U.S. banning accounting and consulting services to Russia

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You may have missed the U.S. has joined several other countries in banning accounting and consulting services to Russia. The U.S. Department of the Treasury issued a determination in response to an Executive Order prohibiting certain accounting and consulting services to persons located in Russia. The determination may be found here determination_05082022_eo14071.pdf (treasury.gov). Accounting and consulting service providers were given a short time to cut ties and wrap up any engagements before the ban took effect June 7, 2022.

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The prohibition bans accounting, trust and corporate formation, and management consulting to any persons located in Russia. Specifically, the determination lists the following prohibited activities: “the exportation, re-exportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of accounting, trust and corporation formation, or management consulting services to any person located in the Russian Federation.” The ban does not include legal services at this time, but sanctions could expand in the future to include legal services.

The following are excluded from the ban:

  • Services provided to an entity located in Russia that is directly or indirectly owned or controlled by a U.S. person
  • Services relating to winding down or the divestiture of an entity located in Russia but is not directly or indirectly owned or controlled by a Russian person

The U.S. Department of the Treasury also issued FAQs here Publication of amended Russia-related Frequently Asked Questions | U.S. Department of the Treasury

This information is general and should not be relied on. Please contact your Henry+Horne advisor with any questions.

Jill A. Helm, CPA