Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Treasury Department has enough evidence to show that its Russia sanctions are being violated and needs to move faster to impose secondary sanctions, Sen. Chris Van Hollen, D-Md., said. He said he and Sen. Pat Toomey, R-Pa., plan to push the agency to act.
The U.K. added Russian steel manufacturing and mining company Evraz to its Russia sanctions regime, the Office of Financial Sanctions Implementation said in a May 5 notice. The company is now subject to an asset freeze. Per a statement from the Foreign, Commonwealth & Development Office, Evraz makes 28% of all Russian railway wheels and 97% of Russian railtracks. The OFSI notice listing Evraz also corrected eight entries under the Russia sanctions regime.
Hungary blocked an EU proposal to ban Russian oil imports at a meeting of the EU's 27 ambassadors that ended on May 8 without an agreement, Bloomberg reported May 8, quoting "people familiar with the talks." The proposal would ban crude oil imports from Russia, phasing in the ban over the next six months, and also ban refined fuels by January. The EU offered Hungary and Slovakia until the end of 2024 to come into compliance with the bans and the Czech Republic until June 2023 to do the same, given their reliance on Russian oil, Bloomberg said.
The U.K. rolled out another round of sanctions on Russia and Belarus in response to their assault on Ukraine, the Department for International Trade announced May 9. The new restrictions target over $2 billion worth of goods, imposing tariffs on over $1.7 billion worth of Russian imports, including platinum and palladium, and export bans on over $307 million worth of goods, in an effort meant to disrupt Russia's manufacturing and heavy machinery industries.
Adding sanctions on Chinese surveillance company Hikvision would represent a “profound escalation” of U.S.-China technology tensions, prompt retaliation from China and further accelerate economic decoupling, the Carnegie Endowment for International Peace said May 6. The sanctions, reportedly under consideration by the Biden administration (see 2205040009), could “vault Hikvision past Huawei to become the most-sanctioned Chinese tech company,” the think tank said.
The U.S., the EU and the other G-7 members on May 9 announced a series of new sanctions and restrictions on Russia, including a ban on providing certain business management services to the country and a commitment to phase out imports of Russian oil. New U.S. restrictions include broader export controls and sanctions targeting Russian banking executives, a weapons manufacturer and state-owned media.
The European Commission updated various elements of its frequently asked questions guidance pertaining to the ever-changing Russian sanctions regime. The commission on May 4 updated the guidance for "Circumvention and due diligence," "Trading" and "Assets freeze and prohibition to make funds and economic resources available." The guidance walks through the nuances of how to comply with sanctions on Russian individuals, entities and sectors of the economy. Other recently updated FAQs cover "Insurance and reinsurance," "Sale of securities in an official Member State currency," "Deposits," "Luxury goods," "Humanitarian aid" and "Credit rating."
Russia imposed retaliatory sanctions on Japanese politicians, businesspeople and members of the media, including Prime Minister Fumio Kishida, banning their travel to Russia, the Russian Ministry of Foreign Affairs announced May 5, according to an unofficial translation. The 63 individuals subject to the reciprocity also include Chief Cabinet Secretary Hirokazu Matsuno and Foreign Affairs Minister Yoshimasa Hayashi.
The U.S. expanded export controls on Russia to cover a broader range of “commercial and industrial operations,” including wood products and construction machinery, the Commerce Department said. The new controls make more items on the Export Administration Regulations subject to “stringent” licensing restrictions for export to Russia, the Bureau of Industry and Security said in a final rule that includes the specific Schedule B numbers and Harmonized Tariff Schedule codes of the newly restricted items. Commerce said the items previously didn’t require a license for “most exports” to Russia.