[Federal Register Volume 86, Number 127 (Wednesday, July 7, 2021)]
[Notices]
[Pages 35867-35868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14339]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control


Publication of Russian Harmful Foreign Activities Directive 1

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Publication of directive.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is publishing a Russian Harmful Foreign Activities 
Sanctions Directive in the Federal Register. The Directive was 
previously issued on OFAC's website.

DATES: Directive 1 was issued on April 15, 2021 and the prohibitions 
therein take effect on June 14, 2021.

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.treasury.gov/ofac.

Background

    On April 15, 2021, the President, invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (IEEPA), issued Executive Order (E.O.) 14024 (86 FR 20249, April 
19, 2021).
    In E.O. 14024, the President found that specified harmful foreign 
activities of the Government of the Russian Federation--in particular, 
efforts to undermine the conduct of free and fair democratic elections 
and democratic institutions in the United States and its allies and 
partners; to engage in and facilitate malicious cyber-enabled 
activities against the United States and its allies and partners; to 
foster and use transnational corruption to influence foreign 
governments; to pursue extraterritorial activities targeting dissidents 
or journalists; to undermine security in countries and regions 
important to United States national security; and to violate well-
established principles of international law, including respect for the 
territorial integrity of states--constitute an unusual and 
extraordinary threat to the national security, foreign policy, and 
economy of the United States and declared a national emergency to deal 
with that threat.
    Also on April 15, 2021, the Acting Director of OFAC issued 
Directive 1 under E.O. 14024, wherein the Acting Director of OFAC, in 
consultation with the Department of State, determined that the Central 
Bank of the Russian Federation, the National Wealth Fund of the Russian 
Federation, and the Ministry of Finance of the Russian Federation are 
political subdivisions, agencies, or instrumentalities of the 
Government of the Russian Federation, and that certain activities by 
U.S. financial institutions that are specified in Directive 1 involving 
such entities are prohibited as of June 14, 2021. The text of Directive 
1 under E.O. 14024 is provided below.

Office of Foreign Assets Control

Directive 1 Under Executive Order of April 15, 2021

Blocking Property With Respect to Specified Harmful Foreign Activities 
of the Government of the Russian Federation
    Pursuant to sections 1(a)(iv), 1(d), and 8 of Executive Order of 
April 15, 2021, ``Blocking Property with Respect to Specified Harmful 
Foreign Activities of the Government of the Russian Federation'' (the 
``Order''), the Acting Director of the Office of Foreign Assets Control 
has determined, in consultation with the Department of State, that the 
Central Bank of the Russian Federation, the National Wealth Fund of the 
Russian Federation, and the Ministry of Finance of the Russian 
Federation are political subdivisions, agencies, or instrumentalities 
of the Government of the Russian Federation, and that the following 
activities by a U.S. financial institution are prohibited as of June 
14, 2021, 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 ruble or non-ruble 
denominated bonds issued after June 14, 2021 by the Central Bank of the 
Russian Federation, the National Wealth Fund of the Russian Federation, 
or the Ministry of Finance of the Russian Federation; and
    (2) lending ruble or non-ruble denominated funds to the Central 
Bank of the Russian Federation, the National Wealth Fund of the Russian 
Federation, or the Ministry of Finance of the Russian Federation.
    For purposes of this Directive, 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 other extensions 
of credit, or purchasing or selling foreign exchange, securities, 
commodity futures or options, or procuring purchasers and sellers 
thereof, as principal or agent. The term includes depository 
institutions, banks, savings banks, trust 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, 
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.
    All other activities with the Central Bank of the Russian 
Federation, the National Wealth Fund of the Russian Federation, or the 
Ministry of Finance of the Russian Federation, or involving their 
property or interests in property are permitted, provided such 
activities are not otherwise prohibited pursuant to

[[Page 35868]]

the Order, or any other sanctions program implemented by the Office of 
Foreign Assets Control.
    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. April 15, 2021.

    Dated: June 30, 2021.
Bradley T. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2021-14339 Filed 7-6-21; 8:45 am]
BILLING CODE 4810-AL-P