Prohibiting New Investment in and Certain Services to the Russian Federation in Response to Continued Russian Federation Aggression
Executive Order 14071, issued by President Joe Biden on April 6, 2022, expands and tightens U.S. sanctions in response to Russia’s continued aggression. Building on prior sanctions authorities, the order blocks new investment by U.S. persons in Russia and prohibits the export, reexport, sale, or supply of certain services to Russia (as determined by the Treasury in consultation with the State Department), as well as prohibits U.S. persons from providing financing or guarantees that would enable prohibited Russian transactions by foreign counterparts. The order gives the Secretaries of the Treasury and other federal agencies broad regulatory authority to implement these prohibitions, while preserving limited carve-outs for official government or United Nations business and allowing existing contracts and laws to govern where applicable. It also prohibits evasion and conspiracies aimed at bypassing these prohibitions and defines key terms for scope and enforcement.
Key Points
- 1Prohibits new investment in the Russian Federation by any United States person, wherever located.
- 2Prohibits the exportation, reexportation, sale, or supply of any category of services to any person located in Russia, by any United States person or from the United States (subject to Treasury State Department guidance).
- 3Prohibits approvals, financing, facilitation, or guarantees by a United States person for foreign transactions that would be prohibited if performed by a U.S. person or within the United States.
- 4Grants the Treasury (in consultation with State) authority to issue rules and regulations to carry out the order; requires all federal agencies to implement the order.
- 5Allows exemptions only as provided by law or regulation; notes that prior contracts or licenses may continue under existing terms and does not create enforceable rights.