Blocking Property of Certain Persons and Prohibiting Certain Transactions With Respect to Continued Russian Efforts To Undermine the Sovereignty and Territorial Integrity of Ukraine
Executive Order 14065, signed February 21, 2022, builds on prior sanctions tied to Russia’s actions in Ukraine by expanding the national emergency’s reach. It blocks and restricts economic activity related to the so-called Donetsk People’s Republic (DNR) and Luhansk People’s Republic (LNR) regions of Ukraine, and grants broad authority to the Treasury Department to implement additional sanctions. The order prohibits new investments, imports, and exports involving the Covered Regions, and bars United States persons (and their foreign branches) from financing or facilitating transactions that would be prohibited if done by a U.S. person. It also blocks property and interests in property of persons connected to the Covered Regions (leaders, officials, owners, or supporters), imposes visa/entry restrictions on certain designated individuals, and authorizes the Treasury to issue rules to carry out these measures. The order is designed to pressure Russian and separatist actors while allowing certain government and legally required activities to proceed. In plain terms: the United States imposes new, broad sanctions to deter and punish activities connected to the Covered Regions in Ukraine, restricts financial flows and trade with those areas, freezes designated individuals’ assets, and restricts who can enter the U.S.—all under the umbrella of an expanded national emergency.
Key Points
- 1Prohibitions on Covered Regions: U.S. persons cannot (i) invest in the Covered Regions, (ii) import goods/services/tech from them, (iii) export or reexport goods/services/tech to them, or (iv) finance or guarantee a transaction by a foreign person if that transaction would be prohibited for a U.S. person.
- 2Asset Freeze and Listing: The order blocks all property and interests in property of persons designated by the Treasury (in consultation with the State Department) who have operated in the Covered Regions, are leaders or officials of entities there, are owned/controlled by blocked persons, or have materially supported blocked individuals.
- 3Scope of Prohibitions: The prohibitions cover both providing and receiving funds, goods, or services for the benefit of blocked persons, and prohibit attempts to evade these prohibitions or to form conspiracies to violate them.
- 4Immigration/Entry Restrictions: The President may suspend entry of non-U.S. persons who meet certain criteria related to the Covered Regions, with procedures handled by the State Department and Homeland Security.
- 5Implementation and Flexibility: The Treasury, with State, can issue rules/regulations to carry out the order. All federal agencies must implement it, and certain measures may not require prior notice to designated individuals to remain effective.
- 6Definitions and Clarifications: The order defines “entity,” “person,” “United States person,” “noncitizen,” and “region of Ukraine” to cover broad actors and areas; it clarifies that the order does not create enforceable rights for individuals against the United States government.