Morgan Lewis US and Russia Sanctions Update
CAATSA / Guidances / Lists (cont'd)
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The April 2018 SDN individuals designations came from among those on the Jan. 2018 List (and there
have since been some threats of more, including per the proposed DASKA Act if ever enacted)
And subsequent public news reports and further private sense
that some leading oligarchs have been restructuring holdings to reduce potential or actual sanctions exposure
and a number of state / "parastatal" companies are making preparations for possible further sanctions imposition
Note also Jan. 2020 news report of an Asian gov't declining to go forward on a proposed project with
a Russian co. - apparently just because its principal is on the Oligarchs List; but most recently
reported to be going forward despite this
And a few legal challenges against inclusion on this List (e.g., successful Gapontsev case - slide 36)
Bottom-line note: companies considering dealing with any individuals or entities on these lists should
have in mind the additional risks/due diligence concerns raised, and proceed with caution
And companion January 2018 report to Congress on the Effects of Expanding Sanctions to include
Russian Sovereign Debt and Derivative Products (per CAATSA sec. 242)
Had an unclassified main text; not clear if it also had a classified annex
Did not recommend in favor of such sanctions expansion (given the effects this would have on the ban
on US and European, as well as the Russian, financial markets)
But note that a limited version of this sanction - ban on US banks' participating in primary market for
Russian non-ruble sovereign debt - became one of the CBW Act second-round measures in 2019 (see
slides 67-68 below)
This limited Trump Administration measure has so far served to forestall Congressional appetite for
possible broader Russian sovereign debt ban (but more may now be brewing - see slide 6 above)
See also Executive Order 13849 of 20 Sept. 2018 - re implementation of certain CAATSA sections,
and see related OFAC FAQ 627 of 20 Sept. 2018 on this
Morgan Lewis
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