Rule2022-11606
Publication of Russian Harmful Foreign Activities Sanctions Regulations Determinations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 31, 2022
Effective
June 7, 2022
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing two sectoral determinations issued pursuant to an April 15, 2021 Executive order, as well as a category of services determination issued pursuant to an April 6, 2022 Executive order. Each determination was previously issued on OFAC's website.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 104 (Tuesday, May 31, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 104 (Tuesday, May 31, 2022)]
[Rules and Regulations]
[Pages 32307-32308]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11606]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 587
Publication of Russian Harmful Foreign Activities Sanctions
Regulations Determinations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Publication of determinations.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is publishing two sectoral determinations issued
pursuant to an April 15, 2021 Executive order, as well as a category of
services determination issued pursuant to an April 6, 2022 Executive
order. Each determination was previously issued on OFAC's website.
DATES: The March 31, 2022 Determination Pursuant to Section (1)(a)(i)
of Executive Order 14024 was issued on March 31, 2022. The May 8, 2022
Determination Pursuant to Section (1)(a)(i) of Executive Order 14024
was issued on May 8, 2022. The May 8, 2022 Determination Pursuant to
Section 1(a)(ii) of Executive Order 14071 was issued on May 8, 2022 and
takes effect on June 7, 2022.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Sanctions Compliance &
Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: <a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>.
Background
On April 15, 2021, the President, invoking the authority of, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.) (IEEPA), issued Executive Order (E.O.) 14024 (86 FR 20249,
April 19, 2022). Among other prohibitions, section 1(a) of E.O. 14024
blocks, with certain exceptions, all property and interests in property
that are in the United States, that come within the United States, or
that are or come within the possession or control of any U.S. person
of, any person determined by the Secretary of the Treasury, in
consultation with the Secretary of State: (i) To operate or have
operated in the technology sector or the defense and related materiel
sector of the Russian Federation economy, or any other sector of the
Russian Federation economy as may be determined by the Secretary of the
Treasury, in consultation with the Secretary of State.
On April 6, 2022, the President, invoking the authority of, inter
alia, IEEPA, issued E.O. 14071 of April 6, 2022, ``Prohibiting New
Investment in and Certain Services to the Russian Federation in
Response to Continued Russian Federation Aggression'' (87 FR 20999,
April 8, 2022). Among other prohibitions, section 1(a)(ii) of E.O.
14071 prohibits the exportation, reexportation, sale, or supply,
directly or indirectly, from the United States, or by a United States
person, wherever located, of any category of services as may be
determined by the Secretary of the Treasury, in consultation with the
Secretary of State, to any person located in the Russian Federation.
On March 31, 2022, the Secretary of the Treasury, in consultation
with the Secretary of the State, issued a sectoral determination
pursuant to E.O. 14024. This determination took effect upon publication
on OFAC's website, which occurred on March 31, 2022. On May 8, 2022,
pursuant to delegated authority, the Director of OFAC, in consultation
with the Department of State, issued a sectoral determination pursuant
to E.O. 14024. This determination took effect upon publication on
OFAC's website, which occurred on May 8, 2022. Also on May 8, 2022,
pursuant to delegated authority, the Director of OFAC, in consultation
with the Department of State, issued a category of services
determination pursuant to E.O. 14071. This determination takes effect
at 12:01 a.m. eastern daylight time on June 7, 2022.
The texts of the March 31, 2022 and May 8, 2022 sectoral
determinations pursuant to E.O. 14024, and the May 8, 2022 category of
services determination pursuant to E.O. 14071, are below.
Determination Pursuant to Section 1(a)(i) of Executive Order 14024
Section 1(a) of Executive Order (E.O.) 14024 of April 15, 2021
(``Blocking Property With Respect To Specified Harmful Foreign
Activities of the Government of the Russian Federation'') imposes
economic sanctions on any person determined by the Secretary of the
Treasury, in consultation with the Secretary of State, or the Secretary
of State, in consultation with the Secretary of the Treasury, to
operate or have operated in such sectors of the Russian Federation
economy as may be determined, pursuant to section 1(a)(i) of E.O.
