Issuance of Russia-Related Directive Pursuant to Executive Order 13883 of August 1, 2019
Notice published September 16, 2019 · 84 FR 48704
- Document number
- FR Doc. 2019-19890
- Type
- Notice
- Published
- September 16, 2019
- Citation
- 84 FR 48704 (pages 48,704–48,705)
- Action
- Issuance of directive.
- Effective
- August 26, 2019
- Dates
- OFAC's action described in this notice was effective on August 26, 2019.
- Official sources
- PDF (govinfo.gov) · federalregister.gov
Summary
The Federal Register's summaryThe Department of the Treasury's Office of Foreign Assets Control (OFAC) has issued a Russia-Related Directive under Executive Order 13883 of August 1, 2019.
Executive orders cited
- Executive Order 12851 · Other documents citing it
- Executive Order 12938 · Other documents citing it
- Executive Order 13883 · Other documents citing it
Text
As the Government Publishing Office publishes it. Pages OFAC printed as images (in recent notices, the lists of names) are in the official PDF.
[Federal Register Volume 84, Number 179 (Monday, September 16, 2019)]
[Notices]
[Pages 48704-48705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19890]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Issuance of Russia-Related Directive Pursuant to Executive Order
13883 of August 1, 2019
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Issuance of directive.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) has issued a Russia-Related Directive under Executive
Order 13883 of August 1, 2019.
DATES: OFAC's action described in this notice was effective on August
26, 2019.
FOR FURTHER INFORMATION CONTACT: OFAC: Associate Director for Global
Targeting, 202-622-2420; Assistant Director for Licensing, 202-622-
2480; Assistant Director for Regulatory Affairs, 202-622-4855; or
Assistant Director for Sanctions Compliance & Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION: On August 6, 2018, the Secretary of State,
acting pursuant to delegated authority under section 306(a) of the
Chemical and Biological Weapons Control and Warfare Elimination Act of
1991, as amended, 22 U.S.C. 5601 et seq. (CBW Act), determined that the
Government of the Russian Federation (Russia) had used chemical weapons
in violation of international law or had used lethal chemical weapons
against its own nationals. On August 27, 2018, pursuant to his August
6, 2018 determination, the Secretary of State imposed an initial round
of sanctions on Russia (83 FR 43723, August 27, 2018). Section
307(b)(1) of the CBW Act requires the imposition of additional
sanctions on Russia unless, within three months after making such a
determination, the Secretary of State finds Russia has met certain
conditions. On November 6, 2018, the Secretary of State found that
Russia had not met the required conditions. On August 2, 2019, the
Secretary of State selected three additional sanctions to impose on
Russia (84 FR 44671, August 26, 2019).
On August 1, 2019, the President, invoking the authority of, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (IEEPA) and the CBW Act, issued Executive Order (E.O.) 13883
(``Administration of Proliferation Sanctions and Amendment of Executive
Order 12851'') (84 FR 38113, August 5, 2019). The President issued E.O.
13883 in order to take additional steps with respect to the national
emergency described and declared in Executive Order 12938 of November
14, 1994, as amended by and relied on for additional steps in
subsequent Executive Orders.
In E.O. 13883, the President directed the Secretary of the
Treasury, in consultation with the Secretary of State, to take the
following actions when necessary to implement certain sanctions set
forth in E.O. 13883 and section 307(b)(2) of the CBW Act selected for
imposition on a country by the President or the Secretary of State
pursuant to section 307(b)(1) of the CBW Act: (i) Oppose, in accordance
with section 701 of the International Financial Institutions Act (22
U.S.C. 262d), the extension of any loan or financial or technical
assistance to that country by international financial institutions; and
(ii) prohibit any United States bank from making any loan or providing
any credit to the government of that country, except for loans or
credits for the purpose of purchasing food or other agricultural
commodities or products.
Accordingly, on August 2, 2019, pursuant to the Secretary of
State's August 2, 2019 decision to impose additional sanctions on
Russia, E.O. 13883, and the Weapons of Mass Destruction Proliferators
Sanctions Regulations, 31 CFR 544.802, the Director of OFAC issued the
Russia-Related Directive Under Executive Order 13883 of August 1, 2019
(CBW Act Directive). OFAC made the CBW Act Directive available on its
website on August 3, 2019. OFAC is publishing the CBW Act Directive in
the Federal Register, updated to include the number of the Executive
Order of August 1, 2019.
Russia-Related Directive Under Executive Order of August 1, 2019 (``CBW
Act Directive'')
Pursuant to sections 1(a)(ii), 1(b), and 5 of Executive Order 13883
of August 1, 2019 ``Administration of Proliferation Sanctions and
Amendment of Executive Order 12851'' (the ``Order'') and 31 CFR
544.802, and following the Secretary of State's selection of the
sanction related to bank loans pursuant to delegated authority under
section 307(b) of the Chemical and Biological Weapons Control and
Warfare Elimination Act of 1991, as amended (22 U.S.C. 5605(b)), the
Director of the Office of Foreign Assets Control has determined, in
consultation with the Department of State, that the following
activities by a U.S. bank, as defined below, including foreign
branches, are prohibited, except to the extent provided by law or
unless licensed or otherwise authorized by the Office of Foreign Assets
Control: (1) Participation in the primary market for non-ruble
denominated bonds issued by the Russian sovereign, as defined below,
after August 26, 2019; and (2) lending non-ruble denominated funds to
the Russian sovereign, as defined below, after August 26, 2019.
For purposes of this Directive, the term ``U.S. bank'' means,
consistent with the Order and 31 CFR 544.311, any entity organized
under the laws of the United States or any jurisdiction within the
United States (including its foreign branches), or any entity in the
United States, that is engaged in the business of accepting deposits,
making, granting, transferring, holding, or brokering loans or credits,
or purchasing or selling foreign exchange, securities, commodity
futures, or options, or procuring purchasers and sellers thereof, as
principal or agent. The term ``U.S. bank'' includes but is not limited
to
[[Page 48705]]
depository institutions, banks, savings banks, trust companies,
securities brokers and dealers, commodity futures and options brokers
and dealers, forward contract and foreign exchange merchants,
securities and commodities exchanges, clearing corporations, investment
companies, employee benefit plans, and U.S. holding companies, U.S.
affiliates, or U.S. subsidiaries of any of the foregoing. This term
includes those branches, offices and agencies of foreign financial
institutions that are located in the United States and otherwise meet
the definition of ``U.S. bank'' used in this Directive, but not such
institutions' foreign branches, offices, or agencies.
Furthermore, for purposes of this Directive, the term ``Russian
sovereign'' means any ministry, agency, or sovereign fund of the
Russian Federation, including the Central Bank of Russia, the National
Wealth Fund, and the Ministry of Finance of the Russian Federation.
This term does not include state-owned enterprises of the Russian
Federation.
Except to the extent otherwise provided by law or unless licensed
or otherwise authorized by the Office of Foreign Assets Control, the
following are also prohibited: (1) Any transaction that evades or
avoids, has the purpose of evading or avoiding, causes a violation of,
or attempts to violate any of the prohibitions contained in this
Directive; and (2) any conspiracy formed to violate any of the
prohibitions in this Directive.
August 2, 2019
Dated: September 10, 2019.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2019-19890 Filed 9-13-19; 8:45 am]
BILLING CODE 4810-AL-P