[Federal Register Volume 87, Number 104 (Tuesday, May 31, 2022)]
[Rules and Regulations]
[Pages 32307-32308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11606]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 587


Publication of Russian Harmful Foreign Activities Sanctions 
Regulations Determinations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Publication of determinations.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is publishing two sectoral determinations issued 
pursuant to an April 15, 2021 Executive order, as well as a category of 
services determination issued pursuant to an April 6, 2022 Executive 
order. Each determination was previously issued on OFAC's website.

DATES: The March 31, 2022 Determination Pursuant to Section (1)(a)(i) 
of Executive Order 14024 was issued on March 31, 2022. The May 8, 2022 
Determination Pursuant to Section (1)(a)(i) of Executive Order 14024 
was issued on May 8, 2022. The May 8, 2022 Determination Pursuant to 
Section 1(a)(ii) of Executive Order 14071 was issued on May 8, 2022 and 
takes effect on June 7, 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 April 15, 2021, the President, invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.) (IEEPA), issued Executive Order (E.O.) 14024 (86 FR 20249, 
April 19, 2022). Among other prohibitions, section 1(a) of E.O. 14024 
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: (i) To operate or have 
operated in the technology sector or the defense and related materiel 
sector of the Russian Federation economy, or any other sector of the 
Russian Federation economy as may be determined by the Secretary of the 
Treasury, in consultation with the Secretary of State.
    On April 6, 2022, the President, invoking the authority of, inter 
alia, IEEPA, issued E.O. 14071 of April 6, 2022, ``Prohibiting New 
Investment in and Certain Services to the Russian Federation in 
Response to Continued Russian Federation Aggression'' (87 FR 20999, 
April 8, 2022). Among other prohibitions, section 1(a)(ii) of E.O. 
14071 prohibits the exportation, reexportation, sale, or supply, 
directly or indirectly, from the United States, or by a United States 
person, wherever located, of any category of services as may be 
determined by the Secretary of the Treasury, in consultation with the 
Secretary of State, to any person located in the Russian Federation.
    On March 31, 2022, the Secretary of the Treasury, in consultation 
with the Secretary of the State, issued a sectoral determination 
pursuant to E.O. 14024. This determination took effect upon publication 
on OFAC's website, which occurred on March 31, 2022. On May 8, 2022, 
pursuant to delegated authority, the Director of OFAC, in consultation 
with the Department of State, issued a sectoral determination pursuant 
to E.O. 14024. This determination took effect upon publication on 
OFAC's website, which occurred on May 8, 2022. Also on May 8, 2022, 
pursuant to delegated authority, the Director of OFAC, in consultation 
with the Department of State, issued a category of services 
determination pursuant to E.O. 14071. This determination takes effect 
at 12:01 a.m. eastern daylight time on June 7, 2022.
    The texts of the March 31, 2022 and May 8, 2022 sectoral 
determinations pursuant to E.O. 14024, and the May 8, 2022 category of 
services determination pursuant to E.O. 14071, are below.

Determination Pursuant to Section 1(a)(i) of Executive Order 14024

    Section 1(a) of Executive Order (E.O.) 14024 of April 15, 2021 
(``Blocking Property With Respect To Specified Harmful Foreign 
Activities of the Government of the Russian Federation'') imposes 
economic sanctions on any person determined by the Secretary of the 
Treasury, in consultation with the Secretary of State, or the Secretary 
of State, in consultation with the Secretary of the Treasury, to 
operate or have operated in such sectors of the Russian Federation 
economy as may be determined, pursuant to section 1(a)(i) of E.O. 
14024, by the Secretary of the Treasury, in consultation with the 
Secretary of State.
    To further address the unusual and extraordinary threat to the 
national security, foreign policy, and economy of the United States 
described in E.O. 14024, and in consultation with the Secretary of 
State, I hereby determine that section 1(a)(i) shall apply to the 
aerospace, electronics, and marine sectors of the Russian Federation 
economy. Any person that I or my designee, in consultation with the 
Secretary of State or the Secretary of

[[Page 32308]]

State's designee, or the Secretary of State or the Secretary of State's 
designee, in consultation with me or my designee, subsequently 
determine operates or has operated in such sectors shall be subject to 
sanctions pursuant to section 1(a)(i).
    This determination shall take effect upon publication by the 
Director of the Office of Foreign Assets Control on the Department of 
the Treasury's website.
Janet L. Yellen

Office of Foreign Assets Control

Determination Pursuant to Section 1(a)(i) of Executive Order 14024

    Section 1(a) of Executive Order (E.O.) 14024 of April 15, 2021 
(``Blocking Property With Respect To Specified Harmful Foreign 
Activities of the Government of the Russian Federation'') imposes 
economic sanctions on any person determined by the Secretary of the 
Treasury, in consultation with the Secretary of State, or the Secretary 
of State, in consultation with the Secretary of the Treasury, to 
operate or have operated in such sectors of the Russian Federation 
economy as may be determined, pursuant to section 1(a)(i) of E.O. 
14024, by the Secretary of the Treasury, in consultation with the 
Secretary of State.
    To further address the unusual and extraordinary threat to the 
national security, foreign policy, and economy of the United States 
described in E.O. 14024, and in consultation with the Department of 
State and pursuant to 31 CFR 587.802, I hereby determine that section 
1(a)(i) shall apply to the accounting, trust and corporate formation 
services, and management consulting sectors of the Russian Federation 
economy. Any person that the Secretary of the Treasury or the Secretary 
of the Treasury's designee, in consultation with the Secretary of State 
or the Secretary of State's designee, or the Secretary of State or the 
Secretary of State's designee, in consultation with the Secretary of 
the Treasury or the Secretary of the Treasury's designee, subsequently 
determines operates or has operated in such sectors shall be subject to 
sanctions pursuant to section 1(a)(i).
    This determination shall take effect upon publication by the Office 
of Foreign Assets Control on the Department of the Treasury's website.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.
May 8, 2022.

Office of Foreign Assets Control

Determination Pursuant to Section 1(a)(ii) of Executive Order 14071 
Prohibitions Related to Certain Accounting, Trust and Corporate 
Formation, and Management Consulting Services

    Pursuant to sections 1(a)(ii), 1(b), and 5 of Executive Order 
(E.O.) 14071 of April 6, 2022 (``Prohibiting New Investment in and 
Certain Services to the Russian Federation in Response to Continued 
Russian Federation Aggression'') and 31 CFR 587.802, the Director of 
the Office of Foreign Assets Control, in consultation with the 
Department of State, hereby determines that the prohibitions in section 
1(a)(ii) of E.O. 14071 shall apply to the following categories of 
services: Accounting, trust and corporate formation, and management 
consulting. As a result, the following activities are prohibited, 
except to the extent provided by law, or unless licensed or otherwise 
authorized by the Office of Foreign Assets Control: The exportation, 
reexportation, sale, or supply, directly or indirectly, from the United 
States, or by a United States person, wherever located, of accounting, 
trust and corporate formation, or management consulting services to any 
person located in the Russian Federation.
    This determination excludes the following:
    (1) Any service to an entity located in the Russian Federation that 
is owned or controlled, directly or indirectly, by a United States 
person;
    (2) any service in connection with the wind down or divestiture of 
an entity located in the Russian Federation that is not owned or 
controlled, directly or indirectly, by a Russian person.
    This determination shall take effect beginning at 12:01 a.m. 
eastern daylight time on June 7, 2022.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-11606 Filed 5-27-22; 8:45 am]
BILLING CODE 4810-AL-P