U.S. Issues Guidance on Sanctions Relating to Russia’s Defense and Intelligence Sectors

30 October 2017
View Client Update

Key takeaways

  • On Friday, October 27, the U.S. Department of State issued public guidance on the implementation of Section 231 of the Countering America’s Adversaries Through Sanctions Act (CAATSA).
  • Section 231 of CAATSA requires the U.S. President to impose potential sanctions against individuals or entities that knowingly engage in “significant transactions” with persons that are a part of, or operating for or on behalf of, Russia’s defense or intelligence sectors.
  • The new guidance is accompanied by a list of entities considered to be operating in Russia’s defense or intelligence sectors and a discussion of when a transaction is “significant” for purposes of Section 231.
  • Defense- and intelligence-related transactions are more likely to be considered “significant,” while transactions with purely civilian end-uses or end-users or transactions required by law with the Federal Security Service are less likely to raise any sanctions risks.