Case No. Ukraine-EO13661-2018-352620-1

Date issued: Oct. 19 2018

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TURBOFAC Commentary (259 words)

Notes:

1) This is one of several interpretive guidance letters addressing dealings with Rusal or its subsidiaries under Ukraine General License Number 14. Compare e.g. Case No. UKRAINE-EO13662-2018-355180-1, Case No. UKRAINE-EO13662-2019-358745-1 and Case No. UKRAINE-EO13662-2018-354836-1.

2) The guidance letter is notable for two reasons. First based on the recounting of the facts, the citation to the “maintenance”-enabling GL 14 and the lack of any indication that the transactions would not have been authorized for a U.S. person acting under GL 14 OFAC appears to accept that making the disbursements pursuant to the pre-existing loan agreement would not be sanctionable. It appears key here that “such activity is ordinarily incident and necessary to contracts in effect prior to April 6, 2018”.

3) The letter...