26094 Federal Register / Vol. 87, No. 84 / Monday, May 2, 2022 / Rules and Regulations 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 589 

Ukraine-/Russia-Related Sanctions 

Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (OFAC) is changing the heading 

of the Ukraine Related Sanctions 

Regulations to the Ukraine-/RussiaRelated Sanctions Regulations, and 

replacing the Ukraine Related Sanctions 

Regulations that were published in 

abbreviated form on May 8, 2014, with 

a more comprehensive set of regulations 

that includes additional interpretive and 

definitional guidance, general licenses, 

and other regulatory provisions that will 

provide further guidance to the public. 

Among other things, this amendment 

implements the Ukraine-/Russia-related 

Executive order of December 19, 2014, 

and provisions of the Ukraine Freedom 

Support Act of 2014, the Support for the 

Sovereignty, Integrity, Democracy, and 

Economic Stability of Ukraine Act of 

2014, and the Countering America’s 

Adversaries Through Sanctions Act. In 

addition, this amendment incorporates 

four directives regarding sectoral 

sanctions issued pursuant to the 

Ukraine-/Russia-related Executive order 

of March 20, 2014, and six general 

licenses that have until now appeared 

only on OFAC’s website, as well as 

seven new general licenses. 

DATES: This rule is effective May 2, 

2022. 

FOR FURTHER INFORMATION CONTACT: 

OFAC: Assistant Director for Licensing, 

202–622–2480; Assistant Director for 

Regulatory Affairs, 202–622–4855; or 

Assistant Director for Sanctions 

Compliance & Evaluation, 202–622– 

2490. 

SUPPLEMENTARY INFORMATION: 

Electronic Availability 

This document and additional 

information concerning OFAC are 

available on OFAC’s website: 

www.treas.gov/ofac. 

Background 

On May 8, 2014, OFAC published the 

Ukraine Related Sanctions Regulations, 

31 CFR part 589 (79 FR 26365, May 8, 

2014), to implement Executive Order 

(E.O.) 13660 of March 6, 2014, 

‘‘Blocking Property of Certain Persons 

Contributing to the Situation in 

Ukraine’’ (79 FR 13493, March 10, 

2014); E.O. 13661 of March 16, 2014, 

‘‘Blocking Property of Additional 

Persons Contributing to the Situation in 

Ukraine’’ (79 FR 15535, March 19, 

2014); and E.O. 13662 of March 20, 

2014, ‘‘Blocking Property of Additional 

Persons Contributing to the Situation in 

Ukraine’’ (79 FR 16169, March 24, 

2014). The Ukraine Related Sanctions 

Regulations were initially issued in 

abbreviated form to provide immediate 

guidance to the public. OFAC is 

changing the heading of the Ukraine 

Related Sanctions Regulations to the 

Ukraine-/Russia-Related Sanctions 

Regulations (the ‘‘Regulations’’) and 

reissuing the Regulations as a more 

comprehensive set of regulations that 

includes additional interpretive 

guidance and definitions, general 

licenses, and other regulatory provisions 

that will provide further guidance to the 

public. 

This rule implements E.O. 13685 of 

December 19, 2014 (‘‘Blocking Property 

of Certain Persons and Prohibiting 

Certain Transactions with Respect to the 

Crimea Region of Ukraine’’) (79 FR 

77357, December 24, 2014), provisions 

of the Ukraine Freedom Support Act of 

2014, as amended (22 U.S.C. 8921– 

8930) (UFSA), and the Support for the 

Sovereignty, Integrity, Democracy, and 

Economic Stability of Ukraine Act of 

2014, as amended (22 U.S.C. 8901– 

8910) (SSIDES), and sections of title II 

of the Countering America’s Adversaries 

Through Sanctions Act (Pub. L. 115–44, 

131 Stat. 886 (codified in scattered 

sections of 22 U.S.C.)) (CAATSA). In 

addition, this rule incorporates four 

directives issued pursuant to E.O. 13662 

regarding sectoral sanctions and six new 

general licenses that have until now 

appeared only on OFAC’s website, and 

adds seven new general licenses. 

Because of the number of regulatory 

sections being updated or added, OFAC 

is reissuing the Regulations in their 

entirety. 

Executive Orders 

E.O. 13660. On March 6, 2014, the 

President, invoking the authority of, 

inter alia, the International Emergency 

Economic Powers Act (50 U.S.C. 1701 et 

seq.) (IEEPA), issued E.O. 13660. In E.O. 

13660, the President determined that 

the actions and policies of persons, 

including persons who have asserted 

governmental authority in the Crimean 

region without the authorization of the 

Government of Ukraine, that undermine 

democratic processes and institutions in 

Ukraine; threaten its peace, security, 

stability, sovereignty, and territorial 

integrity; and contribute to the 

misappropriation of its assets, constitute 

an unusual and extraordinary threat to 

the national security and foreign policy 

of the United States, and declared a 

national emergency to deal with that 

threat. 

Section 1(a) of E.O. 13660 blocks, 

with certain exceptions, all property 

and interests in property that are in the 

United States, that come within the 

United States, or that are or come within 

the possession or control of any U.S. 

person, of any person determined by the 

Secretary of the Treasury, in 

consultation with the Secretary of State 

to, among other things, be responsible 

for or complicit in actions or policies 

that undermine democratic processes or 

institutions in Ukraine or threaten the 

peace, security, stability, sovereignty, or 

territorial integrity of Ukraine. 

E.O. 13661. On March 16, 2014, the 

President, invoking the authority of, 

inter alia, IEEPA, issued E.O. 13661. In 

E.O. 13661, the President expanded the 

scope of the national emergency 

declared in E.O. 13660, finding that the 

actions and policies of the Government 

of the Russian Federation with respect 

to Ukraine—including the recent 

deployment of Russian Federation 

military forces in the Crimea region of 

Ukraine—undermine democratic 

processes and institutions in Ukraine; 

threaten its peace, security, stability, 

sovereignty, and territorial integrity; and 

contribute to the misappropriation of its 

assets, and thereby constitute an 

unusual and extraordinary threat to the 

national security and foreign policy of 

the United States. Section 1(a) of E.O. 

13661 blocks, with certain exceptions, 

all property and interests in property 

that are in the United States, that come 

within the United States, or that are or 

come within the possession or control of 

any United States person, of: (i) The 

persons listed in the Annex to E.O. 

13661, and (ii) persons determined by 

the Secretary of the Treasury, in 

consultation with the Secretary of State 

to, among other things, be an official of 

the Government of the Russian 

Federation or operate in the arms or 

related materiel sector in the Russian 

Federation. 

E.O. 13662. On March 20, 2014, the 

President, invoking the authority of, 

inter alia, IEEPA, issued E.O. 13662. In 

E.O. 13662, the President expanded the 

scope of the national emergency 

declared in E.O. 13660 and expanded by 

E.O. 13661, finding that the actions and 

policies of the Government of the 

Russian Federation, including its 

purported annexation of Crimea and its 

use of force in Ukraine, continue to 

undermine democratic processes and 

institutions in Ukraine; threaten its 

peace, security, stability, sovereignty, 


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and territorial integrity; and contribute 

to the misappropriation of its assets, and 

thereby constitute an unusual and 

extraordinary threat to the national 

security and foreign policy of the United 

States. 

Section 1(a) of E.O. 13662 blocks, 

with certain exceptions, all property 

and interests in property that are in the 

United States, that come within the 

United States, or that are or come within 

the possession or control of any United 

States person, of any person determined 

by the Secretary of the Treasury, in 

consultation with the Secretary of State 

to, among other things, operate in such 

sectors of the Russian Federation 

economy as may be determined by the 

Secretary of the Treasury, in 

consultation with the Secretary of State, 

such as financial services, energy, 

metals and mining, engineering, and 

defense and related materiel. 

E.O. 13685. On December 19, 2014, 

the President, invoking the authority of, 

inter alia, IEEPA, issued E.O. 13685 

(‘‘Blocking Property of Certain Persons 

and Prohibiting Certain Transactions 

With Respect to the Crimea Region of 

Ukraine’’). In E.O. 13685, the President 

took additional steps to address the 

Russian occupation of the Crimea region 

of Ukraine, and with respect to the 

national emergency declared in E.O. 

13660 and expanded by E.O.s 13661 and 

13662. 

Section 1(a) of E.O. 13685 prohibits, 

among other things, new investment in 

the Crimea region of Ukraine by a 

United States person, and the 

importation into, or exportation from, 

the United States, directly or indirectly, 

of any goods, services, or technology 

from or to the Crimea region of Ukraine. 

Section 2(a) of E.O. 13685 blocks, with 

certain exceptions, all property and 

interests in property that are in the 

United States, that come within the 

United States, or that are or come within 

the possession or control of any United 

States person, of any person determined 

by the Secretary of the Treasury, in 

consultation with the Secretary of State 

to meet certain criteria. 

Other E.O. provisions. In section 3 of 

E.O.s 13660, 13661, and 13662, and 

section 4 of E.O. 13685, the President 

determined that the making of 

donations of certain articles, such as 

food, clothing, and medicine, intended 

to be used to relieve human suffering, as 

specified in section 203(b)(2) of IEEPA 

(50 U.S.C. 1702(b)(2)), by, to, or for the 

benefit of any person whose property 

and interests in property are blocked 

pursuant to section 1 of E.O.s 13660, 

13661, or 13662, or section 2 of E.O. 

13685, respectively, would seriously 

impair the President’s ability to deal 

with the national emergency declared in 

E.O. 13660 and expanded by E.O.s 

13661 and 13662. The President 

therefore prohibited the donation of 

such items except to the extent provided 

by statutes, or in regulations, orders, 

directives or licenses that may be issued 

pursuant to E.O.s 13660, 13661, 13362, 

and 13685 respectively. 

Section 4 of E.O.s 13660, 13661, and 

13662, and section 5 of E.O. 13685 

provide that the prohibition on any 

transaction or dealing in blocked 

property or interests in property 

includes the making of any contribution 

or provision of funds, goods, or services 

by, to, or for the benefit of any person 

whose property and interests in 

property are blocked pursuant to E.O. 

13660, E.O. 13661, E.O. 13662, or E.O. 

13685 (collectively, ‘‘the Ukraine-/ 

Russia-related Executive Orders’’), 

respectively, and the receipt of any 

contribution or provision of funds, 

goods, or services from any such person. 

Section 5 of E.O.s 13660, 13661, and 

13662, and section 6 of E.O. 13685 

prohibit any transaction by a U.S. 

person or within the United States that 

evades or avoids, has the purpose of 

evading or avoiding, or attempts to 

violate any of the prohibitions set forth 

in the Ukraine-/Russia-related Executive 

Orders, respectively, as well as any 

conspiracy formed to violate such 

prohibitions. 

Sections 8 of E.O.s 13660, 13661, and 

13662, and section 10 of E.O. 13685 

authorize the Secretary of the Treasury, 

in consultation with the Secretary of 

State, to take such actions, including the 

promulgation of rules and regulations, 

and to employ all powers granted to the 

President by IEEPA, as may be 

necessary to carry out the purposes of 

the Ukraine-/Russia-related Executive 

Orders, and also provide that the 

Secretary of the Treasury may redelegate 

any of these functions to other officers 

and agencies of the U.S. Government. In 

furtherance of the Ukraine-/Russiarelated Executive Orders, among other 

authorities, OFAC is promulgating the 

Regulations. 

Sectoral determinations and 

directives issued pursuant to E.O. 

13662. Section 1(a)(i) of E.O. 13662 

blocks all property and interests in 

property of any person determined by 

the Secretary of the Treasury, in 

consultation with the Secretary of State, 

to operate in certain sectors of the 

Russian Federation economy, such as 

financial services, energy, metals and 

mining, engineering, and defense and 

related materiel. Pursuant to this 

provision, on July 16, 2014, the 

Secretary of the Treasury, in 

consultation with the Secretary of State, 

determined that section 1(a)(i) of E.O. 

13662 shall apply to the financial 

services and energy sectors of the 

Russian Federation economy. On 

September 12, 2014, the Secretary of the 

Treasury, in consultation with the 

Secretary of State, determined that 

section 1(a)(i) of E.O. 13662 shall apply 

to the defense and related materiel 

sector of the Russian Federation 

economy (79 FR 63021, October 21, 

2014). 

Effective August 2, 2017, section 

223(a) of CAATSA modified the 

implementation of section 1(a) of E.O. 

13662 by providing that the Secretary of 

the Treasury may determine that a 

person meets one or more of the criteria 

in section 1(a) of E.O. 13662 if that 

person is a state-owned entity operating 

in the railway or metals and mining 

sector of the economy of the Russian 

Federation. 

To further implement the Secretary’s 

determinations under section 1(a)(i) of 

E.O. 13662, OFAC issued four directives 

prohibiting specified activities by a U.S. 

person or within the United States 

pursuant to sections 1(a)(i), 1(b), and 8 

of E.O. 13662 and § 589.802. As 

described below, the directives have 

been amended several times. The full 

text of the current directives that are 

being incorporated into the Regulations 

can be found on the Ukraine-/RussiaRelated Sanctions page on OFAC’s 

website: www.treas.gov/ofac. The names 

of persons determined to be subject to 

one or more directives issued under 

E.O. 13662 are published on OFAC’s 

Sectoral Sanctions Identifications List 

(SSI List), which can also be found on 

the Ukraine-/Russia-Related Sanctions 

page on OFAC’s website: 

www.treas.gov/ofac. 

Directive 1. On July 16, 2014, OFAC 

issued ‘‘Directive 1 Pursuant to 

Executive Order 13662’’ (79 FR 63021, 

October 21, 2014) to further implement 

the determination by the Secretary of 

the Treasury, in consultation with the 

Secretary of State, that section 1(a)(i) of 

E.O. 13662 applies to the financial 

services sector of the Russian Federation 

Economy. On September 12, 2014, 

OFAC replaced ‘‘Directive 1 Pursuant to 

Executive Order 13662’’ with ‘‘Directive 

1 (as Amended) Under Executive Order 

13622’’ (79 FR 63021, October 21, 2014). 

Section 223(b) of CAATSA requires the 

Secretary of the Treasury to modify 

‘‘Directive 1 (as Amended) Under 

Executive Order 13622,’’ or any 

successor directive, to ensure that the 

directive prohibits the conduct by 

United States persons or persons within 

the United States of all transactions in, 

provision of financing for, and other 

dealings in new debt of longer than 14 


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days maturity or new equity of persons 

determined to be subject to the 

directive, their property, or their 

interests in property. OFAC replaced 

‘‘Directive 1 (as Amended) Under 

Executive Order 13622’’ with ‘‘Directive 

1 (as Amended on September 29, 2017) 

Under Executive Order 13622’’ 

(Directive 1) on September 29, 2017 on 

OFAC’s website. 

Directive 1 prohibits the following 

activities by a U.S. person or within the 

United States: (1) For new debt or new 

equity issued on or after July 16, 2014 

and before September 12, 2014, all 

transactions in, provision of financing 

for, and other dealings in new debt of 

longer than 90 days maturity or new 

equity of persons determined to be 

subject to Directive 1 or any earlier 

version thereof, their property, or their 

interests in property; (2) For new debt 

or new equity issued on or after 

September 12, 2014 and before 

November 28, 2017, all transactions in, 

provision of financing for, and other 

dealings in new debt of longer than 30 

days maturity or new equity of persons 

determined to be subject to Directive 1 

or any earlier version thereof, their 

property, or their interests in property; 

and (3) For new debt or new equity 

issued on or after November 28, 2017, 

all transactions in, provision of 

financing for, and other dealings in new 

debt of longer than 14 days maturity or 

new equity of persons determined to be 

subject to Directive 1 or any earlier 

version thereof, their property, or their 

interests in property. Directive 1 also 

prohibits (1) Any transaction that 

evades or avoids, has the purpose of 

evading or avoiding, causes a violation 

of, or attempts to violate any of the 

prohibitions contained in the directive; 

and (2) Any conspiracy formed to 

violate any of the prohibitions in the 

directive. 

Directive 2. On July 16, 2014, OFAC 

issued ‘‘Directive 2 Pursuant to 

Executive Order 13662’’ (79 FR 63021, 

October 21, 2014) to further implement 

the determination by the Secretary of 

the Treasury that section 1(a)(i) of E.O. 

13662 applies to the energy sector of the 

Russian Federation economy. On 

September 12, 2014, OFAC replaced 

‘‘Directive 2 Pursuant to Executive 

Order 13662’’ with ‘‘Directive 2 (as 

Amended) Under E.O. 13662’’ (79 FR 

63021, October 21, 2014). Section 223(c) 

of CAATSA requires the Secretary of the 

Treasury to modify ‘‘Directive 2 (as 

Amended) Under E.O. 13662’’ or any 

successor directive to ensure that the 

directive prohibits the conduct by 

United States persons or persons within 

the United States of all transactions in, 

provision of financing for, and other 

dealings in new debt of longer than 60 

days maturity of persons determined to 

be subject to the directive, their 

property, or their interests in property. 

OFAC replaced ‘‘Directive 2 (as 

Amended) Under E.O. 13662’’ with 

‘‘Directive 2 (as Amended on September 

29, 2017) Under Executive Order 

13662’’ (Directive 2) on September 29, 

2017 on its website. 

Directive 2 prohibits the following 

activities by a U.S. person or within the 

United States: (1) For new debt issued 

on or after July 16, 2014 and before 

November 28, 2017, all transactions in, 

provision of financing for, and other 

dealings in new debt of longer than 90 

days maturity of persons determined to 

be subject to Directive 2 or any earlier 

version thereof, their property, or their 

interests in property; and (2) For new 

debt issued on or after November 28, 

2017, all transactions in, provision of 

financing for, and other dealings in new 

debt of longer than 60 days maturity of 

persons determined to be subject to 

Directive 2 or any earlier version 

thereof, their property, or their interests 

in property. Directive 2 also prohibits 

(1) Any transaction that evades or 

avoids, has the purpose of evading or 

avoiding, causes a violation of, or 

attempts to violate any of the 

prohibitions contained in the directive; 

and (2) Any conspiracy formed to 

violate any of the prohibitions in the 

directive. 

Directive 3. On September 12, 2014, 

OFAC issued ‘‘Directive 3 Under E.O. 

13662’’ (79 FR 63021, October 21, 2014) 

(Directive 3) following the Secretary of 

the Treasury’s determination that 

section 1(a)(i) of E.O. 13662 applies to 

the defense and related materiel sector 

of the Russian Federation economy. 

Directive 3 prohibits all transactions in, 

provision of financing for, and other 

dealings in new debt of longer than 30 

days maturity of persons determined to 

be subject to Directive 3, their property, 

or their interests in property. Directive 

3 also prohibits: (1) Any transaction that 

evades or avoids, has the purpose of 

evading or avoiding, causes a violation 

of, or attempts to violate any of the 

prohibitions contained in Directive 3; 

and (2) Any conspiracy formed to 

violate any of the prohibitions in 

Directive 3. 

Directive 4. On September 12, 2014, 

OFAC issued ‘‘Directive 4 Under 

Executive Order 13662’’ (79 FR 63021, 

October 21, 2014) to further implement 

the Secretary of the Treasury’s July 16, 

2014 determination that section 1(a)(i) 

of E.O. 13662 applies to the energy 

sector of the Russian Federation 

economy. Section 223(d) of CAATSA 

requires the Secretary of the Treasury to 

modify ‘‘Directive 4 Under Executive 

Order 13662’’ or any successor 

directive, to ensure that the directive 

prohibits the provision, exportation, or 

reexportation, directly or indirectly, by 

United States persons or persons within 

the United States, of goods, services 

(except for financial services), or 

technology in support of exploration or 

production for new deepwater, Arctic 

offshore, or shale projects that: (1) Have 

the potential to produce oil; and (2) 

Involve any person determined to be 

subject to the directive or the property 

or interests in property of such a person 

who has a controlling interest or a 

substantial noncontrolling ownership 

interest in such a project defined as not 

less than a 33 percent interest. OFAC 

replaced ‘‘Directive 4 Under Executive 

Order 13662’’ with ‘‘Directive 4 (as 

Amended on October 13, 2017) Under 

Executive Order 13662’’ (Directive 4) on 

October 31, 2017 on its website. 

Directive 4 prohibits the following 

activities by a U.S. person or within the 

United States: The provision, 

exportation, or reexportation, directly or 

indirectly, of goods, services (except for 

financial services), or technology in 

support of exploration or production for 

deepwater, Arctic offshore, or shale 

projects: (1) That have the potential to 

produce oil in the Russian Federation, 

or in maritime area claimed by the 

Russian Federation and extending from 

its territory, and that involve any person 

determined to be subject to Directive 4 

or any earlier version thereof, their 

property, or their interests in property; 

or (2) that are initiated on or after 

January 29, 2018, that have the potential 

to produce oil in any location, and in 

which any person determined to be 

subject to Directive 4 or any earlier 

version thereof, their property, or their 

interests in property has (a) a 33 percent 

or greater ownership interest, or (b) 

ownership of a majority of the voting 

interests. Additionally, Directive 4 

prohibits: (1) Any transaction that 

evades or avoids, has the purpose of 

evading or avoiding, causes a violation 

of, or attempts to violate any of the 

prohibitions contained in the directive; 

and (2) Any conspiracy formed to 

violate any of the prohibitions in the 

directive. 

