RUSSIAN FEDERATION
Compliance Initiative

US and Russian Federation

The United States has imposed restrictions on activities with Russia/ Ukraine under various legal authorities since 2014. Several Acts of Congress, Executive orders, OFAC guidances constitute the legislative framework for sanctions against Iran. This framework continues to evolve.

The Ukraine\Russia-related sanctions program represents the implementation of multiple legal authorities. Some of these authorities are in the form of an executive order issued by the President. Other authorities are public laws (statutes) passed by The Congress. These authorities are further codified by OFAC in its regulations which are published the Code of Federal Regulations (CFR).

Executive Orders

  • 13883 - ​Administration of Proliferation Sanctions and Amendment of Executive Order 12851 (August 3, 2019)
  • 13849 - Authorizing the Implementation of Certain Sanctions Set Forth in the Countering America’s Adversaries Through Sanctions Act (September 20, 2018)
  • 13685 - Blocking Property of Certain Persons and Prohibiting Certain Transactions with Respect to the Crimea Region of Ukraine (December 19, 2014)
  • 13662 - Blocking Property of Additional Persons Contributing to the Situation in Ukraine (March 20, 2014)
  • 13661 - Blocking Property of Additional Persons Contributing to the Situation in Ukraine (March 17, 2014)
  • 13660 - Blocking Property of Certain Persons Contributing to the Situation in Ukraine (March 6, 2014)

Determinations

  • Determination Pursuant to Executive Order 13662 of March 20, 2014 (Effective date - July 16, 2014) - Financial Services and Energy Sectors​
  • Determination Pursuant to Executive Order 13662 of March 20, 2014​ (Effective date - September 12, 2014) - Defense and Related Materiel Sector.

Statutes

  • Protecting Europe’s Energy Security Act of 2019 (PEESA)
  • Countering America's Adversaries Through Sanctions Act (CAATSA), PL 115-44
  • Ukraine Freedom Support Act of 2014 (UFSA)
  • Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 (SSIDES)
  • International Emergency Economic Powers Act (IEEPA), 50 U.S.C. §§ 1701-1706
  • National Emergencies Act (NEA), 50 U.S.C. §§ 1601-1651

Blocking Sanctions

Unless otherwise authorised or exempt, transactions by U.S. persons or in the United States are prohibited if they involve transferring, paying, exporting, withdrawing, or otherwise dealing in the property or interests in property of an entity or individual listed on OFAC’s SDN List.
The property and interests in property of an entity that is 50 percent or more owned, whether individually or in the aggregate (new rule), directly or indirectly, by one or more persons whose property and interests in property are blocked pursuant to any part of 31 C.F.R. chapter V are also blocked, regardless of whether the entity itself is listed.

Sectoral sanctions

The sectoral sanctions imposed on specified persons operating in the Russian economy identified by the Secretary of the Treasury are implemented through Directives issued by OFAC pursuant to its delegated authorities.

Those Directives impose prohibitions on U.S. persons and within the United States for certain specified transactions with entities made subject to the relevant Directive, as identified on the SSI List.

The property and interests in property of an entity that is 50 percent or more owned, whether individually or in the aggregate, directly or indirectly, by one or more sanctioned persons are also sanctioned, regardless of whether the entity itself is listed on the SSI List. The property and interests in property of these persons are not blocked, nor are transactions with them prohibited beyond these restrictions.

Directive 1

Applies to persons on the Sectoral Sanctions Identification List (SSI) who operate in Russia’s financial services sector.  

Directive 2

Applies to persons on the SSI List who operate in Russia’s energy sector - financial facility.

Directive 3

Refers to the defense and related materiel sector of the Russian Federation economy

Directive 4

Applies to persons on the SSI List who operate in Russia’s energy sector : export of items and technology.

Section 228 of CAATSA amends SSIDES by inserting a mandatory sanctions provision on foreign persons that Treasury determines, inter alia, knowingly facilitate significant transaction.

EIFEC Office in Washington D.C and in Moscow assist operators and institutions to keep up to date any compliance determination.

 

 

 

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