1091. Do non-U.S. persons face sanctions risk for supporting Russia following its sham referenda, purported annexation, and continued occupation of the Kherson, Zaporizhzhya, Donetsk, and Luhansk regions of Ukraine?
Yes. On September 23, G7 Leaders issued a statement condemning Russia’s sham referenda and noting their collective readiness to impose further economic costs on Russia, and on individuals and entities both inside and outside of Russia that provide political or economic support for Russia’s illegal attempts to change the status of Ukrainian territory.
The United States is prepared to more aggressively use its authorities under existing U.S. sanctions programs to target such persons whose activities may constitute material assistance, sponsorship, financial, material, or technological support for, or goods or services to, or in support of (together “material support”), sanctioned persons or sanctionable activity. Particular areas of targeting focus include entities and individuals in jurisdictions outside Russia...
1) Issued in response to Russia's purported annexation of certain regions in Ukraine, this FAQ appears aimed at providing a sort of "policy statement" concerning OFAC's willingness/intention to use the standard "material assistance/material support" derivative designation criterion not otherwise characterized as "secondary sanctions" as what would, in effect, amount secondary sanctions. Compare FAQ # 1082, an FAQ taking the same step with respect to a particular set of credit card payment system-related transactions. The posture appears to be one designed to chill trade with blocked persons without issuing new authorities that would be referred to by OFAC as "secondary sanctions," but the "[p]articular areas of targeting focus" statement may be aimed at conveying that designation for ordinary international trade transactions will generally have a nexus to "support for Russia’s illegal attempt to annex Ukrainian sovereign territory".
As of the date on which...