Statutes 

UFSA. UFSA was signed into law on 

December 18, 2014 and amended by 

CAATSA on August 2, 2017. Among 

other things, section 5 of UFSA requires 

the imposition of sanctions on any 

foreign financial institution that the 

President determines knowingly 

engages in significant transactions 

involving certain activities for persons 


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sanctioned pursuant to section 4 of 

UFSA or knowingly facilitated a 

significant financial transaction on 

behalf of any Russian person included 

on the list of Specially Designated 

Nationals and Blocked Persons (‘‘SDN 

List’’) maintained by OFAC, pursuant to 

UFSA, E.O.s 13660, 13661, or 13662, or 

any other Executive order addressing 

the crisis in Ukraine. 

SSIDES. SSIDES was signed into law 

on April 3, 2014 and amended by 

CAATSA on August 2, 2017. SSIDES 

requires the President to block all 

property and interests in property that 

are in the United States, that come 

within the United States, or that are or 

come within the possession or control of 

any U.S. person of, persons who meet 

specific criteria, such as a current or 

former official of the Government of 

Ukraine that the President determines 

has perpetrated, or is responsible for 

ordering, controlling, or otherwise 

directing, significant acts of violence or 

gross human rights abuses in Ukraine 

against persons associated with the 

antigovernment protests in Ukraine that 

began on November 21, 2013. 

CAATSA. CAATSA established new 

sanctions authorities and exceptions, in 

addition to amending, modifying, or 

otherwise affecting: The Ukraine-/ 

Russia-related Executive Orders, E.O. 

13694 of April 1, 2015, ‘‘Blocking the 

Property of Certain Persons Engaging in 

Significant Malicious Cyber-Enabled 

Activities’’ (80 FR 18077, April 2, 2015), 

and E.O. 13757 of December 28, 2016, 

‘‘Taking Additional Steps to Address 

the National Emergency With Respect to 

Significant Malicious Cyber-Enabled 

Activities’’ (82 FR 1, January 3, 2017); 

Directives 1, 2, and 4; UFSA; and 

SSIDES. Section 236 of CAATSA 

establishes an exception from sanctions 

for activities subject to the reporting 

requirements under title V of the 

National Security Act of 1947 (50 U.S.C. 

3091 et seq.), or any authorized 

intelligence activities of the United 

States, and section 237 of CAATSA 

establishes an exception from sanctions 

for activities of the National Aeronautics 

and Space Administration. 

Title II of CAATSA also requires the 

imposition of sanctions with respect to, 

among others: Activities of the Russian 

Federation that undermine 

cybersecurity; persons who knowingly 

provide financial services in support of 

activities that undermine cybersecurity; 

persons who invest in or contribute to 

the ability of the Russian Federation to 

privatize state-owned assets in a manner 

that unjustly benefits officials of the 

Government of the Russian Federation; 

persons who engage in a significant 

transaction with a person that is part of, 

or operates for or on behalf of, the 

defense or intelligence sectors of the 

Government of the Russian Federation; 

and persons who transfer arms and 

related materiel to Syria. OFAC 

anticipates incorporating these 

provisions of title II of CAATSA into the 

CFR at a later date. 

Current Regulatory Action 

Subpart A of the Regulations clarifies 

the relation of this part to other laws 

and regulations. Subpart B of the 

Regulations implements the 

prohibitions contained in section 1 of 

E.O. 13660, E.O. 13661, E.O. 13662, and 

sections 1 and 2 of E.O. 13685, as well 

as the prohibitions contained in any 

further Executive orders issued 

pursuant to the national emergency 

declared in E.O. 13660. See, e.g., 

§ 589.201. Additionally, subpart B 

implements section 5 of UFSA, sections 

8 through 11 of SSIDES, and the 

prohibitions in Directives 1, 2, 3, and 4 

issued pursuant to E.O. 13662. 

The following persons are referred to 

throughout the Regulations as ‘‘persons 

whose property and interests in 

property are blocked pursuant to 

§ 589.201’’: Persons identified in the 

Annex to E.O. 13661; designated by or 

under the authority of the Secretary of 

the Treasury, in consultation with the 

Secretary of State, pursuant to the 

Ukraine-/Russia-related Executive 

Orders, or SSIDES; otherwise subject to 

the blocking provisions of the Ukraine- 

/Russia-related Executive Orders, or 

SSIDES; and persons who are blocked 

pursuant to any further Executive orders 

issued pursuant to the national 

emergency declared in E.O. 13660. The 

names of persons designated, or 

identified as blocked pursuant to, as 

applicable, the Ukraine-/Russia-related 

Executive Orders, or any further 

Executive orders issued pursuant to the 

national emergency declared in E.O. 

13660, or SSIDES, are published on the 

SDN List, which is accessible via 

OFAC’s website. Those names also are 

published in the Federal Register as 

they are added to the SDN List. 

Sections 589.202 through 589.205 of 

subpart B implement Directives 1 

through 4, respectively. The names of 

persons identified as subject to Directive 

1, 2, 3, or 4, which are implemented in 

§§ 589.202 through 589.205, are 

published on OFAC’s SSI List, which is 

accessible via OFAC’s website, and are 

published in the Federal Register along 

with the applicable Directive(s) as they 

are added to the SSI List. These persons 

are referred to throughout the 

Regulations as ‘‘persons subject to 

§ 589.202, 589.203, 589.204 or 589.205.’’ 

Section 589.206 of subpart B prohibits 

new investment in the Crimea region of 

Ukraine, § 589.207 details the 

prohibition on exportation, 

reexportation, sale or supply of goods or 

services to that region, and § 589.208 

prohibits the importation of goods, 

services, and technology from that 

region. 

Section 589.209 details prohibitions 

or strict conditions with respect to 

correspondent or payable-through 

accounts of foreign financial institutions 

that are determined to engage in 

significant transactions involving 

certain activities for persons with 

respect to which sanctions are imposed 

under section 4 of UFSA, or to have 

facilitated significant transactions on 

behalf of certain blocked persons. The 

names of foreign financial institutions 

for which the opening or maintaining of 

a correspondent account or a payablethrough account in the United States is 

prohibited or subject to one or more 

strict conditions pursuant to § 589.209 

will be added to the List of Foreign 

Financial Institutions Subject to 

Correspondent Account or PayableThrough Account Sanctions (CAPTA 

List) on OFAC’s website, and be 

published in the Federal Register along 

with the applicable prohibition or strict 

condition(s) as they are added to the 

CAPTA List. 

Sections 589.210 and 589.211 of 

subpart B detail the effect of transfers of 

blocked property in violation of the 

Regulations and set forth the 

requirement to hold blocked funds, such 

as currency, bank deposits, or liquidated 

financial obligations, in interest-bearing 

blocked accounts. Section 589.212 of 

subpart B provides that all expenses 

incident to the maintenance of blocked 

tangible property shall be the 

responsibility of the owners and 

operators of such property, and that 

such expenses shall not be met from 

blocked funds, unless otherwise 

authorized. The section further provides 

that blocked property may, in OFAC’s 

discretion, be sold or liquidated and the 

net proceeds placed in a blocked 

interest-bearing account in the name of 

the owner of the property. 

Section 589.213 of subpart B prohibits 

any transaction by a U.S. person or 

within the United States that evades or 

avoids, has the purpose of evading or 

avoiding, causes a violation, or attempts 

to violate any of the prohibitions set 

forth in subpart B of the Regulations, 

and any conspiracy formed to violate 

such prohibitions. 

Section 589.214 of subpart B details 

transactions that are exempt from the 

prohibitions of the Regulations pursuant 

to: Section 203(b)(1) of IEEPA (50 U.S.C. 

1702(b)(1)), which relates to personal 


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communications; section 236 of 

CAATSA, which relates to U.S. 

intelligence activities; section 237 of 

CAATSA, which relates to activities of 

the National Aeronautics and Space 

Administration; section 7 of E.O. 13685, 

which relates to activities for the official 

business of the United States 

Government; and sections 8(b)(3) and 

9(b)(3) of SSIDES, which relate to the 

importation of goods. Section 589.215 

details the prohibition on approving, 

financing, facilitating, or guaranteeing a 

transaction by a foreign person where 

the transaction would be prohibited by 

§ 589.206, 589.207, or 589.208 if 

performed by a U.S. person or within 

the United States. 

Subpart C of the Regulations defines 

key terms used throughout the 

Regulations. Thirty new sections are 

being added to define key terms used in 

the new regulatory prohibitions or 

elsewhere in the Regulations. The 

definition of Ukraine-related Executive 

orders, which was in § 589.310, is being 

removed from the Regulations because 

revisions to § 589.201 make it 

unnecessary. To keep the definitions in 

alphabetical order, the definitions that 

were in the prior abbreviated set of 

regulations are being renumbered. 

OFAC is adding a definition of shale 

projects at § 589.334 that expands the 

definition formerly on OFAC’s website 

as Frequently Asked Question (FAQ) 

418. 

In subpart D, which contains 

interpretive sections regarding the 

Regulations, § 589.401 is being 

expanded, § 589.405 is being 

redesignated as § 589.410, and new 

§§ 589.405 through 589.409 are being 

added. Section 589.405 clarifies that the 

prohibitions contained in § 589.201 

apply to certain services performed on 

behalf of, or performed by or at the 

direction of, any person whose property 

and interests in property are blocked 

pursuant to § 589.201. Section 589.406 

has been redesignated as § 589.411 and 

updated to explain that the property and 

interests in property of an entity are 

blocked if the entity is directly or 

indirectly owned, whether individually 

or in the aggregate, 50 percent or more 

by one or more persons whose property 

and interests in property are blocked, 

whether or not the entity itself is 

incorporated into OFAC’s SDN List. 

Additionally, OFAC is incorporating the 

following interpretations from its 

existing FAQs into the Regulations: 

§ 589.411 clarifies that the interpretation 

set forth in § 589.411 applies to those 

included on OFAC’s SSI List; new 

§ 589.412 clarifies that, for the purposes 

of § 589.205(b), OFAC considers the 

aggregate ownership interest or majority 

of voting rights held by one or more 

persons subject to § 589.205, their 

property, or their interests in property, 

including entities owned 50 percent or 

more by one or more persons subject to 

§ 589.205; and new § 589.413 provides 

interpretive language about significant 

transactions or financial transactions. 

OFAC is also adding new § 589.414 to 

provide interpretative language about 

facilitation. 

Transactions otherwise prohibited by 

the Regulations but found to be 

consistent with U.S. policy may be 

authorized by one of the general 

licenses contained in subpart E of the 

Regulations or by a specific license 

issued pursuant to the procedures 

described in subpart E of 31 CFR part 

501. General licenses and statements of 

licensing policy relating to this part also 

may be available through the Ukraine-/ 

Russia-Related Sanctions page on 

OFAC’s website: www.treas.gov/ofac. 

With this rule, OFAC is updating 

several existing general licenses in the 

Regulations. In the authorization for 

legal services in § 589.506, the 

authorization is being updated to 

include the provision of legal services to 

or on behalf of a person in the Crimea 

region of Ukraine, and authorization for 

the payment of professional fees or 

reimbursement of incurred expenses for 

authorized legal services to such 

persons is authorized as long as it does 

not involve the debiting of any blocked 

account or transfer of any blocked 

property. The note to § 589.506 is also 

being updated to include certain 

specific services. The authorization for 

payments for legal services in § 589.507 

is being updated to remove the 

requirement that attorneys send OFAC a 

copy of their letter of engagement prior 

to receiving payment, and to permit 

email filing of reports. Section 589.508 

is being amended to remove the 

requirement that payment for 

emergency medical services be 

specifically licensed. 

Additionally, OFAC is incorporating 

six general licenses into the Regulations 

that were previously posted only on 

OFAC’s website. New § 589.512 

incorporates General License 1B, 

authorizing certain transactions related 

to derivatives prohibited by Directives 

1, 2, and 3; General License 1B, which 

superseded prior versions of such 

general license, was issued on OFAC’s 

website on November 28, 2017 and will 

be removed upon publication of this 

rule. New §§ 589.513 through 589.517 

incorporate General Licenses 4, 6, 7, 8, 

and 9, respectively, which authorize 

with respect to the Crimea region of 

Ukraine: Exportation or reexportation of 

agricultural commodities, medicine, 

medical supplies, and replacement 

parts; noncommercial, personal 

remittances; operation of accounts; 

transactions related to 

telecommunications and mail; and 

exportation of certain services and 

software incident to internet-based 

communications. General License 4 was 

issued on December 19, 2014, General 

Licenses 6, 7, and 8 were issued on 

January 30, 2015, and General License 9 

was issued on May 22, 2015, each on 

OFAC’s website; each of these general 

licenses will be removed upon 

publication of this rule. 

OFAC is also incorporating seven new 

general licenses into the Regulations. 

New §§ 589.509, 589.510, and 589.511 

incorporate general licenses authorizing 

certain transactions relating to 

investment and reinvestment of funds, 

official business of the U.S. government, 

and official business of certain 

international organizations and entities. 

New §§ 589.518, 589.519, and 589.520 

authorize activities specific to the 

Crimea region of Ukraine: Transactions 

necessary and ordinarily incident to 

publishing, emergency landings and air 

ambulance services, and the export of 

certain services in support of 

nongovernmental organizations’ 

activities. New § 589.521 authorizes 

transactions related to closing a 

correspondent or payable-through 

account. The addition of these general 

licenses to the Regulations do not 

represent a significant alteration of the 

United States’ foreign policy with regard 

to the Russian Federation. Subpart F of 

the Regulations refers to subpart C of 

part 501 for recordkeeping and reporting 

requirements. Subpart G of the 

Regulations describes the civil and 

criminal penalties applicable to 

violations of the Regulations, as well as 

the procedures governing the potential 

imposition of a civil monetary penalty 

or issuance of a Finding of Violation. 

Subpart G also refers to appendix A of 

part 501 for a more complete 

description of these procedures. In 

Subpart G, § 589.701 reflects the 2022 

civil monetary penalty increase as 

required by section 4 of the Federal 

Civil Penalties Inflation Adjustment Act 

(1990 Pub. L. 101–410, 104 Stat. 890; 28 

U.S.C. 2461 note), as amended by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (Pub. L. 114–74, 129 Stat. 599, 28 

U.S.C. 2461 note). 

Subpart H of the Regulations refers to 

subpart E of part 501 for applicable 

provisions relating to administrative 

procedures and contains a delegation of 

certain authorities of the Secretary of 

the Treasury. Subpart I of the 


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Regulations sets forth a Paperwork 

Reduction Act notice. 

Public Participation 

Because the Regulations involve a 

foreign affairs function, the provisions 

of E.O. 12866 of September 30, 1993, 

‘‘Regulatory Planning and Review’’ (58 

FR 51735, October 4, 1993), and the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, opportunity for public 

participation, and delay in effective date 

are inapplicable. Because no notice of 

proposed rulemaking is required for this 

rule, the Regulatory Flexibility Act (5 

U.S.C. 601–612) does not apply. 

Paperwork Reduction Act 

The collections of information related 

to the Regulations are contained in 31 

CFR part 501 (the ‘‘Reporting, 

Procedures and Penalties Regulations’’). 

Pursuant to the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3507), those 

collections of information have been 

approved by the Office of Management 

and Budget under control number 1505– 

0164. An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid control number. 

List of Subjects in 31 CFR Part 589 

Administrative practice and 

procedure, Arctic offshore, Banks, 

banking, Blocking of assets, 

Correspondent account, Credit, Crimea, 

Debt, Deepwater, Facilitation, Foreign 

trade, Human rights abuses, Payablethrough account, Reporting and 

recordkeeping requirements, Russian 

Federation, Sanctions, Securities, 

Services, Shale projects, Ukraine. 

■ For the reasons set forth in the 

preamble, OFAC revises 31 CFR part 

589 to read as follows: 

PART 589—UKRAINE-/RUSSIARELATED SANCTIONS REGULATIONS 

Subpart A—Relation of This Part to Other 

Laws and Regulations 

Sec. 

589.101 Relation of this part to other laws 

and regulations. 

Subpart B—Prohibitions 

589.201 Prohibited transactions. 

589.202 Prohibited transactions with 

respect to the financial services sector of 

the Russian Federation economy 

(Directive 1). 

589.203 Prohibited transactions with 

respect to financing activities in the 

energy sector of the Russian Federation 

economy (Directive 2). 

589.204 Prohibited transactions with 

respect to the defense and related 

materiel sector of the Russian Federation 

economy (Directive 3). 

589.205 Prohibited transactions with 

respect to oil producing activities in the 

energy sector of the Russian Federation 

economy (Directive 4). 

589.206 Prohibited new investment in the 

Crimea region of Ukraine. 

589.207 Prohibited exportation, 

reexportation, sale, or supply of goods, 

services, or technology to the Crimea 

region of Ukraine. 

589.208 Prohibited importation of goods, 

services, or technology from the Crimea 

region of Ukraine. 

589.209 Prohibitions or strict conditions 

with respect to correspondent or 

payable-through accounts of foreign 

financial institutions that have 

knowingly facilitated certain significant 

transactions. 

589.210 Effect of transfers violating the 

provisions of this part. 

589.211 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

589.212 Expenses of maintaining blocked 

tangible property; liquidation of blocked 

property. 

589.213 Evasions; attempts; causing 

violations; conspiracies. 

589.214 Exempt transactions. 

589.215 Prohibited facilitation. 

Subpart C—General Definitions 

589.300 Applicability of definitions. 

589.301 Arctic offshore projects. 

589.302 Arms or related materiel sector of 

the Russian Federation economy. 

589.303 Blocked account; blocked property. 

589.304 Correspondent account. 

589.305 Covered Executive order. 

589.306 Crimea region of Ukraine. 

589.307 Debt. 

589.308 Deepwater projects. 

589.309 Defense and related materiel sector 

of the Russian Federation economy. 

589.310 Effective date. 

589.311 Energy sector of the Russian 

Federation economy. 

589.312 Entity. 

589.313 Equity. 

589.314 Financial, material, or 

technological support. 

589.315 Financial services sector of the 

Russian Federation economy. 

589.316 Foreign financial institution. 

589.317 Foreign person. 

589.318 Government of the Russian 

Federation. 

589.319 [Reserved] 

589.320 Initiated. 

589.321 Interest. 

589.322 Knowingly. 

589.323 Licenses; general and specific. 

589.324 Loans or other extensions of credit. 

589.325 Metals and mining sector of the 

Russian Federation economy. 

589.326 New investment. 

589.327 OFAC. 

589.328 Payable-through account. 

589.329 Person. 

589.330 Production. 

589.331 Property; property interest. 

589.332 Railway sector of the Russian 

Federation economy. 

589.333 Russian person. 

589.334 Shale projects. 

589.335 Special Russian crude oil project. 

589.336 Structured. 

589.337 Transfer. 

589.338 United States. 

589.339 United States person; U.S. person. 

589.340 U.S. depository institution. 

589.341 U.S. financial institution. 

589.342 U.S.-registered broker or dealer in 

securities. 

589.343 U.S.-registered money transmitter. 

Subpart D—Interpretations 

589.401 Reference to amended sections. 

589.402 Effect of amendment. 

589.403 Termination and acquisition of an 

interest in blocked property. 

589.404 Transactions ordinarily incident to 

a licensed transaction. 

589.405 Exportation and reexportation of 

goods, services, or technology; provision 

and receipt of services. 

589.406 Offshore transactions involving 

blocked property. 

589.407 Payments from blocked accounts to 

satisfy obligations prohibited. 

589.408 Charitable contributions. 

589.409 Credit extended and cards issued 

by financial institutions to a person 

whose property and interests in property 

are blocked. 

589.410 Setoffs prohibited. 

589.411 Entities owned by one or more 

persons whose property and interests in 

property are blocked or who are subject 

to § 589.202, § 589.203, § 589.204, or 

§ 589.205. 

589.412 Projects owned, or to which a 

majority of voting rights are held, by one 

or more persons subject to § 589.205. 

589.413 Significant transaction(s); 

significant financial transaction(s). 

589.414 Facilitation; change of policies and 

procedures; referral of business 

opportunities offshore. 

Subpart E—Licenses, Authorizations, and 

Statements of Licensing Policy 

589.501 General and specific licensing 

procedures. 

589.502 Effect of license or other 

authorization. 

589.503 Exclusion from licenses. 

589.504 Payments and transfers to blocked 

accounts in U.S. financial institutions. 

589.505 Entries in certain accounts for 

normal service charges. 

589.506 Provision of certain legal services. 

589.507 Payments for legal services from 

funds originating outside the United 

States. 

589.508 Emergency medical services. 

589.509 Investment and reinvestment of 

certain funds. 

589.510 Official business of the United 

States Government. 

589.511 Official business of certain 

international organizations and entities. 

589.512 Certain transactions related to 

derivatives prohibited by § 589.202, 

§ 589.203, or § 589.204. 

589.513 Exportation or reexportation of 

agricultural commodities, medicine, 

medical supplies, and replacement parts 

to the Crimea region of Ukraine. 


