In the midst of concerns raised by the Indian exporters and manufacturers about the recent sanctions imposed on Russia, the Commerce Ministry controlled Federation of Indian Export Organization (FIEO) has advised to not to worry about exports of agriculture, petroleum products, and pharmaceuticals.
Office of Foreign Assets Control or OFAC, a financial intelligence and enforcement agency of the US treasury department imposed sanctions on Russia against the backdrop of which, this communication of FIEO to its export promotion council members on February 27 assumes high significance.
OFAC enforces and administers trade and economic sanctions in support of the US national security and foreign policy objectives and has been announcing a series of sanctions on Russians over the last few days in response to Russia’s assault on Ukraine. FIEO has asked its member export promotion council to relay to its members the guidelines and exemptions that the OFAC has specified and the eight general licenses authorizing certain transactions.
The FIEO top brass informed its member export promotion councils that their exports of agriculture, pharmacy and petroleum products to Russia will not be subjected to sanctions in view of the above guidelines.
The export organizations body of Commerce Ministry told its members that specifically, OFAC issued eight general licenses authorizing certain transactions related to international organizations and entities, agricultural and medical commodities and the COVID-9 pandemic, overflight and emergency landings, energy, dealings in certain debt or equity, derivative contract, the wind-down of transactions involving certain blocked persons, and the rejection of transactions involving certain blocked persons.”
Moreover, FIEO mentioned that OFAC has issued several general licenses to ensure that prohibitions and sanctions on Russia have an impact on the intended targets and to minimize unintended consequences on third parties. FIEO also said in its communiqué payments for energy are from production to consumption.
The sanctions and license package are constructed to account for the challenges high energy prices pose to the average citizens and don’t prevent banks from processing payments for them.
