The Bass, Berry & Sims international trade team is actively monitoring the situation in Russia and Ukraine and providing real-time advice to clients on managing the situation. This post summarizes the evolving situation as of Thursday, March 24 concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This post supplements our previous analysis all of which are linked at the end of this blog post.

United States Aligns with Allies, Sanctions Hundreds of Russian Lawmakers and Others

On March 24, President Biden announced that the United States will impose sanctions on “over 400 individuals and entities comprised of Russian elites, the Duma and more than 300 of its members, and defense companies.” In so doing, the United States aligns itself with the sanctions efforts of the European Union and G7 (which consists of Canada, Japan, and the UK along with several members of the EU). This continues the unprecedented multilateral effort to restrict trade with and involving Russia.

Continue Reading Russia, Ukraine: Update as of March 24

The Bass, Berry & Sims international trade team is actively monitoring the situation in Russia and Ukraine and providing real-time advice to clients on managing the situation. This post summarizes the evolving situation as of Monday, March 21 concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This post supplements our previous analysis all of which are linked at the end of this blog post.

On March 18, citing publicly available information, the Bureau of Industry and Security (BIS) issued a notice (the Notice) identifying 100 commercial and private aircraft that have flown into Russia in apparent violation of the Export Administration Regulations (EAR) since March 2, 2022. BIS noted that all listed aircraft are owned or controlled by, or under charter or lease to, Russia or Russian nationals. BIS identified the aircraft by owner/operator, tail number, serial number, and aircraft type.

In publicly listing the aircraft, BIS warned that servicing these aircraft without BIS authorization by any person, regardless of location, would violate part 736.2(b)(10) of the EAR. Also known as General Prohibition 10, this EAR provision covers the taking of virtually any action with respect to an item that has been exported in violation of the EAR. BIS emphasized that violations of the EAR can lead to enforcement action and possible criminal and/or civil fines, including jail time and loss of export privileges.

Continue Reading Russia, Ukraine: Update as of March 21

The Bass, Berry & Sims international trade team is actively monitoring the situation in Russia and Ukraine and providing real-time advice to clients on managing the situation. This post summarizes the evolving situation as of late evening on Monday, March 14 concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This post supplements our previous analysis all of which are linked at the end of this blog post.

On March 11, President Biden announced the U.S. – along with several allies, including Canada, the European Union, France, Germany, Italy, Japan, and the United Kingdom – will revoke Russia’s status as a “most favored nation,” which will remove preferential treatment of imports and tariffs. President Biden stated that he will work with Congress to deny Russia the benefits of World Trade Organization membership and deny preferential treatment of imports from Russia and Belarus.

President Biden also issued an Executive Order (EO) prohibiting new investment in any designated sector of the Russian economy. However, to date, no sectors of the Russian economy have been designated. In addition, the EO prohibits the export, re-export, sale, or supply, directly or indirectly, from the United States or by a U.S. person, wherever located, of specified luxury goods to any person located in Russia.  And the EO bans the sale or export of U.S. dollars to Russia or any person in Russia.

Continue Reading Russia, Ukraine: Update as of March 14

The Bass, Berry & Sims international trade team is actively monitoring the situation in Russia and Ukraine and providing real-time advice to clients on managing the situation. This post summarizes the evolving situation as of late evening on Tuesday, March 8 concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This post supplements our previous analysis all of which are linked at the end of today’s content.

President Biden Issues Executive Order, Bans Imports of Russian Oil and Gas

On March 8, President Biden issued an Executive Order (EO) banning the importation into the United States of the following Russian-origin products:

Continue Reading Russia, Ukraine: Update as of the Evening of March 8

This UPDATED post summarizes the situation as of late evening on Monday, March 7, concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This post supplements our post of late evening on Wednesday, February 23, which is available here; our post of late evening on Thursday, February 24, which is available here; our post of late evening on Friday, February 25, which is available here; our post of late evening Monday February 28 is available here; and our post of late evening Thursday March 3, which is available here

U.S. State Department Targets Russian Defense Enterprises for Sanctions

The U.S. State Department has identified 22 Russian defense-related entities that design, develop, and produce weaponry for Russia. Each has been designated as a Specially Designated National (SDN) by the U.S. Treasury Department, Office of Foreign Assets Control (OFAC). The designated entities include companies involved in the design, development, and production of unmanned aerial vehicles, electronic warfare, missile and missile defense systems, fighter aircraft, armored vehicles, and procurement of foreign technology for Russia’s military.

