[Federal Register Volume 87, Number 148 (Wednesday, August 3, 2022)]
[Rules and Regulations]
[Pages 47344-47347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16538]


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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 Web General Licenses 39, 40, 41, 42, and 43

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 five general licenses (GLs) issued 
pursuant to the Russian Harmful Foreign Activities Sanctions 
Regulations: GL 39, GL 40, GL 41, GL 42, and GL 43, each of which was 
previously issued on OFAC's website.

DATES: GL 39, GL 40, GL 41, GL 42, and GL 43 were each issued on June 
28, 2022. See SUPPLEMENTARY INFORMATION of this document 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 
available on OFAC's website: www.treas.gov/ofac.

Background

    On June 28, 2022, OFAC issued GL 39, GL 40, GL 41, GL 42, and GL 43 
on its website to authorize certain transactions otherwise prohibited 
by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR 
part 587. GL 39 expires at 12:01 a.m. eastern daylight time, August 11, 
2022. GL 41 expires at 12:01 a.m. eastern standard time, December 22, 
2022. GL 43 expires at 12:01 a.m. eastern daylight time, August 31, 
2022. GL 40 and GL 42 do not contain expiration dates. The texts of GLs 
39, 40, 41, 42, and 43 are provided below.

[[Page 47345]]

OFFICE OF FOREIGN ASSETS CONTROL

Russian Harmful Foreign Activities Sanctions Regulations

31 CFR Part 587

GENERAL LICENSE NO. 39

Authorizing the Wind Down of Transactions Involving State Corporation 
Rostec

    (a) Except as provided in paragraph (b) of this general license, 
all transactions ordinarily incident and necessary to the wind down of 
any transaction involving State Corporation Rostec, or any entity 
blocked not earlier than June 28, 2022 in which State Corporation 
Rostec owns, directly or indirectly, a 50 percent or greater interest, 
that are prohibited by Executive Order (E.O.) 14024 are authorized 
through 12:01 a.m. eastern daylight time, August 11, 2022, provided 
that any payment to a blocked person must be made into a blocked 
account in accordance with the Russian Harmful Foreign Activities 
Sanctions Regulations, 31 CFR part 587 (RuHSR).
    (b) This general license does not authorize:
    (1) Any transactions prohibited by Directive 2 under E.O. 14024, 
Prohibitions Related to Correspondent or Payable-Through Accounts and 
Processing of Transactions Involving Certain Foreign Financial 
Institutions;
    (2) Any transactions prohibited by Directive 4 under E.O. 14024, 
Prohibitions Related to Transactions Involving the Central Bank of the 
Russian Federation, the National Wealth Fund of the Russian Federation, 
and the Ministry of Finance of the Russian Federation; or
    (3) Any transactions otherwise prohibited by the RuHSR, including 
transactions involving any person blocked pursuant to the RuHSR other 
than the blocked persons described in paragraph (a) of this general 
license, unless separately authorized.

Andrea M. Gacki,

Director, Office of Foreign Assets Control.

    Dated: June 28, 2022.

OFFICE OF FOREIGN ASSETS CONTROL

Russian Harmful Foreign Activities Sanctions Regulations

31 CFR Part 587

GENERAL LICENSE NO. 40

Civil Aviation Safety

    (a) Except as provided in paragraph (b), all transactions 
ordinarily incident and necessary to the provision, exportation, or 
reexportation of goods, technology, or services to ensure the safety of 
civil aviation involving one or more of the blocked entities listed in 
the Annex to this general license and that are prohibited by Executive 
Order (E.O.) 14024 are authorized, provided that:
    (1) The aircraft is registered in a jurisdiction solely outside of 
the Russian Federation; and
    (2) The goods, technology, or services that are provided, exported, 
or reexported are for use on aircraft operated solely for civil 
aviation purposes.
    (b) This general license does not authorize:
    (1) Any transactions prohibited by Directive 2 under E.O. 14024, 
Prohibitions Related to Correspondent or Payable-Through Accounts and 
Processing of Transactions Involving Certain Foreign Financial 
Institutions;
    (2) Any transactions prohibited by Directive 4 under E.O. 14024, 
Prohibitions Related to Transactions Involving the Central Bank of the 
Russian Federation, the National Wealth Fund of the Russian Federation, 
and the Ministry of Finance of the Russian Federation; or
    (3) Any transactions otherwise prohibited by the Russian Harmful 
Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), 
including transactions involving any person blocked pursuant to the 
RuHSR other than the blocked entities listed in the Annex to this 
general license, unless separately authorized.

    Note to General License 40. Nothing in this general license 
relieves any person from compliance with any other Federal laws or 
requirements of other Federal agencies, including export, reexport, 
and transfer (in-country) licensing requirements maintained by the 
Department of Commerce's Bureau of Industry and Security under the 
Export Administration Regulations, 15 CFR parts 730-774.

