The OverRuled: Russia Trade Controls Resource Center has been updated with the following actions:
- 20 Apr 2023 (UK):
The Akin Summary document has now been posted for this action.
On April 20, the UK adopted amendments to certain trade restrictions. The new legislation prohibits the importation of iron and steel products, containing iron or steel originating in Russia, that have been processed in a third-country, amends the list of “revenue generating goods” and respective provisions, and makes remedial changes to the restrictions in connection with oil and oil products, gold and coal and coal products. The amendments further include new rules on exceptions and licenses.
- 17 Apr 2023 (OFAC):
The Akin Summary document has now been posted for this action.
On April 17, 2023, OFAC issued an alert on Possible Evasion of the Russian Oil Price Cap (“Price Cap Evasion Alert”), which “warn[s] U.S. persons about possible evasion of the price cap on crude oil of Russian Federation origin (Russian oil), particularly involving oil exported through the Eastern Siberia Pacific Ocean (ESPO) pipeline and ports on the eastern coast of the Russian Federation.” In the Price Cap Evasion Alert, OFAC provides details regarding certain deceptive practices that OFAC is aware of with respect to the price cap on Russian oil, including Automatic Identification Systems (“AIS”) manipulation, disguised Russian port calls, and opaque shipping costs, and notes that parties should treat these practices as red flags, which may indicate noncompliance with the price cap policy requirements. OFAC also provides certain recommended measures to help ensure price cap compliance for ship owners, protection and indemnity clubs, flagging registries, and commodities brokers/oil traders.
- 14 Apr 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS renewed its Temporary Denial Order ("TDO") on Russian airline Aviastar-TU. - 13 Apr 2023 (EU):
The Akin Summary document has now been posted for this action.
The EU has designated the Wagner Group and RIA FAN under its Russia sanctions framework. The Wagner Group is already subject to EU sanctions under the EU Global Human Rights Sanctions Regime.
- 12 Apr 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS added 28 entities to the Entity List under 10 destinations, including 12 in China and 10 in Russia, for their alleged support of Russia's military and/or defense industrial base.
- 12 Apr 2023 (UK):
The Akin Summary document has now been posted for this action.
On April 12, 2023, the UK Foreign, Commonwealth and Development Office amended one existing entry and added 14 new entries to the Russia sanctions list of designated persons for the purposes of an asset freeze targeting those who knowingly assisted sanctioned Russian oligarchs with concealing their assets to evade sanctions.
- 12 Apr 2023 (OFAC):
The Akin Summary document has now been posted for this action.
OFAC designated 25 individuals and 29 entities pursuant to E.O. 14024 for facilitating Russia’s access to the international financial system and evading U.S. sanctions on Russia, with a significant focus on targeting the facilitation network of the previously designated Alisher Usmanov. These individuals and entities include facilitators of Usmanov’s financial network operating in the Russian Federation and Cyprus, a trust services company and certain individuals associated with it, a Russian procurement and sanctions evasion network, and the Hungarian-based International Investment Bank. Concurrently, the U.S. Department of State designated over 80 individuals and entities linked to Usmanov, operating in the defense sector of the Russian Federation economy, supporting Russia’s war against Ukraine, and for their association with Russia’s State Atomic Energy Corporation (Rosatom), and identified 19 vessels as blocked property. These individuals and entities include members of Usmanov’s network, members of Christodoulos Vassiliades’ network, a lawyer whom the Department of State alleges has enabled prominent Russian businessmen, and Aleksei Bashkirov, a member of the board of directors of Norilsk Nikel, and members of his network. The Department of State additionally designated entities associated with Rosatom, though Rosatom itself remains undesignated. In total, 91 entities, 34 individuals and 19 vessels were added to the SDN List by OFAC and the Department of State.
Concurrent with these actions, OFAC issued four general licenses, authorizing certain transactions with specified entities added to the SDN List, including wind down transactions, transactions related to certain debt and equity, and certain transactions related to telecommunication involving two designated entities. OFAC also issued one FAQ clarifying the relationship of General License 65, which authorizes transactions related to telecommunications and certain internet-based communications involving two designated entities, and General License 25C, which authorizes all transactions ordinarily incident and necessary to the receipt or transmission of telecommunications involving the Russian Federation. OFAC additionally revoked Russia-related General License 15, which authorized transactions with any entity owned 50% or more by Usmanov that was not listed on the SDN List.
- 10 Apr 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS renewed its Temporary Denial Order ("TDO") on Russian airline URAL Airlines JSC.
