Case No. UKRAINE-EO13661-2018-355043-1

Date issued: Jun. 28 2019

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TURBOFAC Commentary (804 words)

Notes:

1) Relevant Legal Background

The unredacted portion of this letter provides what appears to be a valuable piece to the puzzle of how OFAC treats “negotiations” with non-blocked entities where there is a blocked person associated with the entity. See generally section 5 of the Pre-transactional Activities Note. One one hand, OFAC has said that “transactions or dealings, directly or indirectly, with an SDN, for example by entering into contracts that are signed by an SDN, entering into negotiations with an SDN” are prohibited. (FAQ 505). Likewise, “negotiations” “involving, directly or indirectly, a blocked person” are prohibited (FAQ 400). FAQ # 1145 confirms that “receiving an invoice bearing [a] blocked individual’s signature for a commercial transaction” is prohibited (at least where it the invoice is issued after the blocking).
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