OFAC issues new licence and FAQs to aid businesses dealing with RUSAL

The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has issued a new Ukraine/Russia-related licence and FAQs, mitigating the impact of its recent sanctions on those trading with RUSAL, whose former president Oleg Deripaska was listed. Deripaska is still a 48% shareholder in the company. RUSAL is the second-largest aluminium producer in the world, and the potential block on supply to US customers sent aluminium prices rocketing.

General License 14 allows US persons to engage in ‘specified’ transactions concerning the winding down or maintaining of business with RUSAL and its subsidiaries until 23 October 2018, rather than 5 June as previously stated. OFAC states that it will not impose secondary sanctions on non-US persons for dealing with RUSAL or its subsidiaries.

‘RUSAL has felt the impact of US sanctions because of its entanglement with Oleg Deripaska, but the US government is not targeting the hardworking people who depend on RUSAL and its subsidiaries,’ said Treasury Secretary Steven Mnuchin. He confirmed that RUSAL has approached the US to petition for delisting, and the general licence was issued to lessen the impact on RUSAL’s trading partners whilst its petition is considered.

OFAC has also published FAQs providing further information on the scope of the licence, and has issued an amended General License 12A, allowing activities necessary for the maintenance or winding down of existing contracts with RUSAL.

General License 14 can be found here:
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/ukraine_gl14.pdf

FAQs can be found here:
https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_other.aspx#575

General License 12A can be found here:
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/ukraine_gl12a.pdf