Morgan Lewis US and Russia Sanctions Update
US Direct Sanctions - SDNS (cont'd)
And note OFAC FAQS 501-504 (the first three as amended in March 2021) repeating
/ clarifying certain points of General License No. 1B
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Exportation of hardware and software directly to FSB or when FSB is end-user is prohibited
No license needed to clear Russian border control (which is under FSB jurisdiction)
At the same time, keep in mind the various cyber-related SDN designations to date
for assisting / enabling certain FSB activities etc. (see slide 42 above), and likelihood
of more such
And the related carve-out, per Oct. 2017 State Dep't CAATSA section 231 Guidance,
on required regulatory dealings with the FSB - while generally section 231 warns /
sets new risk re "significant transactions" with FSB (see slide 51)
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Executive Order 13848 of 12 Sept. 2018 - re election interference
Authorized imposition of asset blocking, exclusion from the US, and possible additional
sanctions against any individual or entity found to have directly or indirectly engaged in,
concealed or otherwise been complicit in foreign interference in a US election, to have
assisted in such, or to be owned or controlled by or to have acted for such, etc.
Attempted to specify what constitutes election interference (perhaps to clarify "red lines"
for Russia)
Further OFAC implementing regs. were supposed to follow, but none to date
See also July 2020 Senate committee report (The Art Industry and U.S. Policies That
Undermine Sanctions) - and OFAC 30 Oct. 2020 Art Advisory
Morgan Lewis
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