December 20, 2018

OFAC announces a $7.7 million settlement with carbon manufacturer for violations of Belarus sanctions

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a $7,772,102 settlement with Zoltek Companies, Inc. (Zoltec US) and its Hungarian subsidiary, Zoltek Vegyipari ZRT (Zoltek ZRT)  in relation to potential civil liability for 26 violations of the Belarus sanctions regulations.  According to OFAC, Zoltek US approved 26 purchases of acrylonitrile, a chemical used in the production of carbon fiber, between Zoltek ZTR and J.S.C. Naftan, a Belarusian entity OFAC designated in 2011 and identified on the SDN List.  In reaching the settlement, OFAC stated that it determined that Zoltek voluntarily disclosed the apparent violations, and that while violations occurring before February 2015 were non-egregious, violations occurring after February 2015 were egregious.

OFAC press release | Settlement