GLENCORE ANNOUNCES RESTART OF PAYMENTS TO SANCTIONED BILLIONAIRE GERTLER AS US IMPOSES SANCTIONS ON MORE ENTITIES AFFILIATED WITH GERTLER

Bloomberg on 15th June reported that Glencore Plc said it will restart royalty payments to sanctioned Israeli billionaire Dan Gertler in a bold move likely to test the company’s relations with the US government and investors.  Glencore, which had cut ties with Gertler after he was sanctioned for alleged corruption, will make the payments in euros using a non-US financial institution, according to a statement.  The sanctions prevent US companies from doing business with Gertler and block his access to dollars.

https://www.bloomberg.com/news/articles/2018-06-15/glencore-to-restart-payments-to-sanctioned-billionaire-gertler?src=ilaw

BUT see the additional sanctions imposed by OFAC on 14 Entities Affiliated with Dan Gertler on 15th June.  According to the US Treasury, Gertler is an international businessman and billionaire who has amassed his fortune through hundreds of millions of dollars’ worth of opaque and corrupt mining and oil deals in the Democratic Republic of the Congo (DRC).   Gertler has used his close friendship with DRC President Joseph Kabila to act as a middleman for mining asset sales in the DRC, requiring some multinational companies to go through Gertler to do business with the Congolese state.   Gertler and his company Fleurette Properties have used offshore companies to facilitate such deals.

The 14 Gertler-affiliated entities being designated by OFAC are: Moku Mines D’or SA, Moku Goldmines AG, Fleurette Energy I B.V., Fleurette Africa Resources I B.V., African Trans International Holdings B.V., Fleurette African Transport B.V., Oriental Iron Company SPRL, Iron Mountain Enterprises Limited, Sanzetta Investments Limited, Almerina Properties Limited, Interlog DRC, Kitoko Food Farm, Karibu Africa Services SA, and Ventora Development Sasu.

However, the US Treasury warns that this list of 14 companies owned or controlled by Gertler or his companies, and those previously designated, should not be viewed as exhaustive and the regulated community remains responsible for compliance with OFAC’s 50% rule.

https://home.treasury.gov/news/press-releases/sm0417

https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20180615.aspx

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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