US Sectoral Sanctions
CAATSA / Guidances / Lists (cont'd)
Per CAATSA section 232 (and see Oct. 2017 State Dep't Guidance as updated/stiffened July 2020-
detail and link at slide 8), creating discretionary power for the President, in coordination with US
allies, to impose various possible sanctions on US or non-US cos. or individuals that knowingly invest
or are otherwise involved substantially in construction (or modernization, repair) of energy export
pipelines by Russia - e.g., Nord Stream 2 - namely:
make an investment that directly and significantly contributes to the enhancement of Russia's ability to
construct energy export pipelines, or
sell, lease or provide to Russia, for such construction purpose, goods, services, technology, information
or support that could directly and significantly facilitate the maintenance or expansion of construction,
modernization or repair of Russian energy export pipelines
if any of the above has fair market value of >$1 million, or an aggregate fair market value of >$5 million
during any 12-month period
there are some remaining softening points re CAATSA section 232 in the State Dep't Guidance
clarification (despite the July 2020 update having closed the general grandfathering provision that had
seemed to exempt Nord Stream 2) - namely:
covers only energy export pipelines that originate in Russia, and not those originating outside and transiting through
Russia-thus, safe harbor for the CPC pipeline
and would not target investments / activities related to standard repair / maintenance of pipelines already in
commercial operation as of 2 August 2017
AND see slides 7 and 62-63 re the Dec. 2019 additional PEESA / NDAA 2020 sanctions aimed directly
against Nord Stream 2 - and the PEESCA / NDAA 2021 further tightening now pending enactment
Morgan Lewis
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