The OverRuled: Russia Trade Controls Resource Center has been updated with the following actions:
- 29 Jun 2024 (EU):
The Council of the European Union (the "Council") imposed new sanctions measures against Belarus in view of the regime's continued support for Russia's war of aggression against Ukraine.
The restrictive measures seek to mirror those currently imposed against Russia and target various sectors of the Belarusian economy, including trade, certain professional services and transport, to limit Belarus' industrial capacity. The new sanctions package introduces broader export controls on dual-use items and advanced technologies, including maritime navigation and luxury goods, and on goods and technologies suitable for use in oil refining and the liquefaction of natural gas. The EU has also prohibited the import of gold, diamonds, helium, coal and mineral products and crude oil, which have allowed Belarus to diversify its sources of revenue.
To reduce the risk of circumvention in respect of sensitive goods, the Council requires EU exporters to include in their future contracts a "no export to Belarus clause", which contractually prohibits the re-exportation to Belarus, or re-exportation for use in Belarus, of certain sensitive items. EU operators trading in such items to third countries must implement due diligence mechanisms capable of identifying, assessing, and mitigating the risks of re-exportation to Belarus.
In addition, EU operators are now required to undertake their 'best efforts' to prevent third-country subsidiaries from engaging in any activities that undermine EU sanctions against Belarus.
- 28 Jun 2024 (EU):
The Council of the European Union (the "Council") designated two individuals and four entities for actions undermining or threatening the territorial integrity, sovereignty, and independence of Ukraine. Among those targeted include Dmitry Beloglazov, Mikhail Kontserev, LLC Titul, JSC Iliadis, Rasperia, and PJSC TransContainer. These entities/individuals have been identified for: (i) engaging in complex EU sanctions circumvention schemes, which have benefitted persons subject to an EU asset freeze, such as Oleg Deripaska, by assisting designated persons to acquire assets in violation of EU sanctions; and (ii) supporting the Russian Government through illegal weapon trade schemes.
- 27 Jun 2024 (UK):
The Office of Financial Sanctions Implementation ("OFSI") issued General Licence INT/2024/4888228 (the "GL") under all UK Autonomous Sanctions Regulations (as listed in Annex 1 of the GL). Subject to complying with the relevant conditions, the new GL allows UK designated persons ("DPs"), or Persons acting on behalf of a UK DP, to make Permitted Payments to Statutory Auditors for the purposes of conducting a Statutory Audit.
- 26 Jun 2024 (Russia - Countermeasures):
A total of 27 Australian and 36 New Zealand nationals were added to the Russian list of "personally sanctioned" individuals.
- 25 Jun 2024 (Russia - Countermeasures):
The Russian Ministry of Foreign affairs introduced restrictions against media outlets of EU member states.
- 24 Jun 2024 (Russia - Countermeasures):
The Russian Ministry of Foreign Affairs introduced additional countermeasures in response to the 14th EU package of sanctions against Russia.
- 20 Jun 2024 (BIS):
The Akin Summary document has now been posted for this action.
The Bureau of Industry and Security ("BIS") issued a Final Determination against Kaspersky Lab, Inc. ("Kaspersky"), the U.S. subsidiary of a Russia-based anti-virus software and cybersecurity company, that found Kasperky's provision of cybersecurity and anti-virus software poses undue and unacceptable risks to U.S. national security and to the security and safety of U.S. persons.
In a related action, BIS also amended the Export Administration Regulations ("EAR") by adding AO Kaspersky Lab and OOO Kaspersky Group (under the destination of Russia) and Kaspersky Labs Limited (under the destination of the United Kingdom) to the Entity List based on their cooperation with the Russian military and intelligence authorities in support of the Russian government's cyber intelligence objectives.
- 13 Jun 2024 (BIS):
The Akin Summary document has now been posted for this action.
The Bureau of Industry and Security ("BIS") imposed a civil monetary penalty of $285,000 and imposed a two-year suspended denial order on Sapphire Havacilik San Ltd. STI ("Sapphire") of Ankara, Turkey, as part of a settlement agreement related to two unlicensed temporary reexports of a U.S.-origin Gulfstream aircraft to Russia, in violation of Section 764.2(a) of the Export Administration Regulations ("EAR").
- 12 Jun 2024 (BIS):
The Akin Summary document has now been posted for this action.
The Bureau of Industry and Security ("BIS") imposed two Temporary Denial Orders ("TDOs") suspending the export privileges of a total of nine entities and four persons associated with two Russian procurement networks.
- 12 Jun 2024 (BIS):
The Akin Summary document has now been posted for this action.
