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Today’s lesson: secondary sanctions under CAATSA

546. In section 10(a)(2)(A) of SSIDES, are persons “subject to sanctions imposed by the United States with respect to the Russian Federation” limited to persons listed on OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List, or does it also include persons identified on the Sectoral Sanctions Identifications (SSI) List or other OFAC sanctions lists?

For purposes of implementing section 10(a)(2)(A) of SSIDES, OFAC will interpret the phrase “subject to sanctions imposed by the United States with respect to the Russian Federation” to be persons subject to sanctions under SSIDES, as amended, UFSA, as amended, provisions of CAATSA with respect to the Russian Federation, and any covered Executive order as defined in Section 10(f)(1) of SSIDES.  Persons “subject to sanctions imposed by the United States with respect to the Russian Federation” includes persons listed on the SDN List, SSI List, or NS-MBS List, as well as persons subject to sanctions pursuant to OFAC’s 50 percent rule.

I learned something new… So, CAATSA modified SSIDES to permit secondary sanctions to be imposed on those sanctioned under the Ukraine/Russia program. I had assumed, incorrectly, that the wording related only to asset freezes (partly because the references to the Executive Orders in the next section mention blocking). Good to know… would be easy to be confused, as the NS-MBS list didn’t exist when CAATSA was passed, and it refers to sanctions imposed under Sec. 231 of CAATSA, and not anything in the listed Executive Orders.

Link:

OFAC Ukraine/Russia FAQ

Categories: Crimea Ukraine sanctions Frequently Asked Questions (FAQ) Guidance OFAC Updates Russia sanctions Ukraine sanctions

eric9to5

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