Additional US and EU Sanctions Imposed on Russia and the Russian Government Reaction

July 17, 2014

On July 16, 2014, the U.S. Government imposed additional sanctions against Russian and Ukrainian individuals and companies as a result of the ongoing crisis in Eastern Ukraine. In addition to adding five individuals and 11 entities to the List of Specially Designated Nationals and Blocked Persons (“SDN List”), the U.S. Government also imposed more targeted sanctions against four major Russian financial and energy companies – Gazprombank OAO, State Corporation Vnesheconombank, OAO Novatek and OAO Rosneft – that, along with certain named affiliates, have been added to a newly-created Sectoral Sanctions Identification List (“SSI List”). These companies now will have significant trouble accessing U.S. capital markets, as explained below. From the perspective of U.S. (and other) companies who must comply with the sanctions, however, the newly-created restrictions involving parties on the SSI List differ significantly from – and are significantly less restrictive than – those involving parties on the SDN List.

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