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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The EU adopted its 10th sanctions package on Russia, the European Council announced. The restrictions include imposing a travel ban and asset freeze on another 87 individuals and 34 entities, as well as various trade sanctions, including additional export bans on critical technology and industrial goods.
Australia joined the U.S. and other G-7 countries (see 2302240028, 2302240025 and 2302240054) in imposing new sanctions against Russia last week, designating an additional 90 people and 40 entities. The new sanctions target Russian ministers overseeing the country’s energy, natural resources, industry, education, labor, migration and health sectors, Australia said, and also officials “perpetuating the Kremlin's mistruths to shore up support for President [Vladimir] Putin.” Australia also said it will provide additional security assistance to Ukraine, including “Uncrewed Aerial Systems,” which “provide a battlefield intelligence, surveillance and reconnaissance capability for the Ukrainian Armed Forces as they continue to fight.”