Out-Law Analysis | 12 Apr 2018 | 5:23 pm | 2 min. read
As of 6 April 2018, 24 Russian individuals and 14 Russian companies have been added to the list of specially designated nationals (SDNs). The newly-listed SDNs include large companies and individuals with significant business interests.
US persons cannot do business with the SDNs or with any entity that is owned 50% or more in aggregate by one or more SDNs. Non-US persons could face sanctions for knowingly facilitating significant transactions for or on behalf of the SDNs or with any entity that is owned 50% or more in aggregate by one or more SDN - a notable extension of the US sanctions regime to overseas persons and businesses.
Companies now listed as SDNs include:
Individuals with significant business interests listed as SDNs include:
General licences (short-term assistance)
OFAC has issued two general licences, allowing the performance of certain categories of transactions which would otherwise be in breach of the sanctions regime.
One licence authorises certain activities necessary to maintain or wind down operations and contracts that were entered into prior to 6 April 2018 with specific corporate SDNs until 5 June 2018. The licence does not permit the exportation of goods from the US, but pre-existing orders by non-US entities and which do not include US content may proceed so long as they come within the parameters of the general licence.
The second licence authorises transactions for the purpose of transferring debt equity and other holdings by a non-US person to another non-US person in EN+ Group plc, GAZ Group and United Company RUSAL plc.
Any business activity in relation to Russia or Ukraine should also consider:
EU asset freezes
The EU sanctions prohibit any EU company or person, and any overseas company or person while in the EU, from making any funds, or economic resources from which funds could be generated (for example, hardware and technology) available to or for the benefit of the persons listed in the EU sanctions target list.
EU and US sectoral sanctions
Crimea and Sevastopol restrictions
In addition to the sanctions against Russia, the US and EU have broad embargos in place in relation to business with or in Crimea.
Given that it is a criminal offence to breach the sanctions, legal advice should be taken if a company has any doubt over whether or not a transaction is caught by the sanctions.
We recommend the following compliance steps: