M. McNabb, Marsha
Z. Gerber, Stefan
Reisinger and Mary
On September 9, 2011, the U.S.
Department of Treasury's Office of Foreign Assets Control ("OFAC")
issued new general licenses authorizing additional transactions under both the
Libyan and Syrian sanctions orders which are discussed in turn below.
General Licenses Authorizing Certain
Transactions in Libya
Continuing OFAC's policy of reducing
the sanctions imposed on Libya under Executive Order 13566 as the Transitional
National Council ("TNC") forces consolidate control over Libya, OFAC
issued General License No. 7 on September 9, 2011. General License No. 7
authorizes U.S. persons to engage in transactions involving entities owned or
controlled by the Libyan National Oil Corporation ("NOC") that had
previously been prohibited without a specific license under Executive Order
Specifically, General License No. 7
authorizes "[a]ll transactions involving entities owned or controlled by
the [NOC] with the exception of Zueitina Oil Company (the "authorized NOC
subsidiaries")." Significantly, General License No. 7 does not
authorize transactions that involve the "Libyan National Oil Company
itself or any persons whose property and interests in property are blocked
other than the authorized NOC subsidiaries." The authorization includes,
but is not limited to, the following NOC subsidiaries:
This approval supplements General
License No. 6, issued on August 19, 2011, which authorized transactions with
the Transitional National Council of Libya.
U.S. companies seeking to conduct
business with NOC subsidiaries should now be able to do so, provided their
transactions fall within the confines of General License No. 7 or prior
authorization is first obtained from OFAC.
General Licenses Authorizing Certain
Transactions in Syria
On September 9, 2011, OFAC also
issued general licenses 7-10 authorizing additional transactions in Syria that
were previously prohibited when Executive Order 13582 was issued on August 17,
General License No. 7 authorizes
transactions through November 25, 2011, that are "ordinarily incident and
necessary" to the winding down of contracts or other agreements that were
in effect prior to August 18, 2011, and that involved the exportation of
services to the Government of Syria.
General License No. 7 also
authorizes transactions through November 25, 2011, that are "ordinarily
incident and necessary" to the winding down or divestiture or transfer to
a foreign person of a U.S. person's share of ownership, including an equity
interest, in investments in Syria that were made prior to August 18, 2011.
However, General License No. 7 does
not authorize any transactions with a person, other than the Government of
Syria, whose property and interests are blocked or any debit to a blocked
General License No. 8 authorizes,
subject to other U.S. export requirements such as those imposed under the
Export Administration Regulations, all transactions and activities in Syria
related to the conduct of the official business of the United Nations, its
Specialized Agencies, Programmes, and Funds (including UNESCO, WHO, IMF, UNHCR,
UNICEF and WFP) provided they do not involve a debit to any blocked account and
certain limited procedural requirements are met.
General License No. 9 authorizes
U.S. persons residing in Syria to pay their personal living expenses in Syria
and to engage in other transactions, including with the Government of Syria,
otherwise prohibited by Executive Order 13582, that are "ordinarily
incident and necessary to their personal maintenance within Syria"
provided they do not involve a debit to a blocked account or involve any
blocked entities. General License No. 9 does not authorize transactions or
services ordinarily incident to operating or supporting a business in Syria,
employment in Syria or any new investment in Syria.
General License No. 10 authorizes
the operation of an account in a U.S. financial institution for non-blocked
individuals in Syria but only so long as transactions processed through the
account are of a personal nature and not for use in supporting or operating a
business and do not involve transfers directly or indirectly to Syria or for the
benefit of individuals in Syria (unless otherwise authorized under General
License No. 6).
Trade Practice attorneys will continue to monitor developments in
Libya and Syria closely and will issue additional updates as appropriate.
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