RSU vesting is paused for Russian citizens

Cisco
sdwan-cisc

Go to company page Cisco

sdwan-cisc
Mar 11 64 Comments

Hi everyone,
I am a Russian citizen and a US green card holder (resident), working at Cisco in San Jose. This week I received an email from my employer notifying that my RSU vesting will be paused until further notice. Here is the reason they provided:
"Effective March 2, 2022, US companies can no longer engage in share transactions with Russian citizens residing within or outside of Russia, unless expressly allowed by the Russian government."
I believe they are referring to this document: http://kremlin.ru/events/president/news/67886, but I am not sure if this policy is applicable to me.
I want to figure out if Russian citizens in other US companies have also faced this problem. If not and you received RSUs after March 2nd - please let me know. It might be the case that Cisco misinterpreted the policy in that document.

Thanks!
#rsu #Russian #cisco #engineering

UPDATE: Just received a new email from Cisco with more details:
"On February 28, 2022, Russia’s President issued Decree 79 on special economic measures in connection with the U.S. imposed sanctions and then again, on March 2, 2022, imposed further countermeasures under Decree 81 (which took effect on March 1 and 2, 2022, respectively). Under these sanctions, U.S. companies cannot issue shares to Russian residents, unless expressly allowed by the Russian government. The term Russian residents includes Russian citizens (regardless of whether they are working inside or outside of Russia) and foreign citizens working in Russia with a valid permanent Russian residency permit ("вид на жительство" in Russian).
As such, until the Russian government lifts these restrictions (and assuming no others are imposed), these countermeasures will affect all Russian residents and will impact all stock related plans (including RSUs and the Employee Stock Purchase Plan (ESPP)). Refer to Decrees 79 and 81 for more details. "

comments

Want to comment? LOG IN or SIGN UP
TOP 64 Comments
  • This seems like a dubious interpretation at best. Most sanctions have been focused on companies and select individuals. Financial sanctions shouldn’t affect transactions occurring on US soil to the benefit of a US company employee. None of the above is legal advice, it’s more what feels rational to me. I think at the very least you have ample grounds to hire legal representation and heavily question this. I would heavily hint with your HR that there is an undertone of possible discrimination here too (if you agree).
    Mar 11 1
  • Zoom
    iAMS14

    Go to company page Zoom

    iAMS14
    is this legal? why should cisco abide russian laws ?
    Mar 11 5
    • Amazon
      n739jd

      Go to company page Amazon

      n739jd
      Exactly. If say Iran issues a decree tomorrow that forbids Iranian individuals from working in US companies, should US companies fire its US based employees? They could but it will be company decision alone which is likely illegal. Same here, if this is not a mistake and they confirm they sanction you based on nationality then you should lawyer up.
      Mar 14
    • Amazon / Eng
      wawY45

      Go to company page Amazon Eng

      PRE
      Apple
      BIO
      I'm a no-man.
      wawY45
      ORRICK> For purposes of the exchange control laws and regulations, a “Russian resident” LIKELY covers ANY Russian NATIONAL even if they are living outside of Russia and are not a tax resident in Russia.

      (Words original from the link above, emphasis mine.)

      Isn't it ironic that it's actually this orrick article that might violate the fake news law instead?

      They claim "resident" applies to nonresidents, simply based on "nationality" (not even citizenship!), but never substantiate such an opinion with any references whatsoever.

      They even prefix it with "likely" to further disclaim any liability for incorrect information. Note that the whole page intentionally omits the words "citizen" and "green card" for some extra FUD.

      To top this off, because they effectively strongly suggest discrimination against "any Russian national" instead of even a "Russian citizen", it might as well violate both the Russian and American law against discrimination based on a national origin. So much for an "insight".
      Mar 25
  • Amazon
    n739jd

    Go to company page Amazon

    n739jd
    Technically, how the Russian contra-sanction is formulated, you won’t be eligible for a salary too. They forbid Russian citizens from having any transactions on foreign accounts. That includes RSUs, direct deposits and so on. Why does Cisco decide to comply with a foreign country law is beyond my understanding.
    Mar 12 2
  • This sounds so bad I want to think it's a joke
    Mar 11 0