ANNOUNCEMENT 08 May 2022

In May 2022, the U.S. Department of Treasury prohibited the export of accounting, trust and corporate formation, and management consulting services to Russia.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

U.S. Department of Treasury, Office of Foreign Assets Control, “DETERMINATION PURSUANT TO SECTION 1(a)(ii) OF EXECUTIVE ORDER 14071: Prohibitions Related to Certain Accounting, Trust and Corporate Formation, and Management Consulting Services”. Available at: https://home.treasury.gov/system/files/126/determination_05082022_eo14071.pdf

U.S. Department of Treasure, Press Release, “U.S. Treasury Takes Sweeping Action Against Russia’s War Efforts”. Available at: https://home.treasury.gov/news/press-releases/jy0771

Inception date: 07 Jun 2022 | Removal date: open ended

Export ban

On 8 May 2022, the U.S. Department of Treasury prohibited the export of accounting, trust and corporate formation, and management consulting services to Russia due to its attack on Ukraine. According to the Department of Treasury, Russian companies and Russian elites use these services to build wealth as well as to evade sanctions.

This decision builds upon the Executive Order (EO) 14071 titled “Prohibiting New Investment in and Certain Services to the Russian Federation in Response to Continued Russian Federation Aggression”. Pursuant to the EO 14071, the United States may prohibit the exportation, reexportation, sale, or supply of any category of services as may be determined by the Secretary of the Treasury to Russia (see related state act).

In this context, the Secretary of Treasury Janet L. Yellen said: “Today we are further constricting Russia’s economy and access to services and technology it needs to conduct this unprovoked invasion. Preventing Russia from accessing the United States’ valuable professional services increases the pressure on the Kremlin and cuts off its ability to evade sanctions imposed by the United States and our partners.”

The Decision enter into force on 7 June 2022.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A