Sanctions compliance officers working in the maritime shipping industry should pay particularly close attention to registered ship owners operating single-ship fleets, which could signal a ship attempting to evade sanctions, said Byron McKinney of S&P Global Market Intelligence. McKinney said he’s seen a spike in single-ship fleets -- which are used in some cases to obscure the true ownership of a vessel -- since the Treasury Department published its maritime sanctions advisory in 2020.
The Bureau of Industry and Society last week issued guidance for license applicants seeking to export medical-related items to Russia, Belarus or certain occupied regions of Ukraine, outlining best practices for submitting applications and what information should be included. BIS urged exporters to “provide all the necessary information when the application is first submitted” so the agency can “promptly analyze the proposed scope of the transactions” before submitting it for interagency review, and the agency detailed what types of applications may lead to delays.
The U.K.'s Office of Financial Sanctions Implementation added five entries to its Sudan sanctions regime, one to its Mali restrictions list and seven under its Central African Republic sanctions regime in a series of three July 20 notices.
The European Council this week extended by six months, until Jan. 31, its sanctions targeting certain sectors of the Russian economy. The restrictions were imposed in 2014 and expanded following the invasion of Ukraine. The sanctions include a host of sectoral restrictions on trade, finance, technology, dual-use goods, industry, transport and luxury goods, the council said, as well as an import ban on seaborne crude oil and restrictions on Russia-based "disinformation outlets."
Paul Goldfinch, a sanctioned former board member at Russian financial institution Bank Otkritie, filed suit on July 17 at the District Court for the District of Columbia over the government's failure to render a decision on his delisting petition. The banker, listing the State and Treasury Departments as defendants, said he resigned after Bank Otkritie was listed in February 2022 following Russia's invasion of Ukraine, but the government has stalled on finding that he has satisfied its delisting requirements (Paul Goldfinch v. Antony J. Blinken, D.D.C. # 23-02045).
The U.S. this week sanctioned more than 100 people, entities and ships supporting Russia’s war efforts against Ukraine, including one of its top metals producers and leading construction companies, Kyrgyz Republic firms sending Moscow dual-use technologies, and other businesses helping the government evade international sanctions. The new designations are meant to further restrict Russia’s ability to import military goods and technology, slash revenue from its mining sector, undermine its energy capabilities and “degrade Russia’s access to the international financial system,” the Treasury Department said.
The Norwegian government will establish a new agency to handle matters relating to export controls and sanctions, the Ministry of Foreign Affairs announced July 11. The country said it's forming the agency in part due to the growing number of restrictions stemming from Russia's war in Ukraine, adding that it wanted to create a "separate government agency to dedicate more resources to efforts relating to implementing sanctions and export control." The new agency, which is expected to be established within the Ministry of Foreign Affairs in 2024, will deal with case processing, oversee export licenses and provide guidance.
A State Department official this week denied allegations that the agency has held back sanctions and export controls in an effort to limit damage to the U.S.-China relationship, saying the Biden administration continues to enforce a range of human rights-related trade restrictions against Beijing. But the official also said the administration hasn’t yet imposed mandatory sanctions under the Uyghur Human Rights Policy Act of 2020 and was accused by at least one lawmaker of failing to comply with a congressional subpoena that sought information on sanctions against China.
Lithuania's Ministry of Foreign Affairs issued sanctions guidance July 17 on "detecting and preventing sanctions evasion and circumvention in trade." The document lists factors companies should take into account when conducting risk assessment, "red-flags in Russia or third country related business operations, and guidance on due diligence when "estimating the risk on sanctions evasion and circumvention," and how to determine ownership and what is the "ultimate beneficial owner."
Russian President Vladimir Putin ordered on July 16 that foreign ownership of the Russian subsidiary of French dairy products maker Danone be transferred to the temporary administration of the Federal Agency for State Property Management. The move was made under a presidential decree issued in April in response to sanctions imposed on Russia and allowing the Russian government to place property belonging to individuals and entities from "unfriendly" nations into government administration (see 2304270017). Russia previously seized Carlsberg Sverige Aktiebolag's 98.56% share holding of Baltika Breweries, Hoppy Union's 1.35% ownership of the breweries and Carlsberg Deutschland's 0.09% ownership.