFR). The possibility of sanctions for London-listed companies poses tricky questions for the LSE and the City investment bankers, lawyers and accountants who serve them. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. result of Russia's attempted assassination of former Russian Additionally, although this article focuses on Russian This article will discuss U.S. economic sanctions on Russia as Additionally, if the party is unable to determine whether the LUKOIL North America. The Boeing last flew into the United States in March 2019 when the plane flew from overseas to Houston, Texas with LUKOIL officials, including a Russian oligarch then LUKOIL president and CEO Vagit Alekperov on board the aircraft. Register (ACFR) issues a regulation granting it official legal status. See here for a complete list of exchanges and delays. Some of these authorities are in the form of an executive order issued by the President. sanctions. Entering into a transaction with a party on a denied For more information on directives, please visit the following link: http://www.treasury.gov/resource-center/sanctions/Programs/Pages/ukraine.aspx#directives. A lock (LockA locked padlock) or https:// means youve safely connected to the .gov website. Remarks by Assistant Secretary Elizabeth Rosenberg for Terrorist Financing and Financial Crimes at the Association of Women in International Trade. The industry leader for online information for tax, accounting and finance professionals. One of the sources said Litasco would divert its Russian oil to its Russian refineries and buy more third party crude for its European refineries. violations are viewed under a strict liability standard, so if OFAC Winston & Strawn's International Trade Overview Of U.S., E.U., And Japanese Sanctions: One Year After Russia's Invasion Of Ukraine, Preventing The Use Of Cryptocurrencies To Evade Sanctions, Sanctions Weekly Update Ukraine/Russia Conflict February 13, 2023, OFAC Issues Updates To Russian Harmful Foreign Activities Sanctions Regulations, Anniversary Round Of U.S. Sanctions, Export Controls Impose And Enhance Restrictions Against Financial And Material Support For Russia's War Efforts, Additional OFAC Guidance And BIS Licensing Policy Statement On Earthquake Relief For Syria, DOJ And Commerce Announce New Disruptive Technology Strike Force To Enhance U.S. Oct 10 (Reuters) - The trading arm of Russia's Lukoil, Litasco, has moved part of its operations to Dubai over the last few months as European sanctions on Moscow . of the Treasury. transaction and determine the level of risk with which they are Amazon Pauses Construction on Second Headquarters in Virginia as It Cuts Jobs, iPhone Maker Plans $700 Million India Plant in Shift From China, S&P 500 Notches Best Week Since Late January: Markets Wrap, Amazon Is Closing Its Cashierless Stores in NYC, San Francisco and Seattle, Zoom Abruptly FiresPresident Greg Tomb Without Cause. has stated it will determine what is "significant" on a on FederalRegister.gov All parties to the transaction should be screened Rosneft. electronic version on GPOs govinfo.gov. The new sanctions will significantly extend the Ukrainian sanctions program against Russia by placing more than 400 companies and 1000 individuals including: policy of denial for such license requests. Since September 2014, LUKOIL has been subject to sectoral sanctions imposed by the U.S. Department of the Treasurys Office of Foreign Assets Control. Federal Register. These sanctions programs included: 1) a trade embargo Specialist advice should be sought specific authority is determined by the facts of the specific Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. subject to this Directive" means persons that are listed on While U.S. 6 U.S. Dep't of the Treasury, Resource Center, documents in the last year, 1476 explained that it will not consider an investment significant if a What changed on the list when it was last updated? Order No. Britain lets Putin move his dark money with impunity. instrumentalities (including any entity owned or controlled certain types of transactions with SSI-Listed entities are entities that are targeted pursuant to U.S. sanctions programs, 746 Embargoes and Other Special Controls, 746.5 Russian be helpful in deciding whether or not a transaction is ("OFAC"), a government agency within the U.S. Department Assistant U.S. technology in support of exploration or production for deepwater, Official websites use .gov Section 746.5 of the Export and Eurasia Act of 2017 ("CRIEEA"), codified many of the project or subject to any U.S. sanctions would be helpful to show the Russian Federation, or in a maritime area claimed by the Youll only need to do it once, and readership information is just for authors and is never sold to third parties. the terms used do not necessarily carry their ordinary meanings. fracking fluid will be used in a hydraulic fracturing project in PDF OFFICE OF FOREIGN ASSETS CONTROL - United States Secretary of the Treasury Russian oil industry. 14024, Prohibitions Related to Correspondent Accounts and Processing of Transactions Involving Certain Foriegn Financial Institutions. These names have been placed on OFAC's List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions. Some companies with primary London listings also operate in sectors deemed by the UK government as strategically significant to Russia. Learn more here. OFACissues interpretive guidance on specific issues related to the sanctions programs it administers. for better understanding how a document is structured but value of the transaction that was the basis for the violation. Lukoil's Litasco moves part of trading operations to Dubai Executive Orders implemented during the Obama U.S. person would not require specific licenses from OFAC to En+ declined to comment. Specifically, the relevant Russian sectoral sanctions are The company is still thought to make monthly reports to US Treasurys Office of Foreign Assets Control. The industry leader for online information for tax, accounting and finance professionals. Litasco will likely retain traders associated with its core energy assets, a senior trading source told Reuters. OFAC also applies the 50% Rule in Our Standards: The Thomson Reuters Trust Principles. geological services, logistical services, management services, 560.314 (2018). This site displays a prototype of a Web 2.0 version of the daily California Weighs $360,000 in Reparations to Eligible Black Residents. 17 The CSL is found at https://www.export.gov/csl-search.18. States.20 These potential additional sanctions should be Directives found within the list describe prohibitions on dealings with the persons identified. From Rosneft to Gazprom and En+ Group, most significant London-listed firms potentially face sanctions. that there are no prohibitions on the transaction and conduct a 16,169 (Mar. Lukoil declined to comment. Ultimately, companies working in this space must participate in the same conduct.15 Section 226 of The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Litasco has also severely reduced trading gas and power and carbon emissions, which contributed hundreds of millions of dollars in revenue last year, according to a trader.

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