Two businessmen -- Russian national Vladislav Osipov and British national Richard Masters -- were charged for their roles in a sanctions evasion and money laundering scheme connected with the ownership and operation of the $90 million superyacht Tango, DOJ announced. The yacht is owned by sanctioned Russian oligarch Viktor Vekselberg. Per the terms of the indictments unsealed Jan. 20 in the U.S. District Court for the District of Columbia, Osipov and Masters are accused of conspiracy to defraud the U.S. and commit offenses against the U.S., violating the International Emergency Economic Powers Act and money laundering, DOJ said.
The G-7 price cap on Russian oil, along with other trade restrictions, appears to be having a significant impact on the global price of Russian energy, experts said during an event hosted by the Center for Strategic and International Studies last week. But they also said it remains unclear whether the cap is limiting Russia’s export volumes and said it’s too early to tell how well industry is complying with the cap’s service restrictions.
The Treasury Department last week issued an order barring certain funds transfers involving a Hong Kong-registered cryptocurrency exchange due to its ties to illicit Russian financing. The order, which is the first issued under new authority granted to the Financial Crimes Enforcement Network under the Combating Russian Money Laundering Act, prohibits “certain transmittals of funds” involving Bitzlato by a range of financial institutions.
Ukraine imposed sanctions on 198 Russian, Ukrainian and Belarusian citizens for their role in Russia's war in Ukraine, under a decree from President Volodymyr Zelenskyy, according to an unofficial translation. The sanctions include asset freezes, restrictions on the withdrawal of capital from Ukraine and trade restrictions. In an address, Zelenskyy said the individuals include those "who justify terror" and spread Russian misinformation.
The EU will impose new sanctions on Belarus for its support of Russia's war in Ukraine, European Commission President Ursula von der Leyen said in a Jan. 10 statement. Speaking at a joint news conference with North Atlantic Treaty Organization Secretary-General Jens Stoltenberg and European Council President Charles Michel after signing the joint declaration on EU-NATO cooperation, von der Leyen said sanctions will continue to be a tool used against Russian aggression. "We will extend these sanctions to those who militarily support Russia's war such as Belarus or Iran," the president said. "And we will be coming forward with new sanctions against Belarus, answering Belarus' role in this Russian war in Ukraine."
The Office of Foreign Assets Control Dec. 30 fined a multinational Danish-based refrigeration manufacturer more than $4.3 million for violating U.S. sanctions against Iran, Syria and Sudan. Danfoss, which also sells air conditioners and other cooling and heating products, illegally directed customers in all three countries to make payments through a U.S. financial institution, OFAC said in an enforcement notice. The company also made illegal payments to entities in Iran and Syria.
The Bureau of Industry and Security issued a 180-day temporary denial order Dec. 13 against three people and two companies for illegally sending controlled exports to Russia as part of a Moscow-led sanctions evasion scheme. Along with the denial order, DOJ indicted the three individuals, along with others, on charges related to the illegal exports, including money laundering, wire fraud, bank fraud and conspiring to defraud the U.S.
Export Compliance Daily is providing this recap of export control and sanctions enforcement over the past year to assist export compliance professionals, lawyers and others in staying up to date with current enforcement trends. This guide summarizes the most notable enforcement actions by the Commerce Department's Bureau of Industry and Security, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control and the Department of Justice since Jan. 1, 2022.
The U.K. updated or amended four of its General Licenses under its Russia sanctions regime, the Office of Financial Sanctions Implementation said last week. The licenses pertain to the oil price cap, "winddown" of positions subject to the oil price cap, correspondent banking and payment processing and projects and countries' exemption from the oil price cap.
The Office of Foreign Assets Control added seven people to its Specially Designated Nationals List in connection with Iranian unmanned aerial vehicle shipments to Russia, it said in a Jan. 6 news release. The designees are six executives and board members of previously designated Qods Aviation Industries (QAI), an Iranian defense manufacturer that designs and produces UAVs being transferred to Russia for use in Ukraine. OFAC also sanctioned the director of Iran’s Aerospace Industries Organization, the "key organization responsible for overseeing Iran’s ballistic missile programs." The agency also updated QAI’s entry on the SDN List to include its new alias, Light Airplanes Design and Manufacturing Industries.