The European Council extended sanctions on those “responsible for undermining or threatening the territorial integrity, sovereignty and independence of Ukraine” for another six months, until Sept. 15, the EC announced March 12. The sanctions include travel restrictions, an asset freeze and a ban on making funds available to listed persons and entities; they apply to 177 individuals and 48 entities.
With large purchase agreements yet to be filled, the European Union extended its vaccine export control regime until the end of June, the European Commission announced March 11. The controls apply only to companies with which the EU has negotiated an advance purchase agreement and require these companies to notify their member state authorities of their intention to export COVID-19 vaccines. To date, only one export of vaccines has been denied, with the EU blocking a shipment of more than 250,000 vaccine doses from British vaccine developer AstraZeneca to Australia (see 2103080006). The EC said it has granted 249 export requests to 31 different countries for a total of over 34 million doses since they did not threaten underlying APAs with the EU.
The U.S. needs to immediately modernize export controls and foreign investment screening mechanisms to counter Chinese technology advancement, a U.S. commission told Congress. The members of the National Security Commission on Artificial Intelligence, building off a report it released earlier this month, told lawmakers March 12 that the U.S. is in danger of ceding technology leadership over artificial intelligence if it doesn’t devote more resources to innovation and create a clearer national technology strategy.
The United Kingdom's Office of Financial Sanctions Implementation published guidance on levying monetary penalties for financial sanctions breaches. The guidance explains HM Treasury's powers in the Policing and Crime Act 2017 that gave the agency the power to levy fines for sanctions violations, summarizes OFSI's compliance approach, provides an overview of the agency's assessment practices, details the process for deciding the level of penalty and explains how businesses or individuals can comply with the fines, including how to pay and appeal them. Penalties and guidelines come into effect April 1.
The Chinese and American semiconductor industry associations will establish a China-U.S. semiconductor working group to streamline information sharing between the two industries, and exchange policies on export controls, supply chain security, encryption and other trade restrictions. The move was announced March 11 on the China Semiconductor Industry Association's website, according to an unofficial translation. The group plans to meet twice a year to address the most pressing issues surrounding semiconductors, including the current global shortage of the key technology, it said. Following the negotiations, each association will appoint 10 member companies to participate in the working group. CSIA is a state-backed association of 774 Chinese semiconductor-related businesses. Its American counterpart is the Semiconductor Industry Association, whose stated mission is lobbying “to strengthen U.S. leadership in semiconductor manufacturing, design, and research.” Neither group has announced participants for the working group.
The State Department’s Directorate of Defense Trade Controls will hold a webinar March 18 on using the Defense Export Control Compliance System licensing application, DDTC said in a March 11 notice, which includes login information. The webinar will cover “key issues brought forward” by DECCS users over the past year, including uploading documents and tracking applications. The webinar will also give a “sneak preview” of upcoming DECCS features.
Nine Republican senators on March 10 reintroduced a bill that they said will make the U.S. more competitive with China and counter illegal Chinese trade practices. The bill, originally introduced last year, would “tackle” Chinese efforts to “distort global markets” and allow U.S. technology companies to better compete with China by “increasing technology collaboration with allies and partners.” The bill also includes several policy statements about export controls and sanctions, and stresses that the U.S. should be “crafting multilateral export control measures” with allies and with multilateral control groups, including the Wassenaar Arrangement. Sen. James Risch, R-Idaho, the top Republican on the Senate Foreign Relations Committee who helped craft the bill, said the legislation may have bipartisan support. “We are committed to working with our Democratic colleagues to ensure the United States and its allies and partners are prepared for this competition,” he said.
The Financial Crimes Enforcement Network issued a March 9 guidance about new regulations and measures surrounding trade in “antiquities and art.” FinCEN said banks with Bank Secrecy Act obligations “should be aware” that they may be involved in illegal trading of art, which may include money laundering and sanctions violations. The guidance outlines how financial institutions should be filing Suspicious Activity Reports that detail the potential violations.
The U.S. should refrain from imposing sanctions on the Houthis and others for the violence in Yemen because the restrictions would have a “disastrous” impact on the country’s commercial imports, humanitarian aid experts said. The experts applauded the Biden administration for repealing the terrorism designation of the Iran-backed Houthi rebels last month (see 2102100016) and urged policymakers to find a diplomatic solution rather than turning back to sanctions.
European Council President Charles Michel criticized the United Kingdom in a March 9 newsletter for blocking COVID-19 vaccine exports to the EU while justifying the controls the EU set up in January (see 2102010012). “The United Kingdom and the United States have imposed an outright ban on the export of vaccines or vaccine components produced on their territory,” Michel said. “But the European Union, the region with the largest vaccine production capacity in the world, has simply put in place a system for controlling the export of doses produced in the EU.” A U.K. government spokesperson said Great Britain has not blocked the export of a single vaccine. In a statement, the spokesperson said, “Any references to a UK export ban or any restrictions on vaccines are completely false. This pandemic is a global challenge and international collaboration on vaccine development continues to be an integral part of our response,” Reuters reported.