USA TRENDS AND DEVELOPMENTS Contributed by: Seward & Kissel LLP
tracting with the Department of Defense or face other consequences as authorised by Congress. The 2025 NDAA expands the criteria for inclusion on the list to entities subject to the control or direction of a greater number of Chinese government bodies, which has already resulted in additional companies being added to the list. The 2025 updates to the programme also add procedural protections for listed companies. Par- ties doing business with listed companies or who are at risk of becoming listed companies should watch this programme closely. Both the outbound investment rule and rules concern- ing Chinese Military Companies may be the subject of diplomatic negotiations between the two countries in the coming months. Interested parties should monitor developments in US-China relations in 2025 and ensure corporate compliance programmes are adjusted in the event of The Russian economy and defence industry continue to be the subject of extensive US sanctions. The Rus- sian Harmful Foreign Activities Sanctions programme has expanded rapidly since the onset of the Russia- Ukraine war and has remained robust so far in 2025. Diplomatic efforts to end the war remain in flux, and there appears to be continued momentum for imple- menting and enforcing sanctions against Russia. This includes sanctions on entities and individuals designated by OFAC, secondary sanctions prohib- iting financial institutions from providing services to persons sanctioned by OFAC, as well as price caps and restrictions on the transportation of crude oil and petroleum products. Countries around the world have enacted sanctions and “counter-sanctions” in relation to Russia. The European Union (EU) and the United Kingdom (UK) have sanctions regimes against Russia (and Belarus) that are largely aligned with the goals of the US, but in many cases have implemented somewhat differ - ent sanctions measures, which continue to update regularly. For example, in April, the UK implemented additional sanctions to mirror those passed earlier this year by the EU that restrict the transfer of everything future changes to relevant rules. Russian Sanctions Hold Steady
from financial services to video game consoles. On the other side of this coin, Russia and China have implemented their own sanctions regimes to coun- ter Western efforts. China has enacted a sanctions regime which allows it to take action against for - eign entities acting against Chinese interests. It has announced sanctions against a relatively limited num- ber of entities that have dealings with Taiwan. These unharmonised and conflicting regimes create a com - plex compliance landscape for parties operating in multiple jurisdictions. Concerned parties should moni- tor the sanctions regimes in all jurisdictions in which they operate and assess the risks associated with the unique provisions of each. In the US, members of Congress, led by Senators Richard Blumenthal and Lindsey Graham, have pro - posed legislation that would enact severe sanctions measures against Russia and anyone who aids the Russian government. Among the more drastic provi- sions are sanctions and asset freezes on any non-US person who has engaged in activities that undermine Ukraine or operates in critical Russian economic sec - tors, as well as minimum import duties of at least 500% on all goods and services from Russia. The legislation is subject to negotiation and amendment, and may not ultimately be enacted, but nevertheless reflects the strong and continued desire of the US Congress to support Ukraine and use sanctions (and the threat of future sanctions) as leverage against Rus- sia’s war effort. Sanctions Relief Comes to Syria In Syria, a new government has formed after the ouster of Bashar al-Assad’s regime, and the US has ended its sanctions programme against the country. Syria General License 25 was issued by OFAC on 23 May 2025, lifting most US sanctions against Syria. This action enables US persons to do business with the Syrian government and make investments within Syria for the first time in many years. GL 25 authorises new investment in Syria, the pro - vision of financial and other services to Syria, and transactions related to Syrian-origin petroleum or petroleum products. The property was blocked pur - suant to previous Syria sanctions; however, it remains blocked. The US has publicly supported new invest -
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