On 20 April 2024, the US Congress adopted H.R.8038 – 21st Century Peace through Strength Act (the “US Act”).
Division C of the US Act – Other Matters, prescribes the US President to submit, not later than 90 days after the date of the enactment of the US Act, a report to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate, identifying each foreign person currently subject to i) the EU sanctions, introduced in line with the EU Council Regulation No.269/2014 of 17 March 2014, as amended, and ii) UK sanctions pursuant to the Russia (Sanctions) (EU Exit) Regulations 2019 as amended.
Furthermore, the President’s report shall identify each such foreign person who meets the criteria for imposition of US sanctions pursuant to—
(A) the Global Magnitsky Human Rights Accountability Act of 2016 (22 U.S.C. 10101 et seq.);
(B) Executive Order 14024 (50 U.S.C. 1701 note, relating to blocking property with respect to specified harmful foreign activities of the Government of the Russian Federation), as amended;
(C) Executive Order 14068 (50 U.S.C. 1701 note, relating to prohibiting certain imports, exports, and new investment with respect to continued Russian Federation aggression), as amended; or
(D) Executive Order 14071 (50 U.S.C. 1701 note, relating to prohibiting new investment in and certain services to the Russian Federation in response to continued Russian Federation aggression), as amended”.
The US Act obliges the US President to “impose the sanctions authorised by the applicable provision of law listed in subsection (a)(2) with respect to each foreign person identified in the report required under subsection (a)(1) who is not already subject to sanctions under United States law pursuant to one or more statutory sanctions authorities as of the date of the submission of such report”.
What this US Act potentially means for individuals and entities currently sanctioned by the EU and/or the UK is that once the US Act is signed by the US President, the US authorities will start aligning their sanctions regimes with those in the EU and the UK. Therefore, the risk of being included on the US designation list will increase accordingly.
Furthermore, on 24 April 2024, President Biden signed into law H.R. 815, which extends the statute of limitations for sanctions violations from five to ten years.
How Gherson can help
Gherson has extensive experience in advising on the UK and EU sanctions regimes from a number of different perspectives. Our experts have helped sanctioned clients in respect of compliance with the sanctions regulations, challenging sanctions designations and sanctions-related disputes against government authorities and/or other commercial parties.
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The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
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