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589.514 Noncommercial, personal 

remittances to or from the Crimea region 

of Ukraine or for or on behalf of an 

individual ordinarily resident in the 

Crimea region of Ukraine. 

589.515 Operation of accounts for 

individuals ordinarily resident in the 

Crimea region of Ukraine. 

589.516 Transactions related to 

telecommunications and mail involving 

the Crimea region of Ukraine. 

589.517 Exportation of certain services and 

software incident to internet-based 

communications to the Crimea region of 

Ukraine. 

589.518 Transactions necessary and 

ordinarily incident to publishing in the 

Crimea region of Ukraine. 

589.519 Emergency landings and air 

ambulance services in the Crimea region 

of Ukraine. 

589.520 Certain transactions in support of 

nongovernmental organizations’ 

activities in the Crimea region of 

Ukraine. 

589.521 Transactions related to closing a 

correspondent or payable-through 

account. 

Subpart F—Reports 

589.601 Records and reports. 

Subpart G—Penalties and Findings of 

Violation 

589.701 Penalties. 

589.702 Pre-Penalty Notice; settlement. 

589.703 Penalty imposition. 

589.704 Administrative collection; referral 

to United States Department of Justice. 

589.705 Findings of Violation. 

Subpart H—Procedures 

589.801 Procedures. 

589.802 Delegation of certain authorities of 

the Secretary of the Treasury. 

Subpart I—Paperwork Reduction Act 

589.901 Paperwork Reduction Act notice. 

Authority: 3 U.S.C. 301; 22 U.S.C. 8901– 

8910, 8921–8930; 31 U.S.C. 321(b); 50 U.S.C. 

1601–1651, 1701–1706; Pub. L. 101–410, 104 

Stat. 890, as amended (28 U.S.C. 2461 note); 

Pub. L. 115–44, 131 Stat. 886 (codified in 

scattered sections of 22 U.S.C.); E.O. 13660, 

79 FR 13493, 3 CFR, 2014 Comp., p. 226; E.O. 

13661, 79 FR 15535, 3 CFR, 2014 Comp., p. 

229; E.O. 13662, 79 FR 16169, 3 CFR, 2014 

Comp., p. 233; E.O. 13685, 79 FR 77357, 3 

CFR, 2014 Comp., p. 313. 

Subpart A—Relation of This Part to 

Other Laws and Regulations 

§ 589.101 Relation of this part to other 

laws and regulations. 

This part is separate from, and 

independent of, the other parts of this 

chapter, with the exception of part 501 

of this chapter, the recordkeeping and 

reporting requirements and license 

application and other procedures of 

which apply to this part. Actions taken 

pursuant to part 501 of this chapter with 

respect to the prohibitions contained in 

this part are considered actions taken 

pursuant to this part. Differing foreign 

policy and national security 

circumstances may result in differing 

interpretations of similar language 

among the parts of this chapter. No 

license or authorization contained in or 

issued pursuant to those other parts 

authorizes any transaction prohibited by 

this part. No license or authorization 

contained in or issued pursuant to any 

other provision of law or regulation 

authorizes any transaction prohibited by 

this part. No license or authorization 

contained in or issued pursuant to this 

part relieves the involved parties from 

complying with any other applicable 

laws or regulations. 

Subpart B—Prohibitions 

§ 589.201 Prohibited transactions. 

(a) All property and interests in 

property that are in the United States, 

that come within the United States, or 

that are or come within the possession 

or control of any U.S. person of the 

following persons are blocked and may 

not be transferred, paid, exported, 

withdrawn, or otherwise dealt in: 

(1) Executive Order (E.O.) 13660. Any 

person determined by the Secretary of 

the Treasury, in consultation with the 

Secretary of State: 

(i) To be responsible for or complicit 

in, or to have engaged in, directly or 

indirectly, any of the following: 

(A) Actions or policies that 

undermine democratic processes or 

institutions in Ukraine; 

(B) Actions or policies that threaten 

the peace, security, stability, 

sovereignty, or territorial integrity of 

Ukraine; or 

(C) Misappropriation of state assets of 

Ukraine or of an economically 

significant entity in Ukraine; 

(ii) To have asserted governmental 

authority over any part or region of 

Ukraine without the authorization of the 

Government of Ukraine; 

(iii) To be a leader of an entity that 

has, or whose members have, engaged in 

any activity described in paragraph 

(a)(1)(i) or (ii) or of an entity whose 

property and interests in property are 

blocked pursuant to this paragraph 

(a)(1); 

(iv) To have materially assisted, 

sponsored, or provided financial, 

material, or technological support for, or 

goods or services to or in support of, any 

activity described in paragraph (a)(1)(i) 

or (ii) or any person whose property and 

interests in property are blocked 

pursuant to this paragraph (a)(1); 

(v) To be owned or controlled by, or 

to have acted or purported to act for or 

on behalf of, directly or indirectly, any 

person whose property or interests in 

property are blocked pursuant to this 

paragraph (a)(1); 

(2) E.O. 13661 Annex. The persons 

listed in the Annex to E.O. 13661 of 

March 16, 2014; 

(3) E.O. 13661. Any person 

determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State: 

(i) To be an official of the Government 

of the Russian Federation; 

(ii) To operate in the arms or related 

materiel sector in the Russian 

Federation; 

(iii) To be owned or controlled by, or 

to have acted or purported to act for or 

on behalf of, directly or indirectly: 

(A) A senior official of the 

Government of the Russian Federation; 

or 

(B) A person whose property or 

interests in property are blocked 

pursuant to paragraph (a)(2) of this 

section or this paragraph (a)(3); or 

(iv) To have materially assisted, 

sponsored, or provided financial, 

material, or technological support for, or 

goods or services to or in support of: 

(A) A senior official of the 

Government of the Russian Federation; 

or 

(B) A person whose property or 

interests in property are blocked 

pursuant to paragraph (a)(2) of this 

section or this paragraph (a)(3); 

(4) E.O. 13662 and Secretary of the 

Treasury determinations. Any person 

determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State: 

(i) To operate in the defense and 

related materiel sector of the Russian 

Federation economy; 

(ii) To operate in the financial 

services sector of the Russian Federation 

economy; 

(iii) To operate in the energy sector of 

the Russian Federation economy; 

(iv) To be a state-owned entity 

operating in the railway sector of the 

Russian Federation economy; 

(v) To be a state-owned entity 

operating in the metals and mining 

sector of the Russian Federation 

economy; 

(vi) To operate in any other sectors of 

the Russian Federation economy as may 

be determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State; 

Note 1 to paragraph (a)(4)(vi). Any sector 

in the Russian Federation economy that is 

determined by the Secretary of the Treasury, 

in consultation with the Secretary of State, to 

be subject to this paragraph (a)(4)(vi) will be 

so identified in a publication in the Federal 

Register. 

(vii) To have materially assisted, 

sponsored, or provided financial, 


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material, or technological support for, or 

goods or services to or in support of, any 

person whose property and interests in 

property are blocked pursuant to this 

paragraph (a)(4); or 

(viii) To be owned or controlled by, or 

to have acted for or on behalf of, directly 

or indirectly, any person whose 

property and interests in property are 

blocked pursuant to this paragraph 

(a)(4); 

(5) E.O. 13685. Any person 

determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State: 

(i) To operate in the Crimea region of 

Ukraine; 

(ii) To be a leader of an entity 

operating in the Crimea region of 

Ukraine; 

(iii) To be owned or controlled by, or 

to have acted or purported to act for or 

on behalf of, directly or indirectly, any 

person whose property and interests in 

property are blocked pursuant to this 

paragraph (a)(5); or 

(iv) To have materially assisted, 

sponsored, or provided financial, 

material, or technological support for, or 

goods or services in support of, any 

person whose property and interests in 

property are blocked pursuant to this 

paragraph (a)(5); 

(6) Support for the Sovereignty, 

Integrity, Democracy, and Economic 

Stability of Ukraine Act of 2014, as 

amended (22 U.S.C. 8901–8910) 

(SSIDES). (i) Any person, including a 

current or former official of the 

Government of Ukraine or a person 

acting on behalf of that Government, 

that the Secretary of the Treasury, in 

consultation with the Secretary of State, 

determines has perpetrated, or is 

responsible for ordering, controlling, or 

otherwise directing, significant acts of 

violence or gross human rights abuses in 

Ukraine against persons associated with 

the antigovernment protests in Ukraine 

that began on November 21, 2013; 

(ii) Any person that the Secretary of 

the Treasury, in consultation with the 

Secretary of State, determines has 

perpetrated, or is responsible for 

ordering, controlling, or otherwise 

directing, significant acts that are 

intended to undermine the peace, 

security, stability, sovereignty, or 

territorial integrity of Ukraine, including 

acts of economic extortion; 

(iii) Any official of the Government of 

the Russian Federation, or a close 

associate or family member of such an 

official, that the Secretary of the 

Treasury, in consultation with the 

Secretary of State, determines is 

responsible for, complicit in, or 

responsible for ordering, controlling, or 

otherwise directing, acts of significant 

corruption in Ukraine, including the 

expropriation of private or public assets 

for personal gain, corruption related to 

government contracts or the extraction 

of natural resources, bribery, or the 

facilitation or transfer of the proceeds of 

corruption to foreign jurisdictions; 

(iv) Any individual that the Secretary 

of the Treasury, in consultation with the 

Secretary of State, determines materially 

assisted, sponsored, or provided 

financial, material, or technological 

support for, or goods or services in 

support of, the commission of acts 

described in paragraph (a)(6)(i), (ii), or 

(iii) of this section; 

(v) Any official of the Government of 

the Russian Federation, or a close 

associate or family member of such an 

official, that the Secretary of the 

Treasury, in consultation with the 

Secretary of State, determines is, on or 

after August 2, 2017, responsible for, or 

complicit in, or responsible for ordering, 

controlling, or otherwise directing, acts 

of significant corruption in the Russian 

Federation or elsewhere, including the 

expropriation of private or public assets 

for personal gain, corruption related to 

government contracts or the extraction 

of natural resources, bribery, or the 

facilitation or transfer of the proceeds of 

corruption to foreign jurisdictions; 

(vi) Any individual who has 

materially assisted, sponsored, or 

provided financial, material, or 

technological support for, or goods or 

services in support of, an act described 

in paragraph (a)(6)(v) of this section and 

has been added to the SDN List for such 

behavior; 

(vii) A foreign person that the 

Secretary of the Treasury, in 

consultation with the Secretary of State, 

determines knowingly, on or after 

August 2, 2017: 

(A) Materially violates, attempts to 

violate, conspires to violate, or causes a 

violation of any license, order, 

regulation, or prohibition contained in 

or issued pursuant to any covered 

Executive order, SSIDES, or the Ukraine 

Freedom Support Act of 2014, as 

amended (22 U.S.C. 8921–8930) 

(UFSA); or 

(B) Facilitates a significant transaction 

or transactions, including deceptive or 

structured transactions, for or on behalf 

of: 

(1) Any person subject to sanctions 

imposed by the United States with 

respect to the Russian Federation; or 

(2) Any child, spouse, parent, or 

sibling of an individual described in 

paragraph (a)(6)(vii)(B)(1) of this 

section. 

(viii) A foreign person that the 

Secretary of the Treasury, in 

consultation with the Secretary of State, 

determines, based on credible 

information, on or after August 2, 2017: 

(A) Is responsible for, complicit in, or 

responsible for ordering, controlling, or 

otherwise directing, the commission of 

serious human rights abuses in any 

territory forcibly occupied or otherwise 

controlled by the Government of the 

Russian Federation; 

(B) Materially assists, sponsors, or 

provides financial, material, or 

technological support for, or goods or 

services to, a foreign person described 

in paragraph (a)(6)(viii)(A) of this 

section; or 

(C) Is owned or controlled by, or acts 

or purports to act for or on behalf of, 

directly or indirectly, a foreign person 

described in paragraph (a)(6)(viii)(A) of 

this section. 

(b) The prohibitions in paragraph (a) 

of this section include prohibitions on 

the following transactions: 

(1) The making of any contribution or 

provision of funds, goods, or services 

by, to, or for the benefit of any person 

whose property and interests in 

property are blocked pursuant to 

paragraph (a) of this section; and 

(2) The receipt of any contribution or 

provision of funds, goods, or services 

from any person whose property and 

interests in property are blocked 

pursuant to paragraph (a) of this section. 

(c) Unless authorized by this part or 

by a specific license expressly referring 

to this part, any dealing in securities (or 

evidence thereof) held within the 

possession or control of a U.S. person 

and either registered or inscribed in the 

name of, or known to be held for the 

benefit of, or issued by, any person 

whose property and interests in 

property are blocked pursuant to 

paragraph (a) of this section is 

prohibited. This prohibition includes 

the transfer (including the transfer on 

the books of any issuer or agent thereof), 

disposition, transportation, importation, 

exportation, or withdrawal of, or the 

endorsement or guaranty of signatures 

on, any securities on or after the 

effective date. This prohibition applies 

irrespective of the fact that at any time 

(whether prior to, on, or subsequent to 

the effective date) the registered or 

inscribed owner of any such securities 

may have or might appear to have 

assigned, transferred, or otherwise 

disposed of the securities. 

(d) The prohibitions in paragraph (a) 

of this section apply except to the extent 

provided by statutes, or in regulations, 

orders, directives, or licenses that may 

be issued pursuant to this part, and 

notwithstanding any contract entered 

into or any license or permit granted 

prior to the effective date. 


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(e) All transactions prohibited 

pursuant to any Executive order issued 

after December 19, 2014 pursuant to the 

national emergency declared in E.O. 

13660 of March 6, 2014, are prohibited 

pursuant to this part. 

Note 2 to § 589.201. The names of persons 

designated or identified as blocked pursuant 

to E.O. 13660, E.O. 13661, E.O. 13662, or E.O. 

13685 are published in the Federal Register 

and incorporated into OFAC’s Specially 

Designated Nationals and Blocked Persons 

List (SDN List) with the following identifiers: 

for E.O. 13660: ‘‘[UKRAINE–EO13660]’’; for 

E.O. 13661: ‘‘[UKRAINE–EO13661]’’; for E.O. 

13662: ‘‘[UKRAINE–EO13662]’’; and for E.O. 

13685: ‘‘[UKRAINE–EO13685].’’ The names 

of persons listed in, or designated or 

identified pursuant to any further Executive 

orders issued pursuant to the national 

emergency declared in E.O. 13660, whose 

property and interests in property therefore 

are blocked pursuant to this section, are 

published in the Federal Register and 

incorporated into OFAC’s SDN List using the 

identifier formulation ‘‘[UKRAINE– 

E.O.[number pursuant to which the person’s 

property and interests in property are 

blocked]].’’ The names of persons designated 

pursuant to SSIDES, whose property and 

interests in property therefore are blocked 

pursuant to this section, are published in the 

Federal Register and incorporated into 

OFAC’s SDN List using the identifier 

‘‘[SSIDES].’’ Certain transactions with 

persons blocked pursuant to paragraph (a) of 

this section, or blocked pursuant to other 

parts of 31 CFR chapter V in connection with 

certain Ukraine/Russia-related activities, may 

result in the imposition of secondary 

sanctions, and therefore such blocked 

persons’ entries on the SDN List will also 

include the descriptive prefix text 

‘‘Secondary sanctions risk:’’, followed by 

information about the applicable secondary 

sanctions authority. The SDN List is 

accessible through the following page on 

OFAC’s website: www.treas.gov/sdn. 

Additional information pertaining to the SDN 

List can be found in appendix A to this 

chapter. See § 589.411 concerning entities 

that may not be listed on the SDN List but 

whose property and interests in property are 

nevertheless blocked pursuant to this section. 

Note 3 to § 589.201. The International 

Emergency Economic Powers Act (50 U.S.C. 

1701 et seq.), in Section 203 (50 U.S.C. 1702), 

and SSIDES authorize the blocking of 

property and interests in property of a person 

during the pendency of an investigation. The 

names of persons whose property and 

interests in property are blocked pending 

investigation pursuant to this section also are 

published in the Federal Register and 

incorporated into the SDN List using the 

following identifiers: for E.O. 13660: ‘‘[BPI– 

UKRAINE–EO13660]’’; for E.O. 13661: ‘‘[BPI– 

UKRAINE–EO13661]’’; for E.O. 13662: ‘‘[BPI– 

UKRAINE–EO13662]’’; for E.O. 13685: ‘‘[BPI– 

UKRAINE–EO13685]’’; for SSIDES: ‘‘[BPI– 

SSIDES]’’; and for any further Executive 

orders issued pursuant to the national 

emergency declared in E.O. 13660: ‘‘[BPI– 

UKRAINE–E.O.[E.O. number pursuant to 

which the person’s property and interests in 

property are blocked pending 

investigation]].’’ 

Note 4 to § 589.201. Sections 501.806 and 

501.807 of this chapter describe the 

procedures to be followed by persons 

seeking, respectively, the unblocking of 

funds that they believe were blocked due to 

mistaken identity, or administrative 

reconsideration of their status as persons 

whose property and interests in property are 

blocked pursuant to this section. 

Note 5 to § 589.201. Section 216 of the 

Countering America’s Adversaries Through 

Sanctions Act (22 U.S.C. 9511) (CAATSA) 

requires Congressional review prior to the 

termination of sanctions imposed pursuant to 

E.O.13660, E.O. 13661, E.O. 13662, E.O. 

13685, or SSIDES. Section 222 of CAATSA 

(22 U.S.C. 9522) describes the Congressional 

notification required prior to the termination 

of sanctions imposed pursuant to E.O. 13660, 

E.O. 13661, E.O. 13662, or E.O. 13685. 

Sections 8(d), 9(d), 10(e), and 11(e) of SSIDES 

(22 U.S.C. 8907(d), 8908(d), 8909(e), and 

8910(e)) describe the Congressional 

notification required prior to the termination 

of sanctions imposed pursuant to these 

sections. 

§ 589.202 Prohibited transactions with 

respect to the financial services sector of 

the Russian Federation economy (Directive 

1). 

The following activities by a U.S. 

person or within the United States are 

prohibited: 

(a) For new debt or new equity issued 

on or after July 16, 2014 and before 

September 12, 2014, all transactions in, 

provision of financing for, and other 

dealings in new debt of longer than 90 

days maturity or new equity of persons 

determined to be subject to this section, 

their property, or their interests in 

property; 

(b) For new debt or new equity issued 

on or after September 12, 2014 and 

before November 28, 2017, all 

transactions in, provision of financing 

for, and other dealings in new debt of 

longer than 30 days maturity or new 

equity of persons determined to be 

subject to this section, their property, or 

their interests in property; and 

(c) For new debt or new equity issued 

on or after November 28, 2017, all 

transactions in, provision of financing 

for, and other dealings in new debt of 

longer than 14 days maturity or new 

equity of persons determined to be 

subject to this section, their property, or 

their interests in property. 

Note 1 to § 589.202. The names of persons 

subject to this section (and earlier versions of 

Directive 1) are published in the Federal 

Register and incorporated into OFAC’s 

Sectoral Sanctions Identifications List (SSI 

List) with the descriptive text ‘‘Executive 

Order 13662 Directive Determination— 

Subject to Directive 1.’’ Certain transactions 

with persons subject to this section may 

result in the imposition of secondary 

sanctions, and therefore such persons’ entries 

on the SSI List will also include the 

descriptive prefix text ‘‘Secondary sanctions 

risk:’’, followed by information about the 

applicable secondary sanctions authority. 

The SSI List is accessible via the Ukraine-/ 

Russia-Related Sanctions page on OFAC’s 

website: www.treas.gov/ofac. See § 589.411 

concerning entities that may not be listed on 

the SSI List but whose property and interests 

in property are nevertheless subject to the 

prohibitions in this section. 

Note 2 to § 589.202. Section 216 of the 

Countering America’s Adversaries Through 

Sanctions Act (22 U.S.C. 9511) (CAATSA) 

requires Congressional review prior to the 

termination of sanctions imposed pursuant to 

E.O. 13662. Section 222 of CAATSA (22 

U.S.C. 9522) describes the Congressional 

notification required prior to the termination 

of sanctions imposed pursuant to E.O. 13662. 

§ 589.203 Prohibited transactions with 

respect to financing activities in the energy 

sector of the Russian Federation economy 

(Directive 2). 

The following activities by a U.S. 

person or within the United States are 

prohibited: 

(a) For new debt issued on or after 

July 16, 2014 and before November 28, 

2017, all transactions in, provision of 

financing for, and other dealings in new 

debt of longer than 90 days maturity of 

persons determined to be subject to this 

section, their property, or their interests 

in property; and 

(b) For new debt issued on or after 

November 28, 2017, all transactions in, 

provision of financing for, and other 

dealings in new debt of longer than 60 

days maturity of persons determined to 

be subject to this section, their property, 

or their interests in property. 

