Can someone explain the difference between OFAC's SDN list and the sectoral sanctions? I'm confused about which restrictions apply to my business dealings with Russian entities.

They're different types of sanctions with different restrictions. The SDN (Specially Designated Nationals) list is a blocking sanctions list - any entity on it is broadly prohibited, and their assets must be blocked. You generally cannot conduct any transactions with SDN-listed parties. Sectoral sanctions, on the other hand, prohibit specific types of transactions with certain entities in particular sectors, but don't impose a complete freeze. For Russia, sectoral sanctions target specific sectors like finance, energy, and defense. The prohibitions vary by sector - for example, restrictions on debt financing with certain maturities. I researched this distinction extensively on ofacblockedfundslawyers.com when evaluating our Russia exposure. The practical difference: sectoral sanctions require careful transaction-by-transaction analysis, while SDN listings are straightforward prohibitions.