Revocation of Certain U.S. Economic Sanctions With Respect to Sudan

October 11, 2017

On October 6, 2017, the U.S. Department of State announced the termination of certain economic sanctions on Sudan and the Government of Sudan making permanent the conditional lifting of sanctions by President Obama in January 2017. According to the State Department, this action is in recognition of the Government of Sudan’s sustained efforts to maintain a cessation of hostilities in conflict areas in Sudan, to improve humanitarian access throughout Sudan, and to maintain cooperation with the U.S. on addressing regional conflicts and the threat of terrorism.

Since 1997, the United States has had a comprehensive trade embargo on Sudan, and blocked the assets of its government. The embargo and blocking of assets was initiated by Executive Order (E.O.) 13067 and implemented by the Sudanese Sanctions Regulations (the SSR). In 2005, in connection with the persistence of violence in Sudan’s Darfur region, President George W. Bush issued E.O. 13400 blocking the property of certain persons connected to the conflict in Darfur. In 2006, President Bush issued E.O. 13412, which continued the comprehensive embargo and blocking of assets from E.O. 13067, but exempted the then-regional Government of South Sudan from the definition of the Government of Sudan. E.O. 13412 also prohibited all transactions by U.S. persons relating to Sudan’s petroleum and petrochemical industries, and exempted specified areas in Sudan from certain of the prohibitions of E.O. 13067.

Effective October 12, 2017, sections 1 and 2 of E.O. 13067 and all of E.O. 13412 will be terminated. These sections blocked the property of the Government of Sudan and generally prohibited U.S. persons from engaging in transactions with Sudan and the Government of Sudan. Accordingly, U.S. persons will now generally be permitted to transact with Sudan and the Government of Sudan.

The revocation does not affect OFAC sanctions imposed pursuant to E.O. 13400, relating to the conflict in Darfur, nor does it affect OFAC designations of any Sudanese persons pursuant to sanctions authorities other than E.O.s 13067 and 13412.

Sudan has not been removed from the State Sponsors of Terrorism (SST) List, and as a result, an OFAC license is still required for certain exports and re-exports to Sudan of agricultural commodities, medicine, and medical devices. A new General License A has been issued under which these exports and re-exports are now authorized. Further, U.S. persons and non-U.S. persons will still need to obtain any licenses required by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) to export or re-export to Sudan certain items that are on the Commerce Control List.

The European Union maintains its sanctions on Sudan and South Sudan, including an embargo on arms and related materiel; a ban on the provision of certain services; restrictions on admission in respect of certain persons; and a freezing of funds and economic resources in respect of a limited list of persons.

If you have any questions or concerns about U.S. sanctions, please contact one of the attorneys listed below.