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OFAC and OFSI Issue Joint Humanitarian Assistance and Food Security Fact Sheet Relating to Russia

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On June 28, 2023, the US Department of the Treasury’s Office of Foreign Assets Control (“OFAC“) and the Office of Financial Sanctions Implementation of the HM Treasury (“OFSI“) jointly issued a Humanitarian Assistance and Food Security Fact Sheet (the “Fact Sheet”) to provide additional clarity on US and UK Russia-related sanctions in the context of humanitarian assistance and the export to Russia of agricultural commodities, medicines, and medical devices.

The Fact Sheet provides US and UK responses to the following questions:

  • Do US and UK sanctions targeting Russia provide exceptions for non-government organizations (“NGOs”) or international organizations (“IOs”) providing humanitarian assistance?
    • In sum, the FACT Sheet notes that both the US and the UK have issued one or more general licenses (“GLs”) related to such activities, and both countries prioritize applications for specific licenses related to humanitarian activities.
  • Can US and UK financial institutions process transactions related to the exportation of agricultural commodities, medicine, or medical devices to, from, transiting, or related to Russia?
    • In sum, the FACT Sheet confirms that to generally be the case.
  • Can US and UK financial institutions process transactions involving Joint Stock Company Russian Agricultural Bank (Russian Agricultural Bank) related to the exportation of agricultural commodities to, from, transiting, or related to Russia?
    • In sum, the Fact Sheet confirms that to be case subject to certain conditions.

The Fact Sheet also includes links to various humanitarian GLs, guidance and FAQs previously published by the US and UK.

This is the first Fact Sheet published jointly by OFAC and OFSI and is an indicator of the increased cooperation between US and UK sanctions authorities following the joint publication by the two authorities last October on enhanced partnership. OFAC and OFSI stated that they will continue to work together to ensure that sanctions do not prevent humanitarian trade and assistance from reaching those in need.

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Terry Gilroy is a partner in the New York office of Baker McKenzie and a member of the Compliance and Investigations Practice Group. Prior to joining the Firm in 2018, Terry served as Americas Head of the Financial Crime Legal function at Barclays. Terry advises businesses and individuals on white collar and financial crime issues and has significant experience conducting investigations relating to compliance with the US Foreign Corrupt Practices Act (FCPA) and related bribery and corruption statutes, economic sanctions regulations as administered by the US Department of the Treasury's Office of Foreign Assets Control (OFAC), and the Bank Secrecy Act and related anti-money laundering (AML) regulations and statutes. Terry spent six years on active duty in the United States Army as a Field Artillery officer.

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Ms. Test advices clients on issues relating to licensing, regulatory interpretations, enforcement actions, internal investigations and compliance audits, as well as the design, implementation and administration of compliance programs. She also advises clients on the extra-territorial application of trade compliance-related regulations in cross-border transactions.

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Michael helps clients navigate and comply with sanctions, export controls and national security controls on foreign investment (CFIUS). He also has experience in complex litigation and international commercial arbitration and has assisted clients with internal investigations and compliance related to trade, anti-money laundering, and anti-corruption matters. Previously located in Silicon Valley, he has advised clients in numerous sectors, including technology (hardware and software), energy, banking and finance, private equity, construction, transportation, biotech and medical devices, and consumer goods and retail.

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Courtney is an associate in the Competition, Trade and Foreign Investment practice group, with a focus on trade and foreign investment matters across a range of sectors. She joined Baker McKenzie in 2022 from another large international law firm where she also advised on a range of international trade matters, including a three year secondment to the trading entity of a global energy major.

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