I came to the US from the Soviet Union in 1989 and used to say I was from Russia, but now I can’t be proud of that anymore because of the bad things Russia has done. The US has put sanctions on Russia, Ukraine, and Belarus, and this article talks about how these sanctions affect business transactions. It’s meant to help lawyers and businesses understand if their deals with these countries are allowed or if they need a special permit. In 2014, I was working on a business deal between a U.S. company and a Russian entity when the Russian entity got sanctioned by the U.S. This meant the deal had to stop right away. At the time, it was all very new and confusing, and we needed clear rules to follow. Now, the U.S. government has provided guidance for people and companies involved in business with Russia and Ukraine. The U.S. put sanctions on Russia in 2014 because of their actions in Ukraine. These sanctions restricted certain transactions with Russian individuals and companies. The sanctions included blocking assets, targeting certain Russian sectors, and banning trade with Crimea. The U.S. government has put sanctions on some big banks in Russia, including SberBank, as well as several important people in the Russian government. This means that American people and businesses are not allowed to do any kind of transactions with them, like opening accounts or giving them money. The U.S. government has put sanctions on several Russian and Belarusian companies and individuals. This means American people and businesses can’t do business with them. The companies and people affected are linked to the Russian government or are supporting Russia’s invasion of Ukraine. The U.S. has also imposed sanctions on a company called Nord Stream 2 AG and its leaders. These sanctions are meant to put pressure on Russia and Belarus to stop their harmful actions. Sectorial sanctions are rules that stop U.S. people and companies from doing certain kinds of business with specific entities, as listed in the Sectorial Sanctions Identifications (SSI) List. These rules mainly focus on transactions involving new debt or equity with these entities. So, U.S. people and companies can’t lend money or buy shares from these listed entities for longer than a certain period of time. If an entity is 50% or more owned by a sanctioned person, these rules also apply to them. But it’s important to note that these rules don’t completely block transactions or freeze assets, they just place certain restrictions on them. Directive 4 and Executive Orders 14024 and 14066 put restrictions on certain transactions involving Russia. U.S. persons are prohibited from providing goods, services, or technology for certain oil projects in Russia. Also, imports of Russian oil and gas products are banned, and U.S. investment in the Russian energy sector is not allowed. President Biden issued an order to stop certain things being sent to or from Russia because of their aggressive actions. This includes fish, seafood, alcohol, diamonds, luxury goods, and U.S. dollars. The U.S. government also restricted certain professional services being provided to Russia and made it harder to export things to Russia. There are also strict rules about doing business in the Crimea region of Ukraine. Russia declared that two regions, Donetsk Peopleâs Republic and Luhansk Peopleâs Republic, are now part of Russia. In response, President Biden issued sanctions that prohibit new investment, imports, exports, and financial services involving these regions. People can apply for special permission from the government to do certain activities. It’s important to check government lists to make sure you’re not doing business with anyone affected by the sanctions. The U.S. government has put restrictions on exporting certain technology and goods to Russia and Belarus because of their invasion of Ukraine. They have also put sanctions on Russia’s military units and officials involved in human rights abuses and suppressing dissent. The goal is to weaken Russia’s war capabilities and hold them accountable for their actions. Companies have to tell the public if the war in Ukraine and Russia affects their business. This includes things like their connections to Russia, Belarus, or Ukraine, if they rely on goods or services from there, and if their supply chain is disrupted. The U.S. government has also put sanctions on certain individuals and entities related to this. Lyubov Zeldis is a lawyer who has been helping clients with business and legal matters for the past 20 years. She speaks multiple languages and has experience working with clients from different countries. She recently wrote an article for a legal publication about international law. The article was approved by the International Law Section.
Source: https://www.floridabar.org/the-florida-bar-journal/transactions-affected-by-the-russian-ukrainian-conflict-since-2014/
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