Belarus General License 2H - Authorizing the Wind Down of Transactions Involving Certain Blocked Entities (Effective April 19, 2021) [Archived]

Date issued: Apr. 19 2021

TURBOFAC Commentary (364 words)

Notes:

1) Prior to 12/22/2020, all of the entities on the SDN list pursuant to the Belarus Sanctions Regulations appeared on Belarus General License G, which authorized all transactions with the entities listed (subject only to reporting requirements). That, however, did not mean that property of those entities that had already been blocked became automatically unblocked, or even that OFAC would grant a license to unblock such property. See Case No. BEL-2012-295200-1, Case No. BEL-2012-300832-1, regarding OKKO Business PE v. Lew, No. 14-cv-925 (D.D.C., 2015).

On 12/22/2020, OFAC added certain government-related entities to the SDN list with the [BELARUS] program tag that are not included in the GL. See https://home.treasury.gov/news/press-releases/sm1222.

On 4/19/2021, OFAC replaced Belarus General License G with Belarus General License H, authorizing the "all transactions and activities [otherwise] prohibited by the Belarus Sanctions Regulations [] that are ordinarily incident and necessary to the wind down of transactions involving the" nine entities whose names appeared on Belarus GL G.

2) With respect to the scope of the typical "wind-down" GL, consult the relevant portions of Examples of Transactions Deemed to be, and not to be, Within the Scope of the Standard "Wind-down" and "Maintenance" GLs.

3) By its terms, the GL is not limited to activities in which a U.S. person is a party to an underlying transaction. This means that U.S. persons may engage in ancillary transactions that would be subject to the otherwise-applicable prohibitions, even if such activities pertain to a transaction involving no U.S. person. For example, the U.S. person “facilitation” of transactions between non-U.S. person subsidiaries and blocked persons is authorized. So are transactions involving the provision of services directly to the blocked persons listed in the GL, e.g. the provision of “financial services” to a listed SDN, in connection with a transaction not otherwise involving a U.S. person. Compare e.g. FAQ # 661, comments thereto. See also FR Notice Explaining OFAC's Implementation of Sec. 218 of the TRA (77 FR 75849, Dec. 26, 2012).