Half of Russia's 20 richest billionaires have not been hit with any U.S., U.K. or EU sanctions over Russia's military assault on Ukraine, Bloomberg News reported March 30. Three of those 20 individuals appeared on the EU, U.K. and U.S. sanctions lists. Russia's richest man, Vladimir Potanin, a metals executive with a $30 billion net worth, remains unlisted. Bloomberg cited sanctions experts who say that the decision not to list these men is due, at least in part, to their stakes in massive energy, metal and fertilizer companies. They said this decision may be due to the 2018 experience of sanctioning of Oleg Deripaska, an aluminum executive, which caused a massive price hike that settled only after Deripaska gave up control of United Co. Rusal International in 2019.
The Bureau of Industry and Security on March 30 added 73 new aircraft to its list of planes that have violated U.S. export controls by flying into Russia, including several aircraft owned by Russian cargo carriers. The list includes new planes owned by AirBridgeCargo, which calls itself Russia's largest cargo airline; Atran, a Moscow-based cargo airline; and other commercial or private aircraft owned by Aeroflot, Alrosa, Azur Air, Nordstar, Nordwind, Pegasfly, Pobeda, Rossiya, Royal Flight, S7 Airlines and Utair.
The U.S. can take several steps to increase its export control pressure against Russia, including expanding certain restrictions to capture a wider range of end-users in Russia beyond the military, said Matt Borman, a senior official at the Bureau of Industry and Security. Borman also stressed that Chinese companies on the Entity List still have much to lose if they aid Russia, including a complete ban from U.S. exports, financing and other services.
Australia announced the first designations under its recently created Magnitsky-style human rights sanctions law, targeting more than 30 Russian people for their role in the death of lawyer Sergei Magnitsky in 2009. “This will ensure that Australia does not become a safe haven for those already locked out of like-minded countries and their financial systems,” Australia’s foreign ministry said March 29. Australia said the announcement was just the first of “what will be ongoing sanctions” it will use under its law to target human rights abusers, which was passed in December (see 2112220008).
The EU updated its Russia sanctions guidance this week with new frequently asked questions, including several that clarify how it interprets its 50% rule and how asset freezes apply to entities owned by sanctioned people.
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The U.S. Court of Appeals for the D.C. Circuit upheld the sanctions listing of Russian billionaire Oleg Deripaska, finding that the Treasury Department's Office of Foreign Assets Control provided proper evidence for the listing. The court also held that while Deripaska was found to no longer own two major energy companies, OFAC found him to still operate them, justifying his placement in the Russian sanctions regime.
The U.S. is preparing more sanctions and export controls against Russia, including more measures to target the country's defense industrial base and critical supply chains, Deputy Treasury Secretary Wally Adeyemo said March 29 during an event at Chatham House in London. The U.S., which will announce those steps alongside more than 30 allies, is also turning its enforcement focus to companies or countries that may be helping Russia evade the sanctions, Adeyemo said.
The Bureau of Industry and Security added 73 new aircraft to its list of planes that have violated U.S. export controls by flying into Russia, including aircraft owned by Russian cargo carriers, the agency said in an emailed news release. The list includes new planes owned by AirBridgeCargo, which calls itself Russia's largest cargo airline, Atran, a Moscow-based cargo airline, and other commercial or private aircraft owned by Aeroflot, Alrosa, Azur Air, Nordstar, Nordwind, Pegasfly, Pobeda, Rossiya, Royal Flight, S7 Airlines and Utair. BIS also removed 12 aircraft that were allowed to return to owners in partner countries and updated tail numbers for other aircraft to “reflect their purported re-registration in Russia.” The agency said it will impose penalties and/or jail time or revoke export privileges for any company or person that violates the Export Administration Regulations by providing “any form of service” to the aircraft without a required BIS license.
The U.K.'s Office of Financial Sanctions Implementation issued new general licenses for Russia and for Belarus authorizing until April 23 the closing out of any positions involving sanctioned banks. For Russia, these banks are Alfa Bank, GazPromBank, Rosselkhozbank, SMP Bank and the Ural Bank for Reconstruction and Development. For Belarus, the general license applies to Bank Dabrabyt Joint Stock Co. and any of its subsidiaries.