The U.S. should double down on its resources, oversight and enforcement to prevent Russia from acquiring semiconductors and other dual-use goods used to power its war against Ukraine, the Silverado Policy Accelerator said in a report this week. If the broad Western export controls against Russia aren’t followed up with strict enforcement, the think tank said, Moscow will continue to find ways to import chips, including from China.
A group of European countries not in the EU aligned with five recent sanctions actions taken by the bloc pertaining to those who undermine the sovereignty of Ukraine, the European Council announced. In September, the European Council extended the restrictions until March. North Macedonia, Montenegro, Albania, Ukraine, Bosnia and Herzegovina, Iceland, Liechtenstein and Norway imposed the decision.
While companies should expect the U.S. to continue to coordinate trade restrictions with Europe this year, the EU, the U.K. and others may look to impose “broader” measures than the U.S. does as those nations try to strengthen their individual sanctions regimes, Willkie Farr said in a client alert this month. The firm also said the sanctions cooperation among many of the world’s democracies in 2022, particularly the trade restrictions imposed on Russia, “highlighted the divergence between governments and increased the demand on compliance teams.”
The U.S. should take more steps to counter corruption and sanctions evasion efforts by Russian kleptocrats, including through a new multilateral anti-corruption council, Sen. Sheldon Whitehouse, D-R.I., said this week. While he applauded recent funding passed by Congress to provide more resources for government enforcement efforts, he said lawmakers have more work to do to close sanctions loopholes.
Jason Prince, former chief counsel at the Treasury Department's Office of Foreign Assets Control, has moved to Crowell & Moring as a partner, the firm announced. He will advise clients on sanctions and export controls imposed on Russia and other nations and parties. During his time at OFAC, Prince "oversaw the legal design of new sanctions measures and led the legal review of all major OFAC enforcement, compliance, licensing, litigation, and regulatory actions," the firm said.
The U.K. House of Commons' International Trade Committee opened a call for evidence as part of its inquiry on the U.K.'s trade sanctions on Russia. Interested experts, stakeholders and parties that can speak to the role the Department for International Trade plays in developing, implementing and enforcing the trade-related parts of the sanctions on Russia can submit evidence by March 17. The committee said it also wants evidence pertaining to the impact of Russian trade-related sanctions on U.K. businesses, supply chains and consumers, as well as the effectiveness of government support in mitigating the impact of the sanctions.
Charles McGonigal, former special agent in charge of the New York FBI counterintelligence division, and Sergey Shestakov, a Russian court interpreter and former diplomat, were charged with conspiring to commit money laundering and money laundering, the U.S. Attorney's Office for the Southern District of New York announced. The two were charged with one count of conspiring to violate the International Emergency Economic Powers Act, one count of violating the IEEPA, one count of conspiring to launder money and one count of money laundering, each carrying a maximum 20-year prison sentence. Shestakov also was charged with one count of making false statements, which has a five-year maximum prison sentence.
Rosatom, a Russian state nuclear corporation, has worked to supply Russia’s defense industry with controlled components, technology and raw material for missile fuel, The Washington Post reported Jan. 20. The company has offered to provide goods to the Russian military and Russian weapons manufacturers that are subject to sanctions, the report said, including Almaz-Antey, a missile systems producer, and NPK Tekhmash, a manufacturer of unguided bombs and multiple missile launch systems. Although Rosatom has “long presented itself as a civilian entity operating nuclear power plants in commercial partnerships across the globe,” Russia’s war in Ukraine is “exposing how closely the company” is “intertwined” with Russia’s military-industrial complex, the report said. Rosatom told the paper all of its claims “are completely untrue.”
The U.S. plans to impose new sanctions on Russia’s Wagner Group this week, including by designating it a significant Transnational Criminal Organization, National Security Council spokesperson John Kirby told reporters Jan. 20. Kirby said the sanctions will target the private military company’s support network “across multiple continents” and “recognize the transcontinental threat that Wagner poses, including through its ongoing pattern of serious criminal activity.”
The Council of Europe recently began a review of EU member state practices for identifying individuals and entities holding effective control of sanctioned companies. The council mentioned the study during a recent conference it helped organize alongside the European Commission, saying the conference "aimed to provide an opportunity to exchange practices and share experience about real cases of identification of persons holding effective control and establishment of firewalls." The study is part of a broader effort by the council to improve the abilities of the Czech Republic, Latvia, Malta and others in complying with EU sanctions against Russia.