I recently provided comments for an article in Law360 about the legal and financial challenges faced by energy companies who are scrambling to sever ties with Russian entities in the wake of the Russia-Ukraine situation. On March 8, President Biden announced a ban on Russian oil and gas imports into the United States further complicating the already complex and evolving sanctions imposed on Russian companies in the wake of the country’s invasion of Ukraine.

Because the U.S. sanctions include a ban on doing business with many Russian financial institutions, U.S. companies trying to close deals to get out of the market has become even more difficult. “What we’re seeing is, even if it’s permitted … it may be very hard to find a U.S. or a European bank to do the business, just because they don’t want to take the risk on it,” I explained in the article. “So the financial piece is going to be, at least, very challenging practically, if not legally.”

Continue Reading Legal Challenges for Energy Industry Severing Ties in Russia

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

With a contracting budget approaching $650 billion per year, the United States government is the largest consumer of goods and services globally. In 2020, the federal government spent $145 billion, an equivalent of 26% of its total procurement spending, with small businesses. Breaking into government contracting can be a tremendous opportunity for small and emerging companies, but it also carries significant challenges and risks. Government contracts often impose unique requirements and complex regulatory schemes that differ significantly from the commercial marketplace.

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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

Please note that this post has been updated with information as of late evening on Thursday, February 24. Click here for the latest updates.

This post is to summarize the situation as of late evening on Wednesday, February 23, concerning current U.S. sanctions and export restrictions related to Russia and Ukraine. It is important to note that these new measures add to the existing framework of restrictions that the United States has maintained beginning in 2014 when Russia first invaded the eastern part of Ukraine. In addition, the EU, the UK, and Canada – among others – are imposing restrictions, many of which are comparable to the restrictions imposed by the United States.

The situation is likely to change quickly – and almost certainly in the direction of greater restrictions. We will provide updated guidance as the situation progresses.

Continue Reading Russia, Ukraine: Update as of the Evening of February 23

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

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