The European Council on July 20 established a new framework for sanctions following Iran's support of Russia's war in Ukraine. The regime bars the export from the EU to Iran of parts used in the construction and production of unmanned aerial vehicles while also providing for sanctions against people responsible for Iran's UAV program, the council said. It also added six Iranian people, all of whom are currently listed under two existing sanctions regimes, for their roles in Iran's support of both Russian and Syrian aggression.
The Senate last week approved an amendment to its version of the FY 2024 National Defense Authorization Act that would restrict certain U.S. petroleum exports from being shipped to certain foreign “adversaries.” The amendment, which was approved 85-12, would specifically prohibit U.S. Strategic Petroleum Reserve sales to any entity “under the ownership or control” of the Chinese, Russian, North Korean or Iranian governments, with certain exceptions for national security reasons.
A Senate bill with bipartisan support could continue U.S. sanctions on Iran’s missile and drone program after the potential October sunset of U.N. Security Council restrictions against that country. The Making Iran Sanctions Stick in Lieu of Expiration of Sanctions Act, introduced by Sens. Bob Menendez, D-N.J., and Bill Hagerty, R-Tenn., would ensure that Iran’s missile development activities remain subject to “appropriate U.S. sanctions in the likely event that Russia and China block an extension of UN restrictions in the Security Council” later this year.
Sanctions compliance officers working in the maritime shipping industry should pay particularly close attention to registered ship owners operating single-ship fleets, which could signal a ship attempting to evade sanctions, said Byron McKinney of S&P Global Market Intelligence. McKinney said he’s seen a spike in single-ship fleets -- which are used in some cases to obscure the true ownership of a vessel -- since the Treasury Department published its maritime sanctions advisory in 2020.
The Bureau of Industry and Society last week issued guidance for license applicants seeking to export medical-related items to Russia, Belarus or certain occupied regions of Ukraine, outlining best practices for submitting applications and what information should be included. BIS urged exporters to “provide all the necessary information when the application is first submitted” so the agency can “promptly analyze the proposed scope of the transactions” before submitting it for interagency review, and the agency detailed what types of applications may lead to delays.
The U.K.'s Office of Financial Sanctions Implementation added five entries to its Sudan sanctions regime, one to its Mali restrictions list and seven under its Central African Republic sanctions regime in a series of three July 20 notices.
The European Council this week extended by six months, until Jan. 31, its sanctions targeting certain sectors of the Russian economy. The restrictions were imposed in 2014 and expanded following the invasion of Ukraine. The sanctions include a host of sectoral restrictions on trade, finance, technology, dual-use goods, industry, transport and luxury goods, the council said, as well as an import ban on seaborne crude oil and restrictions on Russia-based "disinformation outlets."
Paul Goldfinch, a sanctioned former board member at Russian financial institution Bank Otkritie, filed suit on July 17 at the District Court for the District of Columbia over the government's failure to render a decision on his delisting petition. The banker, listing the State and Treasury Departments as defendants, said he resigned after Bank Otkritie was listed in February 2022 following Russia's invasion of Ukraine, but the government has stalled on finding that he has satisfied its delisting requirements (Paul Goldfinch v. Antony J. Blinken, D.D.C. # 23-02045).
The U.S. this week sanctioned more than 100 people, entities and ships supporting Russia’s war efforts against Ukraine, including one of its top metals producers and leading construction companies, Kyrgyz Republic firms sending Moscow dual-use technologies, and other businesses helping the government evade international sanctions. The new designations are meant to further restrict Russia’s ability to import military goods and technology, slash revenue from its mining sector, undermine its energy capabilities and “degrade Russia’s access to the international financial system,” the Treasury Department said.
The Norwegian government will establish a new agency to handle matters relating to export controls and sanctions, the Ministry of Foreign Affairs announced July 11. The country said it's forming the agency in part due to the growing number of restrictions stemming from Russia's war in Ukraine, adding that it wanted to create a "separate government agency to dedicate more resources to efforts relating to implementing sanctions and export control." The new agency, which is expected to be established within the Ministry of Foreign Affairs in 2024, will deal with case processing, oversee export licenses and provide guidance.