1183. What authorizations are in place with respect to the Moscow Exchange (MOEX), National Clearing Center (NCC), and Non-Bank Credit Institution Joint Stock Company National Settlement Depository (NSD)?
On June 12, 2024, OFAC issued Russia-related general licenses (GLs) GL 99, GL 100, and amended GL 8J, authorizing certain transactions involving MOEX, NCC, NSD, or any entity in which one of these entities owns, directly or indirectly, individually or in the aggregate, a 50 percent or greater interest (collectively, “the Blocked Entities”).
GL 99 authorizes the wind down of transactions involving the Blocked Entities, as well as certain transactions related to the divestment to non-U.S. persons of debt or equity issued or guaranteed by, or derivative contracts involving, the Blocked Entities. For example, GL 99 would authorize a U.S. person to divest their equity in MOEX to a non-blocked non-U.S. person. This authorization expires at 12:01 a.m....
1) See Russia GL 99 and Russia GL 100 for Consolidated Comment on Russia-related General License 99 and Russia-related General License 100.
2) OFAC says that “GL 99 would authorize a U.S. person to divest their equity in MOEX to a non-blocked non-U.S. person.” By “equity in MOEX,” OFAC is referring to equity issued by Moscow Exchange (which is a publicly traded company in Russia), not all equity traded on the exchange.
3) OFAC provides useful guidance specific to GL 100, i.e. that “GL 100 is intended to cover the divestment of debt or equity of non-blocked companies that may be traded on or through one of the Blocked Entities in their capacity as a securities, trade, or settlement depository, central counterparty or clearing house, or public trading market. For example, GL...