A new set of the US sanctions

Examination of the key restrictions in the material of Mongerine

The so-called “sanctions from hell” became the main topic of discussion in 2019 – restrictions against the national debt of Russia (fund raising to the budget by means of different financial instruments, oil and gas projects).

The restrictions were partially introduced back in August 2019, they were announced as the responsive measure to the illegal use of chemical weapons against the former officer of the Russia’s military intelligence service Anatoliy Skripal. American banks were banned from primary distribution of government stocks in foreign currency issued by Russia, and also from currency crediting of Russia. Along with that, American companies supposedly could not obtain licenses for export of particular chemical and biological products to Russian state enterprises. The text incorporating amendments, the International Relations Committee voted for, has not been revealed yet.

Project DASKA stipulates the following:

Contrary to the August sanctions, they introduce the prohibition on transactions of Americans with any Russian government stock and other financial instruments issued on behalf of the government of the Russian Federation (regardless of currency) with the issuance date 90 days after the enactment and the circulation period exceeding 14 days.

New individual sanctions are assumed for introduction at the order of the US president against Russian financial institutions (putting them on the sanction list) that support intervention of Russia to democratic procedures or elections in other states”.

The energy sector is under secondary sanctions that limit investments to oil and gas projects of Russia – they act against persons and companies (regardless of nationality) that would invest more than 250 million dollars in development of oil and gas resources beyond the Russian Federation conducted by Russian state organizations or companies with dominant state participation.

Besides, the draft bill appoints the President of the USA to introduce restrictions against any persons who invest in construction of objects for natural gas export from Russia abroad. The sanctions may also refer to those persons who provide products, services and technologies for oil production in Russia (including those who help to repair and build the corresponding infrastructure) whose cost amounts to 1 million dollars and more (for single time investments) or 5 million dollars (accumulatively within 12 months).

The reason for the imposition of the sanctions in the ship-building sphere was the arrest of ships of the Ukrainian naval forces in the Strait of Kerch. The point of the sanctions is the following: if the US authorities find out that Russia has interfered in the freedom of navigation and thereby violated the international norms accepted in this sphere, all Russian companies relating to the ship-building industry, will be included in the sanction list (Designated Nationals and Blocked Persons List).

Let us remind you that being included in the sanction list means being prohibited from transactions connected with transfer, payment, export and other operations with property or property rights, the prohibition refers to enlisted organizations and private persons. In the similar way, the sanctions prohibit transactions relating to property or property rights of organizations for the persons mentioned above who own more than 50% of shares regardless of the fact if such organizations are included in the sanction list or not.

28.12.2019

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