23 May Russian Sanctions
In the face of a growing list of sanctioned Russian individuals and companies and the possibility of more following Ukraine’s May 25 elections, there are several steps your company might take to help guard against heavy fines from unintended infringements.
1. Prepare for new sanctions: EO 13661 names financial services, energy, metals/mining, engineering, and defense as potential targets of further sanctions. Companies involved in those sectors—especially with major businesses like energy giant Gazprom—might restructure existing transactions/investments to avoid the effects of potential sanctions (lexology.com), check contracts to see if they could be terminated (if not, then if damages could be lessened), and, if possible, move assets out of Russia (agg.com).
2. Update lists: Companies should keep their lists of prohibited parties up-to-date as new rounds of sanctions are imposed (perkinscoie.com).
3. Adjusting for non-issuance of export licenses: As licenses will be denied for exporting items to Russia, companies should reconsider transactions requiring export licenses (USA Today, perkinscoie.com)
4. Check donors: EO 13660 bans donations to/from those on the sanctioned list. Nonprofit organizations might review their lists of donors (lexology.com).
5. Review multinational dealings: Since sanction programs imposed by the US, EU, Canada, Japan, and potentially other countries are not uniform and may continue to diverge, companies should examine their transactions with particular care if they involve multinational dealings, and re-examine them if new sanctions arise (agg.com).
6. Consider retaliatory sanctions: Despite Russia’s reluctance towards retaliatory sanctions against the US (voiceofrussia.com), companies may still wish to consider the impact of such potential retaliations on US assets and personnel in Russia if sanctions continue to escalate (lexology.com).