In early August, the U.S. and EU imposed tough new sanctions on Russia due to the situation in Ukraine. These "Level 3" sanctions followed two previous rounds of sanctions that targeted individual persons and companies. We discussed the ramifications of those sanctions on U.S. companies doing business with Russia in a blog post on August 6. (Click here to read the post).
Late last week, the U.S. and EU again joined forces to add new sanctions to the existing sanction regime and once again targeted the financial, energy and defense sectors of the Russian economy.
In the energy sector, the new round of sanctions target Russia’s two largest energy firms OAO Gazprom and Lukoil OAO and several of their business units.
The increasingly tough sanctions impose an “all-out” asset freeze on five Russian defense-sector companies: OAO Dolgoprudny Research Production Enterprise, Mytishchinski Mashinostroitelny Zavod OAO, Kalinin Machine Plant JSC, Almaz-Antey GSKB and JSC NIIP.
As with past rounds of sanctions, the newest rollout imposes additional travel bans and asset freezes on a number of persons with connections to Russian President Vladimir Putin. The Treasury Department also added additional export restrictions on certain oil development technologies.
All in all, the additional layer of sanctions presents further challenges to American companies doing business with a number of Russian business entities and individuals. Roetzel’s corporate compliance attorneys are available to assist you with any questions regarding the operation of the sanction regime against Russia and actions that your company may need to take in order to comply with the restrictions.