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 InstallationsNew 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 RightsPotential 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 RussiaPresident 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 BaseOFAC Allows Venezuelan Oil and Gas Authorization to Expire and Extends Prohibitions to Execution on PdVSA 2020 Bond Collateral
On April 17, 2024, the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) announced that it would not renew an existing authorization for transactions related to oil and gas sector operations in Venezuela, and replaced the existing authorization with a 45-day wind-down period for previously authorized transactions, expiring May 31, 2024. On April 15, 2024, OFAC separately reissued a separate general license, continuing to extend prohibitions to execution on the PdVSA 2020 bond collateral.
Continue Reading OFAC Allows Venezuelan Oil and Gas Authorization to Expire and Extends Prohibitions to Execution on PdVSA 2020 Bond CollateralStatute of Limitations for U.S. Sanctions Violations Extended from Five to Ten years
On April 24, 2024, President Biden signed into law H.R. 815, a foreign aid bill containing a provision that doubles the statute of limitations (SoL) for civil and criminal violations of U.S. sanctions and other national security programs from five years to ten years.
Continue Reading Statute of Limitations for U.S. Sanctions Violations Extended from Five to Ten yearsUS And UK Tighten Restrictions on Trade and Use of Russian Metals
On April 12, 2024 the United States, in coordination with the United Kingdom, issued new prohibitions with respect to Russian aluminium, copper and nickel.
Continue Reading US And UK Tighten Restrictions on Trade and Use of Russian MetalsTreasury Issues Proposed Rule to Enhance CFIUS Mitigation and Enforcement
On April 11, 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 mitigation and enforcement authority.
Continue Reading Treasury Issues Proposed Rule to Enhance CFIUS Mitigation and EnforcementLexology Panoramic Foreign Investment Review 2024 – United States (CFIUS)
Cleary Gottlieb partner Chase Kaniecki and associates Samuel Chang, William Dawley, and B.J. Altvater co-authored the United States chapter in Lexology Panoramic: Foreign Investment Review 2024.
Continue Reading Lexology Panoramic Foreign Investment Review 2024 – United States (CFIUS)