Frequently Asked Questions
No. GL 13D authorizes U.S. persons, or entities owned or controlled, directly or indirectly, by a U.S. person, to pay taxes, fees, or import duties, and purchase or receive permits, licenses, registrations, or certifications involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation (collectively, Russia-related Directive 4 Entities) that would otherwise be prohibited by Russia-related Directive 4 under Executive Order 14024 (the Russia-related Sovereign Transactions Directive ), provided such transactions are ordinarily incident and necessary to such persons’ day-to-day operations in the Russian Federation. This so-called “exit tax” is not considered ordinarily incident and necessary to day-to-day operations in the Russian Federation and, thus, not authorized under GL 13D. Pursuant to the Russia-related Sovereign Transactions Directive, U.S. persons are prohibited from engaging in direct or indirect transactions involving any Russia-related Directive 4 Entity. Please see Frequently Asked Question 1002 . In light of the potential for the payment of this so-called “exit tax” to involve a Russia-related Directive 4 Entity, U.S. persons whose divestment will involve an “exit tax” payment may require a license from OFAC. Such persons may submit a request for a specific license with OFAC’s Licensing Division online at http://www.home.treasury.gov/policy-issues/financial-sanctions/ofac-license-application-page. OFAC will evaluate such requests on a case-by-case basis.
The determination made on February 24, 2023 pursuant to Executive Order (E.O.) 14024 authorizes sanctions on any person determined to operate or have operated in the metals and mining sector of the Russian Federation economy. Non-U.S. persons may also be exposed to sanctions for activities with persons blocked pursuant to E.O. 14024 (see FAQ 980), including persons blocked following a determination that such persons operate or have operated in the metals and mining sector.
However, OFAC does not intend to target persons for operating in the metals and mining sector where the provision of goods or services is solely for the safety and care of personnel, protection of human life, prevention of accidents or injuries, maintenance or repair necessary to avoid environmental or other significant damage, or activities related to environmental mitigation or remediation. Examples of such goods include personal protective equipment, safety devices, ventilation systems, and alarm systems; examples of such services include rescue and accident response services, cleaning, safety inspections, and services necessary for use of the goods described above.
In addition, non-U.S. persons generally do not risk exposure to U.S. blocking sanctions under E.O. 14024 for engaging in transactions with blocked persons, including in the metals and mining sector, where those transactions would not require a specific license if engaged in by a U.S. person. For example, non-U.S. persons generally do not risk exposure to U.S. blocking sanctions for engaging in transactions in the metals and mining sector if such transactions would be authorized for U.S. persons by General License (GL) 8F (authorizing certain energy-related transactions) or by GL 6C (authorizing certain transactions related to the production, manufacturing, sale, transport, or provision of medicine or medical devices, including certain industrial isotopes used in nuclear medicine, among other things).
No. The Director of OFAC, in consultation with the State Department, has issued a determination pursuant to E.O. 14024 that authorizes the imposition of economic sanctions on any person determined to operate or have operated in the metals and mining sector of the Russian Federation economy.
A sector determination pursuant to E.O. 14024 exposes persons that operate or have operated in an identified sector to sanctions risk; however, a sector determination does not automatically impose sanctions on all persons who operate or have operated in the sector. Only persons determined pursuant to E.O. 14024 to operate or have operated in the above-identified sector are subject to sanctions.
Certain additional sanctions may apply to dealings in the metals and mining sector of the Russian Federation economy. For example, E.O. 14071 prohibits U.S. persons from new investment in the Russian Federation, including in the metals and mining sector. In addition, certain goods produced by the metals and mining sector of the Russian Federation economy may be prohibited from importation into the United States pursuant to E.O. 14068, such as non-industrial diamonds and gold of Russian Federation origin. For more information about prohibitions related to non-industrial diamonds, see Frequently Asked Questions (FAQs) 1022, 1023, 1024, 1026, and 1027 . For more information about prohibitions related to gold, see FAQs 1029 and 1070 .
For the purposes of the determination of February 24, 2023 made pursuant to E.O. 14024, OFAC anticipates publishing regulations defining the term “metals and mining sector of the Russian Federation economy” to include any act, process, or industry of extracting, at the surface or underground, ores, coal, precious stones, or any other minerals or geological materials in the Russian Federation, or any act of procuring, processing, manufacturing, or refining such geological materials, or transporting them to, from, or within the Russian Federation. This is the definition OFAC used to define the same term in the Ukraine/Russia-related Sanctions Regulations (see 31 CFR 589.325).
On February 24, 2023, the Director of OFAC, in consultation with the Department of State, issued a sectoral determination pursuant to Executive Order (E.O.) 14024 that authorizes the imposition of economic sanctions on any person determined to operate or have operated in the metals and mining sector of the Russian Federation economy. This sectoral determination is effective February 24, 2023. Also on February 24, 2023, OFAC designated certain entities for operating in the metals and mining sector of the Russian Federation economy. The U.S. government may, as appropriate, impose sanctions on additional persons determined pursuant to E.O. 14024 to operate or to have operated in this sector. For further information, please see FAQ 1115.