A rush of new export controls and sanctions activity from the U.S. Departments of Treasury, Commerce, and State have been enacted on the one-year anniversary of its invasion of Ukraine. The Of­fice of Foreign Assets Control (OFAC) also announced a range of new Russia sanctions, including new restrictions targeting the country’s metals and mining sector and new financial sanctions against people and entities to limit “Russia’s ability to obtain the capital, materials, technology, and support that sustain its war against Ukraine,” the Treasury Department said.

The Impact on U.S. Companies

  • OFAC and BIS sanctioned over 200 entities and individuals, including alleged sanctions evaders in China, Europe, and Canada.
  • Companies that still legally export to Russia or are winding down past transactions, where payments still need to be made, should ensure that their payment chain does not include any newly sanctioned banks.
  • Companies should not view these sanctions as only pertaining to exports into Russia (For example, a new determination to sanction entities operating in Russia’s metals and mining sector could have serious implications for Western companies buying or transporting Russian-sourced minerals or “geological materials.”).

For more information reach out to Mohawk Global Trade Advisors.

By Clarissa Chiclana

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