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546. In section 10(a)(2)(A) of the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 (SSIDES), as amended by section 228 of the Countering America’s Adversaries Through Sanctions Act (CAATSA), and implemented in § 589.201(a)(6)(vii)(B)(1) of the
Ukraine-/Russia-Related Sanctions Regulations (URSR), are persons “subject to sanctions imposed by the United States with respect to the Russian Federation” limited to persons listed on OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List, or does it also include persons identified on the Sectoral Sanctions Identifications (SSI) List, Non-SDN Menu-Based Sanctions (NS-MBS) List, or other OFAC sanctions lists?
For purposes of section 10(a)(2)(A) of SSIDES and § 589.201(a)(6)(vii)(B)(1) of the URSR, OFAC will interpret the phrase “subject to sanctions imposed by the United States with respect to the Russian Federation” to be persons subject to sanctions under SSIDES, as amended, the Ukraine Freedom Support Act (UFSA),...
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1) Read this FAQ in conjunction with FAQ # 542 and FAQ # 545, specifying that, for secondary sanctions purposes, a transaction is only "significant" if it is one in which a U.S. person could not engage without a license. Those statements, explicit in the Russia context but apparently a reflection of OFAC's practice as a general matter, appear to be the result of the interpretation taken in this FAQ. SSIDES, as amended by CAATSA, requires secondary sanctions on foreign persons for significant transactions with all persons "subject to sanctions imposed by the United States with respect to the Russian Federation." As discussed in General Note on "Sectoral Sanctions" and Determinations Made Pursuant to EOs Providing for the Blocking of Persons Determined to "Operate In" a Certain Sector (System Ed. Note), the legal structure underpinning the...