OFAC issues new licences for Russia sanctions, extends energy transactions through 2025

The US Treasury’s Office of Foreign Assets Control (‘OFAC’) has issued five new general licences (‘GLs’) modifying restrictions on transactions with Russia, including an extension of energy-related transactions until 30 April 2025.

Under General License No. 8K, OFAC authorises ‘transactions related to energy’ with designated Russian banks including Sberbank, VTB Bank, Alfa-Bank and several others. The licence defines energy-related activities as including ‘the extraction, production, refinement, liquefaction, gasification, regasification, conversion, enrichment, fabrication, transport, or purchase of petroleum’ and other energy products.

The agency also provided a wind-down period for certain newly sanctioned entities.

‘All transactions ordinarily incident and necessary to the wind down of any transaction involving one or more of the following blocked entities are authorized through 12:01 a.m. eastern standard time, December 14, 2024,’ OFAC stated in General License No. 110, which covers several companies, including XH Smart Tech China Co Ltd, Lokesh Machines Limited, Orbit Fintrade LLP and Wuhan Huazhong Numerical Control Co Ltd.

Meanwhile, GL No. 25G authorises ‘the receipt or transmission of telecommunications involving the Russian Federation’ as well as various internet-based communications services, including ‘instant messaging, chat and email, social networking, sharing of photos and movies, web browsing, blogging, [and] social media platforms.’

Another licence, GL No. 111, permits certain debt and equity transactions involving designated blocked entities – including XH Smart Tech China Co Ltd, Lokesh Machines Limited, and Wuhan Huazhong Numerical Control Co Ltd — until December 14. GL No. 112, meanwhile, authorizes civil aviation safety transactions with Shaurya Aeronautics Private Limited through the same date.

The licences maintain restrictions on transactions involving Russian sovereign debt and certain Russian financial institutions under various directives of Executive Order 14024.

All five GLs were published on 30 October.

https://ofac.treasury.gov/media/933531/download?inline https://ofac.treasury.gov/media/933541/download?inline https://ofac.treasury.gov/media/933536/download?inline https://ofac.treasury.gov/media/933546/download?inline https://ofac.treasury.gov/media/933551/download?inline