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.

OFAC issued Directive 4 under Executive Order (EO) 14,024, requiring a license for any transaction involving the Central Bank of Russia, the National Wealth Fund of the Russian Federation, or the Russian Ministry of Finance, including any transfers to or on behalf of such entities.

OFAC also issued General License 8A (GL 8A), which authorizes certain transactions “related to energy.” GL 8A supersedes General License 8, discussed previously, and augments the General License authority to include the Central Bank of Russia. GL 8A expires on June 24, 2022.

Finally, OFAC announced the issuance of the Russian Harmful Foreign Activities Sanctions Regulations at 31 CFR part 587 to implement Executive Order 14,024, which was issued in April 2021. The regulations will take effect upon publication on March 1, 2022.

Other U.S. Action, Coordination with Allies

As referenced in prior briefings, the United States continues to work with its allies to introduce and administer restrictions related to Russia and Ukraine. Of particular note is the action the United States and other countries have taken to remove select Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) messaging system that will disconnect such banks from the international financial system.

The U.S. government has also emphasized its coordination with allies on, as discussed above, measures to prevent the Central Bank of Russia from deploying its international reserves and identifying and freezing assets of individuals close to the Russian government.

We expect this coordinated action to continue. Therefore, we note the importance of reviewing the U.S. and all other applicable laws and requirements to ensure a complete understanding of your legal obligations related to Russia and Ukraine.

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. Please contact the authors anytime if we can assist.

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Photo of Mi-Yong Kim Mi-Yong Kim

Mi-Yong Kim has nearly 25 years of experience related to export controls and national security. Based on her extensive government service, she is uniquely well equipped to provide advice to help clients navigate the complex regulations related to export controls and national security…

Mi-Yong Kim has nearly 25 years of experience related to export controls and national security. Based on her extensive government service, she is uniquely well equipped to provide advice to help clients navigate the complex regulations related to export controls and national security, including matters related to compliance with the Export Administration Regulations (EAR); the International Traffic in Arms Regulations (ITAR); the Committee on Foreign Investment in the United States (CFIUS); and foreign ownership, control, or influence (FOCI) mitigation by the Defense Security Service. Mi-Yong is also an Adjunct Professor at the National Chengchi University (NCCU) in Taipei, Taiwan. She teaches a graduate-level class on export controls and related topics at the College of International Affairs of NCCU.

Photo of Thad McBride Thad McBride

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP)…

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP), and the Foreign Corrupt Practices Act (FCPA). He also advises clients on anti-boycott controls, and assists companies with matters involving the Committee on Foreign Investment in the United States (CFIUS). Thad supports international companies across a range of industries, including aviation, automotive, defense, energy, financial services, manufacturing, medical devices, oilfield services, professional services, research and development, retail, and technology. Beyond advising on day-to-day compliance matters, Thad regularly assists clients in investigations and enforcement actions brought by government agencies, including the U.S. Department of Justice (DOJ), the U.S. Treasury Department Office of Foreign Assets Control (OFAC), the U.S. State Department Directorate of Defense Trade Controls (DDTC), Customs and Border Protection (CBP), the U.S. Commerce Department Bureau of Industry & Security (BIS), and the Securities & Exchange Commission.

Photo of Sylvia Yi Sylvia Yi

Sylvia Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. Sylvia counsels public and private companies on day to day compliance challenges, and…

Sylvia Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. Sylvia counsels public and private companies on day to day compliance challenges, and supports clients in responding to criminal and government investigations. She is a regular contributor to the firm’s Government Contracts & International Trade Blog, where she provides insight on the demanding and ever-changing regulatory environment.