UK Amends Payment Rules for Lukoil’s Austria Subsidiary Amid Russia Sanctions
Overview of the Amended Payment Licence
Background on the Temporary Licence
LONDON, June 19 (Reuters) - Britain's sanctions office on Friday amended a temporary licence allowing companies to continue doing business with a subsidiary of Russia's Lukoil based in Austria, removing a restriction that required funds to be paid into frozen accounts.
Details of the Amendment
The Office of Financial Sanctions Implementation said in a notice it had removed that condition in the licence applying to Lukoil International GmbH and its subsidiaries. The notice did not say why the change had been made and the OFSI did not immediately respond to a request for comment.
Implications for UK Companies
UK companies can now process payments to Lukoil International accounts which are not frozen, but the OFSI said the change did not allow funds to then be returned to Lukoil, the Russian parent company.
Licence Duration and Sanctions Context
The licence, which took effect in November last year, remains subject to broader Russia sanctions rules and is due to expire on August 25, following an earlier extension.
(Reporting by Sam Tabahriti; editing by William James)
