Investor Presentaiton

CBW Act Sanctions (cont'd) OFAC CBW Act Directive of 2 August 2019 - provides definitions/details on the US bank lending sanctions, confirming that: foreign branches of US banks, as well as US branches and subs of foreign banks, are covered gives further wide definition of US "bank" - including depositories, securities/options brokers and dealers, forward contract and foreign exchange merchants, securities and commodities exchanges, investment companies, and employee benefit plans confirms that "Russian sovereign" means any Russian ministry, agency or sovereign fund (including Central Bank, National Wealth Fund, Ministry of Finance) - but does not include Russian state-owned enterprises (though again, keep in mind OFAC SSI Directives 1 and 2) and now see also OFAC Directive 1 of 15 April 2021 (related "US financial institutions" broad definition) and new OFAC FAQ 891 (narrow scope of covered Russian sovereign instrumentalities) State Dep't Notice in 26 August 2019 Fed. Reg. memorialized the new CBW-related export control sanction, but also incorporated and appeared to somewhat expand/adjust the first-round export control sanction (slides 66-69) so special caution is needed with regard to any possibly sensitive exports/reexports to Russia (and all the more so per newest Commerce/BIS rules - see generally slides 12, 27-34) Note also the risk of imposition of secondary sanctions on non-US persons under CAATSA (see slides 49-62) for certain violations of the CBW Act sanctions - - The CBW Act (and the EO triggering this second round) isn't among the sanctions acts specifically covered under CAATSA (see its section 222(a)) But CAATSA sec. 228 catches anyone who "facilitates a significant transaction" for or on behalf of "any person subject to [US] sanctions..." (i.e., could mean any sanctions); and would now be caught under EO 14024 of 15 April 2021 in any event Morgan Lewis 71

View entire presentation