Russian Harmful Foreign Activities General License 2 - Authorizing Certain Servicing Transactions Involving State Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank (February 22, 2022)

Date issued: Feb. 22 2022

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TURBOFAC Commentary (171 words)

Notes:

1) This is one of five GLs that apply to Vnesheconombank. As explained in the press release announcing the designation of Vnesheconombank, "VEB occupies a unique role in Russia’s financial system as the servicer of Russia’s sovereign debt, financier for exports, and a funding source for investment projects with a loan portfolio of over $20 billion." (See https://home.treasury.gov/news/press-releases/jy0602).

On the day Vnesheconombank was blocked, OFAC issued Directive 1A Under Executive Order 14024, which prohibits "as of March 1, 2022, participation in the secondary market for ruble or non-ruble denominated bonds issued after March 1, 2022 by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation."

The purpose of this GL is to allow for...