Note 1 to § 589.203. The names of persons 

subject to this section (and earlier versions of 

Directive 2) are published in the Federal 

Register and incorporated into OFAC’s 

Sectoral Sanctions Identifications List (SSI 

List) with the descriptive text ‘‘Executive 

Order 13662 Directive Determination— 

Subject to Directive 2.’’ Certain transactions 

with persons subject to this section may 

result in the imposition of secondary 

sanctions, and therefore such persons’ entries 

on the SSI List will also include the 

descriptive prefix text ‘‘Secondary sanctions 

risk:’’, followed by information about the 

applicable secondary sanctions authority. 

The SSI List is accessible through the 

Ukraine-/Russia-Related Sanctions page on 

OFAC’s website: www.treas.gov/ofac. See 

§ 589.411 concerning entities that may not be 

listed on the SSI List but whose property and 

interests in property are nevertheless subject 

to the prohibitions in this section. 

Note 2 to § 589.203. Section 216 of 

CAATSA (22 U.S.C. 9511) requires 

Congressional review prior to the termination 


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of sanctions imposed pursuant to E.O. 13662. 

Section 222 of CAATSA (22 U.S.C. 9522) 

describes the Congressional notification 

required prior to the termination of sanctions 

imposed pursuant to E.O. 13662. 

§ 589.204 Prohibited transactions with 

respect to the defense and related materiel 

sector of the Russian Federation economy 

(Directive 3). 

All transactions in, provision of 

financing for, and other dealings in new 

debt of longer than 30 days maturity of 

persons determined to be subject to this 

section, their property, or their interests 

in property by a U.S. person or within 

in the United States are prohibited. 

Note 1 to § 589.204. The names of persons 

subject to this section are published in the 

Federal Register and incorporated into 

OFAC’s Sectoral Sanctions Identifications 

List (SSI List) with the descriptive text 

‘‘Executive Order 13662 Directive 

Determination—Subject to Directive 3.’’ 

Certain transactions with persons subject to 

this section may result in the imposition of 

secondary sanctions, and therefore such 

persons’ entries on the SSI List will also 

include the descriptive prefix text 

‘‘Secondary sanctions risk:’’, followed by 

information about the applicable secondary 

sanctions authority. The SSI List is accessible 

via the Ukraine-/Russia-Related Sanctions 

page on OFAC’s website: www.treas.gov/ofac. 

See § 589.411 concerning entities that may 

not be listed on the SSI List but whose 

property and interests in property are 

nevertheless subject to the prohibitions of 

this section. 

Note 2 to § 589.204. Section 216 of 

CAATSA (22 U.S.C. 9511) requires 

Congressional review prior to the termination 

of sanctions imposed pursuant to E.O. 13662. 

Section 222 of CAATSA (22 U.S.C. 9522) 

describes the Congressional notification 

required prior to the termination of sanctions 

imposed pursuant to E.O. 13662. 

§ 589.205 Prohibited transactions with 

respect to oil-producing activities in the 

energy sector of the Russian Federation 

economy (Directive 4). 

The following activities by a U.S. 

person or within the United States are 

prohibited: The provision, exportation, 

or reexportation, directly or indirectly, 

of goods, services (except for financial 

services), or technology in support of 

exploration or production for 

deepwater, Arctic offshore, or shale 

projects: 

(a) That have the potential to produce 

oil in the Russian Federation, or in 

maritime area claimed by the Russian 

Federation and extending from its 

territory, and that involve any person 

determined to be subject to this section, 

their property, or their interests in 

property; or 

(b) That are initiated on or after 

January 29, 2018, that have the potential 

to produce oil in any location, and in 

which any person determined to be 

subject to this section, their property, or 

their interests in property has a 33 

percent or greater ownership interest, or 

ownership of a majority of the voting 

interests. 

Note 1 to § 589.205. This section does not 

apply to projects that have the potential to 

produce gas only. 

Note 2 to § 589.205. The names of persons 

subject to this section (and earlier versions of 

Directive 4) are published in the Federal 

Register and incorporated into OFAC’s 

Sectoral Sanctions Identifications List (SSI 

List) with the descriptive text ‘‘Executive 

Order 13662 Directive Determination— 

Subject to Directive 4.’’ Certain transactions 

with persons subject to this section may 

result in the imposition of secondary 

sanctions, and therefore such persons’ entries 

on the SSI List will also include the 

descriptive prefix text ‘‘Secondary sanctions 

risk:’’, followed by information about the 

applicable secondary sanctions authority. 

The SSI List is accessible through the 

Ukraine-/Russia-Related Sanctions page on 

OFAC’s website: www.treas.gov/ofac. See 

§ 589.411 concerning entities that may not be 

listed on the SSI List but whose property and 

interests in property are nevertheless subject 

to the prohibitions of this section. 

Note 3 to § 589.205. See § 589.412 

concerning projects in which persons subject 

to paragraph (b) of this section own a 33 

percent or greater ownership interest, or 

ownership of a majority of the voting 

interests. 

Note 4 to § 589.205. See § 746.5 of the 

Export Administration Regulations (15 CFR 

parts 730 through 774) for the Department of 

Commerce’s related license requirement on 

exports, reexports, and transfers (in-country) 

of certain items for use in specified 

deepwater, Arctic offshore, or shale projects. 

Note 5 to § 589.205. Section 216 of 

CAATSA (22 U.S.C. 9511) requires 

Congressional review prior to the termination 

of sanctions imposed pursuant to E.O. 13662. 

Section 222 of CAATSA (22 U.S.C. 9522) 

describes the Congressional notification 

required prior to the termination of sanctions 

imposed pursuant to E.O. 13662. 

§ 589.206 Prohibited new investment in the 

Crimea region of Ukraine. 

Except as otherwise authorized, new 

investment, as defined in § 589.326, in 

the Crimea region of Ukraine by a 

United States person, wherever located, 

is prohibited. 

§ 589.207 Prohibited exportation, 

reexportation, sale, or supply of goods, 

services, or technology to the Crimea 

region of Ukraine. 

Except as otherwise authorized, the 

exportation, reexportation, sale, or 

supply, directly or indirectly, from the 

United States, or by a United States 

person, wherever located, of any goods, 

services, or technology to the Crimea 

region of Ukraine is prohibited. 

§ 589.208 Prohibited importation of goods, 

services, or technology from the Crimea 

region of Ukraine. 

Except as otherwise authorized, the 

importation into the United States, 

directly or indirectly, of any goods, 

services, or technology from the Crimea 

region of Ukraine is prohibited. 

§ 589.209 Prohibitions or strict conditions 

with respect to correspondent or payablethrough accounts of foreign financial 

institutions that have knowingly facilitated 

certain significant transactions. 

(a) Prohibited activities. A U.S. 

financial institution shall not: 

(1) Open or maintain a correspondent 

account or a payable-through account in 

the United States for a foreign financial 

institution for which the opening or 

maintaining of such an account is 

prohibited pursuant to this section; or 

(2) Maintain a correspondent account 

or a payable-through account in the 

United States for a foreign financial 

institution in a manner that is 

inconsistent with any strict condition 

imposed and in effect pursuant to this 

section. 

(b) Sanctionable activity by foreign 

financial institutions involving certain 

activity for persons with respect to 

which sanctions are imposed pursuant 

to section 4 of the Ukraine Freedom 

Support Act of 2014, as amended (22 

U.S.C. 8921–8930) (UFSA). The 

Secretary of the Treasury, in 

consultation with the Secretary of State, 

may determine that a foreign financial 

institution knowingly engages, on or 

after August 2, 2017, in significant 

transactions involving the following 

activities for persons with respect to 

which sanctions are imposed pursuant 

to section 4 of UFSA (22 U.S.C. 8923): 

(1) Knowingly manufacturing or 

selling defense articles transferred into 

Syria or into the territory of a specified 

country without the consent of the 

internationally recognized government 

of that country; 

(2) Transferring defense articles into 

Syria or into the territory of a specified 

country without the consent of the 

internationally recognized government 

of that country; or 

(3) Brokering or otherwise assisting in 

the transfer of defense articles into Syria 

or into the territory of a specified 

country without the consent of the 

internationally recognized government 

of that country; or 

(4) Knowingly, on or after December 

18, 2014, assisting, sponsoring, or 

providing financial, material, or 

technological support for, or goods or 


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services to or in support of, any entity 

owned or controlled by the Government 

of the Russian Federation or owned or 

controlled by nationals of the Russian 

Federation; and with respect to an 

activity described in paragraph (a)(1), 

(2), or (3) of this section; 

(5) Knowingly making a significant 

investment in a special Russian crude 

oil project; or 

(6) The withholding by Gazprom of 

significant natural gas supplies from 

member countries of the North Atlantic 

Treaty Organization, or further 

withholding by Gazprom of significant 

natural gas supplies from countries such 

as Ukraine, Georgia, or Moldova. 

Note 1 to paragraph (b). Persons with 

respect to which sanctions are imposed 

pursuant to section 4 of UFSA (22 U.S.C. 

8923) will be identified either on OFAC’s 

Non-SDN Menu-Based List (NS–MBS List) or 

on OFAC’s Specially Designated Nationals 

and Blocked Persons List (SDN List). Upon 

the imposition of non-blocking sanctions 

from a menu of sanctions as provided by 

section 4 of UFSA, OFAC will place the 

name and other relevant identifiers of the 

sanctioned person on the NS–MBS List. The 

NS–MBS List also will specify the type of 

sanction or sanctions imposed on the listed 

person and the legal authority under which 

the person is sanctioned. When blocking is 

chosen as a menu-based sanction and 

imposed on a person, that person is 

identified solely on OFAC’s SDN List, along 

with any other menu-based sanctions 

imposed on that person. 

(c) Sanctionable activity by foreign 

financial institutions on behalf of 

Russian persons included on the SDN 

List. The Secretary of the Treasury, in 

consultation with the Secretary of State, 

may determine that a foreign financial 

institution has, on or after September 1, 

2017, knowingly facilitated a significant 

financial transaction on behalf of any 

Russian person included on OFAC’s 

SDN List pursuant to UFSA, E.O. 13660, 

E.O. 13661, E.O. 13662, or any other 

Executive order addressing the crisis in 

Ukraine. 

Note 2 to paragraph (c). For information 

regarding persons included on OFAC’s SDN 

List pursuant to UFSA, E.O. 13660, E.O. 

13661, or E.O. 13662, or any other Executive 

order issued pursuant to the national 

emergency declared in E.O. 13660, including 

identifier information for entries on the SDN 

List, see note 1 to § 589.201. 

(d) Imposition of sanctions on foreign 

financial institutions. Upon determining 

that a foreign financial institution has 

engaged in sanctionable activity 

described in paragraph (b) or (c) of this 

section, the Secretary of the Treasury, in 

consultation with the Secretary of State, 

shall: 

(1) Prohibit the opening by a U.S. 

financial institution of a correspondent 

account or a payable-through account in 

the United States for the foreign 

financial institution; and 

(2) Prohibit or impose one or more 

strict conditions on the maintaining by 

a U.S. financial institution of a 

correspondent account or a payablethrough account in the United States for 

the foreign financial institution. Such 

conditions may include the following: 

(i) Prohibiting or restricting any 

provision of trade finance through the 

correspondent account or payablethrough account of the foreign financial 

institution; 

(ii) Restricting the transactions that 

may be processed through the 

correspondent account or payablethrough account of the foreign financial 

institution to certain types of 

transactions, such as personal 

remittances; 

(iii) Placing monetary limits on, or 

limiting the volume of, the transactions 

that may be processed through the 

correspondent account or payablethrough account of the foreign financial 

institution; 

(iv) Requiring pre-approval from the 

U.S. financial institution for all 

transactions processed through the 

correspondent account or payablethrough account of the foreign financial 

institution; or 

(v) Prohibiting or restricting the 

processing of foreign exchange 

transactions through the correspondent 

account or payable-through account of 

the foreign financial institution. 

Note 3 to § 589.209. The names of foreign 

financial institutions for which the opening 

of a correspondent account or a payablethrough account in the United States is 

prohibited and for which the maintaining of 

a correspondent account or payable-through 

account is prohibited or subject to one or 

more strict conditions pursuant to this 

section will be added to the List of Foreign 

Financial Institutions Subject to 

Correspondent Account or Payable-Through 

Account Sanctions (CAPTA List) on OFAC’s 

website (www.treas.gov/ofac), and published 

in the Federal Register along with the 

applicable prohibition or strict condition(s). 

Note 4 to § 589.209. Section 216 of the 

Countering America’s Adversaries Through 

Sanctions Act (22 U.S.C. 9511) (CAATSA) 

requires Congressional review prior to the 

termination of sanctions imposed pursuant to 

UFSA. Section 5(g) of UFSA (22 U.S.C. 

8924(g)) describes the Congressional 

notification required prior to the termination 

of sanctions imposed pursuant section 5 of 

UFSA. 

§ 589.210 Effect of transfers violating the 

provisions of this part. 

(a) Any transfer after the effective date 

that is in violation of any provision of 

this part or of any regulation, order, 

directive, ruling, instruction, or license 

issued pursuant to this part, and that 

involves any property or interest in 

property blocked pursuant to § 589.201, 

is null and void and shall not be the 

basis for the assertion or recognition of 

any interest in or right, remedy, power, 

or privilege with respect to such 

property or interest in property. 

(b) No transfer before the effective 

date shall be the basis for the assertion 

or recognition of any right, remedy, 

power, or privilege with respect to, or 

any interest in, any property or interest 

in property blocked pursuant to 

§ 589.201, unless the person who holds 

or maintains such property, prior to that 

date, had written notice of the transfer 

or by any written evidence had 

recognized such transfer. 

(c) Unless otherwise provided, a 

license or other authorization issued by 

OFAC before, during, or after a transfer 

shall validate such transfer or make it 

enforceable to the same extent that it 

would be valid or enforceable but for 

the provisions of this part and any 

regulation, order, directive, ruling, 

instruction, or license issued pursuant 

to this part. 

(d) Transfers of property that 

otherwise would be null and void or 

unenforceable by virtue of the 

provisions of this section shall not be 

deemed to be null and void or 

unenforceable as to any person with 

whom such property is or was held or 

maintained (and as to such person only) 

in cases in which such person is able to 

establish to the satisfaction of OFAC 

each of the following: 

(1) Such transfer did not represent a 

willful violation of the provisions of this 

part by the person with whom such 

property is or was held or maintained 

(and as to such person only); 

(2) The person with whom such 

property is or was held or maintained 

did not have reasonable cause to know 

or suspect, in view of all the facts and 

circumstances known or available to 

such person, that such transfer required 

a license or authorization issued 

pursuant to this part and was not so 

licensed or authorized, or, if a license or 

authorization did purport to cover the 

transfer, that such license or 

authorization had been obtained by 

misrepresentation of a third party or 

withholding of material facts or was 

otherwise fraudulently obtained; and 

(3) The person with whom such 

property is or was held or maintained 

filed with OFAC a report setting forth in 

full the circumstances relating to such 

transfer promptly upon discovery that: 

(i) Such transfer was in violation of 

the provisions of this part or any 

regulation, ruling, instruction, license, 


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or other directive or authorization 

issued pursuant to this part; 

(ii) Such transfer was not licensed or 

authorized by OFAC; or 

(iii) If a license did purport to cover 

the transfer, such license had been 

obtained by misrepresentation of a third 

party or withholding of material facts or 

was otherwise fraudulently obtained. 

(e) The filing of a report in accordance 

with the provisions of paragraph (d)(3) 

of this section shall not be deemed 

evidence that the terms of paragraphs 

(d)(1) and (2) of this section have been 

satisfied. 

(f) Unless licensed pursuant to this 

part, any attachment, judgment, decree, 

lien, execution, garnishment, or other 

judicial process is null and void with 

respect to any property or interest in 

property blocked pursuant to § 589.201. 

§ 589.211 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

(a) Except as provided in paragraph 

(e) or (f) of this section, or as otherwise 

directed or authorized by OFAC, any 

U.S. person holding funds, such as 

currency, bank deposits, or liquidated 

financial obligations, subject to 

§ 589.201 shall hold or place such funds 

in a blocked interest-bearing account 

located in the United States. 

(b)(1) For the purposes of this section, 

the term blocked interest-bearing 

account means a blocked account: 

(i) In a federally insured U.S. bank, 

thrift institution, or credit union, 

provided the funds are earning interest 

at rates that are commercially 

reasonable; or 

(ii) With a broker or dealer registered 

with the Securities and Exchange 

Commission under the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.), provided the funds are invested in 

a money market fund or in U.S. 

Treasury bills. 

(2) Funds held or placed in a blocked 

account pursuant to paragraph (a) of this 

section may not be invested in 

instruments the maturity of which 

exceeds 180 days. 

(c) For the purposes of this section, a 

rate is commercially reasonable if it is 

the rate currently offered to other 

depositors on deposits or instruments of 

comparable size and maturity. 

(d) For the purposes of this section, if 

interest is credited to a separate blocked 

account or subaccount, the name of the 

account party on each account must be 

the same. 

(e) Blocked funds held in instruments 

the maturity of which exceeds 180 days 

at the time the funds become subject to 

§ 589.201 may continue to be held until 

maturity in the original instrument, 

provided any interest, earnings, or other 

proceeds derived therefrom are paid 

into a blocked interest-bearing account 

in accordance with paragraph (a) or (f) 

of this section. 

(f) Blocked funds held in accounts or 

instruments outside the United States at 

the time the funds become subject to 

§ 589.201 may continue to be held in the 

same type of accounts or instruments, 

provided the funds earn interest at rates 

that are commercially reasonable. 

(g) This section does not create an 

affirmative obligation for the holder of 

blocked tangible property, such as real 

or personal property, or of other blocked 

property, such as debt or equity 

securities, to sell or liquidate such 

property. However, OFAC may issue 

licenses permitting or directing such 

sales or liquidation in appropriate cases. 

(h) Funds subject to this section may 

not be held, invested, or reinvested in 

a manner that provides financial or 

economic benefit or access to any 

person whose property and interests in 

property are blocked pursuant to 

§ 589.201, nor may their holder 

cooperate in or facilitate the pledging or 

other attempted use as collateral of 

blocked funds or other assets. 

§ 589.212 Expenses of maintaining 

blocked tangible property; liquidation of 

blocked property. 

(a) Except as otherwise authorized, 

and notwithstanding the existence of 

any rights or obligations conferred or 

imposed by any international agreement 

or contract entered into or any license 

or permit granted prior to the effective 

date, all expenses incident to the 

maintenance of tangible property 

blocked pursuant to § 589.201 shall be 

the responsibility of the owners or 

operators of such property, which 

expenses shall not be met from blocked 

funds. 

(b) Property blocked pursuant to 

§ 589.201 may, in the discretion of 

OFAC, be sold or liquidated and the net 

proceeds placed in a blocked interestbearing account in the name of the 

owner of the property. 

§ 589.213 Evasions; attempts; causing 

violations; conspiracies. 

(a) Any transaction on or after the 

effective date that evades or avoids, has 

the purpose of evading or avoiding, 

causes a violation of, or attempts to 

violate any of the prohibitions set forth 

in this part is prohibited. 

(b) Any conspiracy formed to violate 

the prohibitions set forth in this part is 

prohibited. 

§ 589.214 Exempt transactions. 

(a) Personal communications. The 

prohibitions contained in this part do 

not apply to any postal, telegraphic, 

telephonic, or other personal 

communication that does not involve 

the transfer of anything of value. 

(b) U.S. intelligence activities. The 

prohibitions contained in this part do 

not apply to activities subject to the 

reporting requirements under title V of 

the National Security Act of 1947 (50 

U.S.C. 3091 et seq.), or any authorized 

intelligence activities of the United 

States. 

(c) Activities of the National 

Aeronautics and Space Administration. 

The prohibitions contained in this part 

do not apply to activities of the National 

Aeronautics and Space Administration 

(NASA), including the supply by any 

entity of the Russian Federation of any 

product or service, or the procurement 

of such product or service by any 

contractor or subcontractor of the 

United States or any other entity, 

relating to or in connection with any 

space launch conducted for NASA or 

any other non-Department of Defense 

customer. 

(d) Importation of goods. The 

prohibitions contained in this part do 

not apply to the importation of any 

goods that would otherwise be 

prohibited solely because of the interest 

of a person whose property and interests 

in property are blocked solely pursuant 

to § 589.201(a)(6)(i), (ii), (iii), (iv), or (v). 

For the purposes of this paragraph (d), 

the term ‘‘good(s)’’ means any article, 

natural or manmade substance, material, 

supply or manufactured product, 

including inspection and test 

equipment, and excluding technical 

data. 

(e) Official business. The prohibitions 

contained in §§ 589.201(a)(5), 589.206, 

589.207, and 589.208 do not apply to 

transactions for the conduct of the 

official business of the United States 

Government by employees, grantees, or 

contractors thereof. 

Note 1 to paragraph (e). See § 589.510 for 

a general license authorizing transactions for 

the conduct of the official business of the 

United States Government not otherwise 

exempt. 

§ 589.215 Prohibited facilitation. 

Except as otherwise authorized, U.S. 

persons, wherever located, are 

prohibited from approving, financing, 

facilitating, or guaranteeing a 

transaction by a foreign person where 

the transaction by that foreign person 

would be prohibited by § 589.206, 

§ 589.207, or § 589.208 of this part if 

performed by a U.S. person or within 

the United States. 


