Case No. UKRAINE-EO13662-2018-331136-1
[ ]
Advanced Mat Systems LLC
1030 County Road 129
Alvin, Texas
77511
Dear [ ]:
This responds to your request of July 6, 2016, and additional correspondence of July 22, 2016, July 26, 2016 and July 22, 2019 (collectively, the “Application”) on behalf of Advanced Mat Systems LLC, a U.S. entity, and Advanced Mat Systems Inc., a Canadian entity that is 50 percent owned by a U.S. citizen (collectively, “AMS”) to the Office of Foreign Assets Control (OFAC). Your initial application had sought authorization, to the extent required, for AMS to export manufactured antiskid safety pads (the “Goods”) to LUKOIL- Nizhnevolzhskneft (“LUKOIL-Nizh”), an entity listed on the Sectoral Sanctions Identification List (SSI List) and which is subject to Directive 4 under Executive Order 13662 of March 20, 2014 (E.O. 13662),...
1) Note here the use of the term “solely,” suggesting that if the goods are used for a non-prohibited project in Russia in addition to others, the exportation of the goods is within the scope of Directive 4. From a diligence standpoint, it is not clear precisely what OFAC would expect USPs to do to ensure that goods sold free and clear to a Russian entity are “solely” used for a given purpose. OFAC does, however, at least recognize that it is feasible to sell such goods to Russian entities in compliance with OFAC’s regulations. In the absence of guidance to the contrary, one would assume that OFAC’s diligence expectations are not materially different in this context, where the concern would be diversion of goods to a prohibited project, than they would be in the context of exporting goods to a trading company in the UAE...