Arfada is additionally being identified for being owned in the aggregate, directly or indirectly, 50 percent or more by OFAC designated Muhammad al-Qatirji and his brother Hussam Bin Ahmed Rushdi al-Qaterji (Hussam al-Qaterji), who was designated today by OFAC. OFAC identified the Syrian Ministry of Petroleum and PERD as part of the Government of Syria as set forth in E.O. 13582 and the Syrian Sanctions Regulations, 31 C.F.R. Part 542. The Al-Resafa Refinery Company Private JSC and Coastal Refinery Company Private JSC were identified for being owned in the aggregate, directly or indirectly, 50 percent or more by Arfada, Sallizar, and PERD.
OFAC today also sanctioned Hussam al-Qaterji, a Syrian businessman and 33 percent shareholder of Arfada. Hussam al-Qaterji is known as the godfather of the regime’s oil and wheat trade with the Islamic State of Iraq and Syria (ISIS). Beginning in 2014, Hussam al-Qaterji started brokering oil and wheat trade deals between the Assad regime and ISIS. Hussam al-Qaterji has been a Member of Parliament for the government-controlled area of Aleppo since 2016. In 2018, OFAC designated Hussam al-Qaterji’s brother Muhammad al-Qatirji pursuant to E.O. 13852 for facilitating fuel trade between the Assad regime and ISIS, including providing oil products to ISIS-controlled territory.
Hussam al-Qaterji was designated pursuant to E.O. 13573, “Blocking Property of Senior Officials of the Government of Syria,” for being a senior official of the Government of Syria.
On June 6, 2003, OFAC issued the Global Terrorism Sanctions Regulations, 31 CFR part 594 (68 FR 34196, June 6, 2003 (“the Regulations”), to implement Executive Order (E.O.) 13224 of September 23, 2001, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism” (66 FR 49079, September 25, 2001). OFAC has amended the Regulations on several occasions.
On September 9, 2019, the President, invoking the authority of, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701–1706) (IEEPA) and the United Nations Participation Act (22 U.S.C. 287c) (UNPA), issued E.O. 13886, “Modernizing Sanctions To Combat Terrorism” (84 FR 48041, September 12, 2019), effective September 10, 2019. In E.O. 13886, the President, finding it necessary to consolidate and enhance sanctions to combat acts of terrorism and threats of terrorism by foreign terrorists, terminated the national emergency declared in E.O. 12947 of January 23, 1995, “Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process” (60 FR 5079, January 25, 1995), and revoked E.O. 12947, as amended by E.O. 13099 of August 20, 1998, “Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process” (63 FR 45167, August 25, 1998). In addition, the President amended E.O. 13224, in order to build upon initial steps taken in E.O. 12947, to further strengthen and consolidate sanctions to combat the continuing threat posed by international terrorism, and in order to take additional steps to deal with the national emergency declared in E.O. 13224, with respect to the continuing and immediate threat of grave acts of terrorism and threats of terrorism committed by foreign terrorists, which include acts of terrorism that threaten the Middle East peace process.
Section 1 of E.O. 13886 replaces in its entirety section 1 of E.O. 13224, which had been amended by a number of prior Executive orders (E.O. 13224, as amended by all such authorities, is referred to herein as “amended E.O. 13224”), but does not amend the Annex to E.O. 13224, which was previously amended by E.O. 13268 of July 2, 2002, “Termination of Emergency With Respect to the Taliban and Amendment of Executive Order 13224 of September 23, 2001” (67 FR 44751, July 3, 2002) (“amended Annex to E.O. 13224”).
