U.S. oil company assessed $2 million penalty - KPMG United States
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U.S. oil company assessed $2 million penalty, Ukraine sanctions violations

U.S. oil company assessed $2 million penalty

U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today announced that a U.S. oil and gas corporation (plus subsidiaries) has been assessed a civil monetary penalty of $2 million for violations of the Ukraine-related sanctions regulations.


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According to the OFAC release [PDF 178 KB], the U.S. corporation was found to have violated the Ukraine-related sanctions when presidents of the U.S. subsidiaries dealt “in services” with a person whose property and interests-in-property were blocked by the sanctions measures. The U.S. subsidiaries signed eight legal documents related to oil and gas projects in Russia with the president of  an oil company majority-owned by the Russian government and an individual on the OFAC's list of specially designated nationals and blocked persons (SDN list).

The OFAC release states that the U.S. corporation did not voluntarily self-disclose the violations and that violations constitute an “egregious case.” Both the base civil monetary penalty and the statutory maximum civil monetary penalty amounts for the violations were $2 million.


For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com

Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com

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