Energy Workforce Member Company Buchanan Ingersoll & Rooney shared timely information on the current U.S. government trade enforcements against Russia and its implications for the energy sector on June 22. Daniel Pickard, Shareholder, Chair, International Trade & National Security Practice Group, and Jordan Yeagley, Associate, spoke to attendees in a session hosted by the International Trade Policy, Government Affairs and Supply Chain committees and moderated by Advisory Board Member James Prince, Vice President Sustainability, Baker Hughes.
Pickard and Yeagley discussed pressing international trade issues, including the current OFAC sanctions regime, the Export Administration Regulations, and the Section 301 duties. Of particular interest to the membership, Pickard discussed what to expect regarding Section 301 tariffs in the coming months. He notes that comments from the Biden Administration officials signal consideration for taking off the duties and tariffs.
Currently, there is a mechanism for entities receiving relief through 301 tariffs to comment in favor of the continuation of said duties on the USTR website. Pickard suggests the first rollback of duties could be those on which comments for continuation are not received, which would likely trigger an increased import volume from China.
Sanctions against Russia date back to 2014 but with the recent war in Ukraine, multiple waves of sanctions have been imposed as a way to curtail the aggression. These include measures from the United States and other countries targeting the Russian energy sector. Pickard reviewed the differences between selective, sectoral and comprehensive sanctions and what energy service companies should be aware of to mitigate any potential exposure or penalties. The Buchanan Ingersoll & Rooney team also reiterated how reputational risk is significant and Member Companies should be aware of new prohibitions and exceptions for their businesses.
If you are interested in joining the International Trade Policy Committee, please reach out to Maria Suarez-Simmons.
Maria Suarez-Simmons, Director Government Affairs, writes about industry-specific policies for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.