Non-application of OFAC sanctions to Belgazprombank (“Bank)
Dear Colleagues,
The reference is made to the publication issued that on 16.07.2014 Gazprombank (Open Joint - stock Company) (“GPB (OJSC)) was included by Treasury's Office of Foreign Assets Control (“OFAC) on the Sectoral Sanctions Identifications List of persons involved in the situation in the Ukraine, and to specific prohibitions introduced under E.O. 13662, Directive 1 for US persons against transacting in, providing financing for, or otherwise dealing in debt with a maturity of longer than 90 days or new equity for such sanctioned persons, their property, or their interests in property. In view of the foregoing the relevant questions may arise regarding the extension of the introduced sanctions to the persons affiliated with GPB (OJSC).
As per the guidance further issued by OFAC on the same date on its official website the prohibitions under E.O. 13662 also extend to debt and equity issued by entities owned 50 pct or more by the entities identified under Directive 1. In this connection and for the avoidance of doubt Belgazprombank deems it necessary to inform you that as of the date of this letter:
1. The direct shareholding of GPB (OJSC) in the authorized equity of Belgazprombank is 49.66 percent. The total indirect shareholding of GPB (OJSC) through its own investments and investments of its associated entities in the authorized equities of the other shareholders of Belgazprombank amounts to 0.013 percent. Thus, the total amount of direct and indirect shareholding of GPB (OJSC) in the authorized equity of Belgazprombank is under 50 percent. Also Belgazprombank represents and confirms that there are no any pending changes in the ownership structure of the Bank which may result in or be construed as the extension of E.O. 13662, Directive 1 to the Bank.
2. The number of GPB (OJSC) representatives in the Board of Directors operating as the permanent governing body of Belgazprombank is 4 persons. The total membership of the Board of Directors is 11 persons including 2 independent Directors, 4 representatives of OAO Gazprom and 1 representative of minority shareholders. In accordance with the paragraph No. 96 of the Charter of Belgazprombank the decisions of the Board of Directors shall be endorsed by at least a two-third majority. As a result, GPB (OJSC) has no majority vote in the decisions of the Board of Directors of Belgazprombank.
3. Within the meaning of E.O. 13662, Directive 1 the Bank does not conduct any business on behalf of or for the benefit of GPB (OJSC).
Please do not hesitate to contact Belgazprombank directly for any additional information required.
Yours sincerely,
Kiryl G. Badzei
Deputy Chairman of the Management Board
