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589. Will foreign persons be subject to sanctions under the Section 5 of the Ukraine Freedom Support Act (UFSA) or Section 10 of the Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act (SSIDES), as amended, respectively, by Sections 226 or Section 228 of the Countering America’s Adversaries Through Sanctions Act (CAATSA) for engaging in activities with GAZ Group or any entity in which GAZ Group owns, directly or indirectly, a 50 percent or greater interest?
As described in FAQs 542, 545, 574, and 579, a transaction will not be considered “significant” for the purposes of a sanctions determination under section 10 of SSIDES, as amended by section 228 of CAATSA, and section 5 of UFSA, as amended by section 226 of CAATSA, if a U.S. person would not require a specific license from OFAC to participate in such a transaction. Therefore, activity authorized...
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1) Broadly parallel to FAQ 579 (see comments thereto), concerning Rusal, but as of 4/2019 there has not been an agreement to delist GAZ Group as there was with Rusal.
[1] See OFAC Notification to Congress of its Intention to Terminate the Sanctions Imposed on En+ Group plc, UC Rusal plc, and JSC EuroSibEnergo, see also https://home.treasury.gov/news/press-releases/sm592, announcing the de-listing.
2) See comments to FAQ 542 and FAQ 545, and note the difference in the respective scopes of SSIDES section 10 and UFSA section 5, where the former applies to SDNs and all entities blocked by operation of law, and the latter applies to only listed SDNs.
3) See pertinent interpretive Guidance Letter at Case No. Ukraine-EO13662-2018-354754-1 (2018). See also General Note on Sanctions...