Trade lawyers are expecting a sharp increase in DOJ export control and sanctions prosecutions in the coming months as the agency’s Counterintelligence and Export Control Section undergoes a hiring spree, and several law firms said the increased attention on sanctions violations may cause some companies to bolster their compliance programs.
The U.K. Supreme Court ruled Ukraine can defend a $3 billion Eurobond lawsuit on the grounds it was forced to take on the debt in 2013 due to threats from Russia. The Law Debenture Trust Corp., which is incorporated in England and Wales, sued on Russia's behalf. Ukraine said it need not pay the loan because it was procured by duress stemming from illegal pressure and threats, including sanctions.
The U.S. needs to impose more sanctions and export controls to prevent nuclear collaboration between Russia’s Rosatom and China, which is helping to support Russia’s war in Ukraine and allowing China to acquire enough weapons grade plutonium to “fuel its strategic nuclear breakout,” Republican House leaders said this week. Although the lawmakers said they were “heartened” to see the new set of sanctions against Russia last month (see 2302240028), which included designations targeting three Rosatom subsidiaries, they called for more.
A group of European countries not in the EU aligned with a European Council decision to extend until March 6, 2024, restrictions related to Russia's invasion of Ukraine. North Macedonia, Montenegro, Serbia, Albania, Ukraine, Bosnia and Herzegovina, Iceland, Liechtenstein and Norway also extended the restriction, the council said March 15.
Canada this month banned imports of aluminum and steel products from Russia, including railway track construction materials, cast iron tubes and pipes, iron and steel sheet piling and more. Canada has imposed a range of sanctions and import restrictions against Russia since it invaded Ukraine, including prohibitions on Russia’s oil, gas and chemical sectors (see 2207110008).
A group of European countries not in the EU aligned with two recent European Council sanctions decisions. North Macedonia, Montenegro, Albania, Ukraine, Moldova, Bosnia and Herzegovina, Iceland and Liechtenstein also imposed the EU's changes on its terrorism sanctions list, the council said. North Macedonia, Montenegro, Albania, Ukraine, Bosnia and Herzegovina, Iceland, Liechtenstein and Norway imposed the EU decision amending entries related to Belarus' support of Russia's invasion of Ukraine.
The Financial Action Task Force officially suspended Russia's membership, the Treasury Department’s Financial Crimes Enforcement Network told U.S. banks this month. The FATF -- which establishes international standards for financial institutions to combat terrorist financing, money laundering and weapons proliferation -- noted Russia’s “actions unacceptably run counter to the FATF core principles aiming to promote security, safety, and the integrity of the global financial system,” FinCEN said.
The European Parliamentary Research Service released a briefing covering a timeline of EU sanctions on Russia, including an analysis of the sanctions, their effectiveness and their economic impact.
Arms shipments to Europe have “risen sharply” due to Russia’s invasion of Ukraine, the Stockholm International Peace Research Institute said in a March 13 report. Many of the exports have come from the U.S., the report said, which accounted for 40% of global arms exports from 2018 to 2022. The report also highlighted a steep decline in Russian arms shipments, mostly due to Western sanctions, although Moscow increased its arms exports to China by 39% and to Egypt by 44% from 2018 to 2022. Russian arms exports to India during that same time period fell by 37%.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.