The Office of Foreign Assets Control on April 20 sanctioned more than 40 people and entities -- including Russian commercial bank Transkapitalbank -- for operating a sanctions evasion network. The agency also issued two new general licenses authorizing certain transactions with the bank and sanctioned a range of companies for operating in Russia’s virtual currency mining industry.
The Bureau of Industry and Security on April 21 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 Moscow-based cargo aircraft carrier Aviastar, BIS said in an emailed news release, adding that the order will “hinder” the airline’s ability to deliver military cargo to Russia. Aviastar will be barred from participating in transactions with items subject to the Export Administration Regulations. BIS earlier this month issued temporary denial orders for Russian airlines Aeroflot, Azur Air and UTair.
The U.K.'s more than $3.5 million fine of an unnamed British company over illegal exports of military goods (see 2204040020) lacks transparency, U.K. law firm Macfarlanes said in an April 19 post. The U.K.'s enforcement agency hasn't released any information about the violations that led to the fine despite it being the "largest penalty ever for breach of U.K. arms controls," the firm said.
The Office of Foreign Assets Control issued Russia-related General License 27, which allows certain transactions by nongovernmental organizations involving Russia. The license authorizes activities in support of humanitarian projects, democracy building initiatives, education, non-commercial development projects and environmental and natural resource protection in both Russia and Ukraine.
Companies operating in Hong Kong should carefully monitor their transactions to make sure they’re not exposing themselves to Russia-related trade restrictions, which could lead to secondary sanctions, said Hong Kong-based law firm King & Wood. The recent string of international sanctions is “unprecedented” and effects are being felt “by businesses worldwide, including those in jurisdictions such as Hong Kong which has not issued any unilateral sanctions,” the firm said in an April 8 alert.
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Russia temporarily increased its export quotas for mineral fertilizers by nearly 700,000 tons until May 31, the Russian Foreign Ministry said April 17, according to an unofficial translation. The quota for nitrogen fertilizers was upped by 231,000 tons to total about 5.7 million tons. The quota for complex fertilizers rose by 466,000 to about 5.6 million tons. The Foreign Ministry said the quotas don't apply to fertilizers to the Donetsk and Luhansk regions of Ukraine or to Abkhazia and South Ossetia in the South Caucasus. The move was made to support Russian fertilizer suppliers facing global sanctions, the ministry said.
The State Department hasn’t ruled out designating Russia as a state sponsor of terrorism after being asked to do so by Ukrainian President Volodymyr Zelenskyy. The U.S. will “look at all potential options that are available to us under the law, options that would be effective in holding Russia to account,” spokesperson Ned Price told reporters April 18. Price said the U.S. has already imposed “unprecedented costs” on Russia, including sanctions and export controls, adding that if a “tool is available and effective, we won't hesitate to use it.”
Russia banned U.K. Prime Minister Boris Johnson and 12 senior British politicians from entering the country in response to U.K. sanctions on Russia following its invasion of Ukraine, the Russian Ministry of Foreign Affairs said in an April 16 statement, according to an unofficial translation. The individuals include former Prime Minister Theresa May and Deputy Prime Minister Dominic Raab.
Although the U.S. has been careful not to pressure some countries into imposing Russian energy restrictions and sanctions (see 2204110037), Deputy Treasury Secretary Wally Adeyemo is confident they will eventually join the more than 30 states imposing the measures. Those countries will realize the economic benefits of doing business with nations in the “sanctions coalition” outweighs the value of doing business with Russia, Adeyemo said.