Senate Majority Leader Mitch McConnell, R-Ky., urged the Trump administration to sanction China for its infringement on Hong Kong’s autonomy, saying Beijing must face penalties. “I encourage the administration to use the tools Congress has given it and to work with like-minded nations to impose those costs,” McConnell said on the Senate floor June 18. The administration certified last month that Hong Kong no longer warrants special customs treatment and Trump vowed to impose sanctions and export controls against the region (see 2005290047), but the administration has yet to announce concrete measures (see 2006040038). “Every nation that cares about democracy and stability has a stake in ensuring that Beijing’s actions in Hong Kong carry consequences,” McConnell said.
The United Kingdom released a June 16 guidance on the country’s Russia sanctions after Brexit, including the restrictions that will impact financial and investment actions with Russia. The guidance also includes a list of exceptions for doing business with Russian entities and frequently asked questions.
The European Council renewed sanctions against Russia for its annexation of Crimea and Sevastopol, it said in a June 18 press release. The sanctions, extended until June 23, 2021, ban imports from Crimea into the European Union; block exports of certain goods and technologies to Crimean companies; and place restrictions on Crimea’s transport, telecommunications and energy sectors.
The Office of Foreign Assets Control sanctioned three people, eight entities and two ships for evading U.S. sanctions against Venezuela, according to a June 18 press release. OFAC also issued a general license authorizing certain wind-down activities with two of the sanctioned entities and the two sanctioned ships.
The Bureau of Industry and Security's increased restrictions on shipments to military end-users (see 2004270027) presents “significant questions” for industry, which may struggle to comply with the new due diligence expectations, said Ajay Kuntamukkala, an export controls lawyer with Hogan Lovells and a former BIS official. Kuntamukkala said the rule will “significantly impact business transactions” with Chinese entities.
The CEO of an Iranian financial services company pleaded guilty to conspiracy to violate U.S. sanctions, the Justice Department said June 16. Payment24 CEO Seyed Sajjad Shahidian used the company to help Iranian citizens avoid U.S. financial sanctions, which included purchases of U.S. computer software, software licenses and computer servers. Shahidian, a business partner and Payment24 were charged in May (see 2005190022).
President Donald Trump on June 17 signed the Uyghur Human Rights Policy Act of 2020 (see 2005280011), authorizing sanctions against Chinese officials for human rights abuses involving the country’s Uighur population. China has criticized the bill, warning that it will likely lead to heightened trade tensions (see 1912040046).
The U.S. on June 17 sanctioned Syrian President Bashar al-Assad, members of his regime and other people and entities under the Caesar Syria Civilian Protection Act (see 1912270034). In total, the Treasury Department and the State Department sanctioned 39 people and entities for supporting the Assad regime. The designations are the start of a “sustained campaign of economic and political pressure” against the regime, the State Department said.
Amid rising U.S.-China technology competition, Congress will continue to push for increased restrictions on inbound Chinese investment, said Rep. Darin LaHood, R-Ill. LaHood also said the Trump administration -- which has experienced success using tariffs and export controls to gain ground in trade negotiations -- will likely continue to leverage those measures, particularly against China.
The Treasury’s Office of Foreign Assets Control sanctioned six Nigerian nationals who allegedly ran an email scheme to steal more than $6 million from U.S. companies and people, Treasury said June 16. The Nigerian nationals impersonated business executives and “engaged in romance fraud” -- in which they “masqueraded as affectionate partners to gain trust from victims” -- to receive wire transfers, Treasury said. The sanctions target Richard Uzuh, Micheal Olorunyomi, Alex Ogunshakin, Felix Okpoh, Nnamdi Benson and Abiola Kayode.