US Sectoral Sanctions
CAATSA / Guidances / Lists (cont'd)
Executive Order 13849 of 20 Sept. 2018 - re implementation of certain CAATSA sections
Its detailed provisions, in four main sections, essentially authorize / amplify / guide
implementation by State Dep't and Treasury Dep't (the two agencies that share most CAATSA
application/enforcement authority), for cases where the President has determined to impose
sanctions under four specific CAATSA sections
The CAATSA sanctions sections singled out here are
section 224(a) - re Russian activities undermining cyber-security (see slide 51)
section 231(a) - re transactions with the Russian defense/intelligence sectors (see slide 52)
section 232(a) - re development of Russian energy export pipelines (see slide 53)
section 233(a) - re investment in or facilitation of Russian privatizations (see slide 52)
note that the sanctions authorized under all four of these CAATSA sections are imposable against both
US persons (primary sanctions) and foreign persons (secondary sanctions)
And see related OFAC FAQ 627 of 20 Sept. 2018 on this
Selection of these four CAATSA sections: some insights / questions
thus far, flowing from this EO the Trump Administration has imposed only new section 231 defense-related
sanctions against a Chinese state military enterprise and its director (see slide 42)
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the special focus on section 231 enforcement is shown in the 20 Sept. 2018 State Dep't release and a related
public release - and further emphasized in State's background briefing of same date (see the Transcript)
not yet clear why only the specific other three CAATSA sections (re cyber, export pipelines and privatization -
see above) were included – but there has been no CAATSA enforcement (only threats) to date re pipelines
(despite the new Nord Stream sanctions basis - see slides 7 and 53) or re privatizations
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note that there have been several CAATSA section 224 (cyber-related) SDN designations (see slide 43) -
against Russian and other non-US entities and individuals (though not specifically linked to this EO)
Morgan Lewis
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