US Sectoral Sanctions

CAATSA / Guidances / Lists (cont'd) ➤ what is a "significant" transaction (in "totality of the facts and circumstances")? in the State Dep't and OFAC Oct. 2017 Guidances, there are slightly differing elaborations of the "totality of facts and circumstances" factors taken into account, in view of the differing focuses of the specific CAATSA provisions at issue – but basic similarity - the State Dep't Guidance on section 231 implementation (re transactions with LSP-listed Russian defense/intelligence entities) highlights relation to significance of US national security and foreign policy interests, and significance of defense / intelligence nature versus goods / services for purely civilian end-use / end-user weighing heavily against determination of significance and also notes that unity with allied countries will be taken into account as a factor ... even with regard to such countries' purchase of Russian military equipment (from entities on the CAATSA section 231 List) and see elaboration on this in State Dept's release and press conf. transcript of Sept. 2018 (see slide 58 for links) the State Dep't Guidance on section 225 (re investments into certain Russian oil projects) notes, among relevant factors, "the relation and significance of the investment to the Russian energy sector" the OFAC Guidances on sections 226 (re certain energy or defense-related activities etc.) and 228 (facilitating significant transactions for any sanctioned entity etc.) set out several factors keying on size, number, frequency, nature, management's level of awareness / whether part of pattern of conduct/nexus with blocked person (for FFIs' financial transactions) / impact on statutory objectives / whether involves deceptive practices and other factors deemed relevant on case-by-case basis Morgan Lewis 55 55

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