Ukraine General License Number 1B - Authorizing Certain Transactions Related to Derivatives Prohibited by Directives 1, 2, and 3 Under Executive Order 13662 (issued November 28, 2017)

Date issued: Nov. 28 2017

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TURBOFAC Commentary (543 words)

Notes:

[*Update: on 5-2-22, this GL was implemented into the URSR at 589.512, with no substantive changes. Web GL removed from website.]

1) See FAQ 411, FAQ 372, FAQ 393, and comments thereto, for discrete issues raised by the GL, along with the implications of considering "derivatives" as within the scope of the SSI directives to begin with. In short, OFAC impliedly considers a dealing in a derivative contract—even one solely between two U.S. persons—to constitute, within the meaning of e.g. Directive 1, a "dealing in" the otherwise prohibited reference asset. This is a particularly broad interpretation of the term "dealing in." Compare EO 13808 (Venezuela), which was likewise interpreted as covering derivates, but in that case the prohibition was drafted so...