A European Union law holding that entities cannot comply with the requirements in the laws of a third country applies even in the absence of an order to comply with the third country's laws, the European Court of Justice said in a December 2021 judgment. However, an EU company can terminate contracts with a person or entity subject to U.S. sanctions without giving reasons for such termination or without authorization from the European Commission, a summary of the judgment said. But, the European high court said the burden of proof is on the party terminating the contract to show it nixed the contract for a reason other than compliance with the third country laws.
Peter Sotis and Emilie Voissem, two Florida residents, were sentenced Jan. 12 for conspiring to and illegally attempting to ship export-controlled rebreather diving equipment to Libya, the Department of Justice said. Sotis will spend 57 months in prison while Voissem will serve a five-month sentence in prison and a five-month term in home confinement. The scheme to illegally export the rebreather equipment -- an item that is export controlled due to its enhanced underwater breathing capabilities and dual use as a military and civilian item -- was hatched in August 2016.
A bill that would have imposed sanctions on companies associated with the Russia-backed Nord Stream 2 pipeline was rejected by the Senate Jan. 13 after it failed to garner the necessary 60 votes to pass. The bill, introduced in December by Sen. Ted Cruz, R-Tex. (see 2201110059), faced strong opposition from the White House, which said before the vote that the bill would “only serve to undermine unity amongst our European allies,” including Germany (see 2201110059).
Sen. Marco Rubio, R-Fla., is requesting an explanation from the General Services Administration after it reportedly provided a portal for U.S. agencies to buy technology produced by a Chinese company on the Entity List. In a letter to GSA, Rubio pointed to reports that the Drug Enforcement Agency, the Defense Department’s Defense Finance and Accounting Service and the Department of the Army all used the GSA Advantage portal to buy hard drives and video surveillance equipment manufactured by Lorex, a subsidiary of Dahua Technology. Dahua Technology was added to the Commerce Department’s Entity List in 2019 for providing the Chinese government with surveillance equipment to monitor the country’s Uyghur population.
Republicans and Democrats this week urged two State Department nominees to work transparently with Congress so lawmakers can perform better sanctions oversight, which they say has been a major hurdle during the last year. The Biden administration has been unhelpful in responses to some congressional sanctions queries, the lawmakers said, which has led to disagreements and confusion surrounding U.S. sanctions against Nord Stream 2 and some country-specific regimes.
Annie Froehlich, former in-house counsel for home appliance manufacturer Carrier, has joined Cooley as special counsel in the Washington, D.C.-based export controls and economic sanctions practice, the law firm said. At Carrier, Froehlich served as director and senior counsel for the company's Sanctions and Export wing, leading the manufacturer's Center of Excellence for Regulatory Compliance. Before Carrier, Froehlich worked at Latham & Watkins on export controls and sanctions matters. Froehlich is also a nonresident senior fellow at D.C. think tank Atlantic Council, most recently focusing on U.S. export control developments relating to China.
The leaders of the Senate and House foreign affairs committees urged the Biden administration to impose more sanctions on the Bashar al-Assad regime to “reinforce” the U.S.’s position against Syria. The lawmakers said several Arab partners have continued formal and informal relationships with the regime despite its “horrific” human rights abuses, and more sanctions could make sure the regime remains isolated.
The U.S. on Jan. 12 sanctioned seven people and one entity for helping to procure goods for North Korea’s weapons and missile programs. The Office of Foreign Assets Control sanctioned Russia-based North Korean national Choe Myong Hyon and four China-based North Korean weapons procurement officials: Sim Kwang Sok, Kim Song Hun, Kang Chol Hak and Pyon Kwang Chol. The State Department sanctioned North Korean national O Yong Ho, Russian national Roman Anatolyevich Alar and Russian entity Parsek LLC for helping to deliver weapons materials to North Korea. OFAC said the sanctions follow North Korea’s six missile launches since September, which violated U.N. Security Council resolutions.
Australia this week began implementing a U.N. Security Council exemption for certain humanitarian-related activities and transactions involving the Taliban in Afghanistan. Under the exemption, adopted by the UNSC Dec. 22 and implemented by Australia Jan. 11, certain “payment of funds, other financial assets or economic resources, and the provision of goods and services necessary” for humanitarian aid will “not constitute an offence under Australian sanctions laws,” Australia said. All other transactions or activities not covered by the exemption may still violate Australian sanctions, the country said. The U.S. recently issued new guidance and general licenses to help humanitarian aid flow more easily to Afghanistan (see 2112220041).
More than 25 Senate Democrats introduced a bill this week that would impose a host of sweeping new sanctions against Russia -- including new restrictions on Russian debt, dealings with government officials and banks -- if Russia further invades Ukraine. The legislation, led by Sen. Bob Menendez, D-N.J., would also require the administration to expedite deliveries of defense shipments to Ukraine and would authorize new sanctions on certain financial messaging service providers and Russia’s energy and mineral extraction industries.