The European Council on June 30 requested the consent of the European Parliament to add the violation of restrictive measures to the list of "EU Crimes" laid out in the Treaty on the Functioning of the EU, the council said. The move is intended to crack down on the circumvention on the EU's many sanctions regimes, most notably Russia restrictions made following the invasion of Ukraine. With EU member states having different definitions of what constitutes a violation of the EU's sanctions regimes, the council said that greater effort is needed to harmonize sanctions enforcement.
The State Department declined to say whether the U.S. will impose financial sanctions against the Chinese companies accused by the Commerce Department last week of helping Russia evade export controls. Rep. Michael McCaul, R-Texas, last week called on the agency to impose the sanctions (see 2206300007) and go beyond Commerce’s move of adding them to the Entity List (see 2206280056).
The Bureau of Industry and Security plans to add more attorneys to its chief counsel's office to keep pace with its Russia-related export controls, a Commerce Department official said during the BIS annual update conference last week. The counsel has about 15 lawyers but expects to add more “in the coming months,” said the official, speaking on background as part of a conference policy for career staff. “It really has been unprecedented times over the past six months,” the official said, adding that the counsel’s office wants “to make sure that we can match” the rest of the agency “as the amount and intensity of work continues.”
The U.S. and its allies should be sharing more export control information to better align their licensing decisions, said Thea Kendler, the Bureau of Industry and Security's assistant secretary for export administration. Although the U.S. is already sharing some of that information through the U.S.-EU Trade and Technology Council to keep Russia from acquiring sensitive technologies and other items for its military, Kendler said more can be done.
The U.K. Parliament's Foreign Affairs Committee released a report June 30 critical of Britain's role in the global financial system as a "hub for illicit finance," particularly in light of the war in Ukraine. Russian assets are continuously laundered through the U.K. to finance President Vladimir Putin's war, the committee said. London's standing as a magnet for global finance presents a grave national security risk, the committee said. The report assesses "consequences of the complacency of successive Governments towards illicit finance and the adequacy of the current Government's response."
The EU General Court on June 27 dismissed an application from sanctioned Russian billionaire Alisher Usmanov for interim measures, according to an unofficial translation. The court ruled his application didn't show urgency or serious irreparable harm because Usmanov only discussed his damages that stemmed from the financial viability of three subsidiaries of USM Holding. Usmanov has a 49% share of the subsidiaries and thus does not control them, the court pointed out. As such, the applicant failed to show a direct causal link between the subsidiaries' finances and his placement, made in February, on the EU's Russian sanctions list.
The U.S. didn’t do enough to penalize the Chinese companies accused by the Commerce Department this week of helping Russia evade export controls (see 2206280056), the top Republican on the House Foreign Affairs Committee said. Rep. Michael McCaul, R-Texas, said the U.S should also have placed financial sanctions on the companies, adding that State Department Deputy Secretary Wendy Sherman told the committee in April that China would face “consequences” if its companies provided support to Russia.
Switzerland announced June 29 it's imposing further sanctions on Russia over its invasion of Ukraine, implementing the EU's most recent sanctions package, which includes an embargo on crude oil and certain refined petroleum products from Russia. The Swiss Federal Council said the sanctions package also adds more than 100 Russian and Belarusian individuals and entities to the sanctions list and bans services related to the oil and petroleum products trade, including insurance or reinsurance for the transport of oil to any destination. The package also bans a number of financial and professional services such as auditing, public relations or consulting for Russian firms. Unlike the EU's sanctions package, Switzerland didn't ban the awarding of public contracts to Russian individuals or organizations with links to the country.
The U.K.'s Russian Elites, Proxies and Oligarchs Task Force has blocked or frozen over $30 billion in sanctioned Russian assets, the Office of Financial Sanctions Implementation announced. The task force has frozen or seized sanctioned individuals' "high-value goods," and restricted sanctioned individuals' access to the international financial system, OFSI said. Through coordination between REPO Task Force members, around $300 billion of Russian Central Bank assets have been frozen, various yachts and other vessels controlled by sanctioned Russians detained and access to the global financial system cut off.
The U.K. added new entries to its Russia and Syria sanctions regimes in a pair of notices June 29. Under its Russia sanctions list, the Office of Financial Sanctions Implementation added entries for eight individuals and five entities. The listed entities are the Joint Stock Company Marshal.Global, Joint Stock Company Moscow Industrial Bank, JSC Kolmar Group, JSC New Opportunities and R-Style Softlab.