[Federal Register Volume 84, Number 179 (Monday, September 16, 2019)]
[Notices]
[Pages 48704-48705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19890]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control


Issuance of Russia-Related Directive Pursuant to Executive Order 
13883 of August 1, 2019

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Issuance of directive.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) has issued a Russia-Related Directive under Executive 
Order 13883 of August 1, 2019.

DATES: OFAC's action described in this notice was effective on August 
26, 2019.

FOR FURTHER INFORMATION CONTACT: OFAC: Associate Director for Global 
Targeting, 202-622-2420; 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: On August 6, 2018, the Secretary of State, 
acting pursuant to delegated authority under section 306(a) of the 
Chemical and Biological Weapons Control and Warfare Elimination Act of 
1991, as amended, 22 U.S.C. 5601 et seq. (CBW Act), determined that the 
Government of the Russian Federation (Russia) had used chemical weapons 
in violation of international law or had used lethal chemical weapons 
against its own nationals. On August 27, 2018, pursuant to his August 
6, 2018 determination, the Secretary of State imposed an initial round 
of sanctions on Russia (83 FR 43723, August 27, 2018). Section 
307(b)(1) of the CBW Act requires the imposition of additional 
sanctions on Russia unless, within three months after making such a 
determination, the Secretary of State finds Russia has met certain 
conditions. On November 6, 2018, the Secretary of State found that 
Russia had not met the required conditions. On August 2, 2019, the 
Secretary of State selected three additional sanctions to impose on 
Russia (84 FR 44671, August 26, 2019).
    On August 1, 2019, the President, invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (IEEPA) and the CBW Act, issued Executive Order (E.O.) 13883 
(``Administration of Proliferation Sanctions and Amendment of Executive 
Order 12851'') (84 FR 38113, August 5, 2019). The President issued E.O. 
13883 in order to take additional steps with respect to the national 
emergency described and declared in Executive Order 12938 of November 
14, 1994, as amended by and relied on for additional steps in 
subsequent Executive Orders.
    In E.O. 13883, the President directed the Secretary of the 
Treasury, in consultation with the Secretary of State, to take the 
following actions when necessary to implement certain sanctions set 
forth in E.O. 13883 and section 307(b)(2) of the CBW Act selected for 
imposition on a country by the President or the Secretary of State 
pursuant to section 307(b)(1) of the CBW Act: (i) Oppose, in accordance 
with section 701 of the International Financial Institutions Act (22 
U.S.C. 262d), the extension of any loan or financial or technical 
assistance to that country by international financial institutions; and 
(ii) prohibit any United States bank from making any loan or providing 
any credit to the government of that country, except for loans or 
credits for the purpose of purchasing food or other agricultural 
commodities or products.
    Accordingly, on August 2, 2019, pursuant to the Secretary of 
State's August 2, 2019 decision to impose additional sanctions on 
Russia, E.O. 13883, and the Weapons of Mass Destruction Proliferators 
Sanctions Regulations, 31 CFR 544.802, the Director of OFAC issued the 
Russia-Related Directive Under Executive Order 13883 of August 1, 2019 
(CBW Act Directive). OFAC made the CBW Act Directive available on its 
website on August 3, 2019. OFAC is publishing the CBW Act Directive in 
the Federal Register, updated to include the number of the Executive 
Order of August 1, 2019.

Russia-Related Directive Under Executive Order of August 1, 2019 (``CBW 
Act Directive'')

    Pursuant to sections 1(a)(ii), 1(b), and 5 of Executive Order 13883 
of August 1, 2019 ``Administration of Proliferation Sanctions and 
Amendment of Executive Order 12851'' (the ``Order'') and 31 CFR 
544.802, and following the Secretary of State's selection of the 
sanction related to bank loans pursuant to delegated authority under 
section 307(b) of the Chemical and Biological Weapons Control and 
Warfare Elimination Act of 1991, as amended (22 U.S.C. 5605(b)), the 
Director of the Office of Foreign Assets Control has determined, in 
consultation with the Department of State, that the following 
activities by a U.S. bank, as defined below, including foreign 
branches, are prohibited, except to the extent provided by law or 
unless licensed or otherwise authorized by the Office of Foreign Assets 
Control: (1) Participation in the primary market for non-ruble 
denominated bonds issued by the Russian sovereign, as defined below, 
after August 26, 2019; and (2) lending non-ruble denominated funds to 
the Russian sovereign, as defined below, after August 26, 2019.
    For purposes of this Directive, the term ``U.S. bank'' means, 
consistent with the Order and 31 CFR 544.311, any entity organized 
under the laws of the United States or any jurisdiction within the 
United States (including its foreign branches), or any entity in the 
United States, 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, commodity 
futures, or options, or procuring purchasers and sellers thereof, as 
principal or agent. The term ``U.S. bank'' includes but is not limited 
to

[[Page 48705]]

depository institutions, banks, savings banks, trust companies, 
securities brokers and dealers, commodity futures and options brokers 
and dealers, forward contract and foreign exchange merchants, 
securities and commodities exchanges, clearing corporations, investment 
companies, employee benefit plans, 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 and otherwise meet 
the definition of ``U.S. bank'' used in this Directive, but not such 
institutions' foreign branches, offices, or agencies.
    Furthermore, for purposes of this Directive, the term ``Russian 
sovereign'' means any ministry, agency, or sovereign fund of the 
Russian Federation, including the Central Bank of Russia, the National 
Wealth Fund, and the Ministry of Finance of the Russian Federation. 
This term does not include state-owned enterprises of the Russian 
Federation.
    Except to the extent otherwise provided by law or unless licensed 
or otherwise authorized by the Office of Foreign Assets Control, the 
following are also prohibited: (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 this 
Directive; and (2) any conspiracy formed to violate any of the 
prohibitions in this Directive.

August 2, 2019

    Dated: September 10, 2019.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2019-19890 Filed 9-13-19; 8:45 am]
 BILLING CODE 4810-AL-P