Office for U.S. sanctions have stopped work due to the shutdown of the government

The office of foreign assets control (OFAC) of the U.S. Treasury in charge of execution of sanctions, partly closed due to the shutdown of the Federal government. Things to exclude from the sanctions list also suspended

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The office of foreign assets control (OFAC) of the U.S. Treasury in charge of execution of sanctions, partly closed due to the shutdown of the Federal government. Things to exclude from the sanctions list also suspended, told RBC lawyers

The office for terrorism and financial intelligence of the U.S. Treasury, part of which is sanctions OFAC unit, runs in a restricted mode due to the shutdown of the Federal government. OFAC has suspended the issuance of licenses for actions generally prohibited by the sanctions, and considers petitions for exemption from the sanctions list.

On December 19, a few days before the shutdown, the OFAC informed the Congress about the intention of a month to exclude from the sanctions list of the company Oleg Deripaska’s En+, Rusal and EuroSibEnergo. Company for several months negotiated with OFAC under the terms of the exit from the sanctions. It is not yet clear whether there is a risk that the exclusion of En+/Rusal from the sanctions list may be delayed. At the same time, it is reported that OFAC will resume until 18 January 2019, and the company can remain on the sanctions list.

Closures OFAC does not mean that economic sanctions are not enforced now. The US Treasury explained that the office of terrorism and financial intelligence will continue to administer the SDN list and enforce economic and trade sanctions directed by the Minister of Finance, to implement and administer new sanctions on foreign countries or private individuals/legal entities, if they are issued the relevant decrees of the President.

The US Federal government partially suspended its work on 22 December, after Congress and the White house failed to agree on budget spending. The stumbling block was the President’s plan Donald trump to build a wall on the border with Mexico. Trump said that the shutdown will last as long as the Democrats don’t agree with his requirements for the construction of the wall.

Debate in the Senate about funding the government will resume no earlier than December 27, when lawmakers return from the Christmas break. Without funding remained about a quarter of the government, particularly the state Department, the Ministry of Finance, Ministry of trade and Ministry of internal security. For the rest of the state institutions informed the Congress managed to approve the allocation of funds until the end of September 2019.

Approximately 420 thousand of employees of state institutions will work without payment, though subsequently able to receive compensation. Another 380 thousand people were sent on unpaid leave. The longest government shutdown in U.S. history lasted three full weeks in 1995-1996. In 2013, the government was closed for almost three weeks.