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EO 14068Executive OrderBiden · D

Executive Order 14068

Prohibiting Certain Imports, Exports, and New Investment With Respect to Continued Russian Federation Aggression

This executive order imposes sweeping trade and financial restrictions on Russia in response to its invasion of Ukraine, banning imports of Russian seafood, alcohol, and diamonds; blocking exports of luxury goods and U.S. dollar banknotes to Russia; and prohibiting new U.S. investments in any sector of the Russian economy. The order also bars U.S. persons from facilitating transactions by foreign persons that would violate these prohibitions. Implementation authority is delegated to the Secretaries of Treasury and Commerce with broad regulatory rulemaking power.

Federal Register Open PDF 87 FR 14381

Impact dates

  1. Secretary of Treasury determination of additional Russian origin products for import ban

  2. Secretary of Commerce determination of additional items for export ban

  3. Secretary of Treasury determination of additional Russian economy sectors for investment prohibition

  4. Treasury and Commerce promulgation of implementing rules and regulations

Key directives

  • Prohibit importation of Russian fish, seafood, alcoholic beverages, non-industrial diamonds, and additional products as determined by Treasury (Sec. 1(a)(i))
  • Prohibit export/reexport/sale/supply of luxury goods and additional items as determined by Commerce to any person in Russia (Sec. 1(a)(ii))
  • Prohibit new investment in any sector of Russian economy as determined by Treasury (Sec. 1(a)(iii))
  • Prohibit export of U.S. dollar-denominated banknotes to Russian government or persons in Russia (Sec. 1(a)(iv))
  • Prohibit U.S. persons from approving, financing, facilitating, or guaranteeing foreign person transactions that would violate order (Sec. 1(a)(v))
  • Prohibit evasion, avoidance, and conspiracy to violate order (Sec. 2)
  • Exempt official Federal Government and UN transactions (Sec. 3)
  • Authorize Treasury and Commerce to promulgate rules and regulations (Sec. 5)

Who is ordered

Timeline

Immediate

  • Import prohibitions on Russian fish, seafood, alcoholic beverages, and non-industrial diamonds take effect
  • Export ban on luxury goods to Russia takes effect
  • Ban on U.S. dollar banknote exports to Russian government/persons takes effect
  • New investment prohibition in Russian economy sectors takes effect
  • Facilitation prohibition for U.S. persons takes effect

Near term (90d)

  • Secretary of Treasury to determine additional products of Russian origin subject to import ban (Sec. 1(a)(i))
  • Secretary of Commerce to determine additional items subject to export ban (Sec. 1(a)(ii))
  • Secretary of Treasury to determine additional sectors of Russian economy for investment prohibition (Sec. 1(a)(iii))
  • Treasury and Commerce to promulgate implementing rules and regulations (Sec. 5)

Long term

  • Ongoing enforcement of evasion and conspiracy prohibitions
  • Potential expansion of sanctions scope through delegated determinations
  • Structural realignment of U.S.-Russia trade relationships
  • Precedent for sectoral investment bans in sanctions architecture

Risks & tensions

  • Broad delegated authority to 'determine' additional products/sectors creates regulatory uncertainty for businesses
  • 'Luxury goods' undefined in text—scope depends on Commerce interpretation
  • Facilitation prohibition (Sec. 1(a)(v)) has extraterritorial reach over foreign person transactions
  • Dollar banknote ban may complicate humanitarian exemptions and remittances
  • Concurrent implementation with EO 14066 (March 8, 2022) creates overlapping sanctions architecture requiring careful coordination
  • Exemption for UN operations may face scrutiny given Russia's UN Security Council membership
Executive Order 14068: Prohibiting Certain Imports, Exports, and New Investment With Respect to Continued Russian Federation Aggression · Executive Orders