GUIDANCE ON THE BLOCKING OF PROPERTY OF CERTAIN PERSONS UNDERMINING THE DEMOCRATIC PROCESSES OR INSTITUTIONS IN BELARUS BY EXECUTIVE ORDER 13405
The Office of Foreign Assets Control ("OFAC") has received a number of inquiries in regard to the "Guidance on Entities Owned by Persons Whose Property and Interest in Property are Blocked," of February 14, 2008, (the "Guidance") and its applicability to the Belarusian State Concern for Oil and Chemistry ("Belneftekhim"), an entity which was designated on November 13, 2007, pursuant to Executive Order 13405 of June 16, 2006 ("E.O. 13405").
U.S. persons who have or who are contemplating business relationships with entities in which Belfneftekhim owns, directly or indirectly, a 50% or greater interest should be aware that the property and interests in property of such entities are blocked pursuant to E.O. 13405, regardless of whether the entities themselves are listed in the annex of E.O. 13405 or otherwise placed on OFAC's list of Specially Designated Nationals.
Please refer to the Guidance for further details when considering transactions involving entities in which Belneftekhim may have an interest.
1) Guidance designed to clarify that entities can be "blocked by operation of law" even if OFAC does not place them on the SDN list.
2) In light of the August 2014 "Revised Guidance on Entities Owned by Persons Whose Property and Interests in Property are Blocked," this guidance should read something like "entities in which Belfneftekhim owns, whether individually or in the aggregate along with other SDNs, directly or indirectly, a 50%..."
3) See related enforcement action: Civil Enforcement Information - Zoltek Companies, Inc. (2018).