US and EU Impose Additional Sanctions on Russia

March 18, 2014

The United States and the European Union imposed new targeted sanctions on Russian and Ukrainian political figures viewed as responsible for undermining Ukrainian sovereignty on 17 March 2014. Both the EU and U.S. have made clear that these sanctions are an opening move, intended to induce a diplomatic resolution of the Crimean crisis, and that additional sanctions may be imposed in response to continued escalation by Russia. As of 18 March 2014, Russian President Putin formally announced Russian annexation of Crimea and the Crimean Parliament has signed a treaty of accession with Russia, suggesting that a diplomatic resolution might not be forthcoming absent further escalation of sanctions in the near term. At this time, notwithstanding threats to retaliate with sanctions against certain unidentified western persons and possibly to ban U.S. Senators from traveling to Russia, nothing concrete has been proposed by the Russian Government in the form of countermeasures. Since it has now formally agreed to annex Crimea and Sevastopol, it may think that further measures are unnecessary at this stage. Below we discuss the specific sanctions imposed by the EU and the U.S. and highlight screening solutions that companies should implement as part of a broader compliance program.

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