Publication of Russian Harmful Foreign Activities Sanctions Regulations Determinations

SUPPLEMENTARY INFORMATION:

Electronic Availability

This document and additional information concerning OFAC are available on OFAC's website: https://ofac.treasury.gov .

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, “Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation” (86 FR 20249, April 19, 2022).

On December 22, 2023, the President, invoking the authority of, inter alia, IEEPA, issued E.O. 14114, “Taking Additional Steps With Respect to the Russian Federation's Harmful Activities” (88 FR 89271, December 26, 2023). Among other things, E.O. 14114 amends E.O. 14024 to redesignate section 11 as section 12 and add a new section 11. Section 11(a) of E.O. 14024, as amended, provides that the Secretary of the Treasury, in consultation with the Secretary of State, and with respect to subsection (a)(ii) of this section, in consultation with the Secretary of State and the Secretary of Commerce, is hereby authorized to impose on a foreign financial institution the sanctions described in subsection (b) of this section, upon determining that the foreign financial institution has met the criteria in section 11(a)(i) or section 11(a)(ii). Section 11(a)(ii) of E.O. 14024, as amended, authorizes the imposition of sanctions on a foreign financial institution that has conducted or facilitated any significant transaction or transactions, or provided any service, involving Russia's military-industrial base, including the sale, supply, or transfer, directly or indirectly, to the Russian Federation of any item or class of items as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce.

E.O. 14114 also amends E.O. 14068 by striking subsection (a)(i) of section 1 of E.O. 14068 and inserting a new subsection (a)(i). Subsection (a)(i)(A) of E.O. 14068, as amended, provides that the importation and entry into the United States, including importation for admission into a foreign trade zone located in the United States, of the following products of Russian Federation origin: fish, seafood, and preparations thereof; alcoholic beverages; non-industrial diamonds; and any other products of Russian Federation origin, as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce is prohibited.

Subsection (a)(i)(B) of E.O. 14068, as amended, provides that the importation and entry into the United States, including importation for admission into a foreign trade zone located in the United States, of categories of any of the following products as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, and the Secretary of Homeland Security, that were mined, extracted, produced, or manufactured wholly or in part in the Russian Federation, or harvested in waters under the jurisdiction of the Russian Federation or by Russia-flagged vessels, notwithstanding whether such products have been incorporated or substantially transformed into other products outside of the Russian Federation: fish, seafood, and preparations thereof; diamonds; and any other such products as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, and the Secretary of Homeland Security is prohibited.

On December 22, 2023, pursuant to delegated authority, the Director of OFAC, in consultation with the Secretary of State and the Secretary of Commerce, issued a determination identifying certain items or classes of items pursuant to section 11(a)(ii) of E.O.14024, as amended by E.O. 14114. Also on December 22, 2023, pursuant to delegated authority, the Director of OFAC, in consultation with the Department of State, the Department of Commerce, and the Department of Homeland Security, issued a determination pursuant to sections 1(a)(i)(B), 1(b), and 5 of E.O. 14068 to determine that the prohibitions in section 1(a)(i)(B) of E.O. 14068 shall apply to certain categories of fish, seafood, and preparations thereof. Additionally, on December 22, 2023, the Director of OFAC, in consultation with the Department of State and the Department of Commerce, re-issued an amended determination pursuant to sections 1(a)(i)(A), 1(b), and 5 of E.O. 14068 that had previously determined that the prohibitions in section 1(a)(i) of E.O. 14068 applied to gold of Russian Federation origin. Each determination was made available on OFAC's website ( https://ofac.treasury.gov ) when it was issued. The text of these determinations is below.

OFFICE OF FOREIGN ASSETS CONTROL

Determination Pursuant to Section 11(a)(ii) of Executive Order 14024

Section 11(a)(ii) 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”), as amended by E.O. of December 22, 2023 (“Taking Additional Steps With Respect to the Russian Federation's Harmful Activities”), authorizes the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce, to impose sanctions on a foreign financial institution upon determining that the foreign financial institution has conducted or facilitated any significant transaction or transactions, or provided any service, involving Russia's military-industrial base, including the sale, supply, or transfer, directly or indirectly, to the Russian Federation, of any item or class of items as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Commerce.

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, as amended, and in consultation with the Department of State and the Department of Commerce and pursuant to 31 CFR 587.802, I hereby determine that section 11(a)(ii) of E.O. 14024 shall apply to items or classes of items listed in the Annex to this determination.

This determination shall take effect on December 22, 2023.

Bradley T. Smith,

Director, Office of Foreign Assets Control.

Dated: December 22, 2023.