Case No. UKRAINE-EO13662-2017-341539-1

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TURBOFAC Commentary (295 words)

Notes:

1) At the time this letter was issued Capablue and Larafort were subject to SSI SSI Directive 1 pursuant to the 50% rule. The interpretive question addressed is whether the purchase of planes from an entity subject to a “new debt” prohibition implicates the new debt prohibition.

OFAC says:

Provided that there will be no prepayments to Capablue and Larafort by Kellstrom, it does not appear that Capablue and Larafort will be extended new debt through the purchase of the Aircraft, as described in the Application. Therefore, the payments for the Aircraft would not appear to implicate the prohibitions found in Directive 1.

This is a notable interpretation of SSI Directive 1, and by extension the “new debt” prohibition in general, insofar as OFAC implies that “prepayments to [entities subject to new debt prohibitions]” made for goods purchased...

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Case No. UKRAINE-EO13662-2017-341539-1

TURBOFAC Commentary (295 words)