Ahead of a meeting with Chinese officials, U.S. national security adviser Jake Sullivan publicly warned China that it will face severe penalties if it helps Russia evade Western sanctions. The Biden administration is “watching closely” to see whether Beijing provides Moscow with “material support or economic support,” Sullivan told CNN March 13, which could give Russia an economic lifeline as it faces crippling financial restrictions from Europe, the U.S. and many of its trading partners.
Ian Cohen
Ian Cohen, Deputy Managing Editor, is a reporter with Export Compliance Daily and its sister publications International Trade Today and Trade Law Daily, where he covers export controls, sanctions and international trade issues. He previously worked as a local government reporter in South Florida. Ian graduated with a journalism degree from the University of Florida in 2017 and lives in Washington, D.C. He joined the staff of Warren Communications News in 2019.
The U.S. announced a set of new export controls and sanctions against Russia last week, including new restrictions on luxury goods and full blocking sanctions on Russian government officials and bank executives. The measures, outlined in a March 11 executive order, also include new banking and financing-related restrictions meant to further cut Russia’s economy off from the global financial system and target Russian oligarchs.
The global oil market is at a “moment of incredible risk and uncertainty” due to Western sanctions on Russia, and there isn’t a clear short-term solution, said Randy Bell, an expert at the Atlantic Council. Bell, speaking during a March 11 event hosted by the think tank, said it may be too soon to determine the lasting impacts of trade restrictions on oil supplies, especially as the U.S. and other countries continue to impose sanctions against Russia.
The Los Angeles and Long Beach ports again postponed by a week a new surcharge meant to incentivize the movement of dwelling containers (see 2110280031), the two ports announced March 11. The ports originally planned to begin imposing the fee Nov. 15, 2021, but have postponed it each week since. The latest extension delays the effective date until March 18.
Ukraine’s chief economic official this week called for maximum financial sanctions against Russia and a global embargo on the country's oil and energy products, saying the revenue is helping Russia’s military kill Ukrainian civilians. Oleg Ustenko, the chief economic adviser to Ukrainian President Volodymyr Zelenskyy, also urged countries to send Ukraine more weapons and ammunition for its army.
The Commerce Department could impose strict export controls, including through the Entity List, on Chinese companies that violate U.S. export restrictions against Russia, agency officials said this week.
The U.S.’s new Russia export controls could lead to a short-term spike in license applications, but volumes will likely taper off later this year as businesses divest from Russia, said Nazak Nikakhtar, a former senior U.S. export control official.
As global trade restrictions against Russia continue to increase, some companies are grappling with whether to fully exit the Russian market or rely on sanctions screening and temporary carve-outs to keep their operations afloat, lawyers and experts said in interviews this month. But the risks for a majority of businesses are quickly becoming too high, especially as sanctions are expected to grow more punishing.
The Los Angeles and Long Beach ports again postponed by a week a new surcharge meant to incentivize the movement of dwelling containers (see 2110280031), the two ports announced March 4. The ports originally planned to begin imposing the fee Nov. 15 but have postponed it each week since. The latest extension delays the effective date until March 11.
The U.S. last week imposed new export controls on Russia’s oil refinery sector and added 91 entities to the Entity List for supporting Russian security efforts, building on a string of trade restrictions (see 2202240069 and 2203020072) meant to cut Russia off from importing goods to support and fund its military.