Morgan Lewis US and Russia Sanctions Update

EU Sectoral Sanctions Overview The EU sanctions regime (in Council Reg. No 833/2014 of 31 July 2014, most recently amended by Reg. 2019/1163 of 5 July 2019, focuses on financial, energy, and dual-use/ military sectors - Now in effect to 31 July 2021 (and likely to keep being extended for now) Was fairly well coordinated with US ... but no longer, with CAATSA / Nord Stream / secondary sanctions, etc. E.g.: no sanctions on anything re Russian gas-focused projects (given Europe's dependence on Russian gas supplies) ... and maybe not interpreted to cover condensate (see slide 22 above)? And no sanctions on any oil & gas projects with Russian participation outside Russia (or on Russian energy export pipelines) And guidance notice exempting mere correspondent banking (payment / settlement services) from the loan / credit bans - thus more lenient than analogous US rule / interpretation (but see slide 85 re new UK interp.) And, unlike the US, no broad-reach blacklisting into leading commercial entities, CEOs of leading state-owned cos. (and no Rosneft for business with Venezuela, no Chinese cos. for business with Iran, etc.) Much easier to grasp the basic EU rules than the US ones (and all the more so now, with all the newer US acts and regs.) - essentially all in one document's four corners But the devil (?) is in the diversity: Each member state competent authority interprets, authorizes (where called for) or denies, enforces, and sets/imposes its own penalties Unlike the US... where this is all a uniform, federal-level matter Though some coordination / consistency is called for in the Regulation And see EU Commission Guidance Note of Dec. 2014 (as amended most recently 25 Aug. 2017) - FAQS Morgan Lewis 71

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