Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About

Trending Topics

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni

    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor & Employment
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations

    Industries

    View All

    • Cannabis
    • Consumer
    • Energy
    • Entertainment
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Non Profit
    • Real Estate
    • Technology

    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    1. Home
    2. Insights
    3. Alerts
    4. The United States imposes financial sanctions against Russia and blocking sanctions on Russian individualsAlerts

    Alert / Export Controls Alert

    The United States imposes financial sanctions against Russia and blocking sanctions on Russian individuals

    Feb 23, 2022

    Share

    By Alexandra Lopez-Casero and David Crosby

    Following the executive order on the breakaway Ukrainian regions, the US is also imposing severe financial sanctions on Russia.

    What’s the Impact?

    • This afternoon, the White House and OFAC announced the first tranche of financial sanctions against Russia
    • Additional sanctions may be forthcoming

    DOWNLOADS

    On February 22, the White House and the Office of Foreign Assets Control (OFAC) announced the “first tranche” of sanctions against Russia, which consist of:

    • Full blocking sanctions on two significant Russian financial institutions—The Secretary of the Treasury will impose full blocking sanctions on two large state-owned Russian financial institutions that, according to the White House, provide key services crucial to financing the Kremlin and the Russian military: Vnesheconombank and Promsvyazbank and their subsidiaries. The White House explained that, collectively, these institutions hold more than $80 billion in assets and finance the Russian defense sector and economic development. These measures will freeze their assets in the United States, prohibit U.S. individuals and businesses from doing any transactions with them, foreclose access to U.S. dollar-denominated transactions, and “shut them out of the global financial system.”
    • Expanded sovereign debt prohibitions restricting U.S. individuals and firms from participation in secondary markets for new debt issued by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, and the Ministry of Finance of the Russian Federation—According to the White House, these prohibitions will cut off the Russian government from a key avenue by which it raises capital to fund its priorities and will increase future financing costs. It denies Russia access to key U.S. markets and investors.
    • Full blocking sanctions on five Russian individuals and their family members: Aleksandr Bortnikov (and his son, Denis), Sergei Kiriyenko (and his son, Vladimir), and Promsvyazbank CEO Petr Fradkov—The White House explained that these individuals and their relatives directly benefit from their connections with the Kremlin. Other Russian elites and their family members are on notice that additional actions could be taken against them.

    According to the White House, the Secretary of the Treasury will determine that any institution in the financial services sector of the Russian Federation economy is a target for further sanctions. It explained that over 80% of Russia’s daily foreign exchange transactions globally are in U.S. dollars and roughly half of Russia’s international trade is conducted in dollars and that with this action, no Russian financial institution is safe from its measures, including the largest banks.

    The Biden administration has also made it clear that these sanctions represent the United States’ “first response to Russia’s actions” and that additional sanctions may be forthcoming, such as stricter U.S. export controls on technology exports to Russian companies.

    We will provide further updates and analysis as the situation continues to evolve. 

    Practices

    M&A and Corporate TransactionsGovernment Investigations & White Collar DefenseCross-Border RisksGlobal Compliance & InvestigationsInternational ServicesInternational Trade, Transportation & MaritimeCFIUS (Committee on Foreign Investment in the U.S.)Export Controls & Economic Sanctions

    Insights And Happenings

    • Alert

      New Executive Order brings CFIUS criteria into sharper focus

      Sep 28, 2022
    • Alert

      NYDFS issues new guidance to NY’s virtual currency industry regarding blockchain analytics tools

      May 6, 2022
    • Alert

      Exerting centralized control in a decentralized market, the U.S. Treasury puts BitRiver on OFAC’s SDN list

      April 25, 2022

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • © 2023 Nixon Peabody. All rights reserved
    • Privacy Policy
    • Terms of Use
    • Statement of Client Rights
    • Supplier Diversity Program
    • Nixon Peabody International LLC
    • PAL