US Sanctions on Eritrea’s Hidri Trust and Red Sea Trading Corporation Do Not Impede Humanitarian Efforts

Overview

The recent addition of Eritrea’s Hidri Trust and Red Sea Trading Corporation (RSTC) to the US Office of Foreign Assets Control (OFAC) sanctions list has raised concerns that humanitarian-related transactions in the country may be severely restricted. However, according to OFAC, such efforts will not be hindered due to three authorizations and an exemption under Executive Order 14046.

Authorizations and Exemptions

The exemptions and authorizations apply to all individuals sanctioned under EO 14046, including Hidri Trust and RSTC. These measures are aimed at ensuring that humanitarian assistance can reach the people of Ethiopia, Eritrea, and the Horn of Africa region without interruption.

General Licenses (GLs)

• GL 1: Facilitating Transactions for Humanitarian Assistance: Non-governmental organizations (NGOs), international organizations, and other entities are allowed to engage in and facilitate transactions or activities related to humanitarian assistance in Ethiopia, Eritrea, or the Horn of Africa region.
• GL 2: Humanitarian-Related Activities: GL 2 authorizes NGOs, international organizations, and other entities to engage in certain humanitarian-related activities that are otherwise prohibited by the sanctions.
• GL 3: Exporting Agricultural Commodities and Medical Supplies: US persons are authorized to conduct all necessary transactions for exporting or reexporting covered agricultural commodities, medicine, medical devices, replacement parts, and software updates to the region.

Official Business Exempt from Sanctions

The official business of the US government is also exempt from the sanctions, enabling continued support for humanitarian assistance and development activities in the affected regions. Furthermore, non-US persons, including NGOs and financial institutions, would not risk exposure to sanctions for engaging in certain humanitarian-related transactions or activity with Hidri Trust and RSTC that are otherwise exempt or authorized for US persons.

Wind-Down of Transactions

To facilitate a smooth transition, OFAC issued General License 4, which authorizes the wind-down of transactions involving Hidri Trust or RSTC through December 14, 2021. Transactions related to exporting or reexporting covered agricultural commodities, medicine, medical devices, and software updates will continue to be authorized even after the expiration of GL 4.

Conclusion

The US sanctions on Eritrea’s Hidri Trust and Red Sea Trading Corporation do not impede humanitarian efforts in the country. The authorizations and exemptions under Executive Order 14046 ensure that humanitarian assistance can reach the people of Ethiopia, Eritrea, and the Horn of Africa region without interruption.