Lawmakers reintroduced a bipartisan bill in the Senate and House this week that could help the U.S. use sanctioned Russian assets to assist with Ukraine’s reconstruction efforts. The Rebuilding Economic Prosperity and Opportunity for Ukrainians Act also would block the release of sanctioned Russian funds until Moscow withdraws from Ukraine and agrees to provide compensation for the damage it caused, and it also would give the State Department more resources to coordinate with allies about confiscating Russian assets.
The Office of Foreign Assets Control this week updated a Russia-related entry on its Specially Designated Nationals List. The entry is Hong Kong-based Gold Miles Limited, which was sanctioned in May as part of the Biden administration’s rollout of more than 300 new designations targeting supporters of Russia (see 2305190059). Gold Miles was designated for being owned by Irish national John Desmond Hanafin, founder of a company that OFAC said has helped move Russian money into the United Arab Emirates to protect it from Western sanctions.
The U.K.’s Office of Financial Sanctions Implementation this week issued a new license, which took effect June 14 and has no expiration date, that authorizes certain trades in derivatives and futures “in connection with activities” that would otherwise violate the price cap on Russian oil. The license also authorizes certain financial institutions to “process payments in relation” to those trades.
The Treasury Department should sanction Russian state-owned nuclear company Rosatom, a “major source of funds” for Moscow and “one of the only largely unsanctioned Russian energy companies,” said Gregory Meeks, the House Foreign Affairs Committee’s top Democrat. Meeks, speaking during a June 13 House Financial Services Committee hearing, pointed to his bill introduced last month that would require the administration to designate Rosatom (see 2305120015).
A ramping up of U.S. export enforcement efforts is causing companies to revisit their compliance practices, particularly as the Bureau of Industry and Security conducts more outreach to exporters, said Alan Enslen, a trade lawyer with Womble Bond. He said companies are more frequently auditing their export compliance programs amid a number of signs that the Biden administration is increasing scrutiny on potential export violations, including a multi-agency memo issued in March that Enslen said was a “shot across the bow” for U.S. exporters.
The process for removing names from Canadian sanctions lists lacks transparency, Dentons said in a June client alert. The firm said Global Affairs Canada doesn’t “provide any material or information providing support for the decision to list an individual or entity,” and so when a person or entity seeks a delisting, the party has “no access to the reasons” Canada “relied on in including the person or entity on a sanctions list.”
Canada announced a new set of Russia-related sanctions June 10, designating 24 people and 17 entities connected to Moscow’s “theft of Ukrainian cultural objects.” The sanctioned people include employees at Ukrainian museums who collaborate with Russia, and the sanctioned entities include newly created organizations in temporarily occupied territories of Ukraine, such as the “so-called ministries of education and culture.” Canada also sanctioned people and entities with ties to Ukrainian-based private military companies that are fighting for Russia.
The U.K. announced a new sanctions package against Belarus last week, including export restrictions on chemical and biological weapons-related products, certain machinery and bank notes, the Foreign, Commonwealth & Development Office announced. The new restrictions also set import bans on cement, rubber, wood and gold from Belarus and prohibit "ancillary services" for all banned goods, including technical and financial assistance.
The U.K. plans to update its export control regime to better restrict sensitive technology transfers and streamline flows of defense goods to close allies, the country said in a joint declaration with the U.S. released last week. The U.K. also said it’s planning to study how it can “respond effectively” to risks posed by outbound investments as the U.S. prepares to launch its own outbound screening mechanism (see 2305310075).
The Bureau of Industry and Security last week suspended export privileges of Aratos Group, a collection of defense and technology companies in the Netherlands and Greece, and its owner for procuring goods for Russian intelligence services in violation of U.S. export controls. BIS also renewed a temporary denial order against three people and two companies also involved in a Russian sanctions evasion scheme.