China on Oct. 20 announced new export controls on certain graphite products, placing restrictions on a key material used to produce batteries for electric vehicles. The country's Ministry of Commerce will require companies to secure export licenses for high-purity, high-strength artificial graphite materials and their products, along with natural flake graphite and its products, according to an unofficial translation of a notice.
The U.S. was wrong to suspend certain sanctions against Venezuela last week, Rep. Michael McCaul, R-Texas, said, adding that the Biden administration gave in to the Nicolas Maduro-led government’s “empty promises for insignificant electoral reforms.” McCaul, who chairs House Foreign Affairs Committee, said the administration's decision to “imprudently” grant “sweeping sanctions relief” to the country’s oil, gas and gold sectors will “fill the regime’s coffers and allow Maduro to ensure next year’s presidential elections, which have yet to be scheduled, are neither free nor fair at the expense of the Venezuelan people fighting for democracy.”
The Biden administration needs more funding to support its efforts to counter Russia-related export control and sanctions evasion, the White House said in a request to Congress for supplemental FY 2024 funding. The funding request, which asks for more resources to support a range of “critical national security priorities,” calls for $100 million in additional funding for the State Department’s nonproliferation and anti-terrorism programs to support “export control, threat reduction, and countering weapons of mass destruction assistance that addresses Russia’s supply chains and sanctions evasion,” along with other national security initiatives. Another $210 million in additional funding for the State Department’s “diplomatic programs" would in part support “sustaining” sanctions and “export control efforts.”
The Office of Foreign Assets Control last week sanctioned two people and four entities for being a part of Serb Republic President Milorad Dodik’s “patronage network” and supporting his “ongoing corruption,” including by allowing him to siphon public funds to enrich himself and his family. OFAC said Dodik uses his position in the Serb Republic, one of two entities making up Bosnia and Herzegovina, to “accumulate personal wealth through graft, bribery, and other forms of corruption.”
Although Dutch semiconductor equipment company ASML doesn’t expect the new U.S. export controls on China to have a “material effect” on the firm's financial outlook for 2023, it's preparing for the new rules to restrict more sales of its chipmaking equipment.
The European Commission last week said it plans to propose new foreign direct investment screening regulations by January, adding that it wants to “make better use of existing tools” to screen investments that may pose national security risks.
The U.S. last week removed sanctions from the son of a convicted war criminal about six months after he, his sister and mother sued the Treasury Department for taking too long to adjudicate their delisting requests.
The U.K. updated its general sanctions license allowing sanctioned parties to make "permitted payments" to Companies House, the country's executive agency that registers and publicizes company information and incorporates and dissolves limited companies. The Office of Financial Sanctions Implementation updated the license to clarify that "permitted payments" means payment of fees "owed by or due from" sanctioned parties to the agency for filing a confirmation statement in respect of incorporated U.K. entities and also the payment of late filing penalty fees as a result of annual account late filings by the sanctioned parties.
The U.K. removed three people and three entities from its Iran nuclear weapons sanctions regime, in an Oct. 19 notice. The individuals are Mohsen Fakhrizadeh-Mahabadi, former head of Iran's Physics Research Centre; Mohammad Hejazi, commander of the Bassij resistance force; and Qasem Soleimani, commander of the Qods force who was killed in a U.S. air strike. The entities are Barzagani Tejarat Tavanmad Saccal Companies, Doostan International Co. and Pejman Industrial Services Corp.
The U.S. should "lift" its newest semiconductor export controls on China "as soon as possible," China's Ministry of Commerce said Oct. 18, according to an unofficial translation. The ministry said the moves abuse export control measures, "generalize the concept of national security" and are "unilateral bullying." The country "will take all necessary measures to resolutely safeguard its legitimate rights and interests." The new controls were announced in two rules by the Bureau of Industry and Security this week (see 2310170055).