Russia, Ukraine: update to April 18 | Bass, Berry & Sims APIs

Bass, Berry & Sims’ international trade team is actively monitoring the situation in Russia and Ukraine and providing real-time advice to customers on how to handle the situation. This article summarizes new U.S. export sanctions and restrictions effective April 18. This article complements our previous summaries, which are available by following the links at the end of this blog post.

President Biden extends national emergency under Executive Order 14024

On April 13, President Biden widened national emergency declared under Executive Order (EO) 14024 for another year due to the harmful foreign activities of the Russian government. EO 14024, as developed by EOs 14039, 14066, 14068and 14071gives the U.S. government blanket authorization to take the actions described in our updates.

Commerce adds to list of Russian-owned/operated and Belarus-owned/operated aircraft in violation of EAR

On April 14, the U.S. Department of Commerce, Bureau of Industry & Security (BIS) update its growing list of aircraft that have flown into Russia and/or Belarus in apparent violation of Export Administration Regulations (EAR). BIS published the initial list on March 18 and an updated list at March 30.

The BIS previously removed license exceptions for aircraft registered, owned, controlled by, or chartered or leased by Russia, Belarus or nationals of Russia or Belarus. Any aircraft manufactured in the United States, or aircraft manufactured outside the United States that contains more than 25% US-origin controlled content, is subject to a licensing requirement if destined for Belarus or Russia.

The April 14 update includes, for the first time, Belarusian owned/operated aircraft, bringing the current total to 153 aircraft, of which 146 are Russian owned/operated. The tail numbers of 32 previously identified planes have been updated to also reflect the alleged re-registration in Russia.

BIS also withdrew two aircraft that the US government allowed to leave Russia: VQ-BTK (Azur Air) and VP-BJR (Nordwind). In its March 30 press release, the BRI summarized the two-pronged process for requesting the delisting of an aircraft. More information is available in our April 1 message.

OFAC issues general license 26

On April 12, the Office of Foreign Assets Control (OFAC) released General License (GL) 26which authorizes all transactions usually incidental and necessary to the liquidation of transactions involving the joint stock company SB Sberbank Kazakhstan or Sberbank Europe AG (and any entity in which either has a 50% or more interest) up to to July 12, 2022. OFAC previously designated Sberbank as a forbidden holiday on April 6.

GL 26 does not allow transactions prohibited by Guideline 2which requires all U.S. financial institutions to close any Sberbank correspondent or transit account and reject any future transactions involving Sberbank or any of its foreign financial institution subsidiaries within 30 days of designation, and Guideline 4which requires a license for any transaction involving the Central Bank of Russia, the National Wealth Fund of the Russian Federation or the Russian Ministry of Finance, including any transfer to or on behalf of these entities.

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