April 16, 2021

New US sanctions on Russia

On 15th April 2021, the US extended its sanctions on Russia. The reason for the extension is to punish Russia for its interference in the 2020 election through cyberattacks and other Russian misconducts. Opinions from the White House Fact Sheet and Treasury Press indicate the new Executive Order (“Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation”) plans to impose costs tactfully and cautiously on Russia if it continues undermining international actions. 

Summary of the new sanctions and initiatives taken by the US:

  • Sanctions to be imposed on any area of the Russian economy, especially its ability to issue sovereign debt.
  • U.S. financial institutions are prohibited from taking part in the primary market for rouble-denominated Russian sovereign bonds from 14th June, although US banks have been barred from taking part in the primary market for non-rouble sovereign bonds since 2019.
  • Russian consuls are prohibited from the Russian Embassy in Washington, including reps of Russian intelligence services (the Russian Foreign Intelligence Service (SVR)) as the perpetrator of the SolarWinds hack.
  • Thirty-two entities and individuals who aided the Russian government direct involvement in attempts to influence and misinform in the 2020 U.S. presidential election have been blacklisted by the Treasury.
  • In partnership with the EU, UK, Australia, and Canada, the US Treasury blacklisted eight individuals and entities associated with Moscow’s ongoing occupation and repression in Crimea, which Russia seized from Ukraine in 2014.

Why is this important for your organisation?

Breaching sanctions regulations may result in civil, criminal and regulatory liability, resulting in substantial fines and reputational damage. Organisations should assess their business’s nature, the types of product and services they offer, their supply chains and the jurisdictions they operate to devise an appropriate compliance framework. Learn more here.

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