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Subpart C—General Definitions 

§ 589.300 Applicability of definitions. 

The definitions in this subpart apply 

throughout the entire part. 

§ 589.301 Arctic offshore projects. 

(a) The term Arctic offshore projects 

as used in § 589.205 means projects that 

have the potential to produce oil in 

areas that— 

(1) Involve drilling operations 

originating offshore, and 

(2) Are located above the Arctic 

Circle. 

(b) The term Arctic offshore projects 

as used in § 589.205 does not apply to 

horizontal drilling operations 

originating onshore where such drilling 

operations extend under the seabed to 

areas above the Arctic Circle. 

§ 589.302 Arms or related materiel sector 

of the Russian Federation economy. 

The term arms or related materiel 

sector of the Russian Federation 

economy includes: The procurement, 

development, test manufacture, 

maintenance, upgrade and 

refurbishment, shipping, supply, sale, 

and storage to, from, within, or 

transiting the Russian Federation of 

arms or related materiel of all types, 

including any battle tanks, armored 

combat vehicles, large caliber artillery 

systems, combat aircraft, attack 

helicopters, warships, missiles or 

missile systems, or related materiel; 

critical enablers, aggregates, 

components, parts, as well as related 

documentation and instructions for 

such items; or training for the use of 

included systems, provision of 

simulation equipment, documentation 

(including training manuals, 

maintenance orders, or technical 

bulletins), prototypes, software 

upgrades, and licensing and 

manufacturing agreements for such 

items. 

§ 589.303 Blocked account; blocked 

property. 

The terms blocked account and 

blocked property mean any account or 

property subject to the prohibitions in 

§ 589.201 held in the name of a person 

whose property and interests in 

property are blocked pursuant to 

§ 589.201, or in which such person has 

an interest, and with respect to which 

payments, transfers, exportations, 

withdrawals, or other dealings may not 

be made or effected except pursuant to 

a license or other authorization from 

OFAC expressly authorizing such 

action. 

Note 1 to § 589.303. See § 589.411 

concerning the blocked status of property 

and interests in property of an entity that is 

directly or indirectly owned, whether 

individually or in the aggregate, 50 percent 

or more by one or more persons whose 

property and interests in property are 

blocked pursuant to § 589.201. 

§ 589.304 Correspondent account. 

The term correspondent account 

means an account established by a U.S. 

financial institution for a foreign 

financial institution to receive deposits 

from, or to make payments on behalf of, 

the foreign financial institution, or to 

handle other financial transactions 

related to such foreign financial 

institution. 

§ 589.305 Covered Executive order. 

The term covered Executive order 

means any of the following: Executive 

Order (E.O.) 13660, E.O. 13661, E.O. 

13662, E.O. 13685, E.O. 13694, relating 

to the Russian Federation, or E.O. 

13757, relating to the Russian 

Federation. 

§ 589.306 Crimea region of Ukraine. 

The term Crimea region of Ukraine 

includes the land territory in that region 

as well as any maritime areas over 

which sovereignty, sovereign rights, or 

jurisdiction is claimed based on 

purported sovereignty over that land 

territory. 

§ 589.307 Debt. 

The term debt as used in §§ 589.202 

through 589.204 includes bonds, loans, 

extensions of credit, loan guarantees, 

letters of credit, drafts, bankers’ 

acceptances, discount notes or bills, or 

commercial paper. 

§ 589.308 Deepwater projects. 

The term deepwater projects as used 

in § 589.205 means projects that involve 

underwater activities at depths of more 

than 500 feet. 

§ 589.309 Defense and related materiel 

sector of the Russian Federation economy. 

The term defense and related materiel 

sector of the Russian Federation 

economy includes: The military, armed 

forces, or security forces of the Russian 

Federation; the military, armed forces, 

or security forces of the Russian 

Federation’s use of arms or related 

materiel; and any person manufacturing, 

supplying, providing financing for, 

procuring, or distributing goods, 

services, or technology to the military, 

armed forces, or security forces of the 

Russian Federation; or financing, 

developing, testing, producing, or 

sustaining such goods or services or 

technology, or arms or related materiel, 

within or transiting the Russian 

Federation. 

§ 589.310 Effective date. 

(a) The term effective date refers to 

the effective date of the applicable 

prohibitions and directives contained in 

this part as follows: 

(1) With respect to a person whose 

property and interests in property are 

blocked pursuant to § 589.201(a)(2), 

12:01 a.m. eastern daylight time, March 

17, 2014; 

(2) With respect to a person whose 

property and interests in property are 

otherwise blocked pursuant to 

§ 589.201, the earlier of the date of 

actual or constructive notice that such 

person’s property and interests in 

property are blocked; 

(3) With respect to the transactions 

prohibited by § 589.202, § 589.203, 

§ 589.204, or § 589.205, the earlier of the 

date of actual or constructive notice that 

a person was added to the Sectoral 

Sanctions Identifications List (SSI List); 

(4) With respect to the transactions 

prohibited by §§ 589.206 through 

589.208, 3:30 p.m. eastern standard 

time, December 19, 2014; and 

(5) With respect to the transactions 

prohibited by § 589.209, the effective 

date of a prohibition on the opening or 

a prohibition or strict condition 

imposed on the maintaining of a 

correspondent account or a payablethrough account in the United States by 

a U.S. financial institution for a 

particular foreign financial institution 

pursuant to § 589.209(d) is the earlier of 

the date the U.S. financial institution 

receives actual or constructive notice of 

such prohibition or condition. 

(b) For the purposes of this section, 

constructive notice is the date that a 

notice of the blocking of the relevant 

person’s property and interests in 

property, or a notice of the person’s 

addition to the SSI List, or a notice of 

the imposition of a prohibition or strict 

condition pursuant to § 589.209, is 

published in the Federal Register. 

§ 589.311 Energy sector of the Russian 

Federation economy. 

The term energy sector of the Russian 

Federation economy includes the 

procurement, exploration, extraction, 

drilling, mining, harvesting, production, 

refinement, liquefaction, gasification, 

regasification, conversion, enrichment, 

fabrication, or transport to, from, or 

within the Russian Federation, of 

petroleum, natural gas, liquified natural 

gas, natural gas liquids, or petroleum 

products or other products capable of 

producing energy, such as coal or wood 

or agricultural products used to 

manufacture biofuels, the development, 

production, generation, transmission or 

exchange of power, through any means, 

including nuclear, electrical, thermal, 


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and renewable, in or involving the 

Russian Federation. 

§ 589.312 Entity. 

The term entity means a partnership, 

association, trust, joint venture, 

corporation, group, subgroup, or other 

organization. 

§ 589.313 Equity. 

The term equity as used in § 589.202 

includes stocks, share issuances, 

depositary receipts, or any other 

evidence of title or ownership. 

§ 589.314 Financial, material, or 

technological support. 

The term financial, material, or 

technological support, as used in this 

part, means any property, tangible or 

intangible, including currency, financial 

instruments, securities, or any other 

transmission of value; weapons or 

related materiel; chemical or biological 

agents; explosives; false documentation 

or identification; communications 

equipment; computers; electronic or 

other devices or equipment; 

technologies; lodging; safe houses; 

facilities; vehicles or other means of 

transportation; or goods. 

‘‘Technologies’’ as used in this section 

means specific information necessary 

for the development, production, or use 

of a product, including related technical 

data such as blueprints, plans, diagrams, 

models, formulae, tables, engineering 

designs and specifications, manuals, or 

other recorded instructions. 

§ 589.315 Financial services sector of the 

Russian Federation economy. 

The financial services sector of the 

Russian Federation economy includes 

economic or financial services, 

including government-operated and 

private banks and financial institutions, 

credit card companies, investment 

banking services, foreign exchange 

services, money services businesses, 

payday lenders, mortgage companies, 

securities exchanges, securities dealers, 

asset managers, and insurance services, 

or any entities that are engaged in the 

business of accepting deposits, making, 

granting, transferring, holding, or 

brokering loans or credits, or purchasing 

or selling foreign exchange, securities, 

commodity futures or options, or 

procuring purchasers and sellers 

thereof, as principal or agent, in or 

involving the Russian Federation. 

§ 589.316 Foreign financial institution. 

The term foreign financial institution 

means any foreign entity that is engaged 

in the business of accepting deposits, 

making, granting, transferring, holding, 

or brokering loans or credits, or 

purchasing or selling foreign exchange, 

securities, futures or options, or 

procuring purchasers and sellers 

thereof, as principal or agent. It includes 

depository institutions, banks, savings 

banks, money services businesses, trust 

companies, insurance companies, 

securities brokers and dealers, futures 

and options brokers and dealers, 

forward contract and foreign exchange 

merchants, securities and commodities 

exchanges, clearing corporations, 

investment companies, employee 

benefit plans, dealers in precious 

metals, stones, or jewels, and holding 

companies, affiliates, or subsidiaries of 

any of the foregoing. The term does not 

include the international financial 

institutions identified in 22 U.S.C. 

262r(c)(2), the International Fund for 

Agricultural Development, the North 

American Development Bank, or any 

other international financial institution 

so notified by OFAC. 

§ 589.317 Foreign person. 

(a) For the purposes of 

§§ 589.201(a)(6) and 589.413, the term 

foreign person means any citizen or 

national of a foreign state (including any 

such individual who is also a citizen or 

national of the United States), or any 

entity not organized solely under the 

laws of the United States or existing 

solely in the United States, but does not 

include a foreign state. 

(b) For the purposes of the rest of this 

part, the term foreign person means any 

person that is not a U.S. person. 

§ 589.318 Government of the Russian 

Federation. 

The term Government of the Russian 

Federation means the Government of 

the Russian Federation, any political 

subdivision, agency, or instrumentality 

thereof, including the Central Bank of 

the Russian Federation, and any person 

owned or controlled by, or acting for or 

on behalf of, the Government of the 

Russian Federation. 

§ 589.319 [Reserved] 

§ 589.320 Initiated. 

The term initiated as used in 

§ 589.205(b) means when a government 

or any of its political subdivisions, 

agencies, or instrumentalities (including 

any entity owned or controlled directly 

or indirectly by any of the foregoing) 

formally grants exploration, 

development, or production rights to 

any party. 

§ 589.321 Interest. 

Except as otherwise provided in this 

part, the term interest, when used with 

respect to property (e.g., ‘‘an interest in 

property’’), means an interest of any 

nature whatsoever, direct or indirect. 

§ 589.322 Knowingly. 

The term knowingly, with respect to 

conduct, a circumstance, or a result, 

means that a person has actual 

knowledge, or should have known, of 

the conduct, the circumstance, or the 

result. 

§ 589.323 Licenses; general and specific. 

(a) Except as otherwise provided in 

this part, the term license means any 

license or authorization contained in or 

issued pursuant to this part. 

(b) The term general license means 

any license or authorization the terms of 

which are set forth in subpart E of this 

part or made available on OFAC’s 

website: www.treas.gov/ofac. 

(c) The term specific license means 

any license or authorization issued 

pursuant to this part but not set forth in 

subpart E of this part or made available 

on OFAC’s website: www.treas.gov/ofac. 

Note 1 to § 589.323. See § 501.801 of this 

chapter on licensing procedures. See also 

note 1 to § 589.501. 

§ 589.324 Loans or other extensions of 

credit. 

The term loans or other extensions of 

credit means any transfer or extension 

of funds or credit on the basis of an 

obligation to repay, or any assumption 

or guarantee of the obligation of another 

to repay an extension of funds or credit, 

including: Overdrafts; currency swaps; 

purchases of debt securities issued by 

persons subject to the prohibitions in 

this part; purchases of a loan made by 

another person; sales of financial assets 

subject to an agreement to repurchase; 

renewals or refinancings whereby funds 

or credits are transferred to or extended 

to a prohibited borrower or prohibited 

recipient; the issuance of standby letters 

of credit; and drawdowns on existing 

lines of credit. 

§ 589.325 Metals and mining sector of the 

Russian Federation economy. 

The term metals and mining sector of 

the Russian Federation economy 

includes any act, process, or industry of 

extracting, at the surface or 

underground, ores, coal, precious 

stones, or any other minerals or 

geological materials in the Russian 

Federation, or any act of procuring, 

processing, manufacturing, or refining 

such geological materials, or 

transporting them to, from, or within the 

Russian Federation. 

§ 589.326 New investment. 

The term new investment as used in 

§ 589.206 means a transaction on or 

after 3:30 p.m. eastern standard time, 

December 19, 2014 that constitutes: 


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(a) A commitment or contribution of 

funds or other assets; or 

(b) A loan or other extension of credit 

as defined in § 589.324. 

§ 589.327 OFAC. 

The term OFAC means the 

Department of the Treasury’s Office of 

Foreign Assets Control. 

§ 589.328 Payable-through account. 

The term payable-through account 

means a correspondent account 

maintained by a U.S. financial 

institution for a foreign financial 

institution by means of which the 

foreign financial institution permits its 

customers to engage, either directly or 

through a subaccount, in banking 

activities usual in connection with the 

business of banking in the United 

States. 

§ 589.329 Person. 

The term person means an individual 

or entity. 

§ 589.330 Production. 

The term production as used in 

§ 589.205 refers to the lifting of oil to the 

surface and the gathering, treating, field 

processing, and field storage of such oil. 

The production stage of a project ends 

when extracted oil is transported out of 

a field production storage tank or 

otherwise off a field production site. 

The term production as used in 

§ 589.205 does not apply to the 

provision by U.S. persons or within the 

United States of goods, technology, or 

services to persons determined to be 

subject to § 589.205 when such 

transactions relate only to the 

transportation, refining, or other 

dealings involving oil that has already 

been extracted from a deepwater project 

as defined in § 589.308, Arctic offshore 

project as defined in § 589.301, or shale 

project as defined in § 589.334, and 

transported out of a field production 

storage tank or otherwise off of a field 

production site. 

§ 589.331 Property; property interest. 

The terms property and property 

interest include money, checks, drafts, 

bullion, bank deposits, savings 

accounts, debts, indebtedness, 

obligations, notes, guarantees, 

debentures, stocks, bonds, coupons, any 

other financial instruments, bankers 

acceptances, mortgages, pledges, liens 

or other rights in the nature of security, 

warehouse receipts, bills of lading, trust 

receipts, bills of sale, any other 

evidences of title, ownership, or 

indebtedness, letters of credit and any 

documents relating to any rights or 

obligations thereunder, powers of 

attorney, goods, wares, merchandise, 

chattels, stocks on hand, ships, goods on 

ships, real estate mortgages, deeds of 

trust, vendors’ sales agreements, land 

contracts, leaseholds, ground rents, real 

estate and any other interest therein, 

options, negotiable instruments, trade 

acceptances, royalties, book accounts, 

accounts payable, judgments, patents, 

trademarks or copyrights, insurance 

policies, safe deposit boxes and their 

contents, annuities, pooling agreements, 

services of any nature whatsoever, 

contracts of any nature whatsoever, and 

any other property, real, personal, or 

mixed, tangible or intangible, or interest 

or interests therein, present, future, or 

contingent. 

§ 589.332 Railway sector of the Russian 

Federation economy. 

The term railway sector of the Russian 

Federation economy includes the 

following activities and items produced 

in, sold from, purchased in, transiting, 

or distributed in the Russian Federation: 

The procurement, design, manufacture, 

construction, maintenance, repair, 

refurbishment, assembly, sale, purchase, 

distribution, and transportation of 

trains, locomotives, rail cars, and other 

equipment used to transport passengers 

and goods via trains; any materials that 

are used to manufacture trains or other 

means necessary to move the trains, 

such as railway lines, equipment, 

engineering, mechanical, or electrical 

systems or methods, or technology; and 

any infrastructure or services used to 

support railway operations, such as 

passenger ticketing and on-board food 

sales or services. 

§ 589.333 Russian person. 

The term Russian person means an 

individual who is a citizen or national 

of the Russian Federation, or an entity 

organized under the laws of the Russian 

Federation. 

§ 589.334 Shale projects. 

The term shale projects as used in 

§ 589.205 includes projects that have the 

potential to produce oil from resources 

located in shale formations as well as 

projects that have the potential to 

produce oil from resources located in 

fine-grained sedimentary rock 

formations including shale, limestone, 

dolomites, sandstones, and clay. 

§ 589.335 Special Russian crude oil 

project. 

The term special Russian crude oil 

project means a project intended to 

extract crude oil from: 

(a) The exclusive economic zone of 

the Russian Federation in waters more 

than 500 feet deep; 

(b) Russian artic offshore locations; or 

(c) Shale formation located in the 

Russian Federation. 

§ 589.336 Structured. 

The term structured, with respect to a 

transaction, has the meaning given the 

term ‘‘structure’’ in 31 CFR 1010.100(xx) 

(or any corresponding similar regulation 

or ruling issued by the U.S. Department 

of the Treasury). 

§ 589.337 Transfer. 

The term transfer means any actual or 

purported act or transaction, whether or 

not evidenced by writing, and whether 

or not done or performed within the 

United States, the purpose, intent, or 

effect of which is to create, surrender, 

release, convey, transfer, or alter, 

directly or indirectly, any right, remedy, 

power, privilege, or interest with respect 

to any property. Without limitation on 

the foregoing, it shall include the 

making, execution, or delivery of any 

assignment, power, conveyance, check, 

declaration, deed, deed of trust, power 

of attorney, power of appointment, bill 

of sale, mortgage, receipt, agreement, 

contract, certificate, gift, sale, affidavit, 

or statement; the making of any 

payment; the setting off of any 

obligation or credit; the appointment of 

any agent, trustee, or fiduciary; the 

creation or transfer of any lien; the 

issuance, docketing, filing, or levy of or 

under any judgment, decree, 

attachment, injunction, execution, or 

other judicial or administrative process 

or order, or the service of any 

garnishment; the acquisition of any 

interest of any nature whatsoever by 

reason of a judgment or decree of any 

foreign country; the fulfillment of any 

condition; the exercise of any power of 

appointment, power of attorney, or 

other power; or the acquisition, 

disposition, transportation, importation, 

exportation, or withdrawal of any 

security. 

§ 589.338 United States. 

The term United States means the 

United States, its territories and 

possessions, and all areas under the 

jurisdiction or authority thereof. 

§ 589.339 United States person; U.S. 

person. 

The term United States person or U.S. 

person means any United States citizen, 

permanent resident alien, entity 

organized under the laws of the United 

States or any jurisdiction within the 

United States (including foreign 

branches), or any person in the United 

States. 

§ 589.340 U.S. depository institution. 

The term U.S. depository institution 

means any entity (including its foreign 


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branches) organized under the laws of 

the United States or any jurisdiction 

within the United States, or any agency, 

office, or branch located in the United 

States of a foreign entity, that is engaged 

primarily in the business of banking (for 

example, banks, savings banks, savings 

associations, credit unions, trust 

companies, and United States bank 

holding companies) and is subject to 

regulation by Federal or State banking 

authorities. 

§ 589.341 U.S. financial institution. 

The term U.S. financial institution 

means any U.S. entity (including its 

foreign branches) that is engaged in the 

business of accepting deposits, making, 

granting, transferring, holding, or 

brokering loans or credits, or purchasing 

or selling foreign exchange, securities, 

futures or options, or procuring 

purchasers and sellers thereof, as 

principal or agent. It includes 

depository institutions, banks, savings 

banks, money services businesses, trust 

companies, insurance companies, 

securities brokers and dealers, futures 

and options brokers and dealers, 

forward contract and foreign exchange 

merchants, securities and commodities 

exchanges, clearing corporations, 

investment companies, employee 

benefit plans, dealers in precious 

metals, stones, or jewels, and U.S. 

holding companies, U.S. affiliates, or 

U.S. subsidiaries of any of the foregoing. 

This term includes those branches, 

offices, and agencies of foreign financial 

institutions that are located in the 

United States, but not such institutions’ 

foreign branches, offices, or agencies. 

§ 589.342 U.S.-registered broker or dealer 

in securities. 

The term U.S.-registered broker or 

dealer in securities means any U.S. 

citizen, permanent resident alien, or 

entity organized under the laws of the 

United States or of any jurisdiction 

within the United States (including its 

foreign branches), or any agency, office, 

or branch of a foreign entity located in 

the United States, that: 

(a) Is a ‘‘broker’’ or ‘‘dealer’’ in 

securities within the meanings set forth 

in the Securities Exchange Act of 1934; 

(b) Holds or clears customer accounts; 

and 

(c) Is registered with the Securities 

and Exchange Commission under the 

Securities Exchange Act of 1934. 

§ 589.343 U.S.-registered money 

transmitter. 

The term U.S.-registered money 

transmitter means any U.S. citizen, 

permanent resident alien, or entity 

organized under the laws of the United 

States or of any jurisdiction within the 

United States, including its foreign 

branches, or any agency, office, or 

branch of a foreign entity located in the 

United States, that is a money 

transmitter, as defined in 31 CFR 

1010.100 and that is registered pursuant 

to 31 CFR 1022.380. 

Subpart D—Interpretations 

§ 589.401 Reference to amended sections. 

(a) Reference to any section in this 

part is a reference to the same as 

currently amended, unless the reference 

includes a specific date. See 44 U.S.C. 

