Two senators plan to address the lack of regulation in the art industry after the Senate’s Permanent Subcommittee on Investigations released a July 29 report detailing how Russian oligarchs have used the industry to evade U.S. sanctions. The report calls the art industry the “largest legal, unregulated market” in the U.S., saying it has been exploited for money laundering to aid U.S.-sanctioned people and companies, allowing them to conduct million-dollar transactions. The industry is not subject to anti-money laundering and anti-terrorism financing controls for transactions, the report said, and private art dealers are not required to comply with anti-money laundering requirements.
The State Department updated its guidance for the Countering America’s Adversaries Through Sanctions Act to address sanctions related to Russian energy export pipelines (see 2007150021), especially Nord Stream 2 and the second line of TurkStream, a notice released July 22 said. The agency deleted portions of the guidance that limited the focus of the act’s sanctions authorities to Russian pipeline projects for which a contract was signed on or after Aug. 2, 2017, the notice said. The agency also clarified that the “focus of implementation” will include Russian pipeline projects, such as Nord Stream 2, a pipeline from Russia to Europe, and the second line of TurkStream, from Russia to Turkey.
The Bureau of Industry and Security has begun a broad review of new export controls on surveillance technologies going to China, which may also include additions to the agency’s Entity List, Acting Commerce Undersecretary for Industry and Security Cordell Hull said. Hull called the review “comprehensive” and “in-depth,” saying it could lead to controls over advanced surveillance tools, artificial intelligence software and biometric technologies.
The Office of Foreign Assets Control on July 16 extended the expiration dates for two Ukraine-related general licenses that authorize certain transactions with U.S.-sanctioned GAZ Group. Both licenses were scheduled to expire July 22 and now expire Jan. 22, 2021. General License No. 13O, which replaces No. 13N, authorizes certain transactions necessary to divestments and debt transfers. General License No. 15I, which replaces No. 15H, authorizes certain transactions related to the “manufacture and sale of existing and new models of vehicles” -- including components, engines and commercial vehicles -- produced by GAZ Group.
The U.S. Embassy in Libya threatened sanctions against people, governments and entities causing violence in Libya and disrupting the country’s economy. In a July 12 statement, the embassy said “foreign-backed efforts against Libya’s economic and financial sectors” have affected the country’s National Oil Corporation and “heightened the risk of confrontation.” The embassy specifically mentioned attacks by Wagner mercenaries -- controlled by the U.S.-sanctioned, Russia-based PMC Wagner -- against NOC facilities. “Those who undermine Libya’s economy and cling to military escalation will face isolation and risk of sanctions,” the embassy said.
The U.S. authorized new sanctions against Russia’s Nord Stream 2 and other Russian pipelines (see 1912190075), clearing the way for designations of people and entities associated with Russian gas projects, Secretary of State Mike Pompeo said. Those involved with the project may now be subject to sanctions under the Countering America’s Adversaries Through Sanctions Act, Pompeo said during a July 15 news conference.
The Office of Foreign Assets Control sanctioned three people and five entities involved in helping a Russian financier evade U.S. sanctions, OFAC said in a July 15 press release. The sanctions target Russia-based M Invest, its subsidiary Meroe Gold and two M Invest officials: Andrei Mandel and Mikhail Potepkin. OFAC also targeted Hong Kong-based Shine Dragon Group Limited, Shen Yang Jing Cheng Machinery Imp & Exp. Co., Zhe Jiang Jiayi Small Commodities Trade Company Limited and Shine Dragon Group director Igor Lavrenkov.
Russia will retaliate after the United Kingdom sanctioned 25 Russian nationals earlier this week (see 2007060025), Reuters reported July 7. A Kremlin spokesperson said it “can only regret such unfriendly steps” by the U.K., and added that “some kind of retaliatory response will apply to the extent that it suits the interests of the Russian Federation,” Reuters reported.
The United Kingdom on July 6 set its first sanctions under its new human rights sanctions regime, designating 49 people and organizations because of human rights violations. The sanctions, which have been hinted at by officials for months and were expected this summer (see 2007020014 and 2001100046), marked the first time the U.K. has issued its own designations for human rights abuses, with additional sanctions expected in the coming months, the Foreign and Commonwealth Office said July 6. The U.K. also issued a sanctions guidance for industry and an outline of available licenses, and said European Union sanctions will continue to apply in the U.K. until it leaves the EU on Dec. 31.
The European Council renewed sectoral sanctions against Russia for six months until Jan. 31, 2021, the council said June 29. The sanctions limit Russian banks’ access to the European Union market, block trade in defense and dual-use goods, and restrict the sale to Russia of sensitive technologies that can be used in its energy sector. The restrictions were originally introduced in 2014 in response to Russia’s actions to destabilize Ukraine.