OFAC FAQ (Current) # 1049 - Russian Harmful Foreign Activities Sanctions

Date issued: Jun. 06 2022

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TURBOFAC Commentary (333 words)

Notes:

1) This FAQ is extremely important for the purposes of interpreting the EO 14066 and EO 14071 "new investment" bans, and represents a significant break from the past with respect to interpretations of the term "new investment".

FAQ # 1049 says that OFAC “views ‘investment’ as the commitment of capital or other assets for the purpose of generating returns or appreciation…”

This represents a significant departure from all other OFAC-administered definitions of “new investment,” including the definition found in the version of FAQ # 1019 in force prior to June 6, 2022. OFAC clarifies that there are, as a threshold issue, several prongs that have to be satisfied before an action can constitute "new investment".

*Transaction after the sanctions effective date
* "[C]ommitment of capital or other assets"...