US Sectoral Sanctions

Russia's Countersanctions (cont'd) There are these additional closing provisions of note: the countermeasures provided in the Law are to be introduced (and removed) by the Government by decision of the President or by the President on the basis of proposal by the Security Council the President may introduce a special "national regime" (or exceptions from it) with respect to goods and services originating from unfriendly countries if such countries introduce same for Russian goods and services And note there is a pending new set of draft amendments as of July 2020 to a pre-existing general Special Economic Measures Law of 2006 which would introduce a detailed mechanism on application of freezing/blocking of assets of blacklisted persons And a low greater-than-25% control threshold for entities in which blacklisted person(s) have an interest Adopted at first reading by Duma in late Oct. There was another proposed set of Russian law amendments in 2018 that would impose - Substantial administrative fines on any (foreign or local) person or company in Russia for compliance with US sanctions, and Criminal liability on any Russian citizen who by willful action facilities the imposition of such anti-Russian sanctions Further in brief summary as follows: The administrative violation part would be aimed at acts or omissions, for the purpose of implementing / complying with foreign sanctions, resulting in limitation or refusal of the ability of Russian citizens, companies and state entities (and their subsidiaries anywhere) to conduct "ordinary business operations or transactions" The criminal violation part would be aimed at commission by a Russian citizen of willful actions facilitating the imposition of foreign sanctions against Russian private and public persons and entities and their subsidiaries, including by providing recommendations and transfer of information that led or could have led to the imposition of foreign sanctions. The possible criminal penalties for such a violation could include substantial fine or imprisonment Morgan Lewis 87 0

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