Analysts offer insights on sanctions, SEC disclosure requirements, cyber threats, and more

NEW YORK, March 25, 2022 

What: Business Impacts Stemming from Russia's Invasion of Ukraine

Why: On February 24, Russia launched a full-scale invasion of Ukraine, shocking the world and causing several western nations to take a number of actions in response. The crisis has spurred Russian sanctions, the tightening of cybersecurity, and changes in the global IP scene.

To help businesses and legal professionals navigate this volatile and quickly evolving crisis, Wolters Kluwer legal experts have developed special reports covering the following areas:

• Cybersecurity: As cyber threats increase with the ongoing invasion, cybersecurity experts continue to raise the alarm concerning potential cyberattacks against Ukrainian targets as well as attacks against the U.S. and other NATO countries. Recent federal cybersecurity action includes provisions in the Consolidated Appropriations Act that kicked off rulemaking to require reporting of ransomware payments and create a Cyber Incident Review Office within CISA. The SEC also proposed rules to enhance and standardize disclosure regarding cybersecurity risk management, strategy, governance, and incident reporting. LINK
• Intellectual Property: As part of the world's general reaction to the crisis in Ukraine, several major IP offices have halted cooperative efforts with their Russian counterparts. On the contrary, IP offices throughout Europe have pledged assistance and support to Ukrainian rights holders whose pending actions are disrupted by the conflict. On March 4, the USPTO announced that it had terminated engagement with officials from Russia's IP Agency (Rospatent) and with the Eurasian Patent Organization (EAPO). The USPTO also announced it terminated engagement with the national IP office of Belarus, an action that will affect Russian rights holders seeking to extend protection to the U.S., as well as U.S. businesses that continue to operate in Russia. LINK
• The SEC: An initial consideration for many U.S. companies and private issuers subject to SEC disclosure regulations was whether to cease any business in Russia, an action many companies have now taken. Companies in the U.S. with material business in Russia or Ukraine continue to monitor the crisis and prepare to potentially update existing SEC disclosures to reflect the risk of doing business in these countries. With reports that some diplomatic talks have occurred between Russia and Ukraine, businesses might begin to reconsider their decisions to cease business operations in Russia, but need to remain mindful that sanctions may not be lifted for some period of time after the conflict ends. LINK
• Sanctions and Compliance: Sanctions are being imposed at a rapid pace, and financial institutions and the attorneys counseling them are scrambling to navigate the regulations intended to ensure compliance with the sanctions and trade embargoes against Russia, hoping to prevent potential Russian sanction evasion attempts. Sanctions compliance and the prevention of actions taken as a back-door means to evade sanctions requires diligence, strict monitoring of OFAC's SDN List, and the implantation of OFAC and FinCEN guidance, starting with an effective SCP that is wholly supported by management. LINK
• Economic Sanctions: Since the start of the invasion, President Biden has taken many executive actions that have led to a slew of economic sanctions against a wide swath of the Russian economy, its leadership, and oligarchy. The first action taken by OFAC was sanctioning two major Russian state-owned financial institutions, imposing additional restrictions on Russian sovereign debt, and sanctioning five Kremlin-connected elites. OFAC has also sanctioned additional regime elites and business executives who are associates and facilitators of the Russian regime. LINK

"Unprecedented information warfare prior to the invasion put U.S. companies and their attorneys on notice that war was not only possible, but likely," said Matthew Garza, Senior Legal Analyst at Wolters Kluwer Legal & Regulatory U.S. "This series of special reports will help them track the U.S. response as they continue to move to protect clients with interests in the region."

Who:

• Tony Foley, Privacy & Cybersecurity Legal Analyst at Wolters Kluwer Legal & Regulatory U.S.
• Thomas Long, Senior Intellectual Property Legal Analyst at Wolters Kluwer Legal & Regulatory U.S.
• Mark Nelson, Senior Securities Legal Analyst at Wolters Kluwer Legal & Regulatory U.S.
• Katalina Bianco, Senior Banking and Finance Legal Analyst at Wolters Kluwer Legal & Regulatory U.S.
• John Pachkowski, Senior Banking and Finance Legal Analyst at Wolters Kluwer Legal & Regulatory U.S.

Contact: To arrange an interview with a Wolters Kluwer Legal & Regulatory U.S. legal expert on this or any other related topics, please contact Linda Gharib at lrusmedia@wolterskluwer.com.

About Wolters Kluwer Legal & Regulatory U.S.

Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the healthcare; tax and accounting; governance, risk and compliance; and legal and regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.

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MEDIA CONTACT
Linda Gharib 
Director, Brand & Communications 
Wolters Kluwer Legal & Regulatory U.S. 
Tel: +1 (646) 887-7962 
Email: lrusmedia@wolterskluwer.com

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SOURCE Wolters Kluwer Legal & Regulatory U.S.