Sanctions ready to lift against three Russian firms

U.S. exporters wait for official announcement from OFAC for guidance on how to proceed.

Sanctions ready to lift against three Russian firms

U.S. exporters wait for official announcement from OFAC for guidance on how to proceed.

Sanctions ready to lift against three Russian firms

U.S. exporters wait for official announcement from OFAC for guidance on how to proceed.

 
Despite protests from numerous Senate and House lawmakers, the U.S. Treasury Department’s Friday deadline to lift previously imposed sanctions on three Russian companies with financial ties to oligarch Oleg Deripaska, a political associate of Russian President Vladimir Putin, proceeded.
    Last week, both chambers voted, but without success, to stop Treasury from lifting the sanctions.
    As of Monday, Treasury’s Office of Foreign Assets Control (OFAC) had not yet published any announcement or guidance related to lifting the sanctions against the Russian companies.
    Under the Countering America’s Adversaries Through Sanctions Act (CAATSA), OFAC on April 6, 2018, designated En+ Group for being owned or controlled, directly or indirectly, by Deripaska and other entities he owns or controls. In that same action, OFAC designated UC Rusal for being owned or controlled by, directly or indirectly, En+. JSC EuroSibEnergo, a wholly owned subsidiary of En+, was also designated.
    OFAC notified Congress on Dec. 19 that it intended to end trade sanctions against the three companies in 30 days. The agency said the companies had completed “significant restructuring and corporate governance changes” that allowed them to be delisted from the Specially Designated Nationals and Blocked Persons (SDN) List.
   Treasury had also warned that lack of resolution to the U.S. sanctions against Rusal, in particular, could throw the international aluminum market into a tailspin.

    However, the agency affirmed that Deripaska will remain sanctioned and his property blocked.
    In a Jan. 10 statement, Treasury Secretary Steven T. Mnuchin told those Capitol Hill lawmakers who are opposed to lifting the sanctions that failure of the three Russian companies to comply will result in “very real and swift consequences, including the reimposition of sanctions.”
    Meanwhile, OFAC on Wednesday continued extending the expiration dates of the pre-existing general licenses deadlines for U.S. companies to wind down their business dealings with En+, Rusal, and ESE from Monday to Jan. 28. When the three companies were placed on the SDN List on April 6, 2018, OFAC initially set the deadline for ending business relationships with the Russian entities by June 5, 2018. About a half dozen additional extensions have since been issued by the agency.

We are seeing many more pricing requests for Southeast Asia and the Indian subcontinent. Few actually moved their supply chains outside of China because this will take time, especially for larger shippers. However, Taiwan and South Korea are in a unique situation: Some manufacturing had shifted to mainland China in the last decade due to lower costs, but that infrastructure is still in Taiwan and South Korea. Some manufacturing may temporarily shift back there until Southeast Asia infrastructure catches up. 

The Port of Virginia’s container volumes rose 10.1% year-over-year in May to 260,894 TEUs, which included 119,592 TEUs of loaded imports, 88,065 TEUs of loaded exports and 53,237 TEUs of empty containers.

Most Popular
Latest News
Social Media

Loading...

Potential auto tariffs ‘on Korea’s mind’

Potential auto tariffs ‘on Korea’s mind’

Embed this story

Share Code Version 1

This version will embed the story headline and includes HTML fallback protection, ensuring the story will display even if some users decide to disable javascript in their browsers.

Copy & Paste the following code to embed this story on your website:

Preview

Sanctions ready to lift against three Russian firms

U.S. exporters wait for official announcement from OFAC for guidance on how to proceed.

Jan 21, 2019 on Dec 27, 2018AmericanShipper.com

Share Code Version 2

This version will embed the story headline without any styling applied. Use this version if you will use your own custom styling on your website. This version also includes HTML fallback protection.

Copy & Paste the following code to embed this story on your website:

Preview

Sanctions ready to lift against three Russian firms

U.S. exporters wait for official announcement from OFAC for guidance on how to proceed.

Jan 21, 2019 on Dec 27, 2018AmericanShipper.com