The U.S. and other G-7 member states plan to soon announce a host of new sanctions and trade restrictions against Russia, including new restrictions targeting Russia’s industrial and technology sectors. The countries also plan to announce enforcement actions relating to Russia’s sanctions evasion efforts, which will include new additions to the Commerce Department’s Entity List.
The U.S. on June 28 announced a host of new sanctions targeting Russia’s defense industrial base, including export restrictions against entities helping Moscow evade U.S. export controls and for illegally acquiring controlled U.S. items for Iran. The financial sanctions, announced by the Treasury and State Department, target more than 100 entities and 50 people, including Russia’s State Corporation Rostec, a “massive” state-owned technological, aerospace and military-industrial enterprise. Treasury also issued several new general licenses.
The U.K. amended 58 entries -- 20 people and 38 entities -- under its Russia sanctions regime and corrected another entry, the Office of Financial Sanctions Implementation said in a June 24 notice. OFSI updated various elements in the 58 amended entries. The individuals include Russian businesspeople and media executives, and the entities are banks, manufacturers and research institutions. The corrected entry is for Alexey Ivanovich Isaykin, Volga-Dnepr Group president and board member.
A senior Treasury Department official urged banks in the United Arab Emirates to look out for Russia-related sanctions evasion attempts, warning they could face steep penalties for poor due-diligence. Wally Adeyemo, Treasury’s deputy secretary, said the banks must be “exceedingly cautious in handling any Russia-related businesses.”
Liability under the U.K.'s Russia sanctions regime may be determined even when an offending party wasn't aware of or had no reasonable suspicion of the breach, so companies should review their internal sanctions compliance to ensure they have "comprehensive processes and procedures in place" to avoid sanctions risk, global law firm Sidley Austin said in a guidance.
The Bureau of Industry and Security on June 24 suspended the export privileges of three Russian airlines for violating U.S. export controls against Belarus. The agency issued 180-day temporary denial orders for Nordwind Airlines, Pobeda Airlines and Siberian Airlines, BIS said, banning all three airlines from participating in transactions subject to the Export Administration Regulations.
China's President Xi Jinping criticized global sanctions in a June 22 speech at the opening ceremony of the BRICS Business Forum, the Chinese Ministry of Commerce said, according to an unofficial translation of a press release. Appearing virtually, Xi said sanctions are a "boomerang" and a "double-edged sword" that politicize and weaponize the global economy to impose "arbitrary" restrictions that ultimately harm others. BRICS member states are Brazil, Russia, India, China and South Africa.
The U.K. updated its guidance on the sanctions relating to the provision of insurance and reinsurance services over aviation and space goods and technology to a person or entity connected with Russia or for use in Russia. The Office of Financial Sanctions Implementation said that the restrictions "would not apply where the insurance is for the benefit of the non-Russian owner of the items, rather than their user or operator. It also doesn't apply where the items either remain in Russia as the result of the termination of a lease and against the lessor’s will or are flown out of Russia in the process of returning them to their owner.
DOJ plans to expand its work with Ukraine to help it combat Russia sanctions evasion, the agency said this week. The agency will specifically send Ukraine an “expert” DOJ prosecutor to “advise on fighting kleptocracy, corruption, and money laundering” and will deploy two additional attorneys from the Office of International Affairs to support the department’s KleptoCapture Task Force. The lawyers will work “closely” with their EU counterparts and Middle Eastern countries to “facilitate mutual legal assistance and extraditions relating to Russian illicit finance and sanctions evasion, including with respect to designated Russian oligarchs who have supported the Russian regime and its efforts to undermine Ukrainian sovereignty,” DOJ said.
The Bureau of Industry and Security on June 24 suspended the export privileges of three Russian airlines for violating U.S. export controls against Belarus. The agency issued 180-day temporary denial orders for Nordwind Airlines, Pobeda Airlines and Siberian Airlines, BIS said, banning all three airlines from participating in transactions subject to the Export Administration Regulations.