As recent malware, ransomware and distributed denial of service attacks have made clear, the cyber threats posed to governments and commercial entities are real and growing. Critical infrastructure such as power plants, airports and communication systems are vulnerable to attacks on the cyber battlefield, as are banks, manufacturers, and law firms, among other commercial entities. In an attempt to address these risks, the U.S. government is imposing heightened cyber-security requirements on contractors, some of which are summarized below. But, in light of the growing cyber threats posed by nation states, subnational groups and bored teenagers, even companies that are not subject to these new requirements should evaluate the sufficiency of their current cyber security protocols and consider taking steps such as the simplified four-step “starter plan” – train, maintain, test and repeat – laid out below to address vulnerabilities.
Continue Reading DoD’s Efforts to Secure Information on Contractor Systems Continues, But All Companies Are at Risk and Should Take Steps Now to Protect Themselves
Russia
New Law Extends U.S. Sanctions Against Russia
Over the past month, we have closely monitored efforts by the U.S. Congress to tie the president’s hands over sanctions on Russia. Today, the president signed the Countering America’s Adversaries Through Sanctions Act (CAATSA or the Act), which will have a significant impact on numerous U.S. industries operating in Russia. And Russia’s response to the legislation indicates that further tensions between the United States and Russia – and possibly additional sanctions on both sides – are likely to follow.
Continue Reading New Law Extends U.S. Sanctions Against Russia
U.S. Penalizes Exxon for Violating U.S. Sanctions on Russia, May Have Complicated How U.S. Companies do Business in Russia
- Penalty imposed against Exxon related to contracts with Russian oil company Rosneft
- Rosneft is not a prohibited party but its president is
- OFAC alleges that “senior-most” Exxon management were involved
- Exxon responds with suit against OFAC
On July 20, 2017, the U.S. Treasury Department Office of Foreign Assets Control (OFAC) announced that ExxonMobil (Exxon) must pay a $2 million penalty for violating U.S. sanctions on Russia. On the same day, Exxon responded by suing OFAC.Continue Reading U.S. Penalizes Exxon for Violating U.S. Sanctions on Russia, May Have Complicated How U.S. Companies do Business in Russia
Stakes for Exxon in Sanctions Case Go Far Beyond a $2 Million Fine
I provided insight for an article published by The New York Times on the $2 million fine that the U.S. Treasury Department charged Exxon Mobil for violating Russian sanctions. Exxon apparently entered into eight contracts with Rosneft, the Russian state oil company, signed by Rosneft CEO Igor Sechin, who is a prohibited party under U.S.…
Senate Passes Russia and Iran Sanctions Legislation
- Proposed legislation would extend sanctions on Russia and Iran
- New restrictions aimed at Russian energy sector and cybercriminals
- Legislation may pit Senate against House and the president
On June 19, 2017, the U.S. Senate overwhelmingly passed a bill mandating sanctions against Russia and Iran and a 30-day congressional review period should the president attempt to reduce those sanctions.
The bill remains in the House after congressional leaders challenged the fact that the revenue-raising bill did not originate in the House. The White House nonetheless is in the unenviable position of having to defend (or oppose) the implementation of sanctions against both Iran and Russia while attempting to conduct diplomacy with the Kremlin. With a veto-proof majority in at least one chamber, the president’s options appear limited.Continue Reading Senate Passes Russia and Iran Sanctions Legislation
Hey! Did You Hear? The United States Imposed Sanctions Against Russia
- New sanctions prohibit U.S. business with designated cyber attackers
- Russia opts not to retaliate for now
- Congressional briefings, and Republican senators, may force Trump’s hand
For those of us who live and breathe U.S. economic sanctions, we are used to most people largely ignoring what goes on in our world.
The United States’ recent imposition of new sanctions against Russia, however, was not one of those times.Continue Reading Hey! Did You Hear? The United States Imposed Sanctions Against Russia
Happy September: OFAC Extends Russia/Ukraine Sanctions
Key Points:
- Dozens more Russian and Ukrainian entities have been designated as prohibited / restricted parties
- A limited General License authorizes transactions, for a brief period of time, to halt business with a specific Russian entity
- The designations reflect OFAC’s continued use of the “50 percent rule,” and the challenges of diligence on Russian transaction partners
Designations. On September 1, 2016, the U.S. Office of Foreign Assets Control (OFAC) designated 37 individuals and entities pursuant to its Ukraine-related sanctions program. OFAC last designated individuals and entities under the Ukraine program in December 2015.
Continue Reading Happy September: OFAC Extends Russia/Ukraine Sanctions
The United States Lifts Arms Embargoes Against Vietnam and Other Countries
May was a busy month in the world of U.S. defense exports. Perhaps most controversial was President Obama’s decision to terminate the arms embargo against Vietnam. The embargo, in place since 1975, was partially lifted in 2014 to provide Vietnam with greater maritime surveillance and improved security systems. Since then, the United States has contributed $46 million to strengthening Vietnam’s maritime security.
Separately, the U.S. State Department announced that it would begin reviewing applications for licenses to export defense articles and defense services to Cote d’Ivoire, Liberia and Sri Lanka on a case-by-case basis. Those announcements followed three U.N. Security Council Resolutions terminating the U.N. arms embargoes against those nations.Continue Reading The United States Lifts Arms Embargoes Against Vietnam and Other Countries
Adding to the Naughty List: OFAC Designates More Russian and Ukrainian Targets
On December 22, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated more than 30 individuals and entities under the Ukraine-related sanctions. The designations were made under the auspices of several different executive orders, and thus there are different restrictions on transacting with these parties depending on the basis for each party’s designation. Roughly…
Keeping Up the Pace: U.S. Sanctions Post a Busy Second Quarter
Since our update in April of this year, the U.S. government has continued to aggressively modify and enforce its various sanctions programs. And this trend shows no signs of slowing in the months to come.
As in the first quarter of 2015, the last three months were marked by a combination of broad policy changes, individual designations and removals, and various enforcement actions. While recent developments did not include the overhaul of any sanctions program akin to the Cuba amendments in January, they did set the stage for significant changes in the future.
Here, we consider notable U.S. sanctions developments in the past quarter, and offer our thoughts on what is to come.Continue Reading Keeping Up the Pace: U.S. Sanctions Post a Busy Second Quarter