Ukrainian banks fear sanctions against BelOil, Belorusneft - mass media

<p> MINSK, Jun 3 - PrimePress. Financial institutions of Ukraine are concerned that the Belarusian Oil Company (BelOil, designated export trader in Belarusian oil products) and the state-owned Belorusneft may fall under the secondary U.S. sanctions, enkor reports with reference to an article by Artyom Kuyun, analyst at Consulting Group A-95. </p> <p>   </p> <p> The article says that customers started experiencing difficulties transferring payments to BelOil since late May 20. According to the buyers of Belarusian oil products and representatives of the BOC, the difficulties are due to the caution practiced by the financial institutions that have correspondent accounts in Europe. </p> <p>   </p> <p> The author of the article notes that Naftan, hit by the direct sanctions, is the owner of a 24% stake in BelOil. According to the 50% rule of the U.S. Office of Foreign Assets Control (OFAC), the provider of financial sanctions, restrictions may also be imposed on subsidiaries of the sanctioned persons, if the share of equity exceeds 50%. </p> <p>   </p> <p> At the same time, according to OFAC's official clarification, an entity may designate a legal entity according to available sanctions criteria or otherwise identify a legal entity as subject to blocking if it is determined to be controlled by one or more individuals on the sanctions list. </p> <p>   </p> <p> “The Americans do not have a clear explanation of the Belarusian case, so today lawyers of banks and traders themselves are trying to interpret the available inputs,” the article says. </p> <p>   </p> <p> According to enkor, BelOil-Ukraine has already held talks with Ukrainian banks, which will be ready to service payments regardless of the sanctions. Some banks can make payments directly from Ukraine to Belarus, bypassing the correspondent accounts in Europe and the United States. </p> <p>   </p> <p> “The situation around Belorusneft is not quite clear. The information that Belneftekhim is a management structure of Belorusneft was spotted on the website of sanctioned Belneftekhim. Although the paragraph has already been removed, no one knows how it may affect the fate of sanctions in the future. The vagueness of the wording of the sanctions documents provides ample opportunities for the Americans to influence the Belarusian authorities,” said Kuyun. </p> <p>   </p> <p> As previously reported, the U.S. Department of the Treasury on 19 Apr 2021 decided that starting 3 June 2021 the United States will re-impose full blocking sanctions against nine Belarusian state-owned enterprises previously granted relief under a series of General Licenses by the Treasury Department (Belneftekhim Concern and its U.S. representative office, as well as Belneftekhim-controlled Belshina, Grodno Azot, Grodno Khimvolokno, Lakokraska, Naftan, Polotsk-Steklovolokno, and Belarusian Oil Trading House). </p> <p>   </p> <p> Belarusian Oil Company (BelOil) was established in May 2007. Shareholders: Belorusneft (Gomel) - 52%, Naftan (Novopolotsk, Vitebsk Oblast) and Mozyr Oil Refinery (Gomel Oblast) - 24% each. BelOil exports oil products produced by its shareholders, as well as purchases and refines oil at Belarusian refineries and facilitates freight forwarding deliveries. It has subsidiaries in Poland, Latvia, the UK, Russia and Ukraine. End </p>

2021-06-04

Primepress