[Federal Register Volume 87, Number 103 (Friday, May 27, 2022)]
[Rules and Regulations]
[Pages 32082-32084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11471]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 589


Publication of Ukraine-/Russia-Related Web General Licenses 15K 
and 15L

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Publication of Web General Licenses.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is publishing two general licenses (GLs) issued in the 
Ukraine-/Russia-Related sanctions program: GL 15K, which was previously 
issued on OFAC's website and is now expired, and GL 15L, which was also 
previously issued on OFAC's website and had an expiration date of May 
25, 2022.

DATES: GL 15L was issued on April 25, 2022. See SUPPLEMENTARY 
INFORMATION of this rule for additional relevant dates.

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

[[Page 32083]]

available on OFAC's website: www.treas.gov/ofac.

Background

    OFAC issued GL 15 on May 22, 2018 to authorize certain transactions 
necessary for the maintenance or wind down of operations or existing 
contracts with GAZ Group, or entities in which GAZ Group owned, 
directly or indirectly, a 50 percent or greater interest, otherwise 
prohibited by the Ukraine Related Sanctions Regulations, 31 CFR part 
589 (which have since been renamed the Ukraine-/Russia-Related 
Sanctions Regulations). At the time of issuance, OFAC made GL 15, which 
had an expiration date of October 23, 2018, available on its website 
(www.treas.gov/ofac). Subsequently, OFAC issued further iterations of 
GL 15, all of which were available on OFAC's website. These iterations 
extended the period the authorizations in GL 15 remained in effect and 
broadened the scope of GL 15's authorizations. OFAC published GLs 15 
through GL 15J in the Federal Register on July 28, 2021 (86 FR 40310, 
July 28, 2021).
    On January 24, 2022, OFAC issued GL 15K, replacing and superseding 
GL 15J. GL 15K had an expiration date of April 27, 2022. On April 25, 
2022, OFAC issued GL 15L, replacing and superseding GL 15K. GL 15L 
narrows the scope of GL 15K and had an expiration date of May 25, 2022. 
The text of GLs 15K and 15L is provided below.