1510. 

(b) Reference to any ruling, order, 

instruction, direction, or license issued 

pursuant to this part is a reference to the 

same as currently amended unless 

otherwise so specified. 

§ 589.402 Effect of amendment. 

Unless otherwise specifically 

provided, any amendment, 

modification, or revocation of any 

provision in or appendix to this part or 

chapter or of any order, regulation, 

ruling, instruction, or license issued by 

OFAC does not affect any act done or 

omitted, or any civil or criminal 

proceeding commenced or pending, 

prior to such amendment, modification, 

or revocation. All penalties, forfeitures, 

and liabilities under any such order, 

regulation, ruling, instruction, or license 

continue and may be enforced as if such 

amendment, modification, or revocation 

had not been made. 

§ 589.403 Termination and acquisition of 

an interest in blocked property. 

(a) Whenever a transaction licensed or 

authorized by or pursuant to this part 

results in the transfer of property 

(including any property interest) away 

from a person whose property and 

interests in property are blocked 

pursuant to § 589.201, such property 

shall no longer be deemed to be 

property blocked pursuant to § 589.201, 

unless there exists in the property 

another interest that is blocked pursuant 

to § 589.201, the transfer of which has 

not been effected pursuant to license or 

other authorization. 

(b) Unless otherwise specifically 

provided in a license or authorization 

issued pursuant to this part, if property 

(including any property interest) is 

transferred or attempted to be 

transferred to a person whose property 

and interests in property are blocked 

pursuant to § 589.201, such property 

shall be deemed to be property in which 

such person has an interest and 

therefore blocked. 

§ 589.404 Transactions ordinarily incident 

to a licensed transaction. 

(a) Any transaction ordinarily 

incident to a licensed transaction and 

necessary to give effect thereto is also 

authorized, except: 

(1) An ordinarily incident transaction, 

not explicitly authorized within the 

terms of the license, by or with a person 

whose property and interests in 

property are blocked pursuant to 

§ 589.201; or 

(2) An ordinarily incident transaction, 

not explicitly authorized within the 

terms of the license, involving a debit to 

a blocked account or a transfer of 

blocked property. 

(b) For example, a license authorizing 

a person to complete a securities sale 

involving Company A, whose property 

and interests in property are blocked 

pursuant to § 589.201, also authorizes 

other persons to engage in activities that 

are ordinarily incident and necessary to 

complete the sale, including 

transactions by the buyer, broker, 

transfer agents, and banks, provided that 

such other persons are not themselves 

persons whose property and interests in 

property are blocked pursuant to 

§ 589.201. 

§ 589.405 Exportation and reexportation of 

goods, services, or technology; provision 

and receipt of services. 

(a) The prohibition on the 

exportation, reexportation, sale, or 

supply of goods, services, or technology 

contained in § 589.207 applies to 

services performed on behalf of a person 

in the Crimea region of Ukraine or 

where the benefit of such services is 

otherwise received in the Crimea region 

of Ukraine, if such services are 

performed: 

(1) In the United States; or 

(2) Outside the United States by a U.S. 

person. 

(b) The prohibitions contained in 

§ 589.201 apply to services performed in 

the United States or by U.S. persons, 

wherever located: 

(1) On behalf of or for the benefit of 

any person whose property and interests 

in property are blocked pursuant to 

§ 589.201; or 

(2) With respect to property interests 

of any person whose property and 

interests in property are blocked 

pursuant to § 589.201. 

(c) The prohibitions contained in 

§ 589.201 apply to services received in 

the United States or by U.S. persons, 

wherever located, where the service is 

performed by or at the direction of a 

person whose property and interests in 

property are blocked pursuant to 

§ 589.201. 

(d)(1) For example, U.S. persons may 

not, except as authorized by or pursuant 


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to this part, provide legal, accounting, 

financial, brokering, freight forwarding, 

transportation, public relations, or other 

services to any person in the Crimea 

region of Ukraine or any person whose 

property and interests in property are 

blocked pursuant to § 589.201, or 

negotiate with or enter into contracts 

signed by a person whose property and 

interests in property are blocked 

pursuant to § 589.201. 

(2) For example, a U.S. person is 

engaged in a prohibited exportation of 

services to the Crimea region of Ukraine 

when it extends credit to a third-country 

firm specifically to enable that firm to 

manufacture goods for sale to the 

Crimea region of Ukraine. 

Note 1 to § 589.405. See, for example, 

§§ 589.506 and 589.508 for general licenses 

authorizing the provision of certain legal and 

emergency medical services. 

§ 589.406 Offshore transactions involving 

blocked property. 

The prohibitions in § 589.201 on 

transactions or dealings involving 

blocked property, as defined in 

§ 589.303, apply to transactions by any 

U.S. person in a location outside the 

United States. 

§ 589.407 Payments from blocked 

accounts to satisfy obligations prohibited. 

Pursuant to § 589.201, no debits may 

be made to a blocked account to pay 

obligations to U.S. persons or other 

persons, except as authorized by or 

pursuant to this part. 

Note 1 to § 589.407. See also § 589.502(e), 

which provides that no license or other 

authorization contained in or issued 

pursuant to this part authorizes transfers of 

or payments from blocked property or debits 

to blocked accounts unless the license or 

other authorization explicitly authorizes the 

transfer of or payment from blocked property 

or the debit to a blocked account. 

§ 589.408 Charitable contributions. 

Unless specifically authorized by 

OFAC pursuant to this part, no 

charitable contribution of funds, goods, 

services, or technology, including 

contributions to relieve human 

suffering, such as food, clothing, or 

medicine, may be made by, to, or for the 

benefit of, or received from, a person 

whose property and interests in 

property are blocked pursuant to 

§ 589.201. For the purposes of this part, 

a contribution is made by, to, or for the 

benefit of, or received from, a person 

whose property and interests in 

property are blocked pursuant to 

§ 589.201 if made by, to, or in the name 

of, or received from or in the name of, 

such a person; if made by, to, or in the 

name of, or received from or in the 

name of, an entity or individual acting 

for or on behalf of, or owned or 

controlled by, such a person; or if made 

in an attempt to violate, to evade, or to 

avoid the bar on the provision of 

contributions by, to, or for the benefit of 

such a person, or the receipt of 

contributions from such a person. 

§ 589.409 Credit extended and cards 

issued by financial institutions to a person 

whose property and interests in property 

are blocked. 

The prohibition in § 589.201 on 

dealing in property subject to that 

section prohibits U.S. financial 

institutions from performing under any 

existing credit agreements, including 

charge cards, debit cards, or other credit 

facilities issued by a financial 

institution to a person whose property 

and interests in property are blocked 

pursuant to § 589.201. 

§ 589.410 Setoffs prohibited. 

A setoff against blocked property 

(including a blocked account), whether 

by a U.S. financial institution or other 

U.S. person, is a prohibited transfer 

under § 589.201 if effected after the 

effective date. 

§ 589.411 Entities owned by one or more 

persons whose property and interests in 

property are blocked or who are subject to 

§ 589.202, § 589.203, § 589.204, or § 589.205. 

(a) Persons whose property and 

interests in property are blocked 

pursuant to § 589.201 have an interest in 

all property and interests in property of 

an entity in which such persons directly 

or indirectly own, whether individually 

or in the aggregate, a 50 percent or 

greater interest. The property and 

interests in property of such an entity, 

therefore, are blocked, and such an 

entity is a person whose property and 

interests in property are blocked 

pursuant to § 589.201, regardless of 

whether the name of the entity is 

incorporated into OFAC’s Specially 

Designated Nationals and Blocked 

Persons List (SDN List). 

(b) Persons subject to § 589.202, 

§ 589.203, § 589.204, or § 589.205 have 

an interest in all property and interests 

in property of an entity in which such 

persons directly or indirectly own, 

whether individually or in the 

aggregate, a 50 percent or greater 

interest. The property and interests in 

property of such an entity, therefore, are 

also subject to § 589.202, § 589.203, 

§ 589.204, or § 589.205, regardless of 

whether the name of the entity is 

incorporated into OFAC’s Sectoral 

Sanctions Identifications List. 

§ 589.412 Projects owned, or to which a 

majority of voting rights are held, by one or 

more persons subject to § 589.205. 

The prohibitions in § 589.205(b) apply 

to projects owned 33 percent or more, 

or to projects in which a majority of 

voting interests are held, individually or 

in the aggregate, by one or more persons 

subject to § 589.205, their property, or 

their interests in property, including 

entities owned 50 percent or more by 

one or more persons subject to 

§ 589.205. 

Example 1 to § 589.412: If two entities that 

are each subject to § 589.205 each hold a 20 

percent ownership interest in Project X, or 

together own a majority of the voting 

interests in Project X, then the prohibition in 

§ 589.205(b) applies to Project X. 

§ 589.413 Significant transaction(s); 

significant financial transaction(s). 

In determining, for the purposes of 

§§ 589.201(a)(6)(vii) and 589.209, 

whether a transaction or a financial 

transaction is significant, the Secretary 

of the Treasury or the Secretary’s 

designee will consider the totality of the 

facts and circumstances. As a general 

matter, some or all of the following 

factors may be considered: 

(a) Size, number, and frequency. The 

size, number, and frequency of 

transaction(s) over a period of time, 

including whether the transaction(s) is 

increasing or decreasing over time and 

the rate of increase or decrease. 

(b) Nature. The nature of the 

transaction(s), including the type, 

complexity, and commercial purpose of 

the transaction(s). 

(c) Level of awareness; pattern of 

conduct. (1) Whether the transaction(s) 

is performed with the involvement or 

approval of management or only by 

clerical personnel; and 

(2) Whether the transaction(s) is part 

of a pattern of conduct or the result of 

a business development strategy. 

(d) Nexus. (1) For the purposes of 

§ 589.201(a)(6)(vii), the proximity 

between the foreign person engaging in 

the transaction(s) and the person(s) 

subject to sanctions pursuant to the 

Support for the Sovereignty, Integrity, 

Democracy, and Economic Stability of 

Ukraine Act of 2014, as amended (22 

U.S.C. 8901–8910) (SSIDES), the 

Ukraine Freedom Support Act of 2014, 

as amended (22 U.S.C. 8921–8930) 

(UFSA), title II of the Countering 

America’s Adversaries Through 

Sanctions Act (Pub. L. 115–44, 131 Stat. 

886 (codified in scattered sections of 22 

U.S.C.)) (CAATSA), and any covered 

Executive order, or any child, spouse, 

parent, or sibling of such an individual. 

(2) For the purposes of § 589.209(b), 

the proximity between the foreign 


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financial institution engaging in the 

transaction(s) and the person with 

respect to which sanctions are imposed 

under section 4 of UFSA. 

(3) For the purposes of § 589.209(c), 

the proximity between the foreign 

financial institution engaging in the 

financial transaction(s) and the Russian 

person included on OFAC’s Specially 

Designated Nationals and Blocked 

Persons List (SDN List) as blocked 

pursuant to UFSA, E.O. 13660, E.O. 

13661, E.O. 13662, or any other 

Executive order addressing the crisis in 

Ukraine. 

(e) Impact. The impact of the 

transaction(s) on the objectives of 

UFSA, SSIDES, CAATSA, E.O. 13660, 

E.O. 13661, E.O. 13662, E.O. 13685, or 

any other Executive order issued 

pursuant to the national emergency 

declared in E.O. 13660. 

(f) Deceptive practices. Whether the 

transaction(s) involves an attempt to 

obscure or conceal the actual parties or 

true nature of the transaction(s), or to 

evade sanctions. 

(g) Other relevant factors. Such other 

factors that the Secretary of the Treasury 

or the Secretary’s designee deems 

relevant on a case-by-case basis in 

determining the significance of a 

transaction(s). 

(h) Persons solely identified on the 

Sectoral Sanctions Identifications List 

(SSI List) or Non-SDN Menu-Based 

Sanctions List (NS–MBS List). For the 

purposes of § 589.201(a)(6)(vii) and 

§ 589.209(b), a transaction in which the 

person(s) subject to sanctions is only 

identified on the SSI List or the NS– 

MBS List must also involve deceptive 

practices, for example attempts to 

obscure or conceal the actual parties or 

true nature of the transaction(s), or to 

evade sanctions, to potentially be 

considered significant. 

(i) Applicability. For the purposes of 

this part, a transaction is not significant 

if U.S. persons would not require a 

specific license from OFAC to 

participate in it. 

§ 589.414 Facilitation; change of policies 

and procedures; referral of business 

opportunities offshore. 

With respect to § 589.215, a 

prohibited facilitation or approval of a 

transaction by a foreign person occurs, 

among other instances, when a U.S. 

person: 

(a) Alters its operating policies or 

procedures, or those of a foreign 

affiliate, to permit a foreign affiliate to 

accept or perform a specific contract, 

engagement, or transaction described in 

§§ 589.206 through 589.208 without the 

approval of the U.S. person, where such 

transaction previously required 

approval by the U.S. person and such 

transaction by the foreign affiliate 

would be prohibited by this part if 

performed directly by a U.S. person or 

from the United States; 

(b) Refers to a foreign person purchase 

orders, requests for bids, or similar 

business opportunities involving a 

transaction described in §§ 589.206 

through 589.208 to which the U.S. 

person could not directly respond as a 

result of the prohibitions contained in 

this part; or 

(c) Changes the operating policies and 

procedures of a particular affiliate with 

the specific purpose of facilitating 

transactions that would be prohibited by 

this part if performed by a U.S. person 

or from the United States. 

Subpart E—Licenses, Authorizations, 

and Statements of Licensing Policy 

§ 589.501 General and specific licensing 

procedures. 

For provisions relating to licensing 

procedures, see part 501, subpart E, of 

this chapter. Licensing actions taken 

pursuant to part 501 of this chapter with 

respect to the prohibitions contained in 

this part are considered actions taken 

pursuant to this part. General licenses 

and statements of licensing policy 

relating to this part also may be 

available through the Ukraine-/RussiaRelated Sanctions page on OFAC’s 

website: www.treas.gov/ofac. 

Note 1 to § 589.501. Section 216 of the 

Countering America’s Adversaries Through 

Sanctions Act (22 U.S.C. 9511) requires 

Congressional review prior to the issuance of 

a license that significantly alters the United 

States’ foreign policy with regard to the 

Russian Federation. 

§ 589.502 Effect of license or other 

authorization. 

(a) No license or other authorization 

contained in this part, or otherwise 

issued by OFAC, authorizes or validates 

any transaction effected prior to the 

issuance of such license or other 

authorization, unless specifically 

provided in such license or 

authorization. 

(b) No regulation, ruling, instruction, 

or license authorizes any transaction 

prohibited under this part unless the 

regulation, ruling, instruction, or license 

is issued by OFAC and specifically 

refers to this part. No regulation, ruling, 

instruction, or license referring to this 

part shall be deemed to authorize any 

transaction prohibited by any other part 

of this chapter unless the regulation, 

ruling, instruction, or license 

specifically refers to such part. 

(c) Any regulation, ruling, instruction, 

or license authorizing any transaction 

prohibited under this part has the effect 

of removing a prohibition contained in 

this part from the transaction, but only 

to the extent specifically stated by its 

terms. Unless the regulation, ruling, 

instruction, or license otherwise 

specifies, such an authorization does 

not create any right, duty, obligation, 

claim, or interest in, or with respect to, 

any property that would not otherwise 

exist under ordinary principles of law. 

(d) Nothing contained in this part 

shall be construed to supersede the 

requirements established under any 

other provision of law or to relieve a 

person from any requirement to obtain 

a license or other authorization from 

another department or agency of the 

U.S. Government in compliance with 

applicable laws and regulations subject 

to the jurisdiction of that department or 

agency. For example, exports of goods, 

services, or technical data that are not 

prohibited by this part or that do not 

require a license by OFAC nevertheless 

may require authorization by the U.S. 

Department of Commerce, the U.S. 

Department of State, or other agencies of 

the U.S. Government. 

(e) No license or other authorization 

contained in or issued pursuant to this 

part authorizes transfers of or payments 

from blocked property or debits to 

blocked accounts unless the license or 

other authorization explicitly authorizes 

the transfer of or payment from blocked 

property or the debit to a blocked 

account. 

(f) Any payment relating to a 

transaction authorized in or pursuant to 

this part that is routed through the U.S. 

financial system should reference the 

relevant OFAC general or specific 

license authorizing the payment to 

avoid the blocking or rejection of the 

transfer. 

§ 589.503 Exclusion from licenses. 

OFAC reserves the right to exclude 

any person, property, transaction, or 

class thereof from the operation of any 

license or from the privileges conferred 

by any license. OFAC also reserves the 

right to restrict the applicability of any 

license to particular persons, property, 

transactions, or classes thereof. Such 

actions are binding upon actual or 

constructive notice of the exclusions or 

restrictions. 

§ 589.504 Payments and transfers to 

blocked accounts in U.S. financial 

institutions. 

Any payment of funds or transfer of 

credit in which a person whose property 

and interests in property are blocked 

pursuant to § 589.201 has any interest 

that comes within the possession or 

control of a U.S. financial institution 


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must be blocked in an account on the 

books of that financial institution. A 

transfer of funds or credit by a U.S. 

financial institution between blocked 

accounts in its branches or offices is 

authorized, provided that no transfer is 

made from an account within the 

United States to an account held outside 

the United States, and further provided 

that a transfer from a blocked account 

may be made only to another blocked 

account held in the same name. 

Note 1 to § 589.504. See § 501.603 of this 

chapter for mandatory reporting 

requirements regarding financial transfers. 

See also § 589.211 concerning the obligation 

to hold blocked funds in interest-bearing 

accounts. 

§ 589.505 Entries in certain accounts for 

normal service charges. 

(a) A U.S. financial institution is 

authorized to debit any blocked account 

held at that financial institution in 

payment or reimbursement for normal 

service charges owed it by the owner of 

that blocked account. 

(b) As used in this section, the term 

normal service charges shall include 

charges in payment or reimbursement 

for interest due; cable, telegraph, 

internet, or telephone charges; postage 

costs; custody fees; small adjustment 

charges to correct bookkeeping errors; 

and, but not by way of limitation, 

minimum balance charges, notary and 

protest fees, and charges for reference 

books, photocopies, credit reports, 

transcripts of statements, registered 

mail, insurance, stationery and supplies, 

and other similar items. 

§ 589.506 Provision of certain legal 

services. 

(a) The provision of the following 

legal services to or on behalf of persons 

whose property and interests in 

property are blocked pursuant to 

§ 589.201, or to whom the provision of 

legal services would be prohibited by 

§ 589.207, is authorized, provided that 

any receipt of payment of professional 

fees and reimbursement of incurred 

expenses must be authorized pursuant 

to § 589.507, which authorizes certain 

payments for legal services from funds 

originating outside the United States; 

via specific license; or otherwise 

pursuant to this part: 

(1) Provision of legal advice and 

counseling on the requirements of and 

compliance with the laws of the United 

States or any jurisdiction within the 

United States, provided that such advice 

and counseling are not provided to 

facilitate transactions in violation of this 

part; 

(2) Representation of persons named 

as defendants in or otherwise made 

parties to legal, arbitration, or 

administrative proceedings before any 

U.S. Federal, State, or local court or 

agency; 

(3) Initiation and conduct of legal, 

arbitration, or administrative 

proceedings before any U.S. Federal, 

State, or local court or agency; 

(4) Representation of persons before 

any U.S. Federal, State, or local court or 

agency with respect to the imposition, 

administration, or enforcement of U.S. 

sanctions against such persons or 

enforcement of U.S. sanctions against 

the Crimea region of Ukraine; and 

(5) Provision of legal services in any 

other context in which prevailing U.S. 

law requires access to legal counsel at 

public expense. 

(b) The provision of any other legal 

services to or on behalf of persons 

whose property and interests in 

property are blocked pursuant to 

§ 589.201, or to whom the provision of 

legal services would be prohibited by 

§ 589.207, not otherwise authorized in 

this part, requires the issuance of a 

specific license. 

(c) U.S. persons do not need to obtain 

specific authorization to provide related 

services, such as making filings and 

providing other administrative services 

that are ordinarily incident to the 

provision of services authorized by 

paragraph (a) of this section. 

Additionally, U.S. persons who provide 

services authorized by paragraph (a) of 

this section do not need to obtain 

specific authorization to contract for 

related services that are ordinarily 

incident to the provision of those legal 

services, such as those provided by 

private investigators or expert 

witnesses, or to pay for such services. 

See § 589.404. 

(d) Entry into a settlement agreement 

or the enforcement of any lien, 

judgment, arbitral award, decree, or 

other order through execution, 

garnishment, or other judicial process 

purporting to transfer or otherwise alter 

or affect property or interests in 

property blocked pursuant to § 589.201 

is prohibited unless licensed pursuant 

to this part. 

(e) All receipts of payment of 

professional fees and reimbursement of 

incurred expenses for the provision of 

legal services authorized pursuant to 

paragraph (a) of this section to or on 

behalf of a person in the Crimea region 

of Ukraine, or in circumstances in 

which the benefit is otherwise received 

in the Crimea region of Ukraine, other 

than those persons whose property and 

interest in property are blocked 

pursuant to § 589.201, are authorized, 

except that nothing in this section 

authorizes the debiting of any blocked 

account or the transfer of any blocked 

property. 

