Sanctions are designed to prevent an individual, entity, or country from conducting certain business transactions. In recent years, multiple global governments have been working together to sanction Russia, Russian companies, Russian nationals, and Russian businesses in an effort to slow down and disable the Russian military from pursuing its goals in Ukraine.
Just recently, the U.S. added to the existing sanctions by targeting seven LNG carriers. These carriers were constructed by the Far East Zvezda shipyard. Five of them have already been launched and are awaiting trials, while two more vessels remain under constructions. These vessels include Alexey Kosygin, Pyotr Stolypin, Sergei Witte, and a few more unnamed hulls. According to reports, four of the vessels are already associated with Russian operator Sovcomflot, whom is already on the U.S. sanctions list.
Ice-capable LNGs, which transport liquefied natural gas throughout the Arctic, are an important part of Russia’s future plans. Russia has the world’s largest share of natural gas reserves, but it’s been difficult to profit off this resource without the European market’s support. LNGs could help Russia move natural gas to non-European markets. The project was initially set to begin production late in 2023, but the project has faced multiple setbacks, including these recent sanctions.
According to market experts, sanctions that focus on the LNG sector have been the most effective so far since they have minimal repercussions on the U.S. and the E.U. Other sanctions have adversely impacted European markets or been successfully evaded. On the heels of the U.S. announcing these new sanctions, the EU also agreed that they will be placing sanctions on 19 tankers including LNGs that are meant to support Russia’s Arctic LNG 2 project.
International Sanctions: What to Know
If you own a business, then you need to know about international sanctions. It’s your responsibility to ensure that you don’t conduct any transactions with individuals, entities, or countries that are sanctioned. Not knowing about the law or international sanctions won’t be considered a viable excuse if you later get accused of doing business with an adversary of the U.S. government.
The Office of Foreign Assets Control, which is the government agency that sets sanctions, has the authority to impose fines that range up to $1 million, and you can face up to 20 years in prison if you get convicted.
If you’re facing potential sanctions violation charges, then it’s important to seek out timely legal counsel. An attorney will make sure you completely understand the charges against you as well as the possible defense strategies you can use to navigate your situation. Once you have an idea of what defense argument is most likely to secure a good outcome, the right lawyer will help build up your case and represent you in court. They’ll help provide you with solid legal advice as you go through any investigations, questioning sessions, and more.
Here at Bukh Global, our team can help you navigate sanctions violations charges as well as help your business remain legally compliant in the future. Schedule a meeting with us now to get started.