Provides advice on how to perform due diligence and in what areas it is necessary for a U.S. company. Includes information on the U.S. Commercial Service International Company Profile service.
Russia can be a challenging market which means U.S. companies need to take time to learn about the business environment and select local partners wisely. Taking shortcuts when evaluating business opportunities and selecting local partners is not advisable. Occasionally, basic information about regulations, company ownership and credit worthiness is not readily accessible, and the market’s regulatory framework continues to evolve, requiring companies to closely monitor changes. The U.S. Commercial Service offers an International Company Profile service as a way to evaluate potential partners. For more information on this service and other customized services, please visit CS Russia’s website: https://2016.export.gov/russia/servicesforu.s.companies/index.asp
Russia-related sanctions have been implemented by the U.S. Government under multiple legal authorities in the form of executive orders and public laws since 2014. On August 2, 2017, the President signed the Countering America’s Adversaries Through Sanctions Act (CAATSA) which codified and expanded sanctions announced during 2014-2016 on certain Russian entities and sectors. CAATSA includes sectoral sanctions affecting the financial, defense, and energy transactions, and “blocking sanctions” that prohibit business with certain individuals and entities.
Implementation and enforcement of sanctions legislation is a shared and partitioned responsibility across the U.S government. The Departments of State and Treasury have published numerous public FAQs and links to components of the legislation that serve as extremely valuable resources for conducting initial due diligence.
In response to inquiries from the business community, we have compiled the following resource center for use in understanding the multiple components of Russian sanctions legislation applied by the U.S. Government since 2014. This information is not comprehensive and is subject to ongoing updates. We strongly urge U.S. firms conducting business in Russia to perform careful due diligence and seek legal counsel when vetting potential transactions and counterparties. Questions on specific transactions should be directed to the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), and the Department of Commerce’s Bureau of Industry and Security.
U.S. Department of Commerce Resource Center on Russia Sanctions: https://www.export.gov/article?id=US-Sanctions-Information-Related-to-Ukraine