OFAC Updates Russia-Related General Licenses, FAQs, and Issues Food Security Fact Sheet
The Office of Foreign Assets Control has issued one new and three updated general licenses related to Russia alongside an update to OFAC's Frequently Asked Questions and a Food Security Fact Sheet, according to a July 14 notice.
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The new general license GL 44 authorizes transactions related to tax preparation or filing services to U.S. persons inside Russia. GL 6B supersedes GL6A and authorizes transactions related to agricultural commodities and equipment, medicine and medical devices (including software and replacement parts). GL25C supersedes GL 25B and authorizes transactions necessary for the exportation, sale or supply of technology related to internet communications to Russia. GL 30A supersedes GL 30 and extends the authorization of transactions involving SEFE Securing Energy for Europe GmbH (formerly known as Gazprom Germania GmbH) through Dec. 16, 2022.
The updated FAQ clarifies three issues. FAQ 1040 explains that the authorization of transactions involving internet communication specifically excludes transactions involving Joint Stock Company Channel One Russia, Television Station Russia-1, Joint Stock Company NTV Broadcasting Company, Limited Liability Company Algoritm, New Eastern Outlook, or Oriental Review. FAQ 1039 clarifies that transactions related to agricultural commodities applies to the otherwise sanctioned entities Agropromyshlennyi Kompleks Voronezhskii, Anninskii Elevator, and Azovskaya Zernovaya Kompaniya. FAQ 967 explains that Directive 2 under Executive Order 14024 prohibits U.S. financial institutions from opening or maintaining a correspondent or payable-through account on behalf of, or the processing of transactions involving, foreign financial institutions determined to be subject to the prohibitions of the Russia-related CAPTA Directive.
The Food Security Fact Sheet emphasizes that the U.S. has not imposed sanctions on agricultural commodities (including fertilizer), agricultural equipment, or medicine relating to Russia. OFAC has issued broad general licenses to authorize transactions related to agricultural commodities, agricultural equipment, medicine and medical devices. Specifically, the fact sheet emphasizes that providing insurance related to the transportation of agricultural commodities to Russia is not prohibited nor is the provision of parts for agricultural machinery. U.S. financial institutions are allowed to process transactions related to the exportation of agricultural commodities, medicine, or medical devices to Russia.