Department of Treasury's Office of Foreign Assets Control Takes Steps to Wind Down Operations in Crimea

On Tuesday, December 30, 2014, the Department of Treasury's Office of Foreign Assets Control ("OFAC") issued General License No. 5, authorizing certain activities prohibited by Executive Order 13685 that are necessary to wind down operations involving Crimea.

E.O. 13685 generally prohibits new investments in Crimea, as well as the trade in goods, services or technology with Crimea. Through February 1, 2015, the new License permits activities related to the divestiture of investments held in Crimea prior to the December 19, 2014 effective date of E.O. 13685. This includes the winding down of operations, contracts or other agreements related to the export or import of goods, services and technology to or from Crimea that were in effect on or before December 19, 2014. U.S. individuals and entities participating in transactions authorized by the License are required to provide OFAC with a detailed report specifying the parties involved, the type and scope of activities conducted, and the dates of the activities, within 10 business days after the wind-down activities conclude.

In a related development, Reuters reported that Visa and MasterCard have suspended services in Crimea as a result of E.O. 13685.

See: Executive Order 13685; General License No. 5.Related news: Sanctions Update (December 19, 2014).See also: Sanctions Materials (available to Cabinet subscribers only).For more information, please contact Dale Turza.