We have started submitting applications to the US OFAC for obtaining individual licenses

In February 2024, the United States imposed blocking sanctions on SPB Bank, which serves as the clearing depository for the SPB Exchange. These measures continued the sanctions policy initiated in November 2023, when the SPB Exchange itself came under sanctions. At the time the sanctions were imposed, SPB Bank was a subsidiary of the SPB Exchange, effectively extending the sanctions to the exchange. As a result, all assets of Russian private investors accounted for through SPB Bank were frozen.

Since the sanctions against the SPB Exchange were imposed, a significant amount of time has passed. Despite SPB Bank’s attempts to resolve this issue with the American regulator, the Office of Foreign Assets Control (OFAC), the assets remain blocked. This creates substantial difficulties for Russian investors who cannot access their funds. The uncertainty regarding the duration of the sanctions and the possibility of unblocking the assets causes serious concerns among investors.

In the current situation, waiting for the assets to be automatically unblocked does not seem reasonable. OFAC procedures provide for the possibility of obtaining individual licenses, which may become the only way to unblock the assets. An OFAC individual license allows specific individuals or companies to conduct transactions that would otherwise be prohibited due to sanctions.

The process of obtaining an individual license involves several key steps:

1. Preparing the Application: It is necessary to gather all required information and documents that confirm ownership of the assets and the need for their unblocking.

2. Submitting the Application to OFAC: The application is submitted to OFAC with a complete set of documents and a justification for the need to unblock the assets.

3. Reviewing the Application: OFAC reviews the application, which can take a considerable amount of time depending on the complexity of the case and the regulator’s workload.

4. Making a Decision: After reviewing the application, OFAC makes a decision to issue or deny the individual license.

Understanding that obtaining an individual license is currently the only option for unblocking the assets, we have begun submitting applications to OFAC on behalf of our clients. This process requires a meticulous approach and thorough preparation of documents to increase the chances of a positive outcome. We are actively working with our clients to ensure the most complete and accurate representation of their cases to OFAC.

The situation with the blockage of Russian investors’ assets through SPB Bank remains complex and uncertain. However, the possibility of obtaining individual licenses from OFAC offers hope for unblocking these assets. We continue to work in this direction and are making every effort to achieve a positive result for our clients.