On October 21, 2024, an international coalition consisting of the G7 countries—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States[1]—as well as the European Union, Australia, and New Zealand (the “Price Cap Coalition”) issued an updated advisory containing new recommendations and best practices for the maritime oil industry and related sectors[2] relating to promoting responsible practices in the industry, disrupting sanctioned trade, and enhancing compliance with the oil price cap on Russian oil and petroleum products. We previously wrote about the oil price cap here.Continue Reading Price Cap Coalition Issues Updated Advisory for Maritime Oil Industry
U.S., UK, and EU Sanctions Alignment: U.S. IT and Software Sector Service Bans and Export Controls Take Effect as Russia Sanctions Continue to Expand
On September 12, 2024, the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) June 12, 2024 determination entitled “Prohibition on Certain Information Technology and Software Services” entered into effect. The determination prohibits the direct or indirect provision to Russia from the United States or by U.S. persons of (1) information technology (“IT”) consultancy and design services and (2) IT support services and cloud-based services for enterprise management software and design and manufacturing software (collectively, the “IT Services Prohibition”). On September 16, 2024, similarly focused export controls took effect, prohibiting the export, reexport, or transfer (in-country) to Russia and Belarus of certain EAR99 software relating to enterprise resource planning (ERP) and other commercial functions, which were issued earlier by the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) on June 12, 2024.Continue Reading U.S., UK, and EU Sanctions Alignment: U.S. IT and Software Sector Service Bans and Export Controls Take Effect as Russia Sanctions Continue to Expand
Commerce Takes Next Step in Furtherance of Import Prohibition on Connected Vehicles and Systems from China and Russia
On September 26, 2024, a Notice of Proposed Rulemaking (NPRM) was published in the Federal Register to establish regulations that would generally prohibit the sale or import into the United States of certain “connected vehicles” integrating specific pieces of hardware and software, or those components sold separately, with a sufficient nexus to the People’s Republic of China (PRC) or Russia (the Proposed Rule).[1] The Proposed Rule, which was issued by the U.S. Department of Commerce, Bureau of Industry and Security (BIS), follows an earlier Advanced Notice of Proposed Rulemaking (ANPRM) published on March 1, 2024 and addresses comments received in response to the ANPRM.[2]Continue Reading Commerce Takes Next Step in Furtherance of Import Prohibition on Connected Vehicles and Systems from China and Russia
Commerce Imposes Export Controls on Quantum Computing and Other Advanced Technologies, Expands Scope of CFIUS Mandatory Filing Requirement
On September 6, 2024, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) published an interim final rule (IFR) implementing new export controls on quantum computing items and other advanced technologies.[1] In addition to subjecting these so-called critical and emerging technologies to more stringent export controls, investments by foreign persons into U.S. companies that develop or produce such technologies could be subject to mandatory Committee on Foreign Investment in the United States (CFIUS) filing requirements.[2]Continue Reading Commerce Imposes Export Controls on Quantum Computing and Other Advanced Technologies, Expands Scope of CFIUS Mandatory Filing Requirement
CFIUS Releases 2023 Annual Report: Key Takeaways
The Committee on Foreign Investment in the United States (CFIUS) recently published its 2023 Annual Report, which provides information regarding transactions reviewed by CFIUS in 2023.[1] Key takeaways from the 2023 Annual Report are below. Continue Reading CFIUS Releases 2023 Annual Report: Key Takeaways
Treasury Takes Next Step on Implementation of Outbound Investment Regime, Clarifies Certain Aspects of Prior Proposal
The U.S. Department of the Treasury (“Treasury”) recently issued a long-awaited Notice of Proposed Rulemaking (the “Proposed Rule”) that would create an outbound investment regime whereby U.S. persons would be prohibited from making, or required to notify the U.S. government regarding, certain investments in entities engaged in certain activities relating to semiconductors and microelectronics, quantum information technologies, and artificial intelligence in “countries of concern” (presently limited to China, Hong Kong, and Macau).[1] Continue Reading Treasury Takes Next Step on Implementation of Outbound Investment Regime, Clarifies Certain Aspects of Prior Proposal
Treasury Issues Proposed Rule to Expand CFIUS Jurisdiction Over Real Estate Transactions Near Military Installations
On July 8, 2024, the U.S. Department of the Treasury (“Treasury”), as Chair of the Committee on Foreign Investment in the United States (“CFIUS”), issued a Notice of Proposed Rulemaking (the “Proposed Rule”) that would modify and expand CFIUS’s jurisdiction over certain transactions by foreign persons involving real estate in the United States.Continue Reading Treasury Issues Proposed Rule to Expand CFIUS Jurisdiction Over Real Estate Transactions Near Military Installations
New Russian Decree Imposes Restrictions on Transfer of IP Rights
On May 20, 2024, President Putin signed Decree No. 430 (the “Decree”), effective the same day. The Decree establishes restrictions on the acquisition of IP rights by Russian persons from so-called “unfriendly” jurisdictions. The term “unfriendly” jurisdiction has been used in other countersanctions regulations and includes all foreign states that commit unfriendly acts towards the Russian Federation and Russian legal entities and natural persons (i.e., countries that have introduced sanctions against Russia, including the European Union, United Kingdom, and United States).Continue Reading New Russian Decree Imposes Restrictions on Transfer of IP Rights
Potential Seizure of U.S. Assets in Russia
On May 23, 2024, Russian Presidential Decree No. 442 (the “Decree”), which establishes the framework that will allow the Russian government to seize any U.S. assets in Russia, was signed. This comes just weeks after the U.S. Rebuilding Economic Prosperity and Opportunity for Ukrainians (REPO) Act, which authorizes the President of the United States to confiscate any sovereign assets of the Russian Federation that are in the U.S. territory, entered into force on April 24, 2024.[1]Continue Reading Potential Seizure of U.S. Assets in Russia
President Biden Issues Order Requiring Chinese Owner to Divest Cryptocurrency Mining Facility Near U.S. Military Base
On May 13, 2024, President Biden issued an order (the “Order”) requiring MineOne Partners Limited, a company majority owned by Chinese nationals, and certain affiliates (together, “MineOne”) to divest previously acquired real estate (the “Real Estate”) in Wyoming located near Francis E. Warren Air Force Base (“Warren AFB”). The Order gives MineOne 120 days to divest the Real Estate and includes strict monitoring measures to allow the U.S. government to supervise the sale of the Real Estate to an approved buyer.Continue Reading President Biden Issues Order Requiring Chinese Owner to Divest Cryptocurrency Mining Facility Near U.S. Military Base