OFFICE OF FOREIGN ASSETS CONTROL
DIRECTIVE 1 (AS AMENDED ON SEPTEMBER 29, 2017)[1]
UNDER EXECUTIVE ORDER 13662
Pursuant to sections 1(a)(i), 1(b), and 8 of Executive Order 13662 of March 20, 2014, "Blocking Property of Additional Persons Contributing to the Situation in Ukraine" (the Order) and 31 C.F.R. § 589.802, taking appropriate account of the Countering Russian Influence in Europe and Eurasia Act of 2017, and following the Secretary of the Treasury’s determination under section 1(a)(i) of the Order with respect to the financial services sector of the Russian Federation economy, the Director of the Office of Foreign Assets Control has determined, in consultation with the Department of State, that the following activities by a U.S. person 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:
(1) For new debt or new equity issued on or after July 16, 2014 and before September 12, 2014, all transactions in, provision of financing for, and other dealings in new debt of longer than 90 days maturity or new equity of persons determined to be subject to this Directive or any earlier version thereof, their property, or their interests in property.
(2) For new debt or new equity issued on or after September 12, 2014 and before November 28, 2017, all transactions in, provision of financing for, and other dealings in new debt of longer than 30 days maturity or new equity of persons determined to be subject to this Directive or any earlier version thereof, their property, or their interests in property.
(3) For new debt or new equity issued on or after November 28, 2017, all transactions in, provision of financing for, and other dealings in new debt of longer than 14 days maturity or new equity of persons determined to be subject to this Directive or any earlier version thereof, their property, or their interests in property.
All other activities with these persons or involving their property or interests in property are permitted, provided such activities are not otherwise prohibited pursuant to Executive Orders 13660, 13661, 13662, or 13685 or any other sanctions program implemented by the Office of Foreign Assets Control.
Except to the extent otherwise provided by law or unless licensed or otherwise authorized by the Office of Foreign Assets Control, the following are also prohibited: (1) any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions contained in this Directive; and (2) any conspiracy formed to violate any of the prohibitions in this Directive.
A complete listing of persons determined to be subject to one or more directives under Executive Order 13662 can be found in OFAC’s Sectoral Sanctions Identifications (SSI) List on OFAC’s Web site (http://www.treasury.gov/ofac) at http://www.treasury.gov/resource- center/sanctions/SDN-List/Pages/ssi_list.aspx.
September 29, 2017
[1] Two prior versions of this Directive, which were issued on July 16, 2014 and September 12, 2014, and which are superseded by this version, prohibited these same activities but involved debt of longer than 90 days maturity (July 16, 2014 version) or 30 days maturity (September 12, 2014 version) or equity if that debt or equity was issued on or after the date a person was determined to be subject to the Directive.
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Notes:
1) See FAQs, regulatory provisions and other documents categorized in the "discrete legal provision" search function as pertaining to SSI Directive 1, and comments thereto, for more detail on the scope and operation of this SSI directive. The FAQs have addressed most of the discrete interpretive issues that have arisen from the directives, including the relationship between the directives and the 50% rule. (Search in the "Discrete Legal Provision" category on the Research System interface).
2) Technically, violations of the "Sectoral Sanctions List" directives would constitute violations of 589.201 of the URSR, which covers all conduct prohibited by EO 13662, but in practice the operation of the directives is divorced from the URSR, of which the abbreviated regulations are aimed at dealing with the blocking component of the EOs they implement. See e.g. Civil Enforcement Information - Haverly Systems, Inc.
3) Directive amended in 2017 pursuant to/at the direction of CAATSA. The version in force prior to the amendment is available in the PDF file. See related FAQs for a discussion of the differences between the modified Directive and the version preceding it.
4) For comments on the technical relationship between this directive and the blocking provision at Sec. 1(a)(i) of EO 13662, see 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).
5) See comment 5 to Venezuela General License 8 regarding the relationship between the "new debt" prohibitions and the notions of "subsidization" and "in kind" contributions.
* See generally General Note on the Prohibitions on Dealings in “New Debt” of Certain Sanctions Targets (System Ed. Note)