OFFICE OF FOREIGN ASSETS CONTROL

Ukraine Related Sanctions Regulations 31 CFR Part 589

GENERAL LICENSE NO. 15K

Authorizing Certain Activities Involving GAZ Group

    (a) Except as provided in paragraphs (c) and (d) of this general 
license, transactions and activities otherwise prohibited by the 
Ukraine Related Sanctions Regulations, 31 CFR part 589 (URSR), that are 
ordinarily incident and necessary to the manufacture and sale of 
existing and new models of vehicles, components, and spare parts, 
including automobiles, light commercial vehicles, trucks, buses, 
engines/powertrains, produced by GAZ Group, or any entity in which GAZ 
Group owns, directly or indirectly, a 50 percent or greater interest, 
are authorized through 12:01 a.m. eastern daylight time, April 27, 
2022, including:
     Research, design, development, production, modification, 
upgrade, certification, distribution, and marketing;
     Provision or receipt of services, including warranty, 
maintenance, logistics, storage, shipping, insurance, security, 
brokerage, legal, banking and financial (including financing and 
renegotiation of debt), technical and engineering, advertising, and 
customer services;
     Entry into joint ventures, contract manufacturing 
agreements, supplier contracts, and other new contracts associated with 
activities authorized by paragraph (a);
     Payment and receipt of dividends and other funds owed by 
or to GAZ Group relating to activities authorized by paragraph (a);
     The conduct of financial transactions associated with 
activities authorized by paragraph (a); and
     Activities necessary for compliance with paragraph 
(f)(1)(i), including financial auditing services.
    (b) Except as provided in paragraphs (c) and (d) of this general 
license, all transactions and activities otherwise prohibited by the 
URSR that are ordinarily incident and necessary to the maintenance or 
wind down of operations, contracts, or other agreements involving GAZ 
Group, or any other entity in which GAZ Group owns, directly or 
indirectly, a 50 percent or greater interest, and that were in effect 
prior to April 6, 2018, including the importation of goods, services, 
or technology into the United States, are authorized through 12:01 a.m. 
eastern daylight time, April 27, 2022.
    (c) All funds in accounts of blocked persons identified in 
paragraphs (a) and (b) that were blocked as of 12:01 a.m. eastern 
daylight time, May 22, 2018, remain blocked, except that such funds may 
be used for the activities authorized by this general license.
    (d) This general license does not authorize:
    (1) The divestiture or transfer of debt, equity, or other holdings 
in, to, or for the benefit of the blocked persons described above;
    (2) Any transactions or dealings otherwise prohibited by any other 
part of 31 CFR chapter V, or any transactions or dealings with any 
blocked person other than the blocked persons described in paragraphs 
(a) and (b) of this general license; or
    (3) The unblocking of any property blocked pursuant to any part of 
31 CFR chapter V, except as authorized by paragraphs (a) or (b).
    (e) U.S. persons participating in transactions authorized by this 
general license are required, within 10 business days after the 
expiration date of this general license, to file a detailed report of 
each transaction, including the names and addresses of parties 
involved, the type and scope of activities conducted, and the dates on 
which the activities occurred, via email to [email protected] 
(preferred) or mail to Office of Foreign Assets Control, Office of 
Compliance and Enforcement, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue NW, Freedman's Bank Building, Washington, DC 20220.
    (f)(1) GAZ Group is required to provide the following information 
to OFAC:
    (i) Audited financial statements and board meeting minutes for GAZ 
Group, reports of composition and changes to GAZ Group's Board of 
Directors, lists of any new joint ventures entered into by GAZ Group 
and any joint ventures under development by GAZ Group in which GAZ 
Group is a participant, and financing agreements entered into by GAZ 
Group valued at or exceeding $5 million U.S. dollars. This information 
must be reported within five days of the close of each calendar 
quarter.
    (ii) Certification that GAZ Group is not acting for or on behalf of 
Mr. Oleg Deripaska or any other person included on OFAC's list of 
Specially Designated Nationals and Blocked Persons, and that control 
over the actions, policies, and decisions of the company rests with GAZ 
Group's Board of Directors and shareholders. This information must be 
reported within five days of the close of each calendar month.
    (2) Information reported under paragraph (f)(1) of this general 
license must reference General License 15K and be sent via email to 
[email protected] (preferred) or mail to Office of Foreign Assets 
Control, Office of Compliance and Enforcement, U.S. Department of the 
Treasury, 1500 Pennsylvania Avenue NW, Freedman's Bank Building, 
Washington, DC 20220.
    (g) Effective January 24, 2022 General License No. 15J, dated 
December 23, 2020, is replaced and superseded in its entirety by this 
General License No. 15K.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.

    Dated: January 24, 2022.

OFFICE OF FOREIGN ASSETS CONTROL

Ukraine Related Sanctions Regulations 31 CFR Part 589

GENERAL LICENSE NO. 15L

Authorizing the Wind Down of Transactions Involving GAZ Group

    (a) Except as provided in paragraph (b), all transactions and 
activities prohibited by the Ukraine Related

[[Page 32084]]

Sanctions Regulations, 31 CFR part 589 (URSR), that are ordinarily 
incident and necessary to the wind down of transactions involving GAZ 
Group, or any entity in which GAZ Group owns, directly or indirectly, a 
50 percent or greater interest, are authorized through 12:01 a.m. 
eastern daylight time, May 25, 2022.
    (b) This general license does not authorize:
    (1) Any debit to an account of GAZ Group, or any entity in which 
GAZ Group owns, directly or indirectly, a 50 percent or greater 
interest, on the books of a U.S. financial institution; or
    (2) Any transactions or activities otherwise prohibited by the 
URSR, or prohibited by any part of 31 CFR chapter V, statute, or 
Executive order, or involving any blocked person other than the blocked 
persons described in paragraph (a) of this general license.
    (c) Effective April 25, 2022, General License No. 15K, dated 
January 24, 2022, is replaced and superseded in its entirety by this 
General License No. 15L.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.

    Dated: April 25, 2022.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-11471 Filed 5-26-22; 8:45 am]
BILLING CODE 4810-AL-P