FACT SHEET: Executive Order to Impose Costs for President Putin’s Action to Recognize So-Called Donetsk and Luhansk People’s Republics

Today, President Biden signed an Executive Order (E.O.) to respond to President Putin’s action to purportedly recognize the so-called Donetsk and Luhansk People’s Republics (DNR and LNR) as “independent” states. President Putin’s action contradicts Russia’s commitments under the Minsk agreements, refutes Russia’s claimed commitment to diplomacy, and undermines Ukraine’s sovereignty and territorial integrity.

This E.O. is distinct from the swift and severe economic measures we are prepared to issue with Allies and partners in response to a further Russian invasion of Ukraine. We are continuing to closely consult with Ukraine and with Allies and partners on next steps and urge Russia to immediately deescalate.

Today’s E.O. prohibits:

• New investment in the so-called DNR or LNR regions of Ukraine by a United States person, wherever located;
• The importation into the United States, directly or indirectly, of any goods, services, or technology from the so-called DNR or LNR regions of Ukraine;
• The exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of any goods, services, or technology to the so-called DNR or LNR regions of Ukraine;
• And any approval, financing, facilitation, or guarantee by a United States person, wherever located, of a transaction by a foreign person where the transaction by that foreign person would be covered by these prohibitions if performed by a United States person or within the United States.

The E.O. also provides authority to impose sanctions on persons determined:

• To operate or have operated since the date of the order in the so-called DNR or LNR regions of Ukraine;
• To be or have been since the date of the order a leader, official, senior executive officer, or member of the board of directors of an entity operating in the so-called DNR or LNR regions of Ukraine;
• To be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order;
• Or to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person whose property and interests in property are blocked pursuant to this order.

The Department of the Treasury is issuing six General Licenses to ensure that humanitarian and other related activity can continue in these regions:

• The purpose of this E.O. is to deny Russia the chance to profit from its blatant violations of international law. These actions are not directed at the people of Ukraine or the Ukrainian government.
• Treasury’s General Licenses are designed to support the innocent people who live in the so-called DNR and LNR regions who did not have a choice in Russia’s destabilizing and illegitimate actions today.
• The licenses allow a short-term wind down of activities, as well as for the export to the regions of food, medicine and medical devices, and ensure personal remittances can continue to flow.
• The licenses also allow telecommunications and internet services to remain operational, and mail services to continue.
• The licenses allow international organizations to be able to provide aid to the people in these two regions.

The United States will not hesitate to use its authorities to target those supporting efforts to undermine Ukraine’s sovereignty and territorial integrity. This authority provides the United States with the flexibility to impose similar restrictions on any other regions of Ukraine as appropriate.

###