31 CFR § 589.520 - Certain transactions in support of nongovernmental organizations’ activities in the Crimea region of Ukraine.

Date issued: May. 02 2022

TURBOFAC Commentary (267 words)

Notes:

1) For comments on the aspects of NGO-related GLs such as this that are conducive to cross-programmatic comment, refer to General Note on GLs Authorizing Transactions of and Related to Nongovernmental Organizations (NGOs) (System Ed. Note). The nature of the NGO-related activities described at paragraphs (a)-(e) of the GL is similar to those described in the standard NGO GL, but there are some differences at the margins.

2) Be wary of the relatively limited scope for license exemptions in the EAR in connection with Crimea-related activities.

3) Compare the scope of the term "food" with what is available for export for TSRA-eligible countries (see also 560.530). The scope of this GL is far narrower, as "agricultural commodities" are not permitted.

4) This GL almost certainly contains a crucial error. The GL authorizes transactions "that would be prohibited by § 589.206" (such that transactions prohibited by other provisions of the URSR are authorized only insofar as they are "ordinarily incident" to the transactions otherwise prohibited by 589.206). 589.206 is the "new investment" prohibition. As structured, the GL makes no sense, because it only authorizes the exportation of services to Crimea insofar as such services are ordinarily incident to otherwise prohibited new investment. It is virtually assured that OFAC meant to have the GL key off of the prohibition at 589.207 (Prohibited exportation, reexportation, sale, or supply of goods, services, or technology to the Crimea region of Ukraine). That is the same structure that 542.516 of the SySR took prior to the 2021 amendment of that provision.