Note 1 to § 589.506. Pursuant to part 501, 

subpart E, of this chapter, U.S. persons 

seeking administrative reconsideration or 

judicial review of their designation or the 

blocking of their property and interests in 

property may apply for a specific license 

from OFAC to authorize the release of certain 

blocked funds for the payment of 

professional fees and reimbursement of 

incurred expenses for the provision of such 

legal services where alternative funding 

sources are not available. 

§ 589.507 Payments for legal services from 

funds originating outside the United States. 

(a) Professional fees and incurred 

expenses. (1) Receipt of payment of 

professional fees and reimbursement of 

incurred expenses for the provision of 

legal services authorized pursuant to 

§ 589.506(a) to or on behalf of any 

person whose property and interests in 

property are blocked pursuant to 

§ 589.201 is authorized from funds 

originating outside the United States, 

provided that the funds do not originate 

from: 

(i) A source within the United States; 

(ii) Any source, wherever located, 

within the possession or control of a 

U.S. person; or 

(iii) Any individual or entity, other 

than the person on whose behalf the 

legal services authorized pursuant to 

§ 589.506(a) are to be provided, whose 

property and interests in property are 

blocked pursuant to any part of this 

chapter or any Executive order or 

statute. 

(2) Nothing in paragraph (a) of this 

section authorizes payments for legal 

services using funds in which any other 

person whose property and interests in 

property are blocked pursuant to 

§ 589.201, any other part of this chapter, 

or any Executive order or statute has an 

interest. 

(b) Reports. (1) U.S. persons who 

receive payments pursuant to paragraph 

(a) of this section must submit annual 

reports no later than 30 days following 

the end of the calendar year during 

which the payments were received 

providing information on the funds 

received. Such reports shall specify: 

(i) The individual or entity from 

whom the funds originated and the 

amount of funds received; and 

(ii) If applicable: 

(A) The names of any individuals or 

entities providing related services to the 

U.S. person receiving payment in 

connection with authorized legal 

services, such as private investigators or 

expert witnesses; 

(B) A general description of the 

services provided; and 


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(C) The amount of funds paid in 

connection with such services. 

(2) The reports, which must reference 

this section, are to be submitted to 

OFAC using one of the following 

methods: 

(i) Email (preferred method): 

OFACReport@treasury.gov; or 

(ii) U.S. mail: OFAC Regulations 

Reports, Office of Foreign Assets 

Control, U.S. Department of the 

Treasury, 1500 Pennsylvania Avenue 

NW, Freedman’s Bank Building, 

Washington, DC 20220. 

§ 589.508 Emergency medical services. 

The provision and receipt of 

nonscheduled emergency medical 

services that are prohibited by this part 

are authorized. 

§ 589.509 Investment and reinvestment of 

certain funds. 

Subject to the requirements of 

§ 589.211, U.S. financial institutions are 

authorized to invest and reinvest assets 

blocked pursuant to § 589.201, subject 

to the following conditions: 

(a) The assets representing such 

investments and reinvestments are 

credited to a blocked account or 

subaccount that is held in the same 

name at the same U.S. financial 

institution, or within the possession or 

control of a U.S. person, but funds shall 

not be transferred outside the United 

States for this purpose; 

(b) The proceeds of such investments 

and reinvestments shall not be credited 

to a blocked account or subaccount 

under any name or designation that 

differs from the name or designation of 

the specific blocked account or 

subaccount in which such funds or 

securities were held; and 

(c) No immediate financial or 

economic benefit accrues (e.g., through 

pledging or other use) to a person whose 

property and interests in property are 

blocked pursuant to § 589.201. 

§ 589.510 Official business of the United 

States Government. 

All transactions prohibited by this 

part that are for the conduct of the 

official business of the United States 

Government by employees, grantees, or 

contractors thereof are authorized. 

§ 589.511 Official business of certain 

international organizations and entities. 

All transactions prohibited by this 

part that are for the conduct of the 

official business of the following 

entities, by employees, grantees, or 

contractors thereof are authorized: 

(a) The United Nations, including its 

Programmes, Funds, and Other Entities 

and Bodies, as well as its Specialized 

Agencies and Related Organizations; 

(b) The International Centre for 

Settlement of Investment Disputes 

(ICSID) and the Multilateral Investment 

Guarantee Agency (MIGA); 

(c) The African Development Bank 

Group, the Asian Development Bank, 

the European Bank for Reconstruction 

and Development, and the InterAmerican Development Bank Group 

(IDB Group), including any fund entity 

administered or established by any of 

the foregoing; and 

(d) The International Committee of 

the Red Cross and the International 

Federation of Red Cross and Red 

Crescent Societies. 

§ 589.512 Certain transactions related to 

derivatives prohibited by § 589.202, 

§ 589.203, or § 589.204. 

(a) All transactions by U.S. persons, 

wherever located, and transactions 

within the United States involving 

derivative products whose value is 

linked to an underlying asset that 

constitutes prohibited debt issued by a 

person subject to § 589.202, § 589.203, 

or § 589.204, or prohibited equity issued 

by a person subject to § 589.202, are 

authorized. 

(b) This section does not authorize the 

holding, purchasing, or selling of 

underlying assets otherwise prohibited 

by § 589.202, § 589.203, or § 589.204 by 

U.S. persons, wherever are located, or 

within the United States. 

§ 589.513 Exportation or reexportation of 

agricultural commodities, medicine, 

medical supplies, and replacement parts to 

the Crimea region of Ukraine. 

(a)(1) Agricultural commodities, 

medicine, and medical supplies. Except 

as provided in paragraphs (b)(1) through 

(3) of this section, the exportation or 

reexportation, from the United States or 

by a U.S. person, wherever located, of 

agricultural commodities, medicine, and 

medical supplies to the Crimea region of 

Ukraine, or to persons in third countries 

purchasing specifically for resale to the 

Crimea region of Ukraine, and the 

conduct of related transactions are 

authorized. 

(2) Replacement parts. Except as 

provided in paragraph (b)(1) of this 

section, the exportation or 

reexportation, from the United States or 

by a U.S. person, wherever located, of 

replacement parts for medical supplies 

exported or reexported pursuant to 

paragraph (a)(1) of this section, and the 

conduct of related transactions are 

authorized, provided that such 

replacement parts are designated as 

EAR99, or, in the case of replacement 

parts that are not subject to the Export 

Administration Regulations, 15 CFR 

parts 730 through 744 (EAR), are not 

listed under any multilateral export 

control regime; and further provided 

that such replacement parts are limited 

to a one-for-one export or reexport basis 

(i.e., only one replacement part can be 

exported or reexported to replace a 

broken or non-operational component). 

Note 1 to paragraph (a). Related 

transactions in this paragraph include the 

making of shipping and cargo inspection 

arrangements, the obtaining of insurance, the 

arrangement of financing and payment, 

shipping of the goods, receipt of payment, 

and the entry into contracts (including 

executory contracts). 

(b)(1) Excluded persons. Paragraphs 

(a)(1) and (2) of this section do not 

authorize the exportation or 

reexportation of agricultural 

commodities, medicine, medical 

supplies, or replacement parts to 

military or law enforcement purchasers 

or importers. 

(2) Excluded agricultural 

commodities. Paragraph (a)(1) of this 

section does not authorize the 

exportation or reexportation of the 

following items: Castor beans, castor 

bean seeds, certified pathogen-free eggs 

(unfertilized or fertilized), dried egg 

albumin, live animals (excluding live 

cattle), embryos (excluding cattle 

embryos), Rosary/Jequirity peas, nonfood-grade gelatin powder, peptones 

and their derivatives, super absorbent 

polymers, western red cedar, or all 

fertilizers. 

(3) Excluded medicines. Paragraph 

(a)(1) of this section does not authorize 

the exportation or reexportation of the 

following medicines: Non-NSAID 

analgesics, cholinergics, 

anticholinergics, opioids, narcotics, 

benzodiazapenes, and bioactive 

peptides. 

(c)(1) Other excluded items 

agricultural commodities. For the 

purposes of this section, agricultural 

commodities do not include furniture 

made from wood; clothing 

manufactured from plant or animal 

materials; agricultural equipment 

(whether hand tools or motorized 

equipment); pesticides, insecticides, or 

herbicides; or cosmetics (unless derived 

entirely from plant materials). 

(2) Other excluded medicine. For the 

purposes of this section, medicine does 

not include cosmetics. 

(d) Nothing in this section relieves the 

exporter from compliance with the 

export license application requirements 

of another Federal agency. 

(e) Nothing in this section authorizes 

the exportation or reexportation of any 

agricultural commodity, medicine, or 

medical device controlled on the United 

States Munitions List established under 

section 38 of the Arms Export Control 

Act (22 U.S.C. 2778); controlled on any 


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control list established under the Export 

Administration Act of 1979 or any 

successor statute (50 U.S.C. App. 2401 

et seq.); or used to facilitate the 

development or production of a 

chemical or biological weapon or 

weapon of mass destruction. 

(f) Nothing in this section affects 

prohibitions on the sale or supply of 

U.S. technology or software used to 

manufacture agricultural commodities, 

medicine, or medical devices, such as 

technology to design or produce 

biotechnological items or medical 

devices. 

(g) Nothing in this section affects U.S. 

nonproliferation export controls, 

including the end-user and end-use 

controls maintained under Part 744 of 

the EAR, 15 CFR part 744. 

(h) Nothing in this section authorizes 

any transaction or dealing with a person 

whose property and interests in 

property are blocked pursuant to 31 CFR 

536.201, 544.201, 594.201, 597.201, or 

598.202, or with any foreign 

organization, group, or person subject to 

any restriction for its involvement in 

weapons of mass destruction or missile 

proliferation, or involving property 

blocked pursuant to this chapter or any 

other activity prohibited by this chapter 

not otherwise authorized in or pursuant 

to this part. 

(i) Nothing in this section authorizes 

the exportation or reexportation of any 

agricultural commodity, medicine, or 

medical device that is not designated as 

EAR99 or, in the case of any agricultural 

commodity, medicine, or medical 

device not subject to the EAR, is not 

listed under any multilateral export 

control regime. 

(j) For the purposes of this section, 

agricultural commodities, medicine, 

medical devices, and medical supplies 

are defined below. 

(1) Agricultural commodities. For the 

purposes of this section, agricultural 

commodities are: 

(i) In the case of products subject to 

the EAR, products that are designated as 

EAR99, and, in the case of products not 

subject to the EAR, products that are not 

listed under any multilateral export 

control regime, in each case that fall 

within the term ‘‘agricultural 

commodity’’ as defined in section 102 of 

the Agricultural Trade Act of 1978 (7 

U.S.C. 5602); and 

(ii) In the case of products subject to 

the EAR, products that are designated as 

EAR99, and in the case of products not 

subject to the EAR, products that are not 

listed under any multilateral export 

control regime, in each case that are 

intended for ultimate use in the Crimea 

region of Ukraine as: Food for humans 

(including raw, processed, and 

packaged foods, live animals, vitamins 

and minerals, food additives or 

supplements, and bottled drinking 

water) or animals (including animal 

feeds); seeds for food crops; fertilizers or 

organic fertilizers; or reproductive 

materials (such as live animals, 

fertilized eggs, embryos, and semen) for 

the production of food animals; 

(2) Medicine. For the purposes of this 

section, medicine is an item that falls 

within the definition of the term ‘‘drug’’ 

in section 201 of the Federal Food, 

Drug, and Cosmetic Act (21 U.S.C. 321) 

and that, in the case of an item subject 

to the EAR, is designated as EAR99 or, 

in the case of an item not subject to the 

EAR, is not listed under any multilateral 

export control regime. 

(3) Medical devices. For the purposes 

of this section, a medical device is an 

item that falls within the definition of 

‘‘device’’ in section 201 of the Federal 

Food, Drug, and Cosmetic Act (21 U.S.C. 

321) and that, in the case of an item 

subject to the EAR, is designated as 

EAR99, or in the case of an item not 

subject to the EAR, is not listed under 

any multilateral export control regime. 

(4) Medical supplies. For purposes of 

this section, the term medical supplies 

means those medical devices, as defined 

in paragraph (j)(3) of this section, that 

are included on the List of Medical 

Supplies on OFAC’s website 

(www.treas.gov/ofac) on the Ukraine-/ 

Russia-Related Sanctions page. 

Note 1 to paragraph (j)(4). The List of 

Medical Supplies is maintained on OFAC’s 

website (www.treas.gov/ofac) on the Ukraine- 

/Russia-Related Sanctions page. The list will 

be published in the Federal Register, as will 

any changes to the list. 

(k) Specific licenses may be issued on 

a case-by-case basis to authorize the 

export or reexport of medical devices 

that are not medical supplies (and 

therefore not authorized pursuant to 

paragraph (a)(1) of this section) to the 

Crimea region of Ukraine, or to persons 

in third countries purchasing 

specifically for resale to the Crimea 

region of Ukraine. 

§ 589.514 Noncommercial, personal 

remittances to or from the Crimea region of 

Ukraine or for or on behalf of individuals 

ordinarily resident in the Crimea region of 

Ukraine. 

(a)(1) U.S. persons are authorized to 

send and receive, and U.S. depository 

institutions, U.S.-registered brokers or 

dealers in securities, and U.S.-registered 

money transmitters are authorized to 

process transfers of, funds to or from the 

Crimea region of Ukraine or for or on 

behalf of an individual ordinarily 

resident in the Crimea region of Ukraine 

in cases in which the transfer involves 

a noncommercial, personal remittance, 

provided the transfer is not by, to, or 

through any person whose property and 

interests in property are blocked 

pursuant to § 589.201. 

(2) Noncommercial, personal 

remittances do not include charitable 

donations of funds to or for the benefit 

of an entity or funds transfers for use in 

supporting or operating a business, 

including a family-owned business. 

(b) The transferring institutions 

identified in paragraph (a) of this 

section may rely on the originator of a 

funds transfer with regard to 

compliance with paragraph (a), 

provided that the transferring institution 

does not know or have reason to know 

that the funds transfer is not in 

compliance with paragraph (a). 

(c) An individual who is a U.S. person 

is authorized to carry funds as a 

noncommercial, personal remittance, as 

described in paragraph (a) of this 

section, to an individual in the Crimea 

region of Ukraine or to an individual 

ordinarily resident in the Crimea region 

of Ukraine, other than an individual 

whose property and interests in 

property are blocked pursuant 

§ 589.201, provided that the individual 

who is a U.S. person is carrying the 

funds on his or her behalf, but not on 

behalf of another person. 

§ 589.515 Operation of accounts for 

individuals ordinarily resident in the Crimea 

region of Ukraine. 

The operation of an account in a U.S. 

financial institution for an individual 

ordinarily resident in the Crimea region 

of Ukraine, other than an individual 

whose property and interests in 

property are blocked § 589.201, is 

authorized, provided that transactions 

processed through the account: 

(a) Are of a personal nature and not 

for use in supporting or operating a 

business; 

(b) Do not involve transfers, directly 

or indirectly, to the Crimea region of 

Ukraine or for the benefit of individuals 

ordinarily resident in the Crimea region 

of Ukraine unless authorized by 

§ 589.514; and 

§ 589.516 Transactions related to 

telecommunications and mail involving the 

Crimea region of Ukraine. 

(a)(1) Except as provided in paragraph 

(a)(2) of this section, all transactions 

with respect to the receipt and 

transmission of telecommunications 

involving the Crimea region of Ukraine 

are authorized, provided that no 

payment pursuant to this section may 

involve any transaction with a person 

whose property and interests in 

property are blocked pursuant to 

§ 589.201. 


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(2) This section does not authorize: 

(i) The provision, sale, or lease of 

telecommunications equipment or 

technology; or 

(ii) The provision, sale, or lease of 

capacity on telecommunications 

transmission facilities (such as satellite 

or terrestrial network activity). 

(b) All transactions of common 

carriers incident to the receipt or 

transmission of mail and packages 

between the United States and the 

Crimea region of Ukraine are 

authorized, provided that the 

importation or exportation of such mail 

and packages is exempt from or 

authorized pursuant to this part. 

§ 589.517 Exportation of certain services 

and software incident to internet-based 

communications to the Crimea Region of 

Ukraine. 

(a) Except as provided in paragraph 

(d) of this section, the exportation or 

reexportation, directly or indirectly, 

from the United States or by U.S. 

persons, wherever located, to persons in 

the Crimea region of Ukraine of services 

incident to the exchange of personal 

communications over the internet, such 

as instant messaging, chat and email, 

social networking, sharing of photos and 

movies, web browsing, and blogging, is 

authorized, provided that such services 

are widely available to the public at no 

cost to the user. 

(b) Except as provided in paragraph 

(d) of this section, the exportation or 

reexportation, directly or indirectly, 

from the United States or by U.S. 

persons, wherever located, to persons in 

the Crimea region of Ukraine of software 

necessary to enable the services 

described in paragraph (a) of this 

section is authorized, provided that 

such software is designated EAR99 

under the Export Administration 

Regulations, 15 CFR parts 730 through 

774 (EAR), or is classified by the 

Department of Commerce as mass 

market software under export control 

classification number (ECCN) 5D992 of 

the EAR, and provided further that such 

software is widely available to the 

public at no cost to the user. 

(c) Except as provided in paragraph 

(d) of this section, the exportation or 

reexportation, directly or indirectly, 

from the United States or by U.S. 

persons, wherever located, to persons in 

the Crimea region of Ukraine of software 

that is not subject to the EAR because 

it is of foreign origin and is located 

outside the United States that is 

necessary to enable the services 

described in paragraph (a) of this 

section is authorized, provided that 

such software is not listed under any 

multilateral export control regime, or 

would meet the criteria for classification 

under ECCN 5D992 of the EAR if it were 

subject to the EAR, and provided further 

that such software is widely available to 

the public at no cost to the user. 

(d) This section does not authorize: 

(1) The exportation or reexportation, 

directly or indirectly, of services or 

software with knowledge or reason to 

know that such services or software are 

intended for any person whose property 

and interests in property are blocked 

pursuant to § 589.201. 

(2) The exportation or reexportation, 

directly or indirectly, of any goods or 

technology listed on the Commerce 

Control List in the EAR, 15 CFR part 

774, supplement No. 1 (CCL), except for 

software necessary to enable the 

services described in paragraph (a) of 

this section that is classified by the 

Department of Commerce as mass 

market software under ECCN 5D992 of 

the EAR; 

(3) The exportation or reexportation, 

directly or indirectly, of commercialgrade internet connectivity services or 

telecommunications transmission 

facilities (such as dedicated satellite 

links or dedicated lines that include 

quality of service guarantees); or 

(4) The exportation or reexportation, 

directly or indirectly, of web-hosting 

services that are for commercial 

endeavors or of domain name 

registration services. 

(e) Specific licenses may be issued on 

a case-by-case basis for the exportation 

or reexportation of services or software 

incident to the exchange of personal 

communications over the internet not 

specified in paragraph (a), (b), or (c) of 

this section, and for the exportation or 

reexportation of hardware incident to 

the exchange of personal 

communications over the internet. 

§ 589.518 Transactions necessary and 

ordinarily incident to publishing in the 

Crimea region of Ukraine. 

(a) To the extent that such activities 

are not exempt from this part, and 

subject to the restrictions set forth in 

paragraphs (b) through (d) of this 

section, U.S. persons are authorized to 

engage in all transactions necessary and 

ordinarily incident to the publishing 

and marketing of manuscripts, books, 

journals, and newspapers in paper or 

electronic format (collectively, ‘‘written 

publications’’) involving the Crimea 

region of Ukraine. This paragraph does 

not apply if the parties to the 

transactions described in this paragraph 

include any person whose property and 

interests in property are blocked 

pursuant to § 589.201. Pursuant to this 

section, the following activities are 

authorized, provided that U.S. persons 

ensure that they are not engaging, 

without separate authorization, in the 

activities identified in paragraphs (b) 

through (d) of this section: 

(1) Commissioning and making 

advance payments for identifiable 

written publications not yet in 

existence, to the extent consistent with 

industry practice; 

(2) Collaborating on the creation and 

enhancement of written publications; 

(3)(i) Augmenting written 

publications through the addition of 

items such as photographs, artwork, 

translation, explanatory text, and, for a 

written publication in electronic format, 

the addition of embedded software 

necessary for reading, browsing, 

navigating, or searching the written 

publication; 

(ii) Exporting embedded software 

necessary for reading, browsing, 

navigating, or searching a written 

publication in electronic format, 

provided that, to the extent 

authorization is required under the 

Export Administration Regulations, 15 

CFR parts 730 through 774 (EAR), the 

exportation is licensed or otherwise 

authorized by the Department of 

Commerce under the provisions of the 

EAR; 

(4) Substantive editing of written 

publications; 

(5) Payment of royalties for written 

publications; 

(6) Creating or undertaking a 

marketing campaign to promote a 

written publication; and 

(7) Other transactions necessary and 

ordinarily incident to the publishing 

and marketing of written publications as 

described in this paragraph (a). 

