U.K. Prime Minister Boris Johnson announced the sanctions on five Russian banks and three oligarchs in a Feb. 22 statement to Parliament as a response to Russia's recognition of what he termed the "supposed independence" of two regions of Ukraine. Russia entered forces into these two regions -- Donetsk and Luhansk -- describing the forces as "peacekeepers." Johnson said the U.K. sanctioned IS Bank, Bank Rossiya, Promsvyazbank, Genbank and Black Sea Bank for Development and Reconstruction. Additionally, oligarchs Gennadiy Timchenko, Boris Rotenberg and Igor Rotenberg will be subject to the U.K.'s restrictive measures. "This is the first tranche, the first barrage, of what we are prepared to do: we will hold further sanctions at readiness, to be deployed alongside the United States and the European Union if the situation escalates still further," Johnson said.
The U.K.'s Office of Financial Sanctions Implementation fined London-based financial institution Clear Junction more than $49,000 for violating the country's sanctions on those violating the territorial sovereignty of Ukraine. From March to June 2018, Clear Junction conducted 15 transactions with accounts held at the EU-designated Russian National Commercial Bank. Clear Junction then made funds available to an individual designated under the Ukraine sanctions regime, OFSI said. Clear Junction made a voluntary disclosure, dropping the penalty by 26.7%. The financial services firm detailed eight of the transactions, but further investigation revealed nondisclosed payments from Clear Junction. TransferGo initiated the transactions, giving a Russian Bank Identification Code to Clear Junction to enable the transactions, OFSI said. TransferGo was fined in August for its role in the scheme.
The European Union added 40 individuals and entities to its sanctions regimes on ISIL and al-Qaida, Syria, Myanmar and entities involved in the Russian State Duma elections in Crimea. Under the ISIL sanctions list, the European Council added two individuals and two groups. The restrictive measures now apply to al-Qaida in the Indian subcontinent and its leader Osama Mahmood, along with Aziz Azam, spokesperson of ISIL-K -- the Islamic State's Khorasan Province -- and Da'esh Hind Province, an ISIL-affiliated group in India. The council said the sanctioned parties are planning attacks in Afghanistan and pose a serious threat to "regional and international stability."
The Bureau of Industry and Security’s reorganization and clarification of its foreign direct product rules this month (see 2202020021) could allow the administration to more easily use the rule to target specific Russian sectors if Russia invades Ukraine (see 2202150043), Akin Gump said in a February alert. The law firm outlined how companies can examine recent BIS changes to the FDP rule as a “guide for analyses of the scope and impact of possible” new Russia controls, and how certain changes to the Export Administration Regulations would affect various exports to Russia. Companies should examine whether their foreign-produced items contain certain levels of U.S. origin content, Akin Gump said, and whether they would have to comply with new licensing restrictions if Russia were moved to a different EAR Country Group.
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President Joe Biden announced in a speech Feb. 22 that the U.S. will impose a series of sanctions on Russia for its continued aggression against Ukraine. Biden promised sanctions "far beyond what was implemented in 2014," in response to Russian recognition of the Luhansk and Donetsk republics on Feb. 21, which he called a "flagrant violation of international law." According to a Feb. 21 press call, the White House anticipated the possibility and was prepared to respond immediately. A senior administration official noted the measures were in response to "Russia’s recognition gambit" and that they are distinct from "swift and severe economic measures" prepared should Russia "further invade Ukraine."
Ukraine imposed sanctions on Moscow-based broadcasting service Vitrina TV, the National Security and Defence Council of Ukraine said. The council said that the company "provides services for broadcasting Russian TV channels blocked in Ukraine." The restrictive measures will be imposed for a period of five years barring an extension. Further, sanctions were implemented against the Kyiv-based Nasha Praga LLC (Maxi-TV channel), Nash 24 LLC, Nash 365 LLC (Nash TV channel) and these companies' parent firm, Cypriot Demosena Investments. All the newly listed entities will be subject to an asset freeze and restriction of trade operations.
Japan will work with other G-7 countries to impose sanctions against Russia if the country invades Ukraine, Japan Foreign Minister Yoshimasa Hayashi said this week, according to an unofficial translation of his comments. “At this point in time, Japan is strongly demanding a solution through diplomatic negotiations,” Hayashi told reporters during a Feb. 15 news conference. “If an invasion by Russia occurs, Japan should take appropriate measures in cooperation with the G-7 and other international communities according to the actual situation, including imposing sanctions.”
If Russia doesn’t invade Ukraine, the U.S. and allies should still move forward with some sanctions to impose consequences on the Kremlin, experts and former government officials said. Those may include more sanctions against Russian oligarchs, they said, and possibly Nord Stream 2.
The United Kingdom's Office of Financial Sanctions Implementation amended entries under its Syria, Zimbabwe and Russia sanctions regimes. Amendments were made for Zimbabwe Defence Industries under the Zimbabwe list and for former Ukrainian President Viktor Yanukovych under the Russia list. Under the Syria sanctions regime, among 25 entries altered and still subject to asset freezes were those for individuals including Ali Mamluk, former head of the Syrian National Security Bureau, and Hossein Taeb, head of the Islamic Revolutionary Guard Corps Intelligence.