The Bureau of Industry and Security's upcoming shift in its administrative enforcement policies could signal a more aggressive posture toward cracking down on illegal exports and may change how companies voluntarily disclose violations, a former BIS agent said. But some lawyers say the policies could represent a minor shift, and it may be too early to tell how they will affect compliance decisions.
The Bureau of Industry and Security last week suspended the export privileges of another Russian airline and identified a new plane likely violating U.S. export controls. The agency issued a 180-day temporary denial order for Rossiya Airlines, which blocks Rossiya’s ability to participate in transactions subject to the Export Administration Regulations. The U.K. also sanctioned the airline last week (see 2205190011).
The U.K. sanctioned three Russian airlines under its Russia sanctions regime in response to the invasion of Ukraine. Per a May 19 notice from the Office of Financial Sanctions Implementation, JSC Rossiya Airlines, JSC Ural Airlines and PJSC Aeroflot will be subject to an asset freeze. OFSI also removed wrong information from the sanctions listings of Garantex Europe OU and Kamaz under the Russia sanctions list.
The Bureau of Industry and Security on May 20 suspended the export privileges of another Russian airline for violating U.S. export controls against Russia. The agency issued a 180-day temporary denial order for Rossiya Airlines, BIS said in an emailed news release, adding that the order “terminates” Rossiya’s ability to participate in transactions subject to the Export Administration Regulations. The agency also identified other aircraft that are likely violating U.S. export controls, including another plane owned by Russian oligarch Roman Abramovich.
The European Commission updated its frequently asked questions pages relating to the EU's Russian sanctions regime. The updates cover deposits, trading, public procurement, prohibition on engaging with state-owned enterprises, customs and access to EU ports. The FAQs clarify elements of the sanctions, including how various prohibitions are being monitored, the definitions of key terms and how to bolster compliance.
The European Commission said companies can continue buying Russian gas without violating sanctions, tempering its stance on the issue. A commission spokesperson said the EU sent revised guidelines to EU member states May 13, saying companies should "make a clear statement" they consider their obligations fulfilled once they pay in euros or dollars, Bloomberg reported May 16.
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The U.S.-EU Trade and Technology Council hopes to make progress around the idea of a new multilateral export control regime by the TTC’s next ministerial meeting this fall, Commerce Secretary Gina Raimondo said. She said the group is thinking about which U.S. and EU technologies are “especially significant” and warrant multilateral controls, such as semiconductor equipment.
Iran is considering exporting natural gas to Europe in a potential bid to capitalize on international sanctions against Russian energy. An Iranian oil and gas ministry official said officials are “studying it but have yet to reach a conclusion,” the ministry’s news agency, Shana, said May 15. “However, Iran always seeks development of energy diplomacy and expanding the market.” The official didn’t say how it would export its product, which is subject to strict U.S. sanctions.
The EU could cap the price of natural gas to skirt high energy costs if Russia limits or cuts off the flow of gas, Bloomberg reported May 15. The European Commission is considering a package of energy-market intervention steps to replace Russian gas, according to a draft document seen by Bloomberg News. Concerns over Russian retaliation to EU sanctions grow as Russia's economy suffers from restrictions placed on it after its invasion of Ukraine. Importers are worried over how to pay for Russian gas while avoiding breaching sanctions, Bloomberg said.