Andrea M. Gacki,

Director, Office of Foreign Assets Control.

    Dated: June 28, 2022.

Annex--Blocked Entities Described in Paragraph (a) of General License 
40

    List of blocked entities described in paragraph (a) of General 
License 40:
    (a) Public Joint Stock Company United Aircraft Corporation;
    (b) Irkut Corporation Joint Stock Company;
    (c) Energotsentr Irkut;
    (d) Irkut-Avtotrans;
    (e) Irkut-Remstroi;
    (f) Irkut-Stanko Service;
    (g) Rapart Servisez;
    (h) Sportivno-Ozdorovitelnyi Tsentr Irkut-Zenit;
    (i) Tipografiya Irkut;
    (j) Joint Stock Company Ilyushin Finance Company;
    (k) Open Joint Stock Company Ilyushin Aviation Complex;
    (l) Public Joint Stock Company Taganrog Aviation Scientific-
Technical Complex N.A. G.M. Beriev;
    (m) Joint Stock Company Flight Research Institute N.A. M.M. Gromov;
    (n) Tupolev Public Joint Stock Company;
    (o) Limited Liability Company Kapo-Avtotrans;
    (p) Limited Liability Company Kapo-Zhilbitservis;
    (q) Limited Liability Company Networking Company Irkut; or
    (r) Any entity in which one or more of the above persons own, 
directly or indirectly, individually or in the aggregate, a 50 percent 
or greater interest.

OFFICE OF FOREIGN ASSETS CONTROL

Russian Harmful Foreign Activities Sanctions Regulations

31 CFR Part 587

GENERAL LICENSE NO. 41

Authorizing Certain Transactions Related to Agricultural Equipment

    (a) Except as provided in paragraph (b) of this general license, 
all transactions ordinarily incident and necessary to the manufacture, 
sale, and maintenance, including the provision and receipt of warranty 
and maintenance services, of agricultural equipment, components, and 
spare parts produced by Nefaz Publicly Traded Company (``Nefaz'') or 
Public Joint Stock Company Tutaev Motor Plant (``Tutaev Motor Plant''), 
or any entity in which Nefaz or Tutaev Motor Plant owns, directly or 
indirectly, individually or in the aggregate, a 50 percent or greater 
interest, that are prohibited by the Russian Harmful Foreign Activities 
Sanctions Regulations, 31 CFR part 587 (RuHSR), are authorized through 
12:01 a.m. eastern standard time, December 22, 2022, provided that any 
payment to a blocked person must be made into a blocked account in 
accordance with the RuHSR.
    (b) This general license does not authorize:
    (1) The opening or maintaining of a correspondent account or 
payable-through account for or on behalf of any entity subject to 
Directive 2 under Executive Order (E.O.) 14024, Prohibitions Related to 
Correspondent or Payable-Through Accounts and Processing of 
Transactions Involving Certain Foreign Financial Institutions;

[[Page 47346]]

    (2) Any debit to an account on the books of a U.S. financial 
institution of 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
    (3) Any transaction prohibited by E.O. 14066, E.O. 14068, or E.O. 
14071.

Andrea M. Gacki,

Director, Office of Foreign Assets Control.

    Dated: June 28, 2022.

OFFICE OF FOREIGN ASSETS CONTROL

Russian Harmful Foreign Activities Sanctions Regulations

31 CFR Part 587

GENERAL LICENSE NO. 42

Authorizing Certain Transactions With the Federal Security Service

    (a) Except as provided in paragraph (b) of this general license, 
all transactions involving the Federal Security Service (a.k.a. 
Federalnaya Sluzhba Bezopasnosti) (a.k.a. FSB) prohibited by Executive 
Order (E.O.) 14024 are authorized, provided that such transactions and 
activities are ordinarily incident and necessary to:
    (1) Requesting, receiving, utilizing, paying for, or dealing in 
licenses, permits, certifications, or notifications issued or 
registered by the Federal Security Service for the importation, 
distribution, or use of information technology products in the Russian 
Federation, provided that (i) the exportation, reexportation, or 
provision of any goods or technology that are subject to the Export 
Administration Regulations, 15 CFR parts 730 through 774, is licensed 
or otherwise authorized by the Department of Commerce; and (ii) the 
payment of any fees to the Federal Security Service for such licenses, 
permits, certifications, or notifications does not exceed $5,000 in any 
calendar year;

    Note to paragraph (a)(1). Except for the limited purposes 
described in paragraph (a)(1), this paragraph does not authorize the 
exportation, reexportation, or provision of goods or technology to 
or on behalf of the Federal Security Service.

