The Office of Foreign Assets Control April 19 again extended a general license that continues to delay an exemption that would authorize certain transactions related to Petroleos de Venezuela, S.A. General License 5K, which replaced GL 5J, now authorizes certain transactions with PdVSA involving an 8.5% bond on or after July 20. The agency also updated a frequently asked question to reflect the change. The previous license was set to allow those transactions to occur on or after April 20.
The Office of Foreign Assets Control sanctioned one person and several entities involved in a sanctions evasion network that has helped Iran procure electronic parts for its unmanned aerial vehicles program. The designations target Mehdi Khoshghadam, the head of the sanctioned Pardazan System Namad Arman, along with several front companies based in Iran, Malaysia, Hong Kong and China, OFAC said April 19. Those companies are “suppliers that have enabled PASNA’s procurement of goods and technology,” including Amv AJ Nilgoun Bushehr, PASNA International, Arttronix International, Jotrin Electronics, Vohom Technology and Yinke Electronics.
Nations allowing the export to Russia of dual-use products that have military as well as commercial applications are on notice, Commerce Deputy Secretary Don Graves said April 19 at the Space Foundation's 2023 Space Symposium. "Any country ... that seeks to backfill the Russian war machine ... does so at their own peril," he warned. Export controls by the U.S. and 38 other nations aimed at dual-use products such as semiconductors and lasers are "hobbling" the Russian war effort in Ukraine, he said.
The Bureau of Industry and Security this week proposed new export controls on automated peptide synthesizers that may be used to produce biological weapons (see 2304170010). Although several U.S. companies and a Chinese academy last year warned BIS against imposing new license requirements, the agency said the synthesizers qualify as emerging or foundational technologies and may need to be restricted.
The Bureau of Industry and Security on April 19 fined Seagate Technology $300 million for violating U.S. export controls against Huawei in what it said is the “largest standalone administrative penalty in BIS history.” The agency said the California-based company and its branch in Singapore sold more than 7 million export-controlled hard disk drives to Huawei in violation of the BIS foreign direct product rule.
The U.K.'s Office of Financial Sanctions Implementation added Nazem Ahmad to its counterterrorism (domestic) sanctions regime. Ahmad is suspected of financing listed terrorist group Hezbollah and is now subject to an asset freeze and travel ban. In a separate release, OFSI said Ahmad was listed "as part of continued efforts to prevent terrorism in the interests of national security." OFSI said Ahmad's designation is the first use of the domestic counterterrorism sanctions regime. The U.S. also recently sanctioned a network of people and entities working for him to evade sanctions (see 2304180056.
The U.K. released guidance for high-value dealers and the luxury goods and art market industries to aid them in navigating financial sanctions. The guidance lays out best practice for participants in these industries while noting sanctions risks and reporting obligