The U.S. government has announced that it will license U.S. companies “to provide oil spill prevention and containment support to companies operating in Cuba” (“Cuba: Oil Exploration,” July 19, 2010). This new policy initiative is undertaken within the government’s authority to minimize risks to U.S. waters and shores, and it was apparently prompted by concerns about oil exploration operations off the coast of Cuba. The provision of services to companies operating in Cuba is generally prohibited by the comprehensive Cuban Assets Control Regulations administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). However, the regulations permit such transactions when they are specifically authorized by license. See 31 C.F.R. § 515.201. With this announcement, the U.S. government has clearly signaled its intent to grant licenses for U.S. companies providing the described services.

The State Department announcement specifically referenced licenses available through OFAC. Any company receiving such a license will also be required to obtain specific export licenses from the Commerce Department’s Bureau of Industry and Security (BIS) covering the export of equipment, chemical dispersants, or any other goods or technology from the U.S. in connection with performing the licensed services.

For additional information about obtaining licenses from OFAC and BIS to perform oil spill prevention and containment support services for companies operating in Cuba, or to obtain further information about U.S. sanctions programs and export controls in general, please contact Kathleen Little, David Johnson, Suzanne Reifman, or Adrianne Goins. Visit our website to learn more about V&E's Export Controls and Economic Sanctions practice, or e-mail one of the practice contacts.