U.S. sanctions imposed on transactions, trade with Russia

Intended to have both immediate and long-term effects on the Russian economy and financial system

Trade with Russia

The U.S. government today responded to Russia’s further invasion of Ukraine by imposing sanctions intended to have both immediate and long-term effects on the Russian economy and financial system.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today imposed expansive economic measures that target the Russian financial system—including all of Russia’s largest financial institutions and the ability of state-owned and private entities to raise capital—and further bars Russia from the global financial system.

Read the Treasury release

Regarding trade-related sanctions, OFAC issued several general licenses, and in particular, eight general licenses authorizing certain transactions related to:

  • International organizations and entities
  • Agricultural and medical commodities and the covid-19 pandemic
  • Overflight and emergency landings
  • Energy
  • Dealings in certain debt or equity
  • Derivative contracts
  • The wind down of transactions involving certain blocked persons
  • The rejection of transactions involving certain blocked persons

To provide further guidance on these authorizations and today’s action, OFAC also issued a set of “frequently asked questions” (FAQs). Read an OFAC release

Today’s actions were taken pursuant to Executive Order (E.O.) 14024, which authorizes sanctions against Russia for its harmful foreign activities, including violating core principles of international law such as respect for the territorial integrity of sovereign states.

In a related action, OFAC also announced sanctions for the involvement of Belarus in supporting Russia’s invasion of Ukraine. Read the Treasury release


For more information contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
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E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
T: 612-305-5533
E: jlibby@kpmg.com

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