Morgan Lewis US and Russia Sanctions Update
What's Newest (cont'd)
Tightened late 2020 sanctions aimed at NS2
PEESA / NDAA 2020 of Dec. 2019, and related actions and threats already had real effects on
NS2 (see slides 60-62)
And then the follow-on "Protecting Europe's Energy Security Clarification Act" (PEESCA): comprising
section 1242 (pp. 558-560) of National Defense Authorization Act for 2021 (NDAA 2021) – enacted
in Dec. 2020 by Senate override of Trump veto
PEESCA clarifies/expands the PEESA / NDAA 2020 anti-NS2 measures adopted in Dec. 2019 (see
slide 60) by, among other things, extending the reach to foreign companies that
facilitate the sale, lease or provision of (in addition to selling, leasing or providing) NS2 (and TS2) pipe-laying
vessels
provide necessary or essential underwriting services, insurance, reinsurance for such vessels
provide necessary or essential services or facilities for technological upgrades or installation of welding
equipment, or retrofitting or tethering of such vessels
provide necessary or essential pipeline testing, inspection or certification
But there is a stated exception for EU, EU member states, Norway, Switzerland and UK gov'ts, and
any gov't entity of any of them that is not operating as a business enterprise
and the President may waive sanctions if he finds it is in national interest and submits such finding to Congress
and required consultations with EU member states and Norway, Switzerland and UK before imposing any such
sanctions
These amending provisions were made effective back to NDAA 2020's Dec. 2019 in-force date
And the CAATSA sec. 232 related important development: July 2020 State Dep't amendment of
Oct. 2017 Guidance (see slide 62)
Morgan Lewis
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