A State Department official this week denied allegations that the agency has held back sanctions and export controls in an effort to limit damage to the U.S.-China relationship, saying the Biden administration continues to enforce a range of human rights-related trade restrictions against Beijing. But the official also said the administration hasn’t yet imposed mandatory sanctions under the Uyghur Human Rights Policy Act of 2020 and was accused by at least one lawmaker of failing to comply with a congressional subpoena that sought information on sanctions against China.
Lithuania's Ministry of Foreign Affairs issued sanctions guidance July 17 on "detecting and preventing sanctions evasion and circumvention in trade." The document lists factors companies should take into account when conducting risk assessment, "red-flags in Russia or third country related business operations, and guidance on due diligence when "estimating the risk on sanctions evasion and circumvention," and how to determine ownership and what is the "ultimate beneficial owner."
Russian President Vladimir Putin ordered on July 16 that foreign ownership of the Russian subsidiary of French dairy products maker Danone be transferred to the temporary administration of the Federal Agency for State Property Management. The move was made under a presidential decree issued in April in response to sanctions imposed on Russia and allowing the Russian government to place property belonging to individuals and entities from "unfriendly" nations into government administration (see 2304270017). Russia previously seized Carlsberg Sverige Aktiebolag's 98.56% share holding of Baltika Breweries, Hoppy Union's 1.35% ownership of the breweries and Carlsberg Deutschland's 0.09% ownership.
The U.K. on July 17 added 13 people and one entity to its Russia sanctions list. The people include government officials and ministers and others responsible for the forced deportation of Ukrainian children. The lone entity is the Federal State Budget Educational Institution Artek International Children's Center. In the notice, the Office of Financial Sanctions Implementation also amended the entries for nine people and one entity.
The Commerce Department published its spring 2023 regulatory agenda for the Bureau of Industry and Security and the Census Bureau, including new rules that will add more entities to the Entity List and finalize new export filing requirements.
The U.K.'s Office of Financial Sanctions Implementation will begin rejecting incomplete license applications instead of “engaging” with applicants to collect all required information, the agency announced last week. OFSI said its licensing team has experienced “unprecedented high demand” caused by its Russia sanctions, including a surge in new applications and requests to amend existing licenses, and it doesn’t have the time to continue a temporary measure under which it worked with applicants to fix missing information.
Vadim Konoshchenok, a Russian citizen allegedly linked to Russia's Federal Security Service, appeared before the U.S. District Court for the Eastern District of New York on July 14 on charges of conspiracy related to a "global procurement and money laundering" scheme to benefit the Russian state, the U.S. Attorney's Office for that district announced. He faces a maximum of 30 years in prison.
The House last week voted 219-210 to pass its version of the FY 2024 National Defense Authorization Act with several trade related provisions and amendments, including one amendment that would prohibit “any form of sanctions relief” for the Taliban “unless explicitly authorized by Congress in subsequent legislation.” Another provision would block the Defense Department from entering into a procurement contract with any person or entity that has “business operations” with the Russian government, while another “exhorts” the Defense Department to “commit resources” to make sure “foreign military sales officers in the Department are fully staffed to support the fulsome review and expedient transfer of defense articles” to Australia and the U.K.
Republicans last week criticized the Biden administration’s “lack of sanctions enforcement” against Iran, saying the country continues to sell oil to China and use those profits to support Russia’s war against Ukraine. The lawmakers called on the Treasury and State departments to develop a strategy to “prevent Iran’s petrochemical industry from supporting the regime’s nefarious activities,” saying the strategy should include more sanctions against Chinese people and companies buying Iranian energy.
The U.S. may need to address export control loopholes to better prevent China and others from acquiring sensitive technologies, Sen. Mark Warner, D-Va., said, but he also cautioned the U.S. against imposing controls that are too broad and said they need to be coordinated with allies.