Mark D. Herlach and Cheryl I. Aaron May 20, Legal Quick Hit: U.S. Sanctions What s New and What Energy Firms Need to Know

Transcription

1 Mark D. Herlach and Cheryl I. Aaron May 20, 2015 Legal Quick Hit: U.S. Sanctions What s New and What Energy Firms Need to Know

2 U.S. Sanctions: The Current Lay of the Land Cuba Iran Full embargo still in place Travel limited to 12 approved categories Stringent sanctions from multiple sources Potential for some sanctions relief down the road Russia Targeted, industry-specific sanctions Uncertain geopolitical situation

3 Cuba: Normalizing Relations Relief limited to Executive Branch actions, with a focus on: Facilitating trade between the U.S. and Cuba Promoting the growth of Cuba s private sector Increasing Cubans access to telecommunications Congressional action required to lift full embargo Impact on Energy Firms: Full-scale trade is not yet permitted Current business opportunities mostly in the telecommunications, technology and construction sectors Energy projects and trade continue to be prohibited

4 Iran: Negotiations Ongoing June 30 deadline to reach agreement on nuclear deal Congress will review the deal Current framework would require Iran to scale back uranium enrichment and be subject to ongoing inspection in order to be eligible for sanctions relief Impact on Energy Firms: Continued broad prohibition on trade and investment in Iran If agreement is reached, only nuclear-related sanctions will be lifted (many other restrictions will remain) Sanctions relief will take some time

5 Russia: Sanctions aimed at energy, defense and financial services sectors, in addition to Putin s associates Obama authorized by Congress to increase sanctions Unclear if Russia will continue to act as an aggressor Impact on Energy Firms: Targeted sanctions prohibit certain energy-related transactions; not a blanket prohibition Long-term financing prohibited, even in permissible transactions Additional sanctions (if any) would likely also target the energy sector

6 What s Next? Looking Ahead Six Months Cuba Embargo continues More trade restrictions lifted by Executive Branch Iran Nuclear deal or not? Most sanctions still in place Russia Putin s actions dictate next steps Low oil prices may preclude the need for new sanctions

7 Questions?

8 Mark D. Herlach, Partner Mark is an international lawyer with a practice focus on energy and international business. He has guided clients in a broad range of complex matters, including mergers and acquisitions, export control, import relief and Foreign Corrupt Practices Act investigations. Mark advises on cross-border transactions, foreign investment, government policy, international trade and privacy matters. Cheryl I. Aaron, Associate cheryl.aaron@sutherland.com Cheryl counsels energy firms, commodity trading companies and financial institutions on investment and trading in commodities and derivatives. She drafts commercial agreements and contracts underlying structured transactions, and advises clients on a number of regulatory and commercial issues related to the purchase, sale, storage, exchange, financing, transportation and processing of commodities. Such advice pertains to, among other things, U.S. sanctions and anti-boycott laws and regulations, and federal and state excise taxes.

9 SUTHERLAND S ENERGY AND ENVIRONMENTAL PRACTICE Sutherland s Energy and Environmental Group has more than 60 lawyers representing every major sector of the energy industry. Our 40-year history of excellence in serving the regulatory, compliance and policy needs of our clients is matched by the commercial and operational experience we bring to increasingly complex transactions. Complemented with our team of wellregarded, high-profile litigators, Sutherland s energy practice is well positioned to provide the full range of legal services to our energy clients. Our clients include crude oil and natural gas refiners and producers, domestic and multinational traders, energy lenders and marketers, hedge funds and financial institutions, independent power producers and electric cooperatives, international oilfield service providers, and renewable energy developers.