OFFICE OF FOREIGN ASSETS CONTROL
Belarus Sanctions Regulations
31 CFR part 548
GENERAL LICENSE NO. 2H
Authorizing the Wind Down of Transactions Involving Certain Blocked Entities
(a) Except as provided in paragraph (b) of this general license, all transactions and activities prohibited by the Belarus Sanctions Regulations, 31 CFR part 548 (the BSR), that are ordinarily incident and necessary to the wind down of transactions involving the following named entities or any entities in which the following named entities own, individually or in the aggregate, directly or indirectly, a 50 percent or greater interest, are authorized through 12:01 a.m. eastern daylight time, June 3, 2021:
• Belarusian Oil Trade House
• Belneftekhim
• Belneftekhim USA, Inc.
• Belshina OAO
• Grodno Azot OAO
• Grodno Khimvolokno OAO
• Lakokraska OAO
• Naftan OAO
• Polotsk Steklovolokno OAO
(b) This general license does not authorize:
(1) The unblocking of any property blocked pursuant to any part of 31 CFR chapter V, including all property and interests in property of the blocked persons identified in paragraph (a) of this general license that were blocked prior to October 30, 2015; or
(2) Any transactions or activities otherwise prohibited by the BSR, or prohibited by any other part of 31 CFR chapter V, statute, or Executive order, or involving any blocked persons other than the blocked persons identified in paragraph (a) of this general license.
(c) U.S. persons participating in a transaction, or series of transactions, authorized by this general license, in excess of $50,000 are required, no later than 30 days after the execution of any such transaction(s), to file a report with the U.S. Department of State, Office of Eastern European Affairs, 2201 C Street, N.W., Washington, DC 20520. Reports may also be filed via email to [email protected]. Such reports shall include the following numbered sections and information:
(1) Estimated or actual dollar value of the transaction(s), as determined by the value of the goods, services, or contract;
(2) The parties involved;
(3) The type and scope of activities conducted; and
(4) The dates or duration of the activities.
Note to paragraph (c): U.S. financial institutions are not required to file a report if there are other U.S. persons involved in the reportable transaction that are not financial institutions.
(d) Effective April 19, 2021, General License No. 2G, dated October 22, 2019, is replaced and superseded in its entirety by this General License No. 2H.
Bradley T. Smith
Acting Director
Office of Foreign Assets Control
Dated: April 19, 2021
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).