Sanctions Watch | Weekly Vol. 149

Sanctions Watch Vol 149

In the latest edition of our Sanctions Watch weekly digest, we present significant updates on sanction watchlists and regulatory developments.

US Treasury Extends Temporary Authorization for Russian Oil Transactions Through May 16, 2026

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License 134B, providing a limited extension that allows certain transactions involving Russian-origin crude oil and petroleum products. Specifically, the license authorizes activities ordinarily necessary for the sale, delivery, or offloading of such cargoes, provided they were loaded onto vessels on or before April 17, 2026. This authorization remains valid until 12:01 a.m. EDT on May 16, 2026.

The measure aims to ensure an orderly wind-down of existing shipments while maintaining maritime safety and environmental standards. Permitted activities include vessel docking, crew safety measures, emergency repairs, and essential maritime services such as insurance, bunkering, and vessel management. The license also applies to cargoes linked to entities already sanctioned under Russia-related regulations.

However, the authorization excludes transactions involving sanctioned jurisdictions such as Iran, North Korea, Cuba, and certain regions of Ukraine, as well as any dealings prohibited under other sanctions frameworks, particularly those related to Iran.

This updated license replaces General License 134A, which expired earlier in April, offering continuity and clarity to global energy markets while reinforcing broader sanctions compliance.

OFAC Issues General License No. 5 to Facilitate Wind-Down of Transactions with Nicaragua’s EMSA

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License No. 5 under the Nicaragua Sanctions Regulations, 31 CFR part 582, to support the orderly wind-down of transactions involving Exportadora de Metales Sociedad Anonima (EMSA). Effective until 12:01 a.m. EDT on May 16, 2026, the license authorizes activities that are ordinarily incident and necessary to terminate existing dealings with EMSA and any entities in which it holds a 50 percent or greater ownership interest.

This measure provides temporary relief to businesses and financial institutions, allowing them to conclude ongoing operations while remaining compliant with U.S. sanctions. Importantly, any payments to blocked persons must be directed into blocked accounts in accordance with the regulations, ensuring that financial controls remain intact throughout the wind-down process.

However, the authorization is narrowly tailored and does not permit transactions involving other blocked individuals or entities not specifically covered under the license, unless separately authorized by OFAC.

By issuing this license, OFAC aims to minimize disruption, promote regulatory clarity, and ensure a controlled disengagement from sanctioned entities while maintaining the integrity of the broader sanctions framework.Top of FormBottom of Form

UK Issues Special Licence to Enable Insolvency Proceedings for Sanctioned Prince Group Entities

The UK’s Office of Financial Sanctions Implementation (OFSI) has granted a General Licence permitting insolvency-related activities involving the sanctioned Prince Group and its subsidiaries. The licence, effective from 14 April 2026 until 13 April 2031, allows specific financial and legal actions that would otherwise breach the Global Human Rights Sanctions Regulations 2020. These include processing payments, managing assets, and conducting restructuring or liquidation proceedings, provided strict conditions are met.

The Prince Group, along with several associated individuals and entities, remains subject to sanctions; however, this licence ensures that insolvency practitioners and relevant institutions can proceed with necessary administrative and financial operations without violating restrictions. Importantly, any funds or economic resources involved must ultimately be held in frozen accounts, preventing direct or indirect benefit to designated persons.

Entities engaging in permitted activities are required to notify HM Treasury within 14 days and maintain detailed records for at least six years. The move aims to balance enforcement of sanctions with practical legal and financial processes, ensuring orderly insolvency proceedings while maintaining compliance with international human rights measures.

U.S. Targets Foreign Recruitment Network Fueling Sudan Conflict, Urges Humanitarian Truce

The U.S. Department of the Treasury has imposed sanctions on a network of individuals and entities accused of recruiting and deploying former Colombian military personnel to support Sudan’s Rapid Support Forces (RSF), intensifying the country’s ongoing civil war. The action, taken under Executive Order 14098, coincides with the third anniversary of the conflict between the RSF and the Sudanese Armed Forces (SAF), which has resulted in massive humanitarian devastation. Since April 2023, over 150,000 people have been killed, more than 14 million displaced, and famine conditions have emerged in several regions.

The sanctioned network includes recruitment agencies and key individuals facilitating the movement of foreign fighters into Sudan, thereby prolonging violence and instability. U.S. officials emphasized that such external support has worsened one of the world’s most severe humanitarian crises and increased risks to regional and global security.

Alongside the sanctions, the United States called on both the RSF and SAF to agree to an immediate three-month humanitarian truce without preconditions. The proposed ceasefire aims to enable humanitarian aid delivery, protect civilians, and create space for negotiations toward lasting peace. The U.S. also urged external actors to halt financial and military support to the warring parties.

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Sanctions Watch is a weekly recap of events and news related to sanctions around the world.