Overview
On February 21, 2022, the White House issued a new Executive Order (EO) imposing comprehensive sanctions on the disputed Donetsk and Luhansk regions of Ukraine following President Vladimir Putin’s announcement that Russia would recognize the independence of the so-called Donetsk People’s Republic (DNR) and Luhansk People’s Republic (LNR) and place Russian military forces in those territories for purported peacekeeping operations.
The new EO prohibits:
- new investment in the DNR or LNR by US persons, wherever located;
- the importation into the United States, directly or indirectly, of any goods, services, or technology from the DNR or LNR;
- the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a US person, wherever located, of any goods, services, or technology to the DNR or the LNR; and
- any approval, financing, facilitation, or guarantee by a US person, wherever located, of a transaction by a foreign person where the transaction by that foreign person would be prohibited if performed by a US person or within the United States.
- GL No. 17 – authorizing US persons to engage in transactions ordinarily incident and necessary to the wind down of transactions involving the DNR or the LNR, including divesting or transferring pre-existing investments to non-US persons, and winding down operations, contracts, or other agreements in effect before February 21, 2022 until 12:01 am Eastern Daylight Time of March 23, 2022 (i.e., approximately 30 days);
- GL No. 18 – authorizing US persons to engage in transactions related to the exportation or reexportation of agricultural commodities, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices to the DNR or the LNR, or to third countries for reexport to the DNR or the LNR, as well as transactions related to the prevention, diagnosis, or treatment of COVID-19;
- GL No. 19 – authorizing US persons to engage in transactions related to telecommunications and mail involving the DNR or the LNR;
- GL No. 20 – authorizing US persons to engage in transactions related to the official business of the following organizations by their employees, grantees, or contractors: (i) the United Nations (including UN Programs, Funds, and Other Entities and Bodies, as well as its Specialized Agencies and Related Organizations); (ii) the International Centre for Settlement of Investment Disputes (ICSID) and the Multilateral Investment Guarantee Agency (MIGA); (iii) the African Development Bank Group, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank Group (IDB Group), including any fund entity administered or established by any of the foregoing; (iv) the International Committee of the Red Cross and the International Federation of Red Cross and Red Crescent Societies; and (v) the Organization for Security and Co-operation in Europe;
- GL No. 21 – authorizing US persons to engage in transactions related to noncommercial personal remittances to or from the DNR or the LNR. GL No. 21 does not cover charitable donations of funds to or for the benefit of an entity or funds transfers for use in supporting or operating a business, including a family-owned business; and
- GL No. 22 – authorizing US persons to engage in transactions that are ordinarily incident and necessary to the exportation or reexportation, directly or indirectly, to the DNR or the LNR of services incident to the exchange of personal communications over the internet.
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