Russia - Due DiligenceRussia – Due Diligence
Russia can be a challenging market which means U.S. companies need to take time to learn about the business environment and select local partners wisely. Taking shortcuts when evaluating business opportunities and selecting local partners is not advisable. Occasionally, basic information about regulations, company ownership and credit worthiness is not readily accessible, and the market’s regulatory framework continues to evolve, requiring companies to closely monitor changes. The U.S. Commercial Service offers an International Company Profile service as a way to evaluate potential partners. For more information on this service and other customized services, please visit CS Russia’s website: https://2016.export.gov/russia/servicesforu.s.companies/index.asp
Russia-related sanctions have been implemented under multiple legal authorities in the form of executive orders and public laws since 2014. On August 2, 2017, the President signed the Countering America’s Adversaries Through Sanctions Act (CAATSA) which codified and expanded sanctions announced from 2014-2016 on certain Russian entities and sectors. CAATSA includes sectoral sanctions affecting the financial, defense, and energy transactions, and “blocking sanctions” that prohibit business with certain individuals and entities.
Implementation and enforcement of sanctions legislation is a shared and partitioned responsibility across the U.S government. The Departments of State and Treasury have published numerous public FAQ’s and links to components of the legislation that serve as extremely valuable resources for conducting initial due diligence.
In response to inquiries from the business community, we have compiled the following resource center for use in understanding the multiple components of Russian sanctions legislation applied by the U.S. government since 2014. This information is not comprehensive and is subject to ongoing updates. We strongly urge U.S. firms conducting business in Russia to perform careful due diligence and seek legal counsel when vetting potential transactions and counterparties. Questions on specific transactions should be directed to the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), and the Department of Commerce’s Bureau of Industry and Security.
U.S. Department of Commerce Resource Center on Russia Sanctions: https://www.export.gov/article?id=US-Sanctions-Information-Related-to-Ukraine
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Russia Trade Development and Promotion