Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The U.S. and its allies will issue another set of Russian sanctions this week amid a planned meeting between President Joe Biden and European leaders, National Security Adviser Jake Sullivan said. The announcement will not only include new designations, Sullivan said, it also will build on efforts to ensure better enforcement of existing sanctions and export controls.
The top trade official in the British government and U.S. Trade Representative Katherine Tai said they want to do even more trade and investment between the two countries, even as a free-trade agreement is not the end goal. Secretary of State for International Trade Anne-Marie Trevelyan had hoped that the Biden administration would continue the free trade negotiations started during the Trump administration, but that has not happened. Marjorie Chorlins, who leads the U.S.-U.K. Business Council at the U.S. Chamber of Commerce, also spoke at the March 21 plenary in Baltimore, saying the business community strongly supports more U.S.-U.K. economic cooperation.
Australia will ban exports of alumina and aluminum ores, including bauxite, to Russia in a bid to limit the country’s ability to produce aluminum, Australia’s government said March 20. Russia relies on Australia for about 20% of its alumina, and the export ban will cut Russia’s ability to source a “critical input” into its “armaments industries,” Australia said. “The Government will work closely with exporters and peak bodies that will be affected by the ban to find new and expand existing markets,” Australia said.
When it runs out of its current equipment, the Russian military will face challenges sourcing critical technologies to upgrade and maintain its military goods, due to U.S. export controls (see 2202240069), the Atlantic Council said in a March 18 post on its website. But much of that could depend on how successfully the U.S. and its allies can enforce the restrictions, the Atlantic Council said, and whether Chinese companies comply with the restrictions or decide to supply chips to Russia and expose themselves to secondary sanctions or similar U.S. export controls (see 2203140009).
China is unlikely to violate U.S. sanctions against Russia because it fears the consequences of U.S. secondary sanctions too much, said Kevin Rudd, president of the Asia Society and former Australian prime minister. China also will likely avoid providing military support to Russia, Rudd said, which could invite similar U.S. sanctions that could hurt its major state-run and private technology companies.
Following the U.K.'s imposition of massive sanctions on Russia following its invasion of Ukraine, the U.K.'s Export Control Joint Unit published a General License allowing the provision of technical assistance, financial services and funds, and brokering services for certain vessels. The ECJU authorized these activities where a restricted vessel is moving from a third country to Russia or the U.K., or to a third country from Russia or transiting Russian waters.
The U.K. amended the General License applying to transactions involving sanctioned Russian bank Sberbank. The license, "Correspondent Banking Relationships & Processing Sterling Payments," was altered to allow British credit or financial institutions to continue a banking relationship with Sberbank or a U.K. or non-U.K. credit or financial institution owned or controlled by Sberbank. The license expires March 31.
The EU last week issued a set of frequently asked questions to describe and clarify its new Russia export restrictions and sanctions. The 31-page document outlines items that are captured by the new restrictions, what exemptions are available, when the restrictions do and don’t apply, exporter compliance obligations and more.
The Russia and Belarus Financial Sanctions Act, clarifying that foreign subsidiaries of U.S. financial institutions must comply with American sanctions against Russia and Belarus, passed out of the House Financial Services Committee March 17 on a voice vote. The Nowhere to Hide Oligarchs' Assets Act, which gives the Financial Crimes Enforcement Network more access to records so that they can "detect Russian oligarchs who are participating in money laundering techniques to hide their money, avoid scrutiny, and evade our sanctions," passed out of the same committee on a 26-23 party-line vote.