    (2) Complying with law enforcement or administrative actions or 
investigations involving the Federal Security Service; and
    (3) Complying with rules and regulations administered by the 
Federal Security Service.
    (b) This general license does not authorize:
    (1) Any transactions prohibited by Directive 2 under E.O. 14024, 
Prohibitions Related to Correspondent or Payable-Through Accounts and 
Processing of Transactions Involving Certain Foreign Financial 
Institutions;
    (2) Any transactions prohibited by Directive 4 under E.O. 14024, 
Prohibitions Related to Transactions Involving the Central Bank of the 
Russian Federation, the National Wealth Fund of the Russian Federation, 
and the Ministry of Finance of the Russian Federation; or
    (3) Any transactions otherwise prohibited by the Russian Harmful 
Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), 
including transactions involving any person blocked pursuant to the 
RuHSR other than the blocked person described in paragraph (a) of this 
general license, unless separately authorized.

    Note 1 to General License No. 42. See Cyber General License 1B 
for an authorization for certain transactions with the Federal 
Security Service prohibited by E.O. 13694, as amended by E.O. 13757, 
the Cyber-Related Sanctions Regulations, 31 CFR part 578, the 
Weapons of Mass Destruction Proliferators Sanctions Regulations, 31 
CFR part 544, and Section 224 of the Countering America's 
Adversaries Through Sanctions Act (22 U.S.C. 9524).


    Note 2 to General License No. 42. 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 so-called ``Donetsk 
People's Republic'' or ``Luhansk People's Republic'' (DNR/LNR) 
regions of Ukraine, or such other regions of Ukraine as may be 
determined by the Secretary of the Treasury, in consultation with 
the Secretary of State, pursuant to E.O. 14065, or to the Crimea 
region of Ukraine remain prohibited pursuant to authorities 
implemented by the Ukraine-/Russia-Related Sanctions Regulations, 31 
CFR part 589.

Andrea M. Gacki,

Director, Office of Foreign Assets Control.

    Dated: June 28, 2022.

OFFICE OF FOREIGN ASSETS CONTROL

Russian Harmful Foreign Activities Sanctions Regulations

31 CFR Part 587

GENERAL LICENSE NO. 43

Divestment or Transfer of Debt or Equity of, and Wind Down of 
Derivative Contracts Involving, Public Joint Stock Company Severstal or 
Nord Gold PLC

    (a) Except as provided in paragraphs (c) and (d) of this general 
license, all transactions prohibited by Executive Order (E.O.) 14024 
that are ordinarily incident and necessary to the divestment or 
transfer of debt or equity of Public Joint Stock Company Severstal 
(``Severstal'') or Nord Gold PLC (``Nord Gold''), or any entity in 
which Severstal or Nord Gold owns, directly or indirectly, individually 
or in the aggregate, a 50 percent or greater interest, purchased prior 
to June 2, 2022 (``covered debt or equity'') are authorized through 
12:01 a.m. eastern daylight time, August 31, 2022, provided that any 
divestment or transfer, or facilitation of divestment or transfer, of 
covered debt or equity must be to a non-U.S. person.
    (b) Except as provided in paragraph (d) of this general license, 
all transactions prohibited by E.O. 14024 that are ordinarily incident 
and necessary to the wind down of derivative contracts entered into 
prior to June 2, 2022 that (i) include a blocked person described in 
paragraph (a) of this general license as a counterparty or (ii) are 
linked to covered debt or equity are authorized through 12:01 a.m. 
eastern daylight time, August 31, 2022, provided that any payments to a 
blocked person are made into a blocked account in accordance with the 
Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 
587 (RuHSR).
    (c) Paragraph (a) of this general license does not authorize:
    (1) U.S. persons to sell, or to facilitate the sale of, covered 
debt or equity to, directly or indirectly, any person whose property 
and interests in property are blocked; or
    (2) U.S. persons to purchase or invest in, or to facilitate the 
purchase of or investment in, directly or indirectly, covered debt or 
equity, other than purchases of or investments in covered debt or 
equity that are ordinarily incident and necessary to the divestment or 
transfer of covered debt or equity, as described in paragraph (a) of 
this general license.
    (d) This general license does not authorize:
    (1) Any transactions prohibited by Directive 2 under E.O. 14024, 
Prohibitions Related to Correspondent or Payable-Through Accounts and 
Processing of Transactions Involving Certain Foreign Financial 
Institutions;
    (2) Any transactions prohibited by Directive 4 under E.O. 14024, 
Prohibitions Related to Transactions Involving the Central Bank of the 
Russian Federation, the National Wealth Fund of the Russian Federation, 
and the Ministry of Finance of the Russian Federation; or
    (3) Any transactions otherwise prohibited by the RuHSR, including 
transactions involving any person blocked pursuant to the RuHSR other 
than the persons described in paragraph (a) of this general license, 
unless separately authorized.


[[Page 47347]]


Andrea M. Gacki,

Director, Office of Foreign Assets Control.

    Dated: June 28, 2022.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-16538 Filed 8-2-22; 8:45 am]
BILLING CODE 4810-AL-P