OFAC Revokes General License for 2 Belarus Entities on Feb 11, Etc.
The Office of Foreign Assets Control has issued a final rule, effective February 11, 2011, which revokes a general license which authorized U.S. persons to engage in transactions with two blocked entities, Lakokraska OAO and/or Polotsk Steklovolokno OAO1.
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(According to OFAC, this action is being taken in light of the flawed vote count in the recent Belarus presidential election, post-election violence, and the decision by the Government of Belarus to close the Minsk office of the Organization for Security and Co-operation in Europe (OSCE).)
General License Revoked, All Transactions with These Entities Blocked
OFAC is amending the Belarus Sanctions Regulations to remove 31 CFR 548.509 and revoke the general license which authorized U.S. persons to engage until May 31, 2011, in all otherwise prohibited transactions with two blocked entities, Lakokraska OAO and/or Polotsk Stoklovolokno OAO.
All transactions with these entities are blocked, effective February 11, 2011, pursuant to Executive Order 134052.
Entities Previously Blocked in May 2008, General License then Issued in Sept 2008
OFAC previously designated Lakokraska OAO and Polotsk Stoklovolokno OAO (as well as a third company, Belarusian Oil Trade House) under EO 13405 in May 2008, which blocked, with certain exceptions, all property, and interests in property, that were in, or came within, the U.S. or the possession or control of U.S. persons for these entities. (See ITT's Online Archives or 05/27/08 news, 08052799, for BP summary.)
OFAC issued a general license for the two entities in September 2008 in response to the Belarusian Government’s release of its political prisoners.
Delayed Effective Date to Allow Time to Terminate Transactions
OFAC states that the delayed effective date gives U.S. persons a reasonable period of time to wind down and terminate any transactions previously entered into with Lakokraska OAO and/or Polotsk Stoklovolokno OAO under 31 CFR 548.509.
U.S. is Working to Impose Financial Sanctions Against More Belarus Entities/Individuals
The State Department has also issued a press release stating that in response to the continuing crackdown in Belarus, the U.S. is also working to impose financial sanctions against additional Belarusian individuals and/or entities pursuant to EO 13405, among other things. The State Department's press release is available here.
1Lakokraska OAO and Polotsk Steklovolokno OAO are subsidiaries of Belarus’ largest state-owned petroleum and chemical conglomerate, Belneftekhim.
2The President issued EO 13405 on June 16, 2006, blocking the property of certain members of the Government of Belarus and other persons considered to be responsible for misuse of authority and public assets in Belarus.
(See ITT’s Online Archives or 11/29/10 news, 10112942, for BP summary of OFAC's most recent extension of the authorization of transactions with the subject entities to May 31, 2011.
See ITT's Online Archives or 09/09/08 news, 08090920, for BP summary of OFAC's original issuance of the general license.)
OFAC contact − Assistant Director for Compliance, Outreach & Implementation (202) 622-2490
(FR Pub 02/01/11)