Following up from the Executive Order 13685 which effectively banned US trade and investment with Crimea (see our prior alert here), the Department of the Treasury (OFAC) has just issued General License 5 which gives US persons until 12:01am EST February 1, 2015 to engage in the following transactions and activities that are ordinarily incident and necessary:  

  1. to the winding down or divestiture or transfer to a foreign person of a US person’s share of ownership, including an equity interest, in pre-December 20, 2014 investments located in the Crimea region of Ukraine;
  2. to the winding down of operations, contracts, or other agreements that were in effect prior to December 20, 2014, involving the exportation, reexportation, sale, or supply of goods, services, or technology to the Crimea region of Ukraine; or
  3. to the winding down of operations, contracts, or other agreements that were in effect prior to December 20, 2014, involving the importation of any goods, services, or technology from the Crimea region of Ukraine into the United States.

Notably, OFAC requires that, within 10 business days after the conclusion of the wind-down activities conclude, any person or entity participating in the wind-down file a detailed report with OFAC, including the parties involved, the type and scope of activities conducted, and the dates of the activities.

What is not authorized:  

  1. Any new exportation, reexportation, importation EXCEPT as needed to wind-down operations, contacts or other agreements;
  2. Any transactions or dealings with SDNs or blocked parties.