Lidings Team Successfully Challenged the U.S. Bureau of Industry and Security's Decision Regarding Clients

12 December 2024

On June 12, 2024, the Bureau of Industry and Security (BIS) announced the imposition of trade sanctions in the form of a temporary denial order (TDO) against a number of Russian and foreign companies and individuals.

The Lidings team took immediate action to challenge the TDO to exclude its clients from the restrictions list.

Due to the Lidings Global project, which brings together trusted partner law firms around the world, we were able to promptly initiate the administrative appeal procedure. For 5 months together with US colleagues we conducted a complex process of negotiations, preparation of documents and interviews.

Jointly we have managed to ensure that the TDO against our clients was not prolonged. In the near future we are also expecting to receive a response within the framework of the administrative contestation procedure.

Stepan Guzey, Partner at Lidings: 

"We value our long-term cooperation with our clients, which has lasted for more than 10 years now.

I can note with satisfaction that during this time all their assignments have been successfully executed - be it courts, commercial and corporate transactions, work with state authorities.

Regarding the BIS dispute, I can point out that this is a rare and telling success, especially in the current geopolitical environment. In addition, the TDO was imposed due to suspected transactions in violation of Executive Orders 14024 and 14114.

We believe that in the framework of the administrative appeal procedure, which is still in progress, we will soon receive a response from BIS to terminate the proceedings on the formal ground - lack of grounds for challenge due to non-renewal of the TDO. It is obvious that BIS, as well as any state body, does not want to formally recognize its wrong and, moreover, to bring the case to court. However, the result speaks for itself - the restrictions have been lifted in respect of clients".