travel policy

The U.S. Departments of Treasury and Commerce today announced new regulations intended to significantly loosen the embargo imposed against Cuba in 1963.  The changes to the Cuban Assets Control Regulations (CACR), administered by the Office of Foreign Assets Control (OFAC), and the Export Administration Regulations (EAR), administered by the Bureau of Industry and Security (BIS), will go into effect on January 16, 2015, when the rules are published in the Federal Register.  The new rules are part of the implementation of the Obama Administration’s policy shift concerning Cuba, which was announced by President Obama on December 17, 2014.

On December 17, 2014, President Obama announced a major easing of travel and economic restrictions against Cuba as a result of landmark deal between the United States and Cuba. In his remarks, President Obama announced a number of measures which seek to “end an outdated approach . . .” and  “chart a new course in our relations with Cuba and . . . further engage and empower the Cuban people.”

While only Congress can formally overturn the U.S. embargo which has been in place since 1961, the White House has taken some action within its executive powers to liberalize trade and travel to Cuba.  Key components of the Administration’s updated policy approach include the following:

Yesterday, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced increased economic sanctions against Russia, including measures against Russia’s largest bank – Sberbank Russia – as well as several state-owned defense technology companies and five energy companies (Gazprom, Gazprom Neft, Lukoil, Surgutneftegas and Rosneft).  The United States has also tightened previous restrictions by lowering from 90 days to 30 days the allowable length of debt U.S. citizens and entities may buy from sanctioned Russian banks – Bank of Moscow, Gazprombank OAO, Vnesheconombank (VEB), Russian Agricultural Bank (Rosselkhozbank),  VTB Bank OAO and Sberbank Russia.