A group of European countries not in the EU aligned with a recent sanctions move from the bloc under its Iran sanctions regime, the European Council said July 14. The council in June amended the list of sanctioned individuals and entities. The countries of North Macedonia, Montenegro, Albania, Ukraine, Moldova, Bosnia and Herzegovina, Iceland, Liechtenstein and Norway also imposed the decision.
The European Council on July 14 extended by six months the humanitarian exception to its Syria sanctions regime. The exception allows for aid to enter Syria following the February earthquake in Syria and Turkey. The exception, to expire Feb. 24, 2024, also allows international organizations and "certain defined categories of actors involved in humanitarian activities in Syria" to make funds available to sanctioned parties.
The EU General Court last week affirmed a European Commission decision that allowed German securities depository bank Clearstream Banking to comply with U.S. sanctions on Iran. The case stemmed from a commission decision in 2020 that authorized Clearstream to withhold payment of dividends to German firm IFIC Holding, whose shares are indirectly held by the Iranian government. IFIC had asked the General Court to annul the decision.
The U.K.'s Office of Financial Sanctions Implementation will begin rejecting incomplete license applications instead of “engaging” with applicants to collect all required information, the agency announced last week. OFSI said its licensing team has experienced “unprecedented high demand” caused by its Russia sanctions, including a surge in new applications and requests to amend existing licenses, and it doesn’t have the time to continue a temporary measure under which it worked with applicants to fix missing information.
Vadim Konoshchenok, a Russian citizen allegedly linked to Russia's Federal Security Service, appeared before the U.S. District Court for the Eastern District of New York on July 14 on charges of conspiracy related to a "global procurement and money laundering" scheme to benefit the Russian state, the U.S. Attorney's Office for that district announced. He faces a maximum of 30 years in prison.
The House last week voted 219-210 to pass its version of the FY 2024 National Defense Authorization Act with several trade related provisions and amendments, including one amendment that would prohibit “any form of sanctions relief” for the Taliban “unless explicitly authorized by Congress in subsequent legislation.” Another provision would block the Defense Department from entering into a procurement contract with any person or entity that has “business operations” with the Russian government, while another “exhorts” the Defense Department to “commit resources” to make sure “foreign military sales officers in the Department are fully staffed to support the fulsome review and expedient transfer of defense articles” to Australia and the U.K.
Republicans last week criticized the Biden administration’s “lack of sanctions enforcement” against Iran, saying the country continues to sell oil to China and use those profits to support Russia’s war against Ukraine. The lawmakers called on the Treasury and State departments to develop a strategy to “prevent Iran’s petrochemical industry from supporting the regime’s nefarious activities,” saying the strategy should include more sanctions against Chinese people and companies buying Iranian energy.
The Senate Foreign Relations Committee advanced legislation last week with an amendment that could expedite certain defense exports among the U.S., Australia and the U.K. The Department of State Authorization Act of 2023, approved by the committee July 13, now includes language that would authorize the transfer of nuclear-powered submarines to Australia and other measures to implement the Australia-U.K.-U.S. (AUKUS) agreement, lawmakers said.
The Bureau of Industry and Security last week fined two defense companies close to $100,000 combined to resolve their violations of the agency’s antiboycott regulations. The agency fined Arizona-based defense weapons systems manufacturer Profense $48,500 and Washington-based defense contractor B.E. Meyers & Co. $44,750 after they complied with requests from freight forwarders to certify that their goods weren’t Israeli origin.
The U.S. may need to address export control loopholes to better prevent China and others from acquiring sensitive technologies, Sen. Mark Warner, D-Va., said, but he also cautioned the U.S. against imposing controls that are too broad and said they need to be coordinated with allies.