More Troubles | No More New Investments Involving Russia and Also Four New General Licenses will be Prohibited – U.S Issues NewExecutive Order

On March 15, 2022, the US Government issued a number of additional sanctions measures against Russia.

The latest measures include the issuance of (i) a new Russia-related Executive Order 14068, “Executive Order on Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression” (“EO 14068”) and (ii) four new General Licenses (“GLs”) related to Russia and Ukraine.

These measures include a ban on exports and sales of a range of luxury goods to complement a Department of Commerce export ban on such items imposed the same day, as reported in our earlier blog here.

OFAC also added several individuals and entities to the Specially Designated Nationals and Blocked Persons List (“SDN List“).  OFAC released a press release providing additional guidance related to the additional sanctions measures, available here.

EO 14086

The EO 14068 builds on EOs 14024, 14039, and 14066, further restricting certain transactions by US Persons involving Russia.  Under EO 14068, the following are prohibited:

• the importation into the United States of Russian-origin fish and seafood, and preparations thereof, alcoholic beverages, and non-industrial diamonds;
• the exportation, reexportation, sale, or supply, directly or indirectly, of luxury goods as determined by the Department of Commerce (see further below) from the United States or by a US Person to any person located in Russia;
• new investments by US Persons in any sector of the Russian economy as to be determined by the Secretary of the Treasury;
• exportation, reexportation, sale, or supply, directly or indirectly, of US dollar-denominated banknotes from the United States or by a US Person, to the Government of Russia or any person located in Russia;
• any approval, financing, facilitation, or guarantee by a US Person of a transaction by a foreign person where such a transaction would be prohibited if performed by a US Person (for example, payment in US dollars or using a US bank to facilitate any of the above prohibited transactions).

EO 14068 also reserves power to the Commerce, State, and Treasury Departments to prohibit the import, export, or reexport of other goods, as needed and applicable.

OFAC also published several new Frequently Asked Questions (“FAQs”) related to the New EO, which may be found here.  The following points in OFAC’s new FAQs are particularly noteworthy: