August 3, 2020

Volume X, Number 216

August 03, 2020

Subscribe to Latest Legal News and Analysis

July 31, 2020

Subscribe to Latest Legal News and Analysis

U.S. Imposes Additional Targeted Ukraine-Related Sanctions

On March 11, 2015, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed new Ukraine-related targeted sanctions on several Russian and Ukrainian individuals and entities in response to Russian violations of the ceasefire brokered in February 2015 between the parties associated with separatist violence in Ukraine. The newest measures add 14 specific individuals and two entities to OFAC’s list of Specially Designated Nationals (SDN). The list of newly-designated individuals includes several Ukrainian separatists, and the list of newly-designated entities includes the Russian National Commercial Bank, a Russian bank operating in the Crimea region of Ukraine.

1)  Description of the New Sanctions

The new U.S. sanctions block the property of 16 specially designated individuals and entities.  Such designated individuals and entities have been added to the OFAC SDN List. U.S. persons are prohibited from engaging in all transactions, including donating, contributing, providing, or receiving funds, goods, or services by, to, from, or for the benefit of any designated person. Furthermore, the new measures suspend entry of any designated persons into the United States.

The measures apply to “U.S. persons,” meaning U.S. citizens and U.S. permanent residents (wherever located), any entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), and any person in the United States.  “U.S. person” for purposes of the Ukraine-related Sanctions does not include non-U.S. subsidiaries of U.S. companies.

The complete list of the newly added SDNs is available here

2) How to Comply with the New Measures

Anyone who may be subject to U.S. law should assess, in conjunction with counsel, their existing and proposed international transactions to determine whether they are permissible under U.S. sanctions and export control measures. They may also review and consider enhancing commercial contract terms to provide expressly for termination without penalty if economic sanctions would prohibit performance of the contract. This may help to protect the individual or company doing business with Russian or Ukrainian entities or individuals from contractual claims by a counterparty if one party ceases performance of the contract due to restrictions dictated by economic sanctions.

©2020 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume V, Number 93


About this Author

Cyril Brennan, Greenberg Traurig Law Firm, Washington DC, International Trade Law Attorney

Cyril (Cy) Brennan focuses his practice on international trade regulation and compliance, with an emphasis on U.S. export controls and economic sanctions. Cy handles matters regarding the International Traffic in Arms Regulations (ITAR), the Export Administration Regulations (EAR), U.S. sanctions programs administered by the Treasury Department’s Office of Foreign Assets Control (OFAC) and the Department of Commerce’s anti-boycott regulations. In addition, he represents clients before the Committee on Foreign Investment in the United States (CFIUS), and advises clients...

Renee Latour, Greenberg Traurig Law Firm, Washington DC, Corporate Law Attorney

Renee A. Latour focuses her practice on international trade regulation with an emphasis on compliance with U.S. export controls and economic sanctions. Renee assists clients on matters related to international trade that arise under the jurisdiction of various U.S. governmental agencies, including the Departments of Commerce, State, Treasury, and Defense. She advises on U.S. export control laws, anti-boycott laws and special sanctions maintained by the U.S. Government against various countries including Iran, Cuba and Sudan.

Renee also assists clients with matters relating to issues arising under the anti-bribery and record-keeping provisions of the Foreign Corrupt Practices Act (FCPA), the OECD Convention and the United Nations (UN) Convention Against Corruption. Additionally, she assists clients in designing and implementing internal compliance policies and procedures and conducting cross-border export and sanctions regulatory due diligence, particularly in the context of mergers and acquisitions. Renee also counsels on the Exon-Florio provisions of the Committee on Foreign Investment in the United States (CFIUS), and assists clients in mitigating foreign ownership, control or influence (FOCI) under the applicable national industrial security regulations.