Pursuant to E.O. 13883, 31 C.F.R. § 544.802, and the CBW Act, on August 2, 2019, OFAC issued a Russia-Related Directive (the “CBW Act Directive”), which prohibits U.S. banks from participating in the primary market for non-ruble denominated bonds issued by the Russian sovereign and also prohibits U.S. banks from lending non-ruble denominated funds to the Russian sovereign. The prohibitions under the CBW Act Directive do not apply to bonds or loans denominated in rubles. The prohibitions in the CBW Act Directive only apply to “U.S. banks,” as that term is defined in the CBW Act Directive and consistent with section 4(c) of E.O. 13883 and consistent with the definition of U.S. financial institution at 31 C.F.R. § 544.311. The CBW Act Directive includes a definition of the term “Russian sovereign.” The CBW Act Directive is effective as of August 26, 2019.
Independent of the CBW Act Directive, OFAC has imposed additional prohibitions with respect to bonds and loans related to certain Government of the Russian Federation entities pursuant to Directive 1 under E.O. of April 15, 2021. Please see FAQ 888 for more information.