Back

Risks and Considerations for Doing Business in the Russian Federation and Russia-Occupied Territories of Ukraine (State Department Advisory)

Date issued: Feb. 23 2024

You've hit a wall. Sign in if you have an account, learn more about TURBOFAC and subscription options, or purchase access to the text of the document on this page, the native .pdf file, and the associated TURBOFAC original commentary.
TURBOFAC is a module of the compliance platform OverRuled. To learn more about OverRuled, visit www.overruled.com.

PRINT
Risks and Considerations for Doing Business in the Russian Federation and Russia-Occupied Territories of Ukraine

OTHER RELEASE

BUREAU OF EUROPEAN AND EURASIAN AFFAIRS

FEBRUARY 23, 2024

Summary

The United States assesses that doing business in the Russia Federation and in Russia-occupied territories of Ukraine poses serious legal, financial, and reputational risks. Russia’s kleptocratic environment undermines fair competition and the rule of law, making businesses susceptible to extortion, property seizures, and U.S. law enforcement action. Businesses increasingly risk severe civil and criminal penalties in navigating the raft of economic sanctions, export controls, and import restrictions imposed on Russia by the United States and its allies and partners. In addition, businesses are being forced to cooperate in Russia’s military mobilization and could be implicated in Russia’s commission of war crimes and crimes against humanity as part of Russia’s brutal war against Ukraine. The serious risks...

Click the appropriate link below for access to this file.

Click the appropriate link below for access to this file.

TURBOFAC Commentary (174 words)

Notes:

1) On 2-23-26, in connection with its designations marking the two-year anniversary of the war in Ukraine (State Department Fact Sheet, the State Department issued this “Advisory”. The sanctions related aspects of this document are generally unremarkable, except with respect to the section entitled “Risks Regarding Russia’s Conduct in Ukraine”. The State Department raises the specter of the possibility that ‘simply existing’ as a business in Russia—something which is not prohibited per se by OFAC’s sanctions and is facilitated through the “maintenance” exclusion to the new investment prohibition and Russia-related GL 13—could entail violations of primary sanctions prohibitions. It is not exactly clear what the State Department has in mind in terms of the type of prohibition violated and the activity that all (or most) Russian businesses are required to comply with. In particular, it is not clear...