USTR Initiates Special 301 Review

The United States Trade Representative (USTR) issued a request for comments and notice of public hearing regarding the 2018 Special 301 Review. The review is a Congressionally-mandated annual review of the global state of intellectual property rights (IPR) protection and enforcement. The Special 301 Report identifies countries that deny adequate and effective protection of IPRs or deny fair and equitable market access to U.S. persons who rely on intellectual property protection.

Russia Sanctions Update

The Countering America's Adversaries Through Sanctions Act (CAATSA), signed into law on August 2, 2017, ushers in a series of amendments and new requirements to the sanctions programs applying to the U.S.-Russia commercial relationship. Below, we highlight some of the key changes and guidelines that have recently been issued on this front.

• Directives 1 and 2: The Office of Foreign Assets control (OFAC) issued amended Directives 1  and 2, shortening the time for certain permissible debt transactions involving entities sanctioned under the Sectoral Sanctions Identifications List for these Directives. These Directives prohibit all transactions in, provision of financing for, and other dealings in new debt (exceeding specified periods) of persons/entities determined to be subject to this Directive or any earlier version thereof, their property, or their interests in property.
• Directive 4: OFAC issued Amended Directive 4, which extends the prohibitions on certain deepwater, Arctic offshore, or shale projects that involve entities identified on the Sectoral Sanctions Identification List for this Directive. The Amended Directive encompasses such projects that are initiated on or after January 29, 2018, that have the potential to produce oil in any location, and in which any person determined to be subject to this Directive or any earlier version thereof, their property, or their interests in property has (a) a 33 percent or greater ownership interest, or (b) ownership of a majority of the voting interests.
• Frequently Asked Questions: OFAC has issued new and amended FAQs regarding the amended Directives.
• General License: OFAC has released General License 1B, which replaces General License 1A and allows for certain transactions subject to Directives 1, 2, and 3 involving derivative products.
• CAATSA Section 225: The State Department has issued Guidance on Section 225 of CAATSA, which provides for sanctions on foreign persons knowingly making a significant investment in a special Russian crude oil project on or after September 1, 2017.
• CAATSA Section 231: The State Department has issued Guidance regarding Section 231 of CAATSA, which provides sanctions on persons that the President determines knowingly, on or after August 2, engages in a significant transaction with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation. The State Department has published a list of persons determined to be part of, or operate for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation for the purposes of CAATSA Section 231. Sanctions are expected to be imposed on or after January 29, 2018.
• CAATSA Section 232: The State Department has issued Guidance on Section 232 of CAATSA, discretionary sanctions on persons who have knowingly made, on or after August 2, a significant investment towards Russia’s ability to construct energy export pipelines or sells, leases, or provides to the Russian Federation, goods, services, technology, information, or support for the construction of Russian energy export pipelines.
• CAATSA Section 226: OFAC has issued FAQs on Section 226, which calls for specified sanctions on foreign financial institutions.
• CAATSA Section 228: OFAC has issued FAQs on Section 228, which calls for specified sanctions on foreign sanctions evaders and serious human rights abusers.
• CAATSA Section 233: OFAC has issued FAQs on Section 233, which calls for sanctions on parties who make an investment or facilitate such an investment, if the investment directly and significantly contributes to the ability of the Russian Federation to privatize state-owned assets in a manner that unjustly benefits officials of the Government of the Russian Federation or close associates or family members of those officials.