UK Issues Sanctions License for German Subsidiaries of Rosneft
The U.K. issued a new general license Oct. 22 authorizing certain transactions with the German subsidiaries of major Russian energy firm PJSC Rosneft Oil: Rosneft Deutschland and RN Refining & Marketing. The license authorizes the "continuation of business" activities with those subsidiaries -- including payments, contracts and the exchange of economic resources -- and any entity they own or control. The license, which expires Oct. 22, 2027, comes about a week after the U.K. sanctioned Rosneft (see 2510160021).
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The U.K. issued the license because both subsidiaries "play a critical role in German energy security," the country's Office of Financial Sanctions Implementation said in new FAQ 169. It also noted that both entities "have been placed under trusteeship by the German government and are not subject to EU financial sanctions whilst the trusteeship arrangement or a similar firewall measure is in place. Therefore, UK sanctions are not intended to negatively affect operation of these entities."
OFSI added that all payments relating to Rosneft Deutschland GmbH and RN Refining & Marketing GmbH that were carried out between Oct. 15, the date Rosneft was sanctioned, and the Oct. 22 publication of the general license would be covered by the U.K.'s Russian Oil Majors Wind Down General Licence "or otherwise not be in the public interest for OFSI to investigate." The agency doesn't "require or expect reporting of these matters beyond the record-keeping requirements contained in the Russian Oil Majors Wind Down General Licences."