(b) This section does not authorize 

transactions involving the provision of 

goods or services not necessary and 

ordinarily incident to the publishing 

and marketing of written publications as 

described in paragraph (a) of this 

section. For example, this section does 

not authorize persons subject to the 

jurisdiction of the United States: 

(1) To provide or receive 

individualized or customized services 

(including, but not limited to, 

accounting, legal, design, or consulting 

services), other than those necessary 

and ordinarily incident to the 

publishing and marketing of written 

publications, even though such 

individualized or customized services 

are delivered through the use of 

information and informational 

materials; 

(2) To create or undertake for any 

person a marketing campaign with 

respect to any service or product other 

than a written publication, or to create 


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or undertake a marketing campaign of 

any kind; 

(3) To engage in the exportation or 

importation of goods to or from the 

Crimea region of Ukraine other than the 

exportation of embedded software 

described in paragraph (a)(3)(ii) of this 

section; or 

(4) To operate a publishing house, 

sales outlet, or other office in the Crimea 

region of Ukraine. 

(c) This section does not authorize 

U.S. persons to engage the services of 

publishing houses or translators in the 

Crimea region of Ukraine unless such 

activity is primarily for the 

dissemination of written publications in 

the Crimea region of Ukraine. 

(d) This section does not authorize: 

(1) The exportation from or the 

importation into the United States of 

services for the development, 

production, or design of software; 

(2) Transactions for the development, 

production, design, or marketing of 

technology specifically controlled by 

the International Traffic in Arms 

Regulations, 22 CFR parts 120 through 

130 (ITAR), the EAR, or the Department 

of Energy Regulations set forth at 10 

CFR part 810. 

(3) The exportation of information or 

technology subject to the authorization 

requirements of 10 CFR part 810, or 

Restricted Data as defined in section 11 

y. of the Atomic Energy Act of 1954, as 

amended, or of other information, data, 

or technology the release of which is 

controlled under the Atomic Energy Act 

and regulations therein; 

(4) The exportation of any item 

(including information) subject to the 

EAR where a U.S. person knows or has 

reason to know that the item will be 

used, directly or indirectly, with respect 

to certain nuclear, missile, chemical, or 

biological weapons or nuclear-maritime 

end-uses as set forth in part 744 of the 

EAR. In addition, U.S. persons are 

precluded from exporting any item 

subject to the EAR to certain restricted 

end-users, as set forth in part 744 of the 

EAR, as well as certain persons whose 

export privileges have been denied 

pursuant to parts 764 or 766 of the EAR, 

without authorization from the 

Department of Commerce; or 

(5) The exportation of information 

subject to licensing requirements under 

the ITAR, or exchanges of information 

that are subject to regulation by other 

government agencies. 

§ 589.519 Emergency landings and air 

ambulance services in the Crimea region of 

Ukraine. 

(a) The receipt of, and payment of 

charges for, services rendered in 

connection with emergency landings in 

the Crimea region of Ukraine by aircraft 

registered in the United States or owned 

or controlled by, or chartered to, 

persons subject to U.S. jurisdiction that 

would be prohibited by § 589.206, 

§ 589.207, or § 589.208 are authorized. 

(b) U.S. persons are authorized to 

engage in all transactions prohibited by 

§ 589.206, § 589.207, or § 589.208 that 

are necessary to provide air ambulance 

and related medical services, including 

medical evacuation from the Crimea 

region of Ukraine, for individuals in the 

Crimea region of Ukraine. 

§ 589.520 Certain transactions in support 

of nongovernmental organizations’ 

activities in the Crimea region of Ukraine. 

Nongovernmental organizations are 

authorized to export or reexport services 

to the Crimea region of Ukraine that 

would be prohibited by § 589.206 in 

support of the following not-for-profit 

activities: 

(a) Activities to support humanitarian 

projects to meet basic human needs in 

the Crimea region of Ukraine, including 

drought and flood relief; food, nutrition, 

and medicine distribution; the provision 

of health services; assistance for 

vulnerable populations, including 

individuals with disabilities; and 

environmental programs; 

(b) Activities to support democracy 

building in the Crimea region of 

Ukraine, including activities to support 

rule of law, citizen participation, 

government accountability, universal 

human rights and fundamental 

freedoms, access to information, and 

civil society development projects; 

(c) Activities to support education in 

the Crimea region of Ukraine, including 

combating illiteracy, increasing access 

to education, international exchanges, 

and assisting education reform projects; 

(d) Activities to support noncommercial development projects 

directly benefiting the Crimean people, 

including preventing infectious disease 

and promoting maternal/child health, 

and clean water assistance; and 

(e) Activities to support 

environmental protection, including the 

preservation and protection of 

threatened or endangered species and 

the remediation of pollution or other 

environmental damage. 

§ 589.521 Transactions related to closing a 

correspondent or payable-through account. 

(a) During the 10-day period 

beginning on the effective date of the 

prohibition in § 589.209 on the opening 

and the prohibition or imposition of one 

or more strict conditions on the 

maintaining of a correspondent account 

or a payable-through account for a 

foreign financial institution listed on the 

List of Foreign Financial Institutions 

Subject to Correspondent Account or 

Payable-Through Account Sanctions 

(CAPTA List), U.S. financial institutions 

that maintain correspondent accounts or 

payable-through accounts for the foreign 

financial institution are authorized to: 

(1) Process only those transactions 

through the account, or permit the 

foreign financial institution to execute 

only those transactions through the 

account, that are for the purpose of, and 

necessary for, closing the account; and 

(2) Transfer the funds remaining in 

the correspondent account or the 

payable-through account to an account 

of the foreign financial institution 

located outside of the United States and 

close the correspondent account or the 

payable-through account. 

(b) A report must be filed with OFAC 

within 30 days of the closure of an 

account, providing full details on the 

closing of each correspondent account 

or payable-through account maintained 

by a U.S. financial institution for a 

foreign financial institution whose name 

is added to the CAPTA List. Such report 

must include complete information on 

the closing of the account and on all 

transactions processed or executed 

through the account pursuant to this 

section, including the account outside 

of the United States to which funds 

remaining in the account were 

transferred. The reports, which must 

reference this section, are to be 

submitted to OFAC using one of the 

following methods: 

(1) Email (preferred method): 

OFACReport@treasury.gov; or 

(2) U.S. mail: Attention: Office of 

Compliance and Enforcement, Office of 

Foreign Assets Control, U.S. Department 

of the Treasury, 1500 Pennsylvania 

Avenue NW, Freedman’s Bank Building, 

Washington, DC 20220. 

(c) Specific licenses may be issued on 

a case-by-case basis to authorize 

transactions outside the scope or time 

period authorized in paragraph (a) of 

this section by a U.S. financial 

institution with respect to a 

correspondent account or a payablethrough account maintained by the U.S. 

financial institution for a foreign 

financial institution whose name is 

added to the CAPTA List. License 

applications should be filed in 

conformance with § 501.801 of the 

Reporting, Procedures and Penalties 

Regulations, 31 CFR part 501. 

(d) Nothing in this section authorizes 

the opening of a correspondent account 

or a payable-through account for a 

foreign financial institution whose name 

appears on the CAPTA List. 

Note 1 to § 589.521. This section does not 

authorize a U.S. financial institution to 


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unblock property or interests in property, or 

to engage in any transaction or dealing in 

property or interests in property, blocked 

pursuant to any other part of this chapter in 

the process of closing a correspondent 

account or a payable-through account for a 

foreign financial institution whose name has 

been added to the CAPTA List. See § 589.101. 

Subpart F—Reports 

§ 589.601 Records and reports. 

For provisions relating to required 

records and reports, see part 501, 

subpart C, of this chapter. 

Recordkeeping and reporting 

requirements imposed by part 501 of 

this chapter with respect to the 

prohibitions contained in this part are 

considered requirements arising 

pursuant to this part. 

Subpart G—Penalties and Findings of 

Violation 

§ 589.701 Penalties. 

(a) Section 206 of the International 

Emergency Economic Powers Act (50 

U.S.C. 1705) (IEEPA) is applicable to 

violations of the provisions of any 

license, ruling, regulation, order, 

directive, or instruction issued by or 

pursuant to the direction or 

authorization of the Secretary of the 

Treasury pursuant to this part or 

otherwise under IEEPA. 

(1) A civil penalty not to exceed the 

amount set forth in section 206 of IEEPA 

may be imposed on any person who 

violates, attempts to violate, conspires 

to violate, or causes a violation of any 

license, order, regulation, or prohibition 

issued under IEEPA. 

(2) IEEPA provides for a maximum 

civil penalty not to exceed the greater of 

$330,947or an amount that is twice the 

amount of the transaction that is the 

basis of the violation with respect to 

which the penalty is imposed. 

(3) A person who willfully commits, 

willfully attempts to commit, willfully 

conspires to commit, or aids or abets in 

the commission of a violation of any 

license, order, regulation, or prohibition 

may, upon conviction, be fined not 

more than $1,000,000, or if a natural 

person, be imprisoned for not more than 

20 years, or both. 

(b)(1) The civil penalties provided in 

IEEPA are subject to adjustment 

pursuant to the Federal Civil Penalties 

Inflation Adjustment Act of 1990 (Pub. 

L. 101–410, as amended, 28 U.S.C. 2461 

note). 

(2) The criminal penalties provided in 

IEEPA are subject to adjustment 

pursuant to 18 U.S.C. 3571. 

(c) Pursuant to 18 U.S.C. 1001, 

whoever, in any matter within the 

jurisdiction of the executive, legislative, 

or judicial branch of the Government of 

the United States, knowingly and 

willfully falsifies, conceals, or covers up 

by any trick, scheme, or device a 

material fact; or makes any materially 

false, fictitious, or fraudulent statement 

or representation; or makes or uses any 

false writing or document knowing the 

same to contain any materially false, 

fictitious, or fraudulent statement or 

entry shall be fined under title 18, 

United States Code, imprisoned, or 

both. 

(d) Violations of this part may also be 

subject to other applicable laws. 

§ 589.702 Pre-Penalty Notice; settlement. 

(a) When required. If OFAC has 

reason to believe that there has occurred 

a violation of any provision of this part 

or a violation of the provisions of any 

license, ruling, regulation, order, 

directive, or instruction issued by or 

pursuant to the direction or 

authorization of the Secretary of the 

Treasury pursuant to this part or 

otherwise under the International 

Emergency Economic Powers Act (50 

U.S.C. 1701 et seq.) and determines that 

a civil monetary penalty is warranted, 

OFAC will issue a Pre-Penalty Notice 

informing the alleged violator of the 

agency’s intent to impose a monetary 

penalty. A Pre-Penalty Notice shall be in 

writing. The Pre-Penalty Notice may be 

issued whether or not another agency 

has taken any action with respect to the 

matter. For a description of the contents 

of a Pre-Penalty Notice, see appendix A 

to part 501 of this chapter. 

(b) Response—(1) Right to respond. 

An alleged violator has the right to 

respond to a Pre-Penalty Notice by 

making a written presentation to OFAC. 

For a description of the information that 

should be included in such a response, 

see appendix A to part 501 of this 

chapter. 

(2) Deadline for response. A response 

to a Pre-Penalty Notice must be made 

within 30 days as set forth in paragraphs 

(b)(2)(i) and (ii) of this section. The 

failure to submit a response within 30 

days shall be deemed to be a waiver of 

the right to respond. 

(i) Computation of time for response. 

A response to a Pre-Penalty Notice must 

be postmarked or date-stamped by the 

U.S. Postal Service (or foreign postal 

service, if mailed abroad) or courier 

service provider (if transmitted to OFAC 

by courier), or dated if sent by email, on 

or before the 30th day after the postmark 

date on the envelope in which the PrePenalty Notice was mailed or date the 

Pre-Penalty Notice was emailed. If the 

Pre-Penalty Notice was personally 

delivered by a non-U.S. Postal Service 

agent authorized by OFAC, a response 

must be postmarked or date-stamped on 

or before the 30th day after the date of 

delivery. 

(ii) Extensions of time for response. If 

a due date falls on a Federal holiday or 

weekend, that due date is extended to 

include the following business day. Any 

other extensions of time will be granted, 

at the discretion of OFAC, only upon 

specific request to OFAC. 

(3) Form and method of response. A 

response to a Pre-Penalty Notice need 

not be in any particular form, but it 

must be typewritten and signed by the 

alleged violator or a representative 

thereof (electronic signature is 

acceptable), contain information 

sufficient to indicate that it is in 

response to the Pre-Penalty Notice, and 

include the OFAC identification number 

listed on the Pre-Penalty Notice. The 

response must be sent to OFAC’s Office 

of Compliance and Enforcement by mail 

or courier or email and must be 

postmarked or date-stamped in 

accordance with paragraph (b)(2) of this 

section. 

(c) Settlement. Settlement discussion 

may be initiated by OFAC, the alleged 

violator, or the alleged violator’s 

authorized representative. For a 

description of practices with respect to 

settlement, see appendix A to part 501 

of this chapter. 

(d) Guidelines. Guidelines for the 

imposition or settlement of civil 

penalties by OFAC are contained in 

appendix A to part 501 of this chapter. 

(e) Representation. A representative of 

the alleged violator may act on behalf of 

the alleged violator, but any oral 

communication with OFAC prior to a 

written submission regarding the 

specific allegations contained in the PrePenalty Notice must be preceded by a 

written letter of representation, unless 

the Pre-Penalty Notice was served upon 

the alleged violator in care of the 

representative. 

§ 589.703 Penalty imposition. 

If, after considering any written 

response to the Pre-Penalty Notice and 

any relevant facts, OFAC determines 

that there was a violation by the alleged 

violator named in the Pre-Penalty 

Notice and that a civil monetary penalty 

is appropriate, OFAC may issue a 

Penalty Notice to the violator containing 

a determination of the violation and the 

imposition of the monetary penalty. For 

additional details concerning issuance 

of a Penalty Notice, see appendix A to 

part 501 of this chapter. The issuance of 

the Penalty Notice shall constitute final 

agency action. The violator has the right 

to seek judicial review of that final 

agency action in Federal district court. 


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26118 Federal Register / Vol. 87, No. 84 / Monday, May 2, 2022 / Rules and Regulations 

§ 589.704 Administrative collection; 

referral to United States Department of 

Justice. 

In the event that the violator does not 

pay the penalty imposed pursuant to 

this part or make payment arrangements 

acceptable to OFAC, the matter may be 

referred for administrative collection 

measures by the Department of the 

Treasury or to the United States 

Department of Justice for appropriate 

action to recover the penalty in a civil 

suit in a Federal district court. 

§ 589.705 Findings of Violation. 

(a) When issued. (1) OFAC may issue 

an initial Finding of Violation that 

identifies a violation if OFAC: 

(i) Determines that there has occurred 

a violation of any provision of this part, 

or a violation of the provisions of any 

license, ruling, regulation, order, 

directive, or instruction issued by or 

pursuant to the direction or 

authorization of the Secretary of the 

Treasury pursuant to this part or 

otherwise under the International 

Emergency Economic Powers Act (50 

U.S.C. 1701 et seq.); 

(ii) Considers it important to 

document the occurrence of a violation; 

and 

(iii) Based on the Guidelines 

contained in appendix A to part 501 of 

this chapter, concludes that an 

administrative response is warranted 

but that a civil monetary penalty is not 

the most appropriate response. 

(2) An initial Finding of Violation 

shall be in writing and may be issued 

whether or not another agency has taken 

any action with respect to the matter. 

For additional details concerning 

issuance of a Finding of Violation, see 

appendix A to part 501 of this chapter. 

(b) Response—(1) Right to respond. 

An alleged violator has the right to 

contest an initial Finding of Violation 

by providing a written response to 

OFAC. 

(2) Deadline for response; default 

determination. A response to an initial 

Finding of Violation must be made 

within 30 days as set forth in paragraphs 

(b)(2)(i) and (ii) of this section. The 

failure to submit a response within 30 

days shall be deemed to be a waiver of 

the right to respond, and the initial 

Finding of Violation will become final 

and will constitute final agency action. 

The violator has the right to seek 

judicial review of that final agency 

action in Federal district court. 

(i) Computation of time for response. 

A response to an initial Finding of 

Violation must be postmarked or datestamped by the U.S. Postal Service (or 

foreign postal service, if mailed abroad) 

or courier service provider (if 

transmitted to OFAC by courier), or 

dated if sent by email, on or before the 

30th day after the postmark date on the 

envelope in which the initial Finding of 

Violation was served or date the Finding 

of Violation was sent by email. If the 

initial Finding of Violation was 

personally delivered by a non-U.S. 

Postal Service agent authorized by 

OFAC, a response must be postmarked 

or date-stamped on or before the 30th 

day after the date of delivery. 

(ii) Extensions of time for response. If 

a due date falls on a Federal holiday or 

weekend, that due date is extended to 

include the following business day. Any 

other extensions of time will be granted, 

at the discretion of OFAC, only upon 

specific request to OFAC. 

(3) Form and method of response. A 

response to an initial Finding of 

Violation need not be in any particular 

form, but it must be typewritten and 

signed by the alleged violator or a 

representative thereof (electronic 

signature is acceptable), contain 

information sufficient to indicate that it 

is in response to the initial Finding of 

Violation, and include the OFAC 

identification number listed on the 

initial Finding of Violation. The 

response must be sent to OFAC’s Office 

of Compliance and Enforcement by mail 

or courier or email and must be 

postmarked or date-stamped in 

accordance with paragraph (b)(2) of this 

section. 

(4) Information that should be 

included in response. Any response 

should set forth in detail why the 

alleged violator either believes that a 

violation of the regulations did not 

occur and/or why a Finding of Violation 

is otherwise unwarranted under the 

circumstances, with reference to the 

General Factors Affecting 

Administrative Action set forth in the 

Guidelines contained in appendix A to 

part 501 of this chapter. The response 

should include all documentary or other 

evidence available to the alleged 

violator that supports the arguments set 

forth in the response. OFAC will 

consider all relevant materials 

submitted in the response. 

(c) Determination—(1) Determination 

that a Finding of Violation is warranted. 

If, after considering the response, OFAC 

determines that a final Finding of 

Violation should be issued, OFAC will 

issue a final Finding of Violation that 

will inform the violator of its decision. 

A final Finding of Violation shall 

constitute final agency action. The 

violator has the right to seek judicial 

review of that final agency action in 

Federal district court. 

(2) Determination that a Finding of 

Violation is not warranted. If, after 

considering the response, OFAC 

determines a Finding of Violation is not 

warranted, then OFAC will inform the 

alleged violator of its decision not to 

issue a final Finding of Violation. 

Note 1 to paragraph (c)(2). A 

determination by OFAC that a final Finding 

of Violation is not warranted does not 

preclude OFAC from pursuing other 

enforcement actions consistent with the 

Guidelines contained in appendix A to part 

501 of this chapter. 

(d) Representation. A representative 

of the alleged violator may act on behalf 

of the alleged violator, but any oral 

communication with OFAC prior to a 

written submission regarding the 

specific alleged violations contained in 

the initial Finding of Violation must be 

preceded by a written letter of 

representation, unless the initial 

Finding of Violation was served upon 

the alleged violator in care of the 

representative. 

Subpart H—Procedures 

§ 589.801 Procedures. 

For license application procedures 

and procedures relating to amendments, 

modifications, or revocations of 

licenses; administrative decisions; 

rulemaking; and requests for documents 

pursuant to the Freedom of Information 

and Privacy Acts (5 U.S.C. 552 and 

552a), see part 501, subpart E, of this 

chapter. 

§ 589.802 Delegation of certain authorities 

of the Secretary of the Treasury. 

Any action that the Secretary of the 

Treasury is authorized to take pursuant 

to Executive Order (E.O.) 13660 of 

March 6, 2014, E.O. 13661 of March 16, 

2014, E.O. 13662 of March 20, 2014, 

E.O. 13685 of December 19, 2014, E.O. 

13849 of September 20, 2018, and any 

further Executive orders relating to the 

national emergency declared in E.O. 

13660, and any action that the Secretary 

of the Treasury is authorized to take 

pursuant to Presidential Memorandum 

of September 29, 2017: Delegation of 

Certain Functions and Authorities 

under the Countering America’s 

Adversaries Through Sanctions Act of 

2017, the Ukraine Freedom Support Act 

of 2014, and the Support for the 

Sovereignty, Integrity, Democracy, and 

Economic Stability of Ukraine Act of 

2014, may be taken by the Director of 

OFAC or by any other person to whom 

the Secretary of the Treasury has 

delegated authority so to act. 

Subpart I—Paperwork Reduction Act 

§ 589.901 Paperwork Reduction Act notice. 

For approval by the Office of 

Management and Budget (OMB) under 


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Federal Register / Vol. 87, No. 84 / Monday, May 2, 2022 / Rules and Regulations 26119 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3507) of information 

collections relating to recordkeeping 

and reporting requirements, licensing 

procedures, and other procedures, see 

§ 501.901 of this chapter. An agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a valid control number 

assigned by OMB. 

Andrea M. Gacki, 

Director, Office of Foreign Assets Control. 

[FR Doc. 2022–09371 Filed 4–29–22; 8:45 am] 

BILLING CODE P 


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