Two Republican lawmakers urged the Biden administration to increase sanctions against Nord Stream 2, the Russian gas pipeline, after reports that Russia is preparing to further invade Ukraine. Rep. Michael McCaul of Texas and Jim Risch of Idaho, the two top Republicans on the House and Senate’s respective foreign affairs committees, applauded the administration’s increased Russian sanctions last week (see 2104150019) but said more should be done. “While yesterday’s sanctions on Russia are a positive half-step, they did not include the one U.S. action that would have an immediate impact -- sanctioning and stopping the Nord Stream 2 pipeline,” the lawmakers said April 16. They said the pipeline is a “key source of Russian malign influence” and called on the administration to “fully” implement sanctions against the project “without delay.” Several other lawmakers from both parties have asked the administration to increase sanctions against the pipeline (see 2102170013, 2103240014 and 2008110016). The White House didn’t comment.
The State Department officially updated its guidance for the Countering America’s Adversaries Through Sanctions Act to list six previously sanctioned Russian entities with ties to Russia’s defense and intelligence sectors, a notice released April 16 said. The entities were identified as part of a March announcement that issued export controls and sanctions against Russia in response to the poisoning and imprisonment of Russian opposition leader Alexei Navalny (see 2103020067).
President Joe Biden signed a sweeping executive order authorizing new sanctions against Russia, allowing the U.S. to designate people and companies operating in Russia’s defense and technology sectors or involved in attempts to influence foreign elections. The order, announced April 15, also authorizes sanctions against a range of Russian government officials and their associates as well as people and companies involved in Russian corruption, actions to “undermine democratic processes,” and human rights violations and transactions designed to circumvent U.S. sanctions.
The State Department’s Directorate of Defense Trade Controls issued new guidance and frequently asked questions for the increased export controls against Russia announced in March (see 2103170022). The April 12 guidance provides a summary of the changes to the International Traffic in Arms Regulations and answers common questions about impacts to export licenses, license reviews and which activities are caught by the restrictions.
Following the Chinese government's decision to place retaliatory sanctions on Canadian and British officials and entities for their criticism of the alleged human rights abuses in the country's Xinjiang region, lawyers in both countries are expressing concern over the rising tensions between the two sides and noticing greater business concern over maintaining Chinese market access. Neil Williams and Thomas Cattee, white collar crime lawyers at Gherson Solicitors in the United Kingdom, said the Chinese sanctions are merely symbolic without any real underlying economic effect but that sanctioned individuals in the U.K. have deferred to Chinese demands.
The Office of the U.S. Trade Representative released the 2021 National Trade Estimate Report on Foreign Trade Barriers, detailing foreign market access barriers faced by U.S. exporters. The 574-page report examines 65 U.S. trading partners and country groups, including any import policies, tariffs, customs, procedures and phytosanitary measures that are restricting U.S. goods.
Russian national Oleg Vladislavovich Nikitin, general director of St. Petersburg, Russia-based energy company KS Engineering, pleaded guilty in the U.S. District Court for the Southern District of Georgia to conspiracy to skirt export controls, the U.S. Attorney's Office for the Southern District of Georgia announced in a press release. Nikitin, admitted to attempting to sell a power turbine to a Russian company attempting to use it on an Arctic deepwater drilling platform -- a process banned by the Commerce Department without a license. An unnamed Russian government-controlled business contracted with Nikitin to buy the turbine from a U.S. manufacturer for $17.3 million. Nikitin, along with two others, was arrested in Savannah, Georgia, attempting to carry out the transaction for the turbine.
Australia and Canada announced new sanctions that target Russia for its illegal occupation and annexation of Crimea, the countries said March 29. Australia said it designated one Russian person and four Russian entities involved in the construction of the Kerch Strait Railway Bridge, which links Russia to Crimea and Sevastopol, Ukraine, while Canada designated two people and four entities. Australia and Canada said they collaborated on the measures, which further aligns their sanctions regimes with those administered by the U.S. and the European Union.
Export Compliance Daily is providing readers with the top stories for March 22-26 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
The U.S. shouldn't pursue sanctions against Nord Stream 2 and instead should focus on working with European countries to find an alternative to the Russian gas pipeline project, said Daniel Fried, the former senior director of the National Security Council for presidents Bill Clinton and George W. Bush. Although Fried said the project is a “dumb idea,” he also said he’s “not a big fan of trying to kill Nord Stream 2” with sanctions. “Let's find another way than a sanctions war with Germany,” Fried said during a March 30 event hosted by the German Marshall Fund of the U.S.