Russia-related General License 45 - Authorizing Transactions Related to the Wind Down of Certain Financial Contracts Prohibited by Executive Order 14071 (July 22, 2022) 

Date issued: Jul. 22 2022

Last substantive commentary amendment:
Mar. 11 2024

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TURBOFAC Commentary (606 words)

Notes:

[NOTE - This GL appears to have effectively been extended, at least to some degree, through Jan. 31, 2023, by License No. RUSSIA-EO14024-2022-983909-1]

1) Read together, FAQ 1071 and GL 45 make clear that OFAC regards the entry into derivatives contracts linked to debt of Russian issuers to be prohibited "new investment". In light of the limitation of the scope of GL 45 to "financial contracts or other agreements that were entered into on or before June 6, 2022," OFAC evidently takes the position that it was only on June 6th that OFAC provided fair notice as to its interpretation of the new investment prohibition as covering secondary market trading in Russian issuer debt. See FAQ # 1054. OFAC would evidently say that, while no June 6th guidance directly addressed derivatives, OFACs guidance was clear enough that...