OFAC FAQ (Current) # 1052 - Russian Harmful Foreign Activities Sanctions

Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.

Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category). Please contact [email protected] or [email protected] with any questions on search results and efficiency.

Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.

TURBOFAC Commentary (299 words)

Notes:

1) This key FAQ is one of a few that describe the ad-hoc "maintenance" exclusion to the “new investment” prohibition, which exist as a distinct ad-hoc exclusion from the exclusion for transactions “related to divestment” (see FAQ 1053).

2) The maintenance FAQ raises a number of interpretive questions. Of particular note:

(i) Does the exclusion for “maintenance” apply, in practice, to “all transactions ordinarily incident to” covered maintenance activities as if there were a general license for all transactions otherwise prohibited that qualify for OFAC’s definition of “maintenance” and were prohibited solely by the “new investment” prohibition?
(ii) Does the limitation of the maintenance exclusion for “expansion” of pre-existing projects apply solely with respect to the intent of the otherwise prohibited commitment of assets at the time they were committed?
(iii) Is the reinvestment of profits...

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OFAC FAQ (Current) # 1052 - Russian Harmful Foreign Activities Sanctions

TURBOFAC Commentary (299 words)