Ukraine Related Russian Sanctions (Sectoral Sanctions)
A number of governments have applied sanctions against businesses and individuals in Russia in response to the Russian invasion of Ukraine. These sanctions have been approved by the United States and the European Union with Russia responding with a ban on food imports from both. The first round of Russian Sanctions by the United States were ordered by President Obama on March 6, 2014. Japan also announced sanctions at this time.
Australia imposed sanctions on Russian after its annexation of Crimea. A second round of Russian Sanctions was imposed on April of 2014 by President Obama. The European Union followed by issuing its own Russian Sanctions along with Albania, Iceland and Montenegro.
As the war escalated in Donbass (Ukraine), a third round of Russian Sanctions was imposed on July 16, 2014 by the United States. Shortly thereafter, the EU expanded its sanctions on Russia.
In August of 2014, the U.S. Treasury Department issued its Sectoral Sanctions Identifications Listwhich has grown steadily since then to include much of the leadership of the Russian Federation and Russian Industry. These Russian Sanctions are against individuals and their ownership of certain businesses. The intent is to cripple specific “sectors” in the Russian Economy, and in the United States these are known as “Sectoral Sanctions”. This is managed by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and the regulations may be found in 31 CFR Part 589 – Ukraine-Related Sanctions Regulations.
Arcadier, Biggie & Wood, PLLC is partnered with CVG Strategy, a consultancy, to provide a solution to businesses wanting to ensure compliance with these Russian Sanctions or Sectoral Sanctions imposed by the United States Treasury Department. This white paper explains the Russian Sanctions and the approach to solving the problem.