OFAC Issues Russian Energy Sector-Related Sanctions, General License
The Office of Foreign Assets Control on May 21 designated three entities and 13 vessels under the Protecting Europe’s Energy Security Act (PEESA), which authorizes sanctions against Russia’s energy sector and its use of energy export pipelines. OFAC also issued a general license to exempt certain transactions with one of the sanctioned entities and issued two new frequently asked questions.
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The designations target Russia’s Federal State Budgetary Institution Marine Rescue Service (MRS), LLC Mortransservice, Samara Heat and Energy Property Fund, and a range of vessels. PEESA General License 1 authorizes transactions with MRS and any entity it owns by 50% or more as long as those transactions are not related to the construction of the Nord Stream 2 pipeline, the TurkStream pipeline (see 2104160022) or “any project that is a successor to either such project.”
In FAQ 894, OFAC stressed that the general license does not authorize any transactions with the sanctioned vessels, which were added to the agency’s Non-Specially Designateds National Menu-Based Sanctions List. In FAQ 895, OFAC said certain entries designated under PEESA include an “identifier” that those entries’ property is blocked “except for the importation of goods.” Other entries that are designated under both PEESA and “another blocking authority” not subject to that exemption will appear on OFAC’s SDN List, the agency said, which fully blocks their “property and interests.”
OFAC also updated an existing entry for Russia-based LLC Koksokhimtrans. That entry was also designated under PEESA.