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Latest Russian Sanctions to Have 'Minimal' Impact on Export Restrictions

The U.S.’s second round of Russian sanctions are expected to have a “minimal” impact, according to a post by Norton Rose Fulbright.

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The sanctions, announced in an Aug. 1 executive order, will increase export restrictions for certain Commerce-controlled goods and technologies, among other restrictive measures (see 1908050026). But the goods are expected to “include multiple exceptions that will significantly reduce their impact,” the post said, including exceptions for U.S. firms completing existing contracts and a case-by-case review policy instead of a presumption of denial for certain items. Those items include exports related to space flight activities and civil end-uses, and exports to subsidiaries of U.S. companies or other foreign companies in Russia, the post said.

“The impact of these sanctions ... is expected to be minimal, particularly in comparison to the menu of potential sanctions that could have been imposed,” the post said.