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Case No. BEL-2015-320753-1
[ ]
1330 Connecticut Avenue, NW
Washington, DC 20036
Attn: [ ]
Dear [ ]
This is in response to your request dated July 21, 2015, as supplemented on December 9, 2015 (collectively, the “Application”), submitted on behalf of Republican Unitary Enterprise Production Association Belorusneft (“Belorusneft”) to the Office of Foreign Assets Control (OFAC), seeking an advisory opinion to clarify that Belorusneft is not a blocked entity under the Belarus Sanctions Regulations, 31 C.F.R. Part 548 (BSR). According to your Application, Belorusneft is an oil and gas company based in Gomel, Belarus. The Application further represents that Belorusneft is a distinct legal entity that is 100 percent owned by the Republic of Belarus. You emphasize that Belarusian State Concern for Oil and Chemistry (“Belneftekhim”), designated under the BSR, does not own directly or indirectly...
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1) Background
Belarusian State Concern for Oil and Chemistry (“Belneftekhim”) is “is an association of petrochemical companies in Belarus, subordinated to the Council of Ministers. It manages these companies and regulates several aspects of the petrochemical sector, including setting retail prices for gasoline.” (https://en.wikipedia.org/wiki/Belneftekhim 9-2-24). OFAC designated Belneftekhim in 2007, characterizing it as a “petrochemical conglomerate” (https://home.treasury.gov/news/press-releases/hp676). Belneftekhim appears to operate such that it does not own significant companies outright in the traditional sense; instead, the government owns the companies and Belneftekhim controls them by acting as a regulatory body, providing guidance, policy direction, and strategic planning. According to the Belneftekhim website, Belneftekhim “carries out, in accordance with the established procedure, control over the financial and economic activities of the [Belneftekhim] enterprises that are [owned by the Government]” (see https://www.belneftekhim.by/ru/tasks-ru/; machine translated). ...