U.S.-EU cooperation on export controls, sanctions and other trade issues bodes well for the future of multilateral cooperation, said Rupert Schlegelmilch, a senior trade official with the European Commission, speaking during a June 22 event hosted by the Atlantic Council. Schlegelmilch specifically praised the work of the Trade and Technology Council’s export control working group (see 2206010007 and 2205160033), which allowed both sides to respond quickly to Russia’s invasion of Ukraine in February.
It’s still too early to regulate quantum technologies through export controls and other means, two tech industry officials said during an event this week hosted by the Center for Strategic and International Studies. Although the Commerce Department is studying new export controls on certain slices of quantum technologies, strict regulations risk hurting American competitiveness, the officials said.
Manfred Low Cheng Jing, a Singaporean national, was sentenced to 15 weeks in prison by the Singapore State Courts for obstructing investigations into alleged violations of the U.N. sanctions regime on North Korea, the Singaporean 24-hour news channel CNA reported. Low worked as a director of oil trading and bunkering company Yuk Tung Energy in 2018 while it was being investigated by the Singapore Police Force over a ship-to-ship transfer of "gasoil" from the MT Yuk Tung ship to the North Korean-flagged ship Rye Song Gang 1. A commercial arrangement was made to have Yuk Tung Energy charter the MT Yuk Tung. Through his position, Low tallied invoices over the company's business dealings and reviewed contracts, explaining them to the company's "key decision-maker," Benito Aloria Yap.
The EU renewed until June 23, 2023, its sanctions regime over Russia's annexation of Crimea and the city of Sevastopol, the European Council announced June 20. Originally introduced in 2014, the restrictions' sectoral sanctions include import bans on goods originating from Crimea or Sevastopol into the EU and financial investments from the affected areas. The council also barred the export of certain goods and technologies to Crimean companies or for use in Crimea.
The EU added three people and one entity to its terrorist sanctions regime, since the parties were linked to al-Qaida's operations in the Sahel region, the European Council announced June 20. The entries are Sidan Ag-Hitta and Salem ould Breihmatt, senior officials with the al-Qaida affiliate Jama'at Nusrat al-Islam Wal-Muslimin, along with the terrorist group's Burkinabe branch Ansarul Islam and its leader Jafar Dicko. The council said the sanctioned parties are responsible for terrorist attacks against civilians at home and in Mali and Burkina Faso, and contribute to the expansion of the terrorist group throughout Western Africa.
Companies with Chinese business ties should consider how they would be affected if the U.S. began imposing Russia-style export controls against China, said Crowell & Moring trade lawyer Jeff Snyder. Speaking during a June 21 webinar hosted by the firm, Snyder said his practice has begun conducting exercises to imagine how potential China-related controls would affect a business’ operations, which can help companies assess their risk exposure and make preemptive plans so they aren’t caught off-guard by trade disruptions.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Biden administration should increase sanctions on the Nicolas Maduro regime in Venezuela and convince European allies to do the same, a group of Senate Republicans said in a June 16 letter to the White House. The lawmakers, including several on the Senate Foreign Relations Committee, criticized the White House’s attempts to intervene in negotiations between the Maduro regime and the U.S.-backed opposition party led by Juan Guaido, calling it a “flawed and incoherent policy” and only put the U.S. at the “center of Venezuelan political disputes.” The U.S. in May said it was preparing to ease some sanctions against Venezuela to encourage negotiations between the two parties (see 2205170074).
A new bill introduced by Rep. Jim Banks, R-Ind., would amend U.S. export regulations to allow Taiwan to more quickly import military goods and defend itself against a potential invasion by China. The text of the Taiwan Weapons Exports Act of 2022 (see 2206150013), released last week, said the bill would add Taiwan to Country Group A:5 under the Export Administration Regulations, which would expedite certain exports of “critical asymmetric defensive capabilities” to Taiwan. The addition of Taiwan to the country group would make it easier for it to import certain items through License Exception Strategic Trade Authorization, the bill said, including “undersea sensors, naval mines, man-portable air defense systems and unmanned aerial vehicles.”
The Center for a New American Security last week published an overview of the international sanctions strategy against Russia, including potential escalatory steps, enforcement so far and potential evasion tactics. The post also includes a breakdown of the sanctions by target and sector, detailing the number of sanctions that have been used to punish Russian elites compared to the country’s defense, transportation, financial, technology and energy sectors.