In September, the Office of Foreign Assets Control (the “OFAC”), part of the United States Treasury Department, eased restrictions on trade with Libya through two revised general licenses that were published under the Libyan sanctions program.  A general third license was issued in November.  Together, these new licenses permit a wide range of past and new transactions in Libya, including the placement of insurance and reinsurance, which are subject to certain requirements and limitations.

Under General License No. 7A, OFAC has authorized most transactions involving the state-owned Libyan National Oil Corporation and its subsidiaries.  Under General License No. 8A, trade will now be permissible with the Government of Libya, but not with certain individuals and organizations named in an Annex to license.  Both general licenses amend recently released previous versions.  Under General License No. 9, trade with the General National Maritime Transport Company will now be permitted.

Specifically, General License No. 7A allows the presumption of all past and initiation of prospective transactions involving the Libyan National Oil Corporation and most entities owned or controlled by the Libyan National Oil Corporation.  The license includes a non-exhaustive list of Libyan National Oil Corporation subsidiaries included in the authorization.  A notification by e-mail to the OFAC within ten business days of the release of any blocked funds is also required by the license.

The authorization in General License No. 8A includes the agencies, instrumentalities, and controlled entities of the Government of Libya, and the Central Bank of Libya.  The license expressly permits the performance of past contracts and other obligations that involve an interest of the Government of Libya.  However, General License No. 8A still maintains the blocks on “(1) [a]ll funds, including cash, securities, bank accounts, and investment accounts, and precious metals blocked pursuant to Executive Order 13566 of February 25, 2011, or the Libyan Sanctions Regulations, 31 C.F.R. part 570, as of September 19, 2011 . . . except as provided in General License No. 7A; and (2) . . . transactions [that] do not involve any person listed on the Annex [to General License No. 8A.]”

General License No. 9 states that “[a]ll funds, including cash, securities, bank accounts, and investment accounts, and precious metals of General National Maritime Transport Company” that were blocked pursuant to Executive Order 13566 or 31 C.F.R. part 570 are unblocked, subject to a reporting requirement for notification to OFAC within ten days of the release of any blocked funds or precious metals.