OFAC extends deadline for dealings with RUSAL and EN+ Group

The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has extended the expiry date for three general licences allowing certain transactions with sanctioned Russian companies EN+ Group and RUSAL. General Licenses 13E, 14B and 16B extend the expiration date of previous licences from 12 November to 12 December 2018.

Energy company EN+ Group and aluminium producer RUSAL were impacted by targeted US sanctions on oligarch Oleg Deripaska in April in response to the ‘malign activity’ of the Russian state, including suspected meddling in the 2016 US presidential election. Deripaska was until recently president of RUSAL and EN+ Group and is a significant stakeholder in another sanctioned entity, GAZ Group.

New General License 13E supersedes General License 13D in authorising ‘certain transactions’ necessary to divest or transfer debt, equity or other holdings in EN+ Group and RUSAL. General License 14B (superseding General License 14A) authorises ‘certain activities’ necessary for the ‘maintenance or winding down’ of operations or existing contracts with RUSAL, and General License 16B (superseding General License 16A) authorises the same dealings with EN+ Group or Siberian energy company JSC EuroSibEnergo, which is owned by Deripaska.

The licences also cover transactions involving holdings where the sanctioned parties have an indirect or direct ownership of 50% or more.
‘EN+ and RUSAL have approached the US Government about substantial corporate governance changes that could potentially result in significant changes in control. As the review of these proposals is ongoing, OFAC is extending the expiration date of related licenses until December 12,’ said a Treasury spokesperson.

For Treasury’s press release see:
https://home.treasury.gov/news/press-releases/sm509

For OFAC’s notice see:
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20181012.aspx

General License 13E can be found here:
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/ukraine_gl13e.pdf

General License 14B can be found here:
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/ukraine_gl14b.pdf

General License 16B can be found here:
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/ukraine_gl16b.pdf