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 today’s content.

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

I am looking forward to presenting on a panel titled “Understanding The Effect Of Sanctions On Your Industry” with Heather Nevitt, Editor-in-Chief of Corporate Counsel and Global Leaders in Law at ALM on March 23 at 12:00 p.m. ET.

Our panel will focus on international sanctions and break down insights based on industry to give you a sense of how your competition is responding to the situation in Ukraine, the ever-evolving global response, and pitfalls to watch for as you do business in or related to Russia. It will include an opportunity to ask questions as you navigate a complex web of business relationships and regulatory restrictions related to the Ukraine invasion.

For more information and to register, please click here.

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 today’s content.

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

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

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