Title II of the Countering America’s Adversaries Through Sanctions Act, as amended (CAATSA), and the Ukraine Freedom Support Act of 2014, as amended (UFSA), provide for the imposition of certain sanctions with respect to the Russian Federation. The E.O. of September 20, 2018 provides authority under the International Emergency Economic Powers Act (IEEPA) to the Secretary of the Treasury to take certain actions to further implement those sanctions and directs agencies of the United States Government to take all appropriate measures within their authority to ensure the full implementation of those sanctions.
Specifically, the E.O., among other things, (i) delegates the implementation of listed sanctions menu items in section 235 of CAATSA and section 4(c) of UFSA regardless of whether that agency is delegated the authority to select the sanctions under section 235 of CAATSA or section 4(c) of UFSA, as applicable, and (ii) authorizes the Secretary of the Treasury to employ all powers granted to the President by IEEPA and relevant provisions of UFSA and CAATSA to carry out the purposes of the E.O. Section 4(c) of UFSA provides a menu of nine sanctions from which the Secretary of the Treasury or the Secretary of State must select when imposing sanctions on persons pursuant to sections 4(a) or 4(b) of UFSA. Furthermore, section 235 of CAATSA provides a menu of 12 sanctions from which the Secretary of the Treasury or the Secretary of State must select when imposing sanctions on persons pursuant to sections 224(a)(2), 231(a), 232(a), and 233(a) of CAATSA. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) anticipates promulgating regulations to implement these sanctions.
The E.O. provides for comprehensive implementing and penalties provisions that enable OFAC, among other things, to promulgate regulations and issue administrative subpoenas, licenses, and the full range of civil enforcement actions with respect to sanctions violations.