OFAC Regulatory Provisions - 31 CFR § 589.311

Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.

Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category). Please contact [email protected] or [email protected] with any questions on search results and efficiency.

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TURBOFAC Commentary (229 words)

Notes:

1) This definitional provision was implemented into the in 5-2-2022, and is novel in the sense that the substance does not reproduce prior-issued guidance. The provision is relevant for the purposes of OFAC's designations and additions under 13661 and EO 13662 (i.e. the provisions therein that allow for the imposition of sanctions on persons "operating in" certain sectors of the Russian economy).

2) Compare FAQ # 1019, which defines “new investment in the energy sector in the Russian Federation” for the purposes of EO 14066. The difference between the two definitions of "energy sector" is that 589.311 includes the "in or involving the Russian Federation" language that is missing from FAQ # 1019. This makes sense given that the FAQ 1,019 definition of “new investment in the energy sector in the Russian Federation” is limited to activity that is "located or occurring in the Russian Federation." The difference between the two definitions may signal that "located or occurring in" serves as a substantive limitation to what would qualifies as “new investment in the energy sector in the Russian Federation” for the purposes of EO 14066 (and perhaps EO 14071).

* Note: in the version of the URSR in force from 2014-5/2022, this provision was 31 § 589.311 - United States. That provision was redesignated as part of the URSR amendments in May, 2022.

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31 CFR § 589.311 - Energy sector of the Russian Federation economy.

TURBOFAC Commentary (229 words)