The European Commission on Oct. 26 took up a legislative proposal to make instant payment in euros available to all individuals and entities with a bank account in the EU and European Economic Area countries. The move would harmonize the sanctions screening procedure for all instant payment providers. These providers would not carry out transaction-based sanctions screening and instead revert to verification of whether their clients are sanctioned individuals or entities on a daily basis and when the sanctions lists are amended. If a provider fails to conduct the verifications on a timely basis and causes another provider involved in the same transfer to violate the screening regulations, the affected provider will be compensated by the offending provider for non-compliance penalties.
The European Commission and member states' competent authorities met last week to discuss sanctions enforcement and best practices to organize monitoring and implementation of sanctions at the national level. Per a statement from Commissioner Mairead McGuinness, the commission and member states talked about best ways to share pertinent information to ensure the commission "can offer proactive support." The involved parties "agreed to set up mechanisms to exchange information more swiftly."
Russia agreed to continue the deal permitting the safe passage of Ukrainian grain and crop exports, swiftly backing out of its decision to halt the agreement after Turkey and the U.N. carried out shipments over Russia's objections, Bloomberg reported Nov. 2. Russia pulled out of the grain deal Oct. 29, issuing a warning over the safety of ships transporting Ukrainian grain. "Moscow's leverage appeared limited" after shipments continued this week, Bloomberg said. Russia's Defense Ministry said it decided to continue the deal after receiving guarantees from Ukraine the safe-passage corridor would remain unused for military purposes.
The U.K. issued a general license Nov. 2 under its Russia sanctions regime pertaining to Truphone. The license lets the company continue to provide services under existing arrangements and allows an individual or entity to carry out any activity needed for the effective termination of service contracts or obligations with Truphone. The company can pay remuneration, allowances and pensions to all British staff and reasonable fees for the functioning of the business. The license runs through Jan. 31.
The U.K. added four entries to its Russia sanctions list, the Office of Financial Sanctions Implementation said in a Nov. 2 notice. Entries are for Alexander Grigoryevich Abramov, former nonexecutive chairman of Evraz; Alexander Vladimirovich Frolov, former Evra director and CEO; Airat Mintimerovich Shaimiev, former director of OAO Tatavtodor; and Albert Kashafovich Shigabutdinov, former director of the AO TAIF group of companies. In the same notice, OFSI also noted it amended the entries for Aleksandr Kostomarov, Brian McDonald and God Nisanov, to add identifying information.
Germany released the draft Sanctions Enforcement Act II, which looks to make structural improvements to its sanctions and anti-money laundering enforcement efforts, according to an unofficial translation. The first installment of the legislation passed in May. The new bill would create a Central Office for the Enforcement of Sanctions to enforce EU sanctions in Germany, provide administrative procedures to identify funds or economic resources owned or controlled by sanctioned individuals or entities, and let the Central Office appoint a special representative to monitor entities' sanctions compliance.
The EU dropped seven individuals from its Tunisia sanctions regime. In an Oct. 27 decision, the European Council delisted Mohamed Ben Moncef Ben Mohamed Trabelsi, Kais Ben Slaheddine Ben Haj Hamda Ben Ali, Hamda Ben Slaheddine Ben Haj Hamda Ben Ali, Najmeddine Ben Slaheddine Ben Haj Hamda Ben Ali, Najet Bent Slaheddine Ben Haj Hamda Ben Ali, Imed Ben Habib Ben Bouali Ltaief and Naoufel Ben Habib Ben Bouali Ltaief. All seven were originally listed in 2011 for misappropriating Tunisian state funds. The EU General Court in 2013 annulled the listing for Trabelsi, leading the council to amend the reasons for his listing.
The U.K. released a General License under its Russia and Belarus sanctions regimes pertaining to the provision of legal services, the Office of Financial Sanctions Implementation announced. The license allows for the payment of legal fees by designated individuals and entities to law firms and counsel. The license distinguishes between legal fees issued pre- and post-designation. OFSI imposed a cap of around $574,000, VAT included, on the amount that can be claimed for legal work carried out pre-designation, and an identical cap on overall fees for legal work started post-designation with reporting obligations proving all fees are reasonable.
Germany plans to approve the purchase of Dortmund-based semiconductor company Elmos by Sweden’s Silex, which is a subsidiary of China's Sai Microelectronics, German paper Handelsblatt reported Oct. 28, according to an unofficial translation. Germany’s final decision is expected “within the next few weeks,” the report said, and could “defy” a recommendation from the country’s intelligence ministry, which has warned that the deal could increase Germany’s dependence on China's semiconductor market. An Elmos spokesperson declined to comment.
European officials are concerned that a sudden increase in exports of washing machines, refrigerators and other items to Russian neighbors are being used to help the country acquire semiconductors and evade export controls, Bloomger reported Oct. 29. Armenia imported more washing machines from the EU during the first eight months of this year than the last two years combined, the report said, and Kazakhstan imported more than triple the amount of refrigerators through August compared with the same period last year. European officials are concerned some of the items' components may be used by Russia's military, the report said, and have publicly said they have seen parts from fridges in Russian military equipment used in Ukraine.