The U.K. issued a new general license related to the mounting Russia sanctions, permitting until May 6 a wind-down period for positions with Credit Bank of Moscow. The license says that an individual can slowly drop its transactions, including closing out of any positions, to which it is a party involving the bank or one of its subsidiaries. The U.K. also updated the general license pertaining to winding down positions with Sberbank. The update said the bank remains under an asset freeze, but payments related to energy products for use in the U.K. can continue to be used.
The U.K. updated its General License pertaining to Russian banks to allow payments relating to insolvency proceedings with VTB's British subsidiary. The Office of Financial Sanctions Implementation said that under the license, anyone until April 3, 2023, "may make, receive or process any payments, or take any other action, in connection with any Insolvency Proceedings relating to the UK Subsidiary, whether prior to or after the commencement of such proceedings, including, without limitation, an insolvency practitioner for the purposes of his or her functions under or in connection with Insolvency Proceedings."
The U.S. on April 6 issued a series of new financial restrictions on Russian banks, including full blocking sanctions on Sberbank and Alfa Bank, two of the country's largest financial institutions. The wide-ranging designations also include full-blocking sanctions against a group of Russian state-owned entities "critical" to funding the war in Ukraine, the White House said. Sanctions were also levied against additional Russian government officials, oligarchs and their family members, including the adult children of Russian President Vladimir Putin and members of the Russian security council. President Biden also issued an executive order blocking new investment in Russia by Americans or American companies.
The U.K. released a General License permitting until June 30 the provision of financial services for receiving and transferring non-ruble denominated interest or maturity/principal payments from the Central Bank of Russia, the National Wealth Fund or the Russian Finance Ministry. The license also covers transactions in connection with debt issued before March 1 from individuals owned/controlled or acting on the behalf of the three listed entities.
The U.K.'s Office of Financial Sanctions Implementation released a General License permitting until May 15 the winding down of positions involving sanctioned Russian bank Sovcomflot and its subsidiaries.
The U.K. issued a General License, titled "Continuation of Business and Basic Needs of GEFCO UK Subsidiaries," which permits continuing business operations involving GEFCO -- a joint venture owned by Russian Railways and Stellantis -- or its subsidiaries, until May 23. The subsidiaries include GEFCO UK Ltd., GEFCO Forwarding UK, Auto XP Ltd. or XP Tech Ltd. Permitted activity under the license includes payments to or from the joint venture under contract or payments to or from a third parties needed to continue any obligations or contracts. The license also authorizes a subsidiary to make payments for reasonable fees stemming from routine holding and maintenance of its frozen funds.
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The U.K.'s Office of Financial Sanctions Implementation issued new general licenses for Russia and for Belarus authorizing until April 23 the closing out of any positions involving sanctioned banks. For Russia, these banks are Alfa Bank, GazPromBank, Rosselkhozbank, SMP Bank and the Ural Bank for Reconstruction and Development. For Belarus, the general license applies to Bank Dabrabyt Joint Stock Co. and any of its subsidiaries.
The past several weeks at U.S. sanctions agencies have ranked among the busiest times in recent memory, especially at the Office of Foreign Assets Control, where some employees are working nearly nonstop to implement and enforce new sanctions against Russia, former officials said in interviews. While some former officials said the extra work could shift minor projects to the side, lawyers are concerned it could also delay more pressing agency priorities, including licensing requests.
The U.K. Office of Financial Sanctions Implementation published a General License permitting until May 2 the "winding down of any derivatives, repurchase, and reverse repurchase transactions" made before March 1 with the Russian Central Bank, the Russian National Wealth Fund or the Russian Finance Ministry. The license took effect March 22.