On January 13, 2017, President Obama issued Executive Order 13761 to be effective on July 12, 2017, which would revoke prior executive orders underlying the Sudanese Sanctions Regulations and effectively terminate the Sudan sanctions program, provided that the incoming Secretary of State (Rex Tillerson) issues a finding regarding Sudan's cooperation in five key areas of engagement: countering terrorist groups, ending the threat of the Lord's Resistance Army, ending the government's offensive internal military operations, ending Sudan's destabilizing role in South Sudan, and improving humanitarian access. See our prior alert on that executive order for more information.

Notwithstanding statements this week by the Government of Sudan asserting that Sudan has met the requirements set out in Executive Order 13761, President Trump yesterday issued an executive order extending the period for U.S. review by three additional months. This delays potential changes in U.S. sanctions on Sudan until October and leaves the established U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctions regime for Sudan in place. In addition, this action leaves in place an OFAC General License, established by the Obama administration on January 13, 2017, which authorizes all prohibited transactions, including transactions involving property in which the Government of Sudan has an interest. President Trump's executive order this week also revokes provisions in Executive Order 13761 that had required the Secretary of State to provide to the President an annual update report regarding whether the Government of Sudan has "sustained the positive actions that gave rise to this order, including carrying out its pledge to maintain a cessation of hostilities in conflict areas in Sudan; continued improvement of humanitarian access throughout Sudan; and maintaining its cooperation with the United States on addressing regional conflicts and the threat of terrorism."

We hope that this information is helpful and will continue to monitor and report further developments affecting U.S. sanctions on Sudan as they occur.

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