Updated Sanctions Against Libya

This alert updates our 1 March alert describing new sanctions against Libya, reflecting recent developments with respect to expanded measures imposed by the European Union (EU) and additional general licenses and new designations issued by the U.S. Government. Specifically, on 11 March the EU has extended the asset freeze provisions of its sanctions regime to five Libyan entities, including the Libyan Investment Authority and the Central Bank of Libya, and one individual. This follows EU-wide freezing of assets "owned or controlled" by certain key persons associated with the Libyan regime only one week earlier.

In light of the recent events in Libya, the UN Security Council and various governments including the United States, and the EU have imposed new sanctions on Libya. The following advisory describes the current EU, U.S. and UN sanctions. A number of these provisions are very broad in scope.

EU Sanctions

The EU has adopted a sanctions regime on Libya. The measures consist of (1) an arms embargo and a ban on import and export of items used for internal repression, including a ban on related financial and technical assistance, (2) a freeze of assets, and a visa ban, on 27 individuals designated at the UN and EU level, as well as 5 entities, and (3) certain transportation restrictions, such as extended pre-arrival and pre-departure notice requirements for goods shipped to and from Libya, and a EU Member State duty to inspect all cargo travelling to or from Libya, if reasonable grounds exist to suspect that sanctions are being violated. The freezing of assets (funds and economic resources) of Libyan nationals and entities (specifically, (1) Libyan Investment Authority a.k.a. Libyan Arab Foreign Investment Company, (2) Central Bank of Libya, (3) Libya Africa Investment Portfolio, (4) Libyan Foreign Bank, and (5) Libyan Housing and Infrastructure Board will prevent anyone, including these entities, as well as any persons subject to EU jurisdiction, from any use or dealing in such assets. Business with listed entities and nationals is practically impossible (as no funds or economic resources may be made available to them). Major practical problems may arise for entities subject to EU jurisdiction in which such Libyan entities or nationals have interests, as such interests should be frozen. In certain limited circumstances, EU Member States may authorize release of, or addition to, frozen assets. The measures, although immediately directly applicable in all 27 EU Member States, will most likely be accompanied by local regulations. There may be some differences in local...