OFAC ISSUES NEW GENERAL LICENSE RELATED TO CIVIL AVIATION SAFETY
September 26, 2022
On August 3, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued a new General License related to its Russian Harmful Activities Sanctions Regulations. Specifically, General License No. 40B, concerning civil aviation safety, provides that all transactions ordinarily incident and necessary to the provision, exportation, or re-exportation of goods, technology, or services to ensure the safety of civil aviation involving one or more previously blocked entities are now authorized, provided that they meet the following conditions. First, the aircraft involved must be registered in a jurisdiction outside of the Russian Federation; and second, the goods, technology, or services provided, exported, or reexported must be for use on aircraft operated solely for civil aviation purposes.
It is important to note that the new General License does not authorize the following transactions: (1) any transactions prohibited by Directive 2 under E.O. 14024 (“Prohibition Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions”); (2) any transactions prohibited by Directive 4 under E.O. 14024 (“Prohibitions Related to Transactions Involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation”); or (3) any transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR Part 587 (RuHSR), including transactions involving any person blocked pursuant to the RuHSR other than the blocked entities listed in the Annex to General License 40B, unless separately authorized.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
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