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OFFICE OF FOREIGN ASSETS CONTROL
DIRECTIVE 1 UNDER EXECUTIVE ORDER 14038
Pursuant to sections 1(a)(ii), 1(b), and 8 of Executive Order 14038 of August 9, 2021, “Blocking Property of Additional Persons Contributing to the Situation in Belarus” (the “Order”), the Acting Director of the Office of Foreign Assets Control has determined, in consultation with the Department of State, that the Ministry of Finance of the Republic of Belarus and the Development Bank of the Republic of Belarus are political subdivisions, agencies, or instrumentalities of the Government of Belarus, and that the following activities by U.S. persons or within the United States are prohibited, except to the extent provided by law or unless licensed or otherwise authorized by the Office of Foreign Assets Control: all transactions in, provision of financing for, and other dealings in new debt with a maturity of greater than 90 days...
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[3-27-23 update: OFAC has implemented this prohibition at 548.202 of the reissued BeSR. The term "greater than 90 days" was replaced with "longer than 90 days"].
1) BACKGROUND; RELATIONSHIP TO SIMILAR AUTHORITIES
Directive 1 Under Executive Order 14038 is unique to the Belarus program, but substantively it is a hybrid of the Russian Sovereign-related Lending Directives and other prohibitions that attach to dealings in “new debt” issued by sanctions targets (including those found at SSI Directive 1, SSI Directive 2, SSI Directive 3 and Venezuela-related EO 13808.
Directive 1 Under EO 14038 is similar to the Russian Sovereign-related Lending Directives in that it applies to dealings related to a subset of financial instruments with a connection...