On 6 June 2022, the U.S. Treasury issued guidance on sanctions against Russia due to their invasion of Ukraine. Specifically, the Office of Foreign Assets Control (OFAC) of the U.S. Department of Treasury announced that U.S. persons are prohibited from purchasing new and existing debt and equities issued by Russian entities.

U.S. Treasury noted that this measure does not prohibit U.S. persons from selling or divesting Russian debt or equity securities to a non-U.S. person. U.S. persons are also allowed to continue to hold previously acquired securities.

In this context, a Treasury spokesperson said: “Consistent with our goal to deny Russia the financial resources it needs to continue its brutal war against Ukraine, Treasury has made clear that U.S. persons are prohibited from making new investments in the success of Russia, including through purchases on the secondary market.”

Previously, the U.S. Administration prohibited new investments in Russia by U.S. persons (see related state act).