World ECR | OFAC issues new licenses targeting Russia sanctions,

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued five new general licenses (GLs) that modify restrictions on transactions with Russia, including extending the deadline for energy-related transactions to April 30, 2025.

Under General License No. 8K, OFAC authorizes “energy-related transactions” with designated Russian banks, including Sberbank, VTB Bank, Alfa-Bank and several others. The license defines energy-related activities as “the extraction, production, refining, liquefaction, gasification, regasification, conversion, concentration, manufacture, transportation or purchase of petroleum” and other energy products.

The agency also provides a grace period for certain newly sanctioned entities.

OFAC stated in General License No. 110 that “all transactions generally incidental to and necessary for any transaction involving one or more of the following blocked entities are authorized before 12:01 a.m. Eastern Standard Time on December 14, 2024.” . Covers several companies, including XH Smart Tech China Co Ltd, Lokesh Machines Limited, Orbit Fintrade LLP and Wuhan Huazhong CNC Co., Ltd.

Meanwhile, GL No. 25G authorizes “the reception or transmission of telecommunications involving the Russian Federation” as well as a variety of Internet-based communication services, including “instant messaging, chat and email, social networking, photo and movie sharing, web browsing, blogging, ( and) social media platforms.”

Another license, GL No. 111, allows certain debt and equity transactions involving designated blocked entities, including XH Smart Tech China Co Ltd, Lokesh Machines Limited and Wuhan Huazhong CNC Co Ltd, until December 14. Meanwhile, GL No. 112 authorized the civil aviation safety transaction with Shaurya Aeronautics Private Limited on the same day.

Under various directives of Executive Order 14024, these licenses retain restrictions on transactions involving Russian sovereign debt and certain Russian financial institutions.

All five GLs were released on October 30th.