The Office of Foreign Assets Control on March 11 sanctioned Russian people and entities for aiding North Korea's weapons of mass destruction and ballistic missile programs. The designations target Russia-based Apollon OOO; Zeel – M Co., Ltd; and RK Briz, OOO for providing procurement, financial or technological support for North Korea's military industry. OFAC also sanctioned Apollon OOO director Aleksandr Andreyevich Gayevoy and Zeel – M Co., Ltd director Aleksandr Aleksandrovich Chasovnikov.
The global oil market is at a “moment of incredible risk and uncertainty” due to Western sanctions on Russia, and there isn’t a clear short-term solution, said Randy Bell, an expert at the Atlantic Council. Bell, speaking during a March 11 event hosted by the think tank, said it may be too soon to determine the lasting impacts of trade restrictions on oil supplies, especially as the U.S. and other countries continue to impose sanctions against Russia.
The U.S. announced a set of new export controls and sanctions against Russia last week, including new restrictions on luxury goods and full blocking sanctions on Russian government officials and bank executives. The measures, outlined in a March 11 executive order, also include new banking and financing-related restrictions meant to further cut Russia’s economy off from the global financial system and target Russian oligarchs.
The House March 9 passed a government funding bill, including an emergency Ukraine-related aid package for certain U.S. export control and sanctions work.
The U.K. imposed new sanctions on Russia following its invasion of Ukraine that cover aircraft and trade services, Foreign Secretary Liz Truss announced March 9. The restrictions include powers to detain Russian aircraft and remove aircraft belonging to sanctioned individuals and entities, ban the export of aviation and aerospace-related goods and bar British companies from providing insurance for these goods. The aviation restrictions also give power to the Civil Aviation Authority to refuse or revoke permissions for Russian aircraft and block registration under the CAA of aircraft owned, operated or chartered by a sanctioned party. The Export Control Joint Unit concurrently released a General Trade License for the sanctions, which carve out exclusions until March 28. Such exclusions include the provision of insurance services for aviation and space goods where providers didn't reinsure any of their obligations to provide the services before March 8.
The U.K. and the EU added another wave of individuals to their Russia sanctions regime following the invasion of Ukraine. The U.K.'s newest additions include Roman Abramovich, owner of Chelsea Football Club, who has announced his intentions to sell the club. Abramovich was listed as a "prominent Russian businessman" due to his stewardship of the popular club, and a stakeholder in Evraz and Norilsk Nickel and as a "pro-Kremlin oligarch." The U.K. Office of Financial Sanctions Implementation further explained that Abramovich has a close relationship with Russian President Vladimir Putin and that this relationship has enabled Abramovich to reap financial benefits from the Russian government.
Ukraine’s chief economic official this week called for maximum financial sanctions against Russia and a global embargo on the country's oil and energy products, saying the revenue is helping Russia’s military kill Ukrainian civilians. Oleg Ustenko, the chief economic adviser to Ukrainian President Volodymyr Zelenskyy, also urged countries to send Ukraine more weapons and ammunition for its army.
Even before new sanctions and export controls targeting Russia take full effect, many companies are deciding that compliance and due diligence costs are not worth the potential profits of continued business dealings in Russia and Belarus, former U.S. export control and sanctions officials said, speaking at a Washington International Trade Association panel on March 10.
President Joe Biden issued an executive order March 11 banning exports of luxury goods headed to Russian residents, including luxury vehicles, jewelry, high-end alcohol, high-end watches, and high-end jewelry. A fact sheet said Russians import about $550 million a year worth of these goods.
The U.K.'s Export Control Joint Unit published a General License temporarily permitting the provision of certain insurance and reinsurance services for aviation and space goods and aviation and space technology to Russian clients. The license took effect March 8, and anyone seeking to use the license must register via the U.K.'s SPIRE system within 30 days of their first use of the license, the ECJU said.