US Sectoral Sanctions slide image

US Sectoral Sanctions

US Direct Sanctions - SDNS (cont'd) - Specific licenses – needed (especially by a US person) for any activity vis-à-vis an SDN that is otherwise prohibited by law, absent coverage by any general license ("GL" - see slides 44-45 re two important Russia GLs) These licenses are issued on a private basis to the specific applicant (i.e., are not published or usable by others) - - - These may be / are granted by OFAC to allow certain transactions such as purchases/sales or money transfers to or from an SDN for a longer period than an applicable general license allows (or if no general license applies) For example, see the report of Swiss pump-maker Sulzer obtaining two such licenses in April 2018, allowing (i) its buyback of shares from new SDN Mr. Vekselberg to reduce his holding to below 50%, and (ii) the related unblocking of Sulzer's US bank accounts Also the Oct. 2019 private license(s) reportedly granted for an SDN'd Chinese- owned ship to onload cargo (and various other examples reported from time to time) And such licenses may be granted to allow US lawyers to advise / collect fees from SDNS on sanctions compliance (incl. possible help in trying for SDN delisting) Morgan Lewis 39 9
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