The Guangzhou Automobile Group -- the Chinese state-owned partner of Stellantis -- accused the European auto giant of disrespecting Chinese customers by shutting down its only Jeep factory in China. In announcing the shutdown, Stellantis cited local political interference in China and worries that political tensions could result in sanctions on the carmaker (see 2207280018). In a statement, GAC Group, as Guangzhou is known, said its joint venture with Stellantis “has not been able to establish a mutually trustworthy operating mechanism adapted to the highly competitive environment in China in order to turn the adverse situation of continuous losses in recent years,” Bloomberg reported July 29. Stellantis CEO Carlos Tavares said the reasons for leaving China were steeped in "broken trust" with the GAC Group along with Chinese policy, Bloomberg said.
The U.K. issued an order halting the acquisition of intellectual property related to vision sensing technology by Chinese company Beijing Infinite Vision Technology Co., British business minister Kwasi Kwarteng said, Reuters reported. The order prevents Beijing Infinite from buying the IP from the University of Manchester, which would have allowed the company to test, make and sell licensed products. The order was issued under the National Security and Investment Act. "There is potential that the technology could be used to build defence or technological capabilities which may present national security risk to the United Kingdom," the order said.
The European Commission updated its Russian sanctions frequently asked questions pages, providing guidance on gold imports, aviation, asset freezes and oil reporting obligations. The gold imports FAQs cover why the EU introduced the import ban and what it covers, and whether processed gold, including gold jewelry, is included in the ban and if there are exceptions. The aviation FAQs include whether measures affect a non-Russian operator that operates a Russian registered aircraft, or if the ban concerns private flights owned or rented by Russian citizens or EU or third-country registered aircraft rented by Russian citizens.
The EU General Court in a July 27 judgment rejected RT France's bid to annul sanctions levied against it in March. The restrictions bar EU operators from broadcasting and facilitating the broadcast of RT France and suspend any broadcasting license or arrangement with the media outlet. The court ruled that the European Council didn't violate the law in finding that RT France was controlled by the Russian government and issues statements backing the war in Ukraine. Further, the court dismissed the media company's challenge to the council's reasons for imposing the sanctions, the fairness of the procedures used to make the listing and the arguments that the sanctions were a disproportionate restriction on RT France's right to freedom of expression.
The U.K.'s Office of Financial Sanctions Implementation on July 26 issued a general license, titled "Payment to UK Insurance Companies for Building and Engineering Insurance," under its autonomous sanctions regimes. The license indefinitely permits designated individuals and entities to use a frozen bank account to pay U.K. insurers insurance premiums, reinsurance premiums and broker commissions for building and engineering insurance coverage. The license further allows U.K. insurers to receive these payments and to make return payments to frozen U.K. bank accounts due to overpayments and the payment of funds due as a result of a claim made relating to the payments. Sanctioned parties can also receive return payments from U.K. insurers into frozen bank accounts.
The U.K.'s Office of Financial Sanctions Implementation updated its general financial sanctions guidance, laying out new guidelines on licensing time frames. OFSI said it no longer seeks to engage with license applications within four weeks, aiming to review all new applications "as soon as practicable." The agency said it prioritizes cases at times of high demand and those involving issues of "personal basic needs and/or wider humanitarian issues at stake which are of material impact or urgency, or which are deemed to be of particular strategic, economic or administrative importance." OFSI said parties will get a case reference number and an acknowledgment if their case has been selected for review but won't provide regular updates during the review given the high volume of applications.
The EU dropped Mahmoud Mustafa Busayf al-Werfalli from its Libya sanctions list following his death, the European Council said in a July 27 implementing decision. Al-Werfalli was originally listed in 2020. A former commander of the Benghazi-based al-Saiqa Brigade, he allegedly was involved in various human rights abuses, including executions in Libya. The council also updated the statement of reasons for the sanctions listings of Russian businessman Yevgeniy Viktorovich Prigozhin and Quren Salih Al Qadhafi, a former Libyan ambassador to Chad.
The EU extended its Lebanon sanctions framework for another year, setting up the restrictions system to expire July 31, 2023, the European Council announced July 26. The framework was adopted in July 2021 to allow the EU the possibility of imposing sanctions on individuals and entities that undermined democracy or the rule of law in Lebanon. Instances of this action include hampering the formation of a government or undermining the holding of elections; obstructing the implementation of plans approved by the Lebanese government to boost accountability and good governance in the public sector or implementation of critical economic reforms; and serious financial misconduct concerning public funds. No sanctions have been imposed under the framework.
The U.K. created two new instruments under its Sanctions and Anti-Money Laundering Act 2018 to address certain gaps in its sanctions enforcement regime. Both instruments introduce new powers to authorize government agencies to share information to assist HM Treasury in carrying out its sanctions functions, the Foreign, Commonwealth and Development Office said, with the new powers coming into force Aug. 9. The instruments also widen the definition of a "relevant firm" to include crypto-asset exchange providers and custodian wallet providers, with this change entering into force Aug. 30, the FCDO said.
EU member states agreed July 26 to voluntarily reduce their natural gas demand by 15% this winter in a bid to reduce shocks from any disruptions to the supply of Russian gas, the European Council announced. The agreement lays out the possibility of triggering a "Union alert" that would make the gas demand reduction mandatory. The agreement calls for 15% reduced demand Aug. 1 through March 31 and specifies some exemptions and chances for member states to request a derogation from the reduction target to boost the security of the gas supply.