Two U.S. citizens were arrested March 2 for their role in a yearslong scheme to avoid U.S. export controls on aviation-related technology headed for Russia, DOJ announced.
The U.S. last week sanctioned five Russian officials and one "expert witness" involved in the arrest and imprisonment of Russian opposition politician Vladimir Kara-Murza. The designations came after lawmakers, including Sens. Bob Menendez, D-N.J., and Jim Risch, R-Idaho, asked the administration to impose Magnitsky human rights sanctions against Russia for the arrest of Kara-Murza, who has spoken against the war in Ukraine (see 2209270021 and 2301260046).
Russia is using the United Arab Emirates as a major transhipment hub to import controlled goods, a Treasury Department official said last week. UAE companies exported more than $18 million worth of goods to sanctioned Russian entities between July and November, said Elizabeth Rosenberg, assistant secretary for terrorist financing and financial crimes. They also exported more than $5 million worth of U.S.-origin and export controlled goods to Russia June to November. Those items included “semiconductor devices” used by Russia to fight its war in Ukraine.
The Bureau of Industry and Security will increase the number of penalties it issues against corporations for export violations this year, an effort it hopes will lead to improved industry compliance, the top export BIS enforcement official said last week. DOJ also will concentrate more resources on targeting export violators, a top agency official said, and plans to significantly expand its Export Control Section.
Russia could run out of money in 2024 and need funds from "friendly" nations to continue to weather the sanctions storm, billionaire Oleg Deripaska said March 2 at the Krasnoyarsk Economic Forum in Serbia, Bloomberg reported. "There will be no money already next year," Deripaska, founder of aluminum giant Rusal International, said. "We will need foreign investors." Russian authorities are already planning to hike budget revenue with changes to how it taxes oil companies, and is considering a one-time levy on commodity producers, the report said.
President Joe Biden this week extended national emergencies that authorize certain sanctions related to Venezuela, Zimbabwe and Russian actions in Ukraine. Each was renewed for one year.
U.S. enforcement agencies this week issued their first joint “compliance note” to warn industry about common Russian sanctions evasion efforts. The note -- from the Commerce, Treasury and Justice departments -- outlines methods Russia uses to circumvent trade restrictions, including through intermediaries or transshipment points, and describes a range of red flags businesses should monitor.
The Bureau of Industry and Security this week added 37 entities to the Entity List for a range of activities the agency said threaten U.S. national security, including for supporting Russia’s war effort, sending controlled items to China’s military and aiding companies already listed on the Entity List. The entities -- located in Belarus, Myanmar, China, Pakistan, Russia and Taiwan -- will be subject to a license requirement for all items subject to the Export Administration Regulations with varying license application review policies. BIS also modified 10 existing Chinese entries on the Entity List. The additions and changes took effect March 2.
The U.K. corrected one entry under its Russia sanctions regime, in a Feb. 28 notice. The listing for Matthias Artur Warnig was amended to reflect his ties to President Vladimir Putin and his role as the Rosneft board's independent vice chairman, and remove identifying information of a different person.
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