More than 30 Senate Republicans introduced a bill Feb. 15 that would impose new sanctions against Russia and expedite certain U.S. arms sales as President Vladimir Putin threatens to invade Ukraine. The bill, titled the Never Yielding Europe’s Territory Act, would mandate post-invasion sanctions against the Russian-backed Nord Stream 2 pipeline and various Russian government officials, military leaders, oligarchs and banks. The bill would also impose sanctions on members of Putin’s inner circle regardless of whether an invasion occurs.
Although many companies could be affected by a potential expansion of the U.S. foreign direct product rule if Russia invades Ukraine, the U.S., the United Kingdom and Canada can also deploy other export restrictions that could have significant compliance implications, Baker McKenzie lawyers said. Those controls could range from more strict licensing policies to a complete trade embargo on certain Russian annexed territories.
Ruchi Gill, former deputy chief counsel for the Senate Foreign Relations Committee, joined Latham & Watkins as counsel in its Washington, D.C.-based white collar defense and investigations 'practice, the firm announced. Gill also will serve as a member of the litigation and trial department. She will advise clients on national security regulatory matters, including proceedings at the Committee on Foreign Investment in the U.S., export controls and economic sanctions, the firm said.
Turkey will slash the value-added tax on staple food from 8% to 1% in a bid to curb inflation, President Recep Tayyip Erdogan said at a virtual news conference, Bloomberg reported. Finance Minister Nureddin Nebati said that the Turkish government will create a task force to look at prices and a mobile app to help citizens find the cheapest goods in other efforts to fight high prices. Nebati also said the government will implement a new Credit Guarantee Fund package that will guarantee up to 60 billion liras, or $4.45 billion, allowing banks to dole out much more, Bloomberg said. So far, the Turkish central bank has cut interest rates by 500 basis points in four meetings since September, Bloomberg said. Turkey also recently authorized its agriculture ministry to restrict ag exports in an effort to control domestic food price inflation (see 2202020032).
Important questions still surround the implementation of a potential multilateral sanctions package against Russia, economic and security experts said, including U.S. efforts to enforce an expansion of the foreign-direct product rule. Although details may not yet be clear, a former State Department official warned that new U.S. sanctions against Russia could soon turn strict enough to mirror trade restrictions against Iran.
The United Kingdom updated 18 entries under its Iran (Nuclear) sanctions regime, the Office of Financial Sanctions Implementation said. It amended the entries for Kamran Daneshjoo, Mohammad Shafi'i Rudsari, Mohsen Fakhrizadeh-Mahabadi, and Sepanir Oil and Gas Energy Engineering. OFSI removed duplicate aliases from the non-HTML/PDF formats of the consolidated sanctions list for the entries of Hojatoleslam Ali Saidi, Mohammad Naderi, Ghani Sazi Uranium, Iran Communications Industries, Isfahan Optics, Shakhese Behbud Sanat and Technology Cooperation Office of the Iranian President's Office. It also removed duplicate dates of birth that were showing on the non-HTML/PDF formats of the consolidated sanctions list for the entries of Ali Akbar Ahmadian, Yahya Rahim Safavi, Ali Akbar Tabatabaei, Fereidoun Abbasi-Davani, Mohammad Reza Naqdi, Mohammad Reza Zahedi and Morteza Rezaie.
The United Kingdom updated two listings under its South Sudan sanctions regime and three entries under its Democratic Republic of the Congo sanctions list, the Office of Financial Sanctions Implementation said in notices. Under the South Sudan list, entries for Peter Gadet, deputy chief of staff-operations for the Sudan People's Liberation Army in Opposition, and Michael Makuei Lueth, minister for information and broadcasting, were amended. Under the Congo sanctions list, the entries for these were amended: Deputy Prime Minister Evariste Boshab; former Kasai Central Gov. Alex Kande Mupompa; and John Numbi, inspector general of the Congolese Armed Forces.
An amendment to the United Kingdom's Russia sanctions regime expanding the criteria under which individuals and entities can be listed entered into force Feb. 10. The revised regulation allows the U.K. to sanction people who have been involved in destabilizing Ukraine or obtaining a benefit from backing the Russian government, among other things. Parliament defined a person being "involved in obtaining a benefit from or supporting the Government of Russia" as someone running a government-affiliated business, engaging in business of economic significance to the Russian government, carrying on business in a sector of strategic significance to the government or owning or controlling a government-affiliated entity.
The Senate on Feb. 9 confirmed Neil MacBride, President Joe Biden’s nominee to be general counsel for the Treasury Department. MacBride, a former federal prosecutor who will advise Treasury on sanctions work, said during his nomination hearing last year that he will “ensure that the department’s regulatory actions comply with the laws Congress enacts.” He also said he knows “firsthand the importance” of the Office of Foreign Assets Control, the Financial Crimes Enforcement Network and other Treasury agencies.
Rep. Mike Gallagher, R-Wis., and 27 Republican colleagues, introduced a bill that would require the administration to impose Magnitsky Act sanctions if any member or person associated with the International Olympic Committee supported "a gross violation of internationally recognized human rights" against any Olympic or Paralympic Winter games participant. However, the president can choose not to impose sanctions if he determines that a waiver is in the country's national security interests. The text of the bill, which was published Feb. 10, says that participants aren't just athletes -- they can be spectators, members of the press, "government and private officials ... and persons involved in economic activity related to the Games."