Russia-related Designations and Designation Update; Central African Republic Designations; Transnational Criminal Organizations Designation; Global Magnitsky Designations; Issuance of Global Magnitsky General Licenses and Frequently Asked Questions

The Office of Foreign Assets Control (OFAC) has published a press release to announce new sanction measures. Specifically, OFAC is designating numerous individuals, entities, vessels, and aircrafts of the Wagner Group due to the group’s facilitation of Russia’s war against Ukraine and its criminal activities in Africa in accordance with amended Executive Order (E.O.) 14024 and Executive Order (E.O. 13667). OFAC is also adding several persons and entities to its Specially Designated Nationals (SDN) list due to their engagement in corruption and / or human rights abuses in Paraguay pursuant to Executive Order (E.O. 13818).
As the number of firms, individuals, bodies, vessels, and aircrafts is VERY large, we refrain from listing them individually at this point. Please refer to the enclosed document or follow above noted link for more information on their names, dates of birth – if applicable – , place of residency, and other relevant identifying information.
Also, OFAC has published two accompanying statements to explain the reasoning behind the measures:
1. Treasury Sanctions Russian Proxy Wagner Group as a Transnational Criminal Organization
2. Treasury Sanctions Paraguay’s Former President and Current Vice President for Corruption
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Additionally, OFAC has issued two new general licenses in connection with the new designations, namely:
1. Global Magnitsky General License 5 (GL 5)
2. Global Magnitsky General License 6 (GL 6)
to permit (financial) transactions that would otherwise be prohibited. Specifically, GL 5 permits (financial) transactions that are necessary to divest or transfer any debt or equity securities of „Frigorifico Chajha S.A.E. (Frigorifico Chajha) to a non-U.S. person“, so far as the instruments were held or contracts entered into prior to January 26, 2023. The license thereby also includes transactions for the clearing and settlement of any corresponding securities transactions.
GL 6 permits financial transactions necessary for the „wind down of any transaction involving Bebidas USA Inc., Tabacos USA Inc., Frigorifico Chajha S.A.E., or Dominicana Acquisition S.A.“. This also includes transactions involving companies in which Horacio Manuel Cartes Jara, former President of Paraguay, or any of the entities owned by him, own 50% or more of interest.
Please note the limited validity of the licenses as indicated in the Event timeline.
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OFAC has also published two new frequently asked questions (FAQs) to clarify just which transactions are permitted under the new licenses. The questions read as follows – as quoted, for the answers please click on the provided link:
FAQ 1111: What does Global Magnitsky General License 5 Authorizing Certain Transactions Related to Frigorifico Chajha S.A.E. authorize? and
FAQ 1112: What does Global Magnitsky General License 6 Authorizing the Wind Down of Transactions Involving Bebidas USA Inc., Tabacos USA Inc., Frigorifico Chajha S.A.E., Dominicana Acquisition S.A., or Certain Blocked Entities Owned by Horacio Manuel Cartes Jara authorize?
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Finally, OFAC has made some modifications to the records of already sanctioned individuals and entities which all remain subject to asset freezing measures. These are:
1. JOINT-STOCK COMPANY CONCERN ALMAZ-ANTEY
2. PRIVATE MILITARY COMPANY ‚WAGNER’
3. PROKOPENKO, Ivan Pavlovitch