March 14, 2022

Yet Further Export, Import and Investment Sanctions on Russia and Belarus, Phase IV

By Executive Order of March 11, 2022, President Biden took yet additional steps to punish Russia for its incursions in Ukraine and to pressure it to change course. 

This bars:

  • The importation into the United States of Russian-origin fish, seafood, and preparations thereof; alcoholic beverages; non-industrial diamonds; and other products of Russian origin to be determined (all likely to be defined by reference to the Harmonized Tariff Schedule of the United States).

    • But General License 17 authorizes performance on certain existing commitments for importation of these items, through 12:01 a.m. EDT, March 25, 2022.

  • The exportation, reexportation, sale, or supply, directly or indirectly, from the U.S., or by a U.S. person, wherever located, of luxury goods — including certain spirits, tobacco products, clothing, jewelry, vehicles and antique goods — to any person located in Russia or Belarus, and to certain Specially Designated Nationals wherever located.

  • New investment in to-be-specified sectors of the Russian economy by a U.S. person, wherever located, understanding that new investment in the energy sector of Russia is already barred by Executive Order 14066 (March 8, 2022).

  • The provision, from the U.S., or by a U.S. person, wherever located, of U.S. dollar-denominated banknotesi.e., physical U.S. currency — to the Russian government or any person located in Russia.

    • But General License 18 authorizes certain banknote noncommercial, personal remittances, and General License 19 authorizes certain U.S.-person activities for personal maintenance within Russia.

The U.S.-person facilitation of these prohibited activities is also barred.

The Office of Foreign Assets Control also issued Ukraine-related General License 23, authorizing certain transactions in support of non-government organizations’ activities in the otherwise comprehensively sanctioned so-called Donetsk People’s Republic or Luhansk People’s Republic regions of Ukraine.

Goodwin’s Phase I, II, and III client alerts on the recent sanctions addressing Russia, Belarus and regions of Ukraine are available via the foregoing links.

If you would like additional information about the issues addressed in this Client Alert, please contact Rich Matheny or Jacob Osborn, or the Goodwin lawyer with whom you typically consult.