Case No. UKRAINE-EO13662-2017-339769-1
[ ]
NAO, Inc.
1284 East Sedgley Avenue
Philadelphia, PA 19134
Dear Mr. [ ]:
This responds to your request of January 25, 2017, and additional correspondence dated February 6, 2017, August 7, 2019, and September 23, 2019 (collectively, the “Application”) to the Office of Foreign Assets Control (OFAC) seeking authorization, pursuant to the Ukraine Related Sanctions Regulations, 31 C.F.R. Part 589 (the “Regulations”), for NAO, Inc. (NAO) to sell and export NAO flare system replacement parts (the “Goods”) to RiProm LLC, Russia. As described in the Application, the Goods are to be used at a refinery, not a drilling site. The end user of the Goods will be Russian gasoline refiner Taneco, Tartarstan, Russia, an affiliate of PJSC Tatneft.
The Regulations implement, inter alia, Executive Order (E.O.) 13662. Directive 4,...
1) The applicant seeks to export, to a “Russian gasoline refiner” in Russia, “[g]oods [that] are to be used at a refinery, not a drilling site,” and FAQ # 420 provides that the directive prohibiting “exportation, or reexportation, directly or indirectly, of goods…in support of exploration or production for [certain] deepwater, Arctic offshore, or shale projects” does not apply to “the provision by U.S. persons…of goods…to persons subject to Directive 4 when such transactions relate only to the transportation, refining, or other dealings involving oil that has already been extracted from a [covered] project and transported out of a field production storage tank or otherwise off of a field production site.” This guidance letter appears to be a straightforward application of FAQ # 420. Where goods are for “for use in a refinery,” they appear to be presumptively covered by FAQ # 420, but there...