The EU updated its Russia sanctions guidance this week with new frequently asked questions, including several that clarify how it interprets its 50% rule and how asset freezes apply to entities owned by sanctioned people.
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 U.S. Court of Appeals for the D.C. Circuit upheld the sanctions listing of Russian billionaire Oleg Deripaska, finding that the Treasury Department's Office of Foreign Assets Control provided proper evidence for the listing. The court also held that while Deripaska was found to no longer own two major energy companies, OFAC found him to still operate them, justifying his placement in the Russian sanctions regime.
Proposed changes to the State Department’s defense export regulations, including a provision that would clarify definitions for “export” and “reexport,” received strong support from U.S. universities this month. The Association of University Export Control Officers said the proposed changes to the International Traffic in Arms Regulations will “make it simpler and more efficient for universities to remain compliant with” U.S. export regulations.
The U.S. is preparing more sanctions and export controls against Russia, including more measures to target the country's defense industrial base and critical supply chains, Deputy Treasury Secretary Wally Adeyemo said March 29 during an event at Chatham House in London. The U.S., which will announce those steps alongside more than 30 allies, is also turning its enforcement focus to companies or countries that may be helping Russia evade the sanctions, Adeyemo said.
The Bureau of Industry and Security added 73 new aircraft to its list of planes that have violated U.S. export controls by flying into Russia, including aircraft owned by Russian cargo carriers, the agency said in an emailed news release. The list includes new planes owned by AirBridgeCargo, which calls itself Russia's largest cargo airline, Atran, a Moscow-based cargo airline, and other commercial or private aircraft owned by Aeroflot, Alrosa, Azur Air, Nordstar, Nordwind, Pegasfly, Pobeda, Rossiya, Royal Flight, S7 Airlines and Utair. BIS also removed 12 aircraft that were allowed to return to owners in partner countries and updated tail numbers for other aircraft to “reflect their purported re-registration in Russia.” The agency said it will impose penalties and/or jail time or revoke export privileges for any company or person that violates the Export Administration Regulations by providing “any form of service” to the aircraft without a required BIS license.
Elizabeth Craddock, former partner at Jones Walker, has joined Holland & Knight in its Public Policy & Regulation Group in Washington, D.C., the firm announced. Craddock's practice will focus on energy, environment and trade policy, among other things, the firm said. She also brings experience with sanctions issues. Earlier in her career, Craddock was vice president of government affairs for the International Association of Drilling Contractors.
The U.K.'s Office of Financial Sanctions Implementation issued new general licenses for Russia and for Belarus authorizing until April 23 the closing out of any positions involving sanctioned banks. For Russia, these banks are Alfa Bank, GazPromBank, Rosselkhozbank, SMP Bank and the Ural Bank for Reconstruction and Development. For Belarus, the general license applies to Bank Dabrabyt Joint Stock Co. and any of its subsidiaries.
The State Department’s Directorate of Defense Trade Controls released its notifications to Congress of recently proposed export licenses. The notifications, from October through December, feature arms sales to numerous countries, including Canada, Qatar, the Netherlands and India.
President Joe Biden’s fiscal year 2023 budget proposal, released March 28, includes millions of dollars in additional funding for export control and sanctions work. The proposal includes a $30 million increase in funding for the Bureau of Industry and Security to “implement and enforce export controls.” It also includes an additional $37 million in funding over the previous year's to help the Treasury Department “modernize and update the sanctions process” as outlined in the agency’s 2021 sanctions review (see 2110190044).