Morgan Lewis US and Russia Sanctions Update
EU Sectoral Sanctions (cont'd)
Loans - for Energy (and Military) Companies and Banks
(cont'd)
And note art. 5.4 (introduced by Dec. 2014 clarification) - carving out from the
general prohibition new drawdowns/disbursements under pre-12 Sept. loan/
credit contracts
If
"all the terms and conditions" were agreed pre-12 Sept. 2014 and haven't been modified since
then; and
before 12 Sept. 2014 "a contractual maturity date has been fixed for the repayment in full
of all funds made available ..."
Possible issues re
whether “all” terms and conditions really mean all (ref. FAQ 30 by analogy?)
treatment of typical carry-type loans - re the "repayment in full" aspect (in case no commercial
discovery)
• Again, see the various EU Guidance Note FAQ clarifications
Note - here again, there have been many such license applications / approvals to
date (experience varying by member state)
Morgan Lewis
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