Continue Reading Russia, Ukraine: Update as of the Evening of March 7

This UPDATED post summarizes the situation as of late evening on Thursday, March 3, concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This post supplements our post of late evening on Wednesday, February 23, which is available here, our post of late evening on Thursday, February 24, which is available here, our post of late evening on Friday, February 25, which is available here, our post of late evening Monday, February 28 available here.

Commerce Extends Russia Sanctions to Belarus

Late Wednesday, March 2, the Department of Commerce (Commerce) issued final rules to impose the same sanctions on Belarus that Commerce announced against Russia on February 24. Commerce stated it is responding to Belarus’s substantial enabling of Russia’s invasion of Ukraine. Now, export to Belarus of all items listed in Categories 3, 4, 5, 6, 7, 8, and 9 on the Commerce Control List requires a license; the Foreign Direct Product (FDP) rule is applied to Belarus, which will restrict access to foreign-produced items using U.S. technology; the license review policy is changed to presumption of denial; and the use of license exceptions are limited.

Continue Reading Russia, Ukraine: Update as of the Evening of March 3

There have been a relatively limited number of U.S. Foreign Corrupt Practices Act (FCPA) enforcement actions in recent years. Nonetheless, two recent announcements (one resolution, one declination) by U.S. regulators underscore the importance of implementing and maintaining effective internal controls.

Continue Reading Foreign Corrupt Practices Act Enforcement Update: Q1 2022

This UPDATED post summarizes the situation as of late evening on Monday, February 28, concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This post supplements our post of late evening on Wednesday, February 23, which is available here, our post of late evening on Thursday, February 24, which is available here, and our post of late evening on Friday, February 25, which is available here.

Treasury Department, Office of Foreign Assets Control Announces New Sanctions

On Monday, February 28, the U.S. Office of Foreign Assets Control (OFAC) imposed additional sanctions on the Central Bank of Russia, the National Wealth Fund of the Russian Federation, and the Russian Ministry of Finance. These actions effectively freeze all assets of the Central Bank of Russia in the United States or held by a U.S. entity (such as a bank or other financial institution) or individual, wherever located.  OFAC also added the following parties to the Specially Designated Nationals (SDN) List:

  • The Russian Direct Investment Fund.
  • Kirill Aleksandrovich Dmitriev – CEO of the Russian Direct Investment Fund.
  • Joint Stock Company Management Company of the Russian Direct Investment Fund.
  • Limited Liability Company RVC Management Company.


Continue Reading Russia, Ukraine: Update as of the Evening of February 28

This UPDATED post summarizes the situation as of late evening on Friday, February 25, concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This post supplements our post of late evening on Wednesday, February 23, which is available here, and our post of late evening on Thursday, February 24, which is available here.

As of late evening on Friday, February 25, the U.S. government announced that it is imposing sanctions on Russian President Vladimir Putin and Foreign Minister Sergey Lavrov along with two other senior Russian government officials.  Each of these individuals has been designated as a Specially Designated National (SDN).  Correspondingly, U.S. individuals and entities are prohibited from conducting any business with these designated parties, whether directly or indirectly.

The European Union had previously imposed sanctions on President Putin.

Continue Reading Russia, Ukraine: Update as of the Evening of February 25

This UPDATED post summarizes the situation as of late evening on Thursday, February 24, concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. This supplements our post of late evening on Wednesday, February 23, which is available here.

As of late evening on Thursday, February 24, OFAC has taken the following additional actions, as follows:

Multiple additional banks were designated as SDNs.  Most prominently, OFAC designated VTB Bank Public Joint Stock Company (VTB Bank), which is reportedly Russia’s second-largest bank, along with 20 VTB Bank subsidiaries.  (Recall that any entity owned 50% or more by one or more SDN is itself an SDN, even if not specifically identified as an SDN.  In the case of a large entity such as VTB Bank, this means there may be many other entities affiliated with VTB Bank that are SDNs even though not identified on the SDN List).

Continue Reading Russia, Ukraine: Update as of the Evening of February 24