On May 9, 2023, we wrote about Decree of the President of Russia No. 302 that created a framework for nationalization of Russian assets belonging to persons from “unfriendly” states (the “Decree”). At that time the only assets to which nationalization applied were the shares in strategic energy companies Unipro, controlled by the Government of

On April 25, 2023, the President of Russia signed Decree No. 302 On Temporary Management of certain assets, including movable and immovable assets and equity interests in the capital of Russian legal entities, that appoints the Federal Agency for State Property Management as the temporary manager of such assets and allows the agency to exercise all the rights of the owner of such assets, other than to dispose of the assets.Continue Reading Tit for Tat Continues, or Further Russian Countersanctions That Allow Nationalization of Assets of Persons From Unfriendly States

On April 19, 2023, the U.S. Supreme Court issued its highly-anticipated decision in U.S. v. Halkbank,[1] holding that the Foreign Sovereign Immunities Act (“FSIA”)[2] does not provide foreign sovereigns with immunity from criminal prosecution in U.S. courts. Continue Reading U.S. Supreme Court Holds FSIA Does Not Immunize Foreign Sovereigns From Criminal Prosecution

Foreign direct investment (“FDI”) control has historically been centred on inbound FDI, meaning investment inflow into a country.  The tide is turning, as the United States seems ready to introduce an outbound FDI control mechanism, whereby capital outflow towards certain countries will be subjected to a screening process.  Similarly, the European Commission (“Commission”) 2023 Work Programme indicates that the EC will “examine whether additional tools are necessary in respect of outbound strategic investments controls”, and is “prepared to revise the EU’s FDI screening regulation.”Continue Reading Outbound Investment Screening Regime—EU May Follow In U.S. Footsteps

Cleary Gottlieb partner Chase Kaniecki, associates Samuel Chang, Pete Young, William Dawley, and law clerk Stephanie Gullo co-authored the United States chapter in Lexology Getting the Deal Through: Foreign Investment Review 2023.

To read the chapter, click here or visit the Lexology website (subscription may be required.)

The following post was originally included as part of our recently published memorandum “Selected Issues for Boards of Directors in 2023”.

This past year’s Russia-Ukraine conflict sparked a significant transformation of the global economic sanctions landscape, with developments and lessons extending well beyond Russia. 

In 2023, boards of directors should continue to monitor

On January 5, 2023, President Biden signed into law the Protecting American Intellectual Property Act of 2022 (the “PAIP Act”),[1] bipartisan legislation that authorizes the imposition of sanctions on foreign persons that have engaged in significant theft of trade secrets of U.S. persons.[2] Continue Reading PAIP Act Authorizes Sanctions for Trade Secret Theft by Chinese Actors

In addition to the maritime services ban targeting Russian Federation-origin crude oil, which we wrote about here[1], the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) recently has taken actions related to, and having implications for, the international oil sector.  Certain of those actions suggest a potential easing of oil sector-related sanctions on Venezuela while others show a continued focus on the Iranian oil sector.Continue Reading Recent OFAC Actions Related to the Oil Sector

On December 5, 2022, the maritime services ban targeting Russian-origin crude oil that previously had been announced by an international coalition of countries, including the United States, the European Union, and the United Kingdom, took effect.  While each coalition member has enacted its own measures to give effect to the ban (as we discussed previously here[1]), the measures enacted by the coalition members are generally consistent and include the same major features, namely, a maritime services ban and associated price cap “safe harbor” or exemption.[2]  Since the effective date of the maritime services ban, Russian President Vladimir Putin has issued a decree prohibiting the supply of Russian-origin oil and oil products to certain foreign persons applying the price cap, and OFAC has issued additional guidance relating to the upcoming implementation of the maritime services ban with respect to Russian-origin petroleum products.Continue Reading Recent Developments Regarding the Maritime Services Ban on Russian-Origin Crude Oil and Petroleum Products (with Price Cap “Safe Harbor” or Exemption)

On December 29, 2022, President Biden signed into law the Consolidated Appropriations Act, 2023 (the “Bill”),[1] which allocated approximately $1.7 trillion in federal funding to various government agencies, including the U.S. Department of Commerce (“Commerce”) and the U.S. Department of the Treasury (“Treasury”).Continue Reading Potential Outbound Investment Screening Regime Receives Federal Funding