Financial Crime World

US Bans Dealings with Belarusian Debt Issued Before December 2021

Washington D.C. - The US government has issued new sanctions aimed at restricting financial transactions related to debt issued by the Ministry of Finance of the Republic of Belarus and the Development Bank of the Republic of Belarus before December 2, 2021.

Prohibitions Under the New Sanctions

  • U.S. persons are prohibited from engaging in dealings related to such debt unless:
    • The terms were contractually agreed upon prior to December 2, 2021, and have not been modified since then.
  • Exceptions include debt with repayment periods of 90 days or less, and debt that was negotiated before December 2, 2021.

Additional Restrictions

  • New drawdowns or disbursements initiated on or after December 2, 2021, with repayment terms exceeding 90 days are prohibited.
  • US persons are also barred from entering into derivatives contracts linked to new debt issued by the Ministry of Finance of the Republic of Belarus or the Development Bank of the Republic of Belarus.

Permitted Activities

  • US financial institutions may continue to maintain correspondent accounts and process US dollar-clearing transactions for the Ministry of Finance of the Republic of Belarus or the Development Bank of the Republic of Belarus, provided such activity is not otherwise prohibited.

Broader Effort to Target Belarusian Economic Activities

The new sanctions are part of a broader effort by the US government to target the economic activities of the Government of Belarus.