The Bureau of Industry and Security ("BIS") issued a final rule (effective June 12, 2024) amending the Export Administration Regulations ("EAR") to strengthen existing export control restrictions against Russia and Belarus, in response to Russia's ongoing war against Ukraine and Belarus' complicity in the war. The final rule amends the EAR to (i) add more export control measures against Russia and Belarus; (ii) consolidate the Russia and Belarus sanctions into a single section in Part 746; (iii) confirms the standard used in connection with actions involving the availability of license exceptions; and (iv) clarifies the scope of various fasteners subject to the Russian and Belarusian industry sanctions.
- 12 Jun 2024 (BIS):
The Akin Summary document has now been posted for this action.
The Bureau of Industry and Security ("BIS") added five entities, one under the destination of Russia and four under the destination of China, to the Entity List for their respective involvement in procuring items subject to the Export Administration Regulations ("EAR") and for contributing to and supporting Russia's ongoing war in Ukraine. BIS also amended Section 744.16 of the EAR to now allow BIS to add addresses to the Entity List that present a high risk of diversion, without identifying the name of a party associated with that address, thus triggering a license requirement for all entities who use that address. In connection with this amendment, BIS added eight addresses, all under the destination of China, to the Entity List. These addresses are associated with a significant number of entities, including entities on the Entity List and Unverified List, that are associated with transshipment of sensitive goods to Russia.
- 12 Jun 2024 (OFAC):
The Akin Summary document has now been posted for this action.
The U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC") and the U.S. Department of State designated over 300 individuals and entities, and identified 7 vessels as blocked property, pursuant to Executive Order ("E.O.") 14024. The designations target Russia's military-industrial base, financial infrastructure, and energy sector, as well as companies and individuals in third countries, such as the British Virgin Islands, Bulgaria, Kazakhstan, the Kyrgyz Republic, China, Serbia, South Africa, Türkiye, and the United Arab Emirates, that help Russia evade sanctions allowing Russia to move money and other valuable goods and assets to sustain its war effort.
Concurrent with these designations, OFAC issued General License ("GL") 8J, 98, 99, and 100, all of which authorize, subject to certain conditions, certain activities involving certain entities blocked on June 12, 2024.
Concurrent with these designation actions, OFAC also issued a "determination" (the "IT and Software Services Determination") pursuant to sections 1(a)(ii), 1(b), and 5 of E.O. 14071, prohibiting the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of IT consultancy and design services or of IT support services or cloud-based services for enterprise management software and design and manufacturing software to any person located in the Russian Federation. This is effective as of September 12, 2024.
Concurrent with the IT and Software Services Determination, OFAC issued amended GLs 6D and 25D both of which authorize certain activities otherwise prohibited by the IT and Software Services Determination, though OFAC significantly narrowed the scope of GL 25 as it relates to the exportation of hardware, software and technology to Russia.
Additionally, OFAC expanded the scope of the definition of "Russia’s military-industrial base" to include all persons blocked pursuant to E.O. 14024, as well as "any person operating in the technology, defense and related materiel, construction, aerospace, and manufacturing sectors of the Russian Federation economy." "Russia’s military-industrial base" may also include individuals and entities that support the sale, supply, or transfer, directly or indirectly, of critical items identified pursuant to subsection 11(a)(ii) of E.O. 14024 to the Russian Federation.
Concurrent with the expanded scope of OFAC's definition of "Russia’s military-industrial base", OFAC issued an updated Compliance Advisory for foreign financial institutions on OFAC’s sanctions authorities targeting support to Russia's military-industrial base.
In total, OFAC issued eight new FAQs (1181-1188) and amended ten existing FAQs (976, 1040, 1068, 1122, 1128, 1146, 1147, 1148, 1151, 1152) related to the scope of the IT and Software Services Determination and OFAC's expanded definition of "Russia's military-industrial base."
- 12 Jun 2024 (BIS):
The Akin Summary document has now been posted for this action.
The U.S. Department of Justice ("DOJ") announced that Sergey Nefedov and Mark Shumovich, two Russian-born U.S. citizens, were arrested for allegedly operating a scheme to illegally export nearly half a million dollars’ worth of snowmachines and associated parts from the United States to Russia in violation of U.S. export controls imposed on certain luxury goods.
- 07 Jun 2024 (BIS):
The Akin Summary document has now been posted for this action.
The U.S. Department of Justice ("DOJ") announced that Dimitry Timashev, a dual U.S.-Russian citizen, pleaded guilty to conspiracy to violate the Export Control Reform Act ("ECRA") for exporting firearm parts, components, and ammunition to Russia without authorization.
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