- 06 Apr 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS imposed a civil monetary penalty of $624,013 on Microsoft Corporation for seven apparent violations of the EAR between 2016-2017. This penalty was part of a combined $3.3 million enforcement action by BIS and OFAC.
- 05 Apr 2023 (BIS):
The Akin Summary document has now been posted for this action.
Following an investigation by the Justice Department's Task Force KleptoCapture, the United States District Court for the District of Connecticut ordered the forfeiture of €312,192.44 (approximately $342,000) seized from By Trade OU, a Latvian-based company alleged to have violated U.S. export control laws by conspiring to smuggle a U.S.-manufactured jig grinder through Latvia and into Russia.
- 30 Mar 2023 (OFAC):
The Akin Summary document has now been posted for this action.
On March 30, 2023, OFAC issued an amended FAQ 1118, which relates to whether payment of a so-called “exit tax” prior to the divestment of assets located in the Russian Federation is prohibited by U.S. sanctions and, if so, whether such payments are authorized under GL 13D. In the new FAQ 1118, OFAC states that “[i]nformation currently available to OFAC suggests so-called ‘exit taxes’ imposed by the Government of the Russian Federation involve payments to” the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation (collectively, “Russia-related Directive 4 Entities”). Directive 4 under Executive Order 14024 prohibits U.S. persons from engaging in any transaction involving Russia-related Directive 4 Entities, including any transfer of assets to such entities or any foreign exchange transaction for or on behalf of such entities. Accordingly, OFAC concludes in the new FAQ 1118 that “U.S. persons whose divestment from the Russian Federation will involve the payment of such an exit tax require a license from OFAC prior to the payment of such tax, unless otherwise authorized by OFAC.” Previously, FAQ 1118 merely stated that payment of an “exit tax” may require a license from OFAC. In the new FAQ 1118, OFAC also clarified that U.S. person sellers do not need to seek authorization from OFAC for their Russian buyers to submit an application to the commission that the Russian government has established to review divestment transactions.
- 29 Mar 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS renewed three Temporary Denial Orders ("TDOs") for three Russian aviation companies: Azur Air, UTair Aviation JSC, and PJSC Aeroflot.
- 28 Mar 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS added 11 entities to the Entity List under four destinations, including China and Russia, for their alleged involvement in human rights violations. BIS also amended the EAR to add protection of human rights as a U.S. foreign policy interest that BIS may consider when determining whether to add a party to the Entity List.
- 24 Mar 2023 (OFAC):
The Akin Summary document has now been posted for this action.
OFAC designated three entities and nine individuals, and identified one aircraft as blocked property, pursuant to EO 14038. The designated entities include Belarusian state-owned entities supporting the Lukashenka regime’s crackdown on Belarus’s pro-democracy movement and civil society, and the designated individuals are executives, managers, and members of the designated entities. OFAC also identified President Lukashenka’s luxury airliner as blocked property. Concurrently the Department of State imposed visa restrictions on 14 individuals, including regime officials. These designations were taken pursuant to Belarusian sanctions authorities in the spirit of Belarusian Freedom Day; however, Treasury’s press release highlights that these actions underscore the U.S. government’s willingness to hold the regime in Belarus to account for its complicity in Russia’s war in Ukraine.
- 08 Mar 2023 (BIS):
The Akin Summary document has now been posted for this action.
In a coordinated enforcement action through the Justice Department’s Task Force KleptoCapture, the DOJ, FBI, and BIS jointly announced that the United States obtained a seizure warrant for one Boeing 737-7JU aircraft valued at over $25 million owned by PJSC Rosneft Oil Company, a Russian integrated energy company headquartered in Moscow, Russia. The warrant is based on probable cause of violations of U.S. export control laws.
- 03 Mar 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS added two aircraft to its list of commercial and private aircraft that are allegedly in violation of U.S. export controls for entering Russia and/or Belarus without required authorization.
- 02 Mar 2023 (BIS):
The Akin Summary document has now been posted for this action.
BIS added 37 entities to the Entity List, including three entities—one in Belarus, one in Russia, and one in Taiwan—for their alleged support for Russia’s military. - 02 Mar 2023 (BIS):
The Akin Summary document has now been posted for this action.
The Department of Justice ("DOJ") unsealed a 13-count indictment charging two U.S. citizens, Cyril Gregory Buyanovsky and Douglas Edward Robertson, along with KanRus Trading Company, Inc. (“KanRus”), an entity owned and operated by Buyanovsky and Roberston, and which is registered in Kansas, with illegal exports of aviation-related technology from the United States to Russia.
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