Ukraine-Related Sanctions: Latest Developments Include U.S. Introduction of Sectoral Sanctions Imposing Targeted Sanctions on Certain Entities in Russia’s Financial Services and Energy Sectors; U.S. Designating Additional Persons and Entities as Blocked Persons; and New EU Designations Targeting Additional Individuals and Entities

Sullivan & Cromwell LLP - July 25, 2014

In response to the continued unstable situation in Ukraine, the European Union and the United States announced economic sanctions targeting certain Russian and Ukrainian persons and entities.  The U.S. measures were taken prior to the date that Malaysia Airlines Flight 17 was shot down over Eastern Ukraine, reportedly by a Buk surface-to-air missile, and the EU announcements followed the occurrence of that incident.  The U.S. measures include for the first time imposition of so-called “sectoral sanctions,” which at this time impose targeted sanctions against four Russian entities, two in the financial services sector and two in the energy sector.  The United States and European Union added individuals and entities to the list-based sanctions previously imposed against a number of persons and entities in Russia and Ukraine, bringing the total of such listed parties to 249 in the United States and 107 in the European Union.