Prohibiting New Investment and Services to the Russian Federation
Apr 8, 2022
Signed by: Joe Biden
Signed on: Apr 6, 2022
Published on: Apr 8, 2022
Apr 8, 2022
Signed by: Joe Biden
Signed on: Apr 6, 2022
Published on: Apr 8, 2022
Summary
Stops people and companies from the United States from making new investments or providing certain services in Russia.
What problem does this solve?
Russia's continued aggression created a national emergency for the United States. This order aims to hurt Russia's economy by stopping new American money and services from going into the country.
What does this order do?
Ban on new investment in Russia
Forbids any U.S. person or company from making new investments within the Russian Federation.
Ban on providing certain services to Russia
Bans the sale or supply of certain types of services, as determined by the Secretary of the Treasury, from the U.S. to any person in the Russian Federation.
Prohibition on facilitating banned transactions
Prevents U.S. persons from helping foreign persons complete transactions that would be illegal for a U.S. person to do themselves.
Exemption for official government business
Allows transactions for the official business of the U.S. Federal Government or the United Nations to continue.
Definition of a 'United States person'
Clarifies that the rules apply to any U.S. citizen, permanent resident, U.S.-based company (including foreign branches), or any person physically in the United States.
Who does this affect?
- U.S. investors and businesses
- Entities and individuals in the Russian Federation
What is the real world impact?
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Applies economic pressure on Russia
Uses economic tools to punish Russia for its continued aggression, aiming to weaken its ability to fund its actions without using military force.
When does this start?
The order takes effect immediately as of its signing on April 6, 2022.