The government’s ability to impose sanctions has existed for decades. For example, in the past, the U.S. government has imposed sanctions on Cuba, Iran, North Korea, Sudan and Venezuela. In fact, the recent sanctions imposed in response to Russia’s invasion of Ukraine are not the first sanctions the U.S. has imposed relating to Russia; in 2014, the U.S. and other countries sanctioned Russia for its annexation of Crimea. Thus, although the latest round of sanctions imposed against various Russian individuals, entities, activities and sectors is not a novel development, the breadth of the sanctions and the global coordination involved is distinguishable from prior iterations. What does that mean for private fund managers? This first article in a three-part series explains how sanctions regimes work. The second article will discuss how sanctions can impact a private fund manager’s investors and investments, including what to do if an investor or investment is subject to sanctions. The third article will explore what managers should do to ensure they comply with sanctions and have sufficient protections in their fund documents. See our two-part series: “Scope of Global Sanctions From the Ukraine/Russia War and How Designated Person Standards Affect Fund Managers” (May 10, 2022); and “ESG Triggers, Restricted Secondaries Activity and Other Ways the Russia/Ukraine War Is Affecting PE Investments” (May 17, 2022).