The Bureau of Industry and Society’s export enforcement arm is ramping up outreaches to exporters amid a rise in new restrictions against Russia and China, said Christopher Grigg, a former DOJ official. Grigg, now a lawyer with Nixon Peabody, said the agency’s Office of Export Enforcement is contacting more companies to specifically vet their record-keeping procedures.
The U.K. Office of Financial Sanctions Implementation removed a duplicate sanctions list entry for Sergey Borisovich Korolev, member of Rosatom's supervisory board, and amended the entry for Alexey Viktorovich Kuzmichev, member of Alfa Group Consortium's supervisory board.
The number of ships carrying sanctioned fuel has increased in recent years, creating a “shadow” fleet of tankers that operate without insurance or oversight, Reuters reported March 23. Industry observers fear the rise in shadow vessels could “undermine decades-long industry efforts to increase shipping safety,” particularly as more vessels turn to carrying sanctioned Russian and Iranian energy shipments. The report tracked at least eight groundings, collisions or near misses involving tankers carrying sanctioned energy products last year, adding that the shadow fleet is estimated to include at least 400 to 600 ships, about a fifth of the total global crude oil tanker fleet.
The U.K. this week added people and entities designated under its Regulation 11 Russia sanctions to the list of parties designated under its Regulation 18C trust services restrictions. "This means that it is now prohibited to provide trust services to or for the benefit of these persons, unless permitted by a licence or there is an applicable exception," OFSI said. The change took effect March 21.
The Bureau of Industry and Security is hoping its new Disruptive Technology Strike Force leads to more investigations of export control violations, faster prosecutions and more criminal enforcement actions, said John Sonderman, director of the BIS Office of Export Enforcement. The agency also is looking to clamp down on U.S.-origin items ending up in Iranian drones, said Kevin Kurland of OEE, warning that companies should make sure they’re complying with the new Iran Foreign Direct Product Rule issued last month.
The U.K.'s Office of Financial Sanctions Implementation updated its Russia sanctions guidance on licenses that permit conduct otherwise barred by regulation 54C. Regulation 54C covers the provision of "accounting, advertising, architectural, auditing, business and management consulting, engineering, IT consultancy and design and public relations services," to a person linked with Russia, the EU Sanctions blog reported. The guidance clarifies that a license may be granted under this regulation "if it is necessary for ensuring critical energy supply to any country."
The U.K. removed Irish journalist Brian McDonald from its Russia sanctions regime. The Office of Financial Sanctions Implementation also amended information for Igor Viktorovich Makarov, president of ARETI International Group, and struck a duplicate entry for Minsk Wheel Tractor Plant.
The Office of Foreign Assets Control this week published a previously issued Russia sanctions determination and general licenses. One notice includes a previously issued Russia-related sector determination published under April 15, 2021, executive order, and the others include previously issued general licenses under the Russian Harmful Foreign Activities Sanctions Regulations.
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.