Negotiations between the Government of Jamaica and United States Treasury Department of Foreign Assets Control (OFAC) has secured bauxite company UC Rusal another three months to continue trade, according to a recent update from Mining Minister, Robert Montague.

Montague, in presenting an update on the Government’s appeal to the US Office of Foreign Assets Control on Sanctions to Parliament yesterday, noted that representation efforts from the ministry were positively responded to and that the situation which is expected to affect the livelihood of 1,200 Jamaicans will continue to be closely monitored.

“We will, as always, make our best efforts to protect the workers, the environment and revenue to Jamaica, while keeping the interest of the community and the country in mind,”

In a letter addressed to Ambassador Audrey Marks dated July 18, OFAC confirmed that, to the extent that the relevant activities of Windalco involve transactions that are consistent with maintenance or wind down of operations or existing contracts under General Licence 14 (GL-14), “US may continue to engage in those transactions with Windalco through to October 23, 2018” when the licence expires.

“Similarly, consistent with frequently asked question no 579, transactions with Windalco by non-US persons will not be considered ‘significant’ for purposes of a sanctions determination…” the letter continued.

On April 6, 2018, OFAC added, amongst others, seven Russian oligarchs and 12 companies they own or control to its designated nationals list.

The sanctions have since affected operations at the Windalco Plant in Ewarton, majority-owned by Russian company UC Rusal. Among other things, the sanctions resulted in the freezing of the assets of seven Russian oligarchs and 12 companies they own or control, and prohibit US persons from dealings with them.

Additionally, non-US persons could face secondary sanctions for knowingly facilitating significant transactions for, or on behalf of the individuals or entities sanctioned.

“I take this opportunity to thank Ambassador Audrey Marks, the US Embassy, the Russian Embassy, the Ministry of Foreign Affairs and Foreign Trade, the Attorney General’s Chambers,UC Rusal/Windalco, the Windalco workers, and the Union of Clerical, Administrative and Supervisory Employees, who represent the workers — as well as the Opposition for their assistance and input in getting us to this point,” Montague said.

He added that the Government is of the opinion that the US Government is committed to assisting Jamaica with the sanctions which, he said, were never intended to harm Jamaica or the economy.

“We are pleased that the US Government is extending their support in finding a solution. We believe in discussion and negotiation, and will continue the engagement to chart a course for that time after the October 23, 2018 expiry date of GL-14,” the minister said.

“The letter of clarification from OFAC on the operation at Windalco is welcomed, and we acknowledge that it is not the long term solution, but a positive step in the right direction. We will continue to update the House from time to time.”

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