14024, by the Secretary of the Treasury, in consultation with the
Secretary of State.
To further address the unusual and extraordinary threat to the
national security, foreign policy, and economy of the United States
described in E.O. 14024, and in consultation with the Secretary of
State, I hereby determine that section 1(a)(i) shall apply to the
aerospace, electronics, and marine sectors of the Russian Federation
economy. Any person that I or my designee, in consultation with the
Secretary of State or the Secretary of
[[Page 32308]]
State's designee, or the Secretary of State or the Secretary of State's
designee, in consultation with me or my designee, subsequently
determine operates or has operated in such sectors shall be subject to
sanctions pursuant to section 1(a)(i).
This determination shall take effect upon publication by the
Director of the Office of Foreign Assets Control on the Department of
the Treasury's website.
Janet L. Yellen
Office of Foreign Assets Control
Determination Pursuant to Section 1(a)(i) of Executive Order 14024
Section 1(a) of Executive Order (E.O.) 14024 of April 15, 2021
(``Blocking Property With Respect To Specified Harmful Foreign
Activities of the Government of the Russian Federation'') imposes
economic sanctions on any person determined by the Secretary of the
Treasury, in consultation with the Secretary of State, or the Secretary
of State, in consultation with the Secretary of the Treasury, to
operate or have operated in such sectors of the Russian Federation
economy as may be determined, pursuant to section 1(a)(i) of E.O.
14024, by the Secretary of the Treasury, in consultation with the
Secretary of State.
To further address the unusual and extraordinary threat to the
national security, foreign policy, and economy of the United States
described in E.O. 14024, and in consultation with the Department of
State and pursuant to 31 CFR 587.802, I hereby determine that section
1(a)(i) shall apply to the accounting, trust and corporate formation
services, and management consulting sectors of the Russian Federation
economy. Any person that the Secretary of the Treasury or the Secretary
of the Treasury's designee, in consultation with the Secretary of State
or the Secretary of State's designee, or the Secretary of State or the
Secretary of State's designee, in consultation with the Secretary of
the Treasury or the Secretary of the Treasury's designee, subsequently
determines operates or has operated in such sectors shall be subject to
sanctions pursuant to section 1(a)(i).
This determination shall take effect upon publication by the Office
of Foreign Assets Control on the Department of the Treasury's website.
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
May 8, 2022.
Office of Foreign Assets Control
Determination Pursuant to Section 1(a)(ii) of Executive Order 14071
Prohibitions Related to Certain Accounting, Trust and Corporate
Formation, and Management Consulting Services
Pursuant to sections 1(a)(ii), 1(b), and 5 of Executive Order
(E.O.) 14071 of April 6, 2022 (``Prohibiting New Investment in and
Certain Services to the Russian Federation in Response to Continued
Russian Federation Aggression'') and 31 CFR 587.802, the Director of
the Office of Foreign Assets Control, in consultation with the
Department of State, hereby determines that the prohibitions in section
1(a)(ii) of E.O. 14071 shall apply to the following categories of
services: Accounting, trust and corporate formation, and management
consulting. As a result, the following activities are prohibited,
except to the extent provided by law, or unless licensed or otherwise
authorized by the Office of Foreign Assets Control: The exportation,
reexportation, sale, or supply, directly or indirectly, from the United
States, or by a United States person, wherever located, of accounting,
trust and corporate formation, or management consulting services to any
person located in the Russian Federation.
This determination excludes the following:
(1) Any service to an entity located in the Russian Federation that
is owned or controlled, directly or indirectly, by a United States
person;
(2) any service in connection with the wind down or divestiture of
an entity located in the Russian Federation that is not owned or
controlled, directly or indirectly, by a Russian person.
This determination shall take effect beginning at 12:01 a.m.
eastern daylight time on June 7, 2022.
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-11606 Filed 5-27-22; 8:45 am]
BILLING CODE 4810-AL-P
</pre></body>
</html>Indexed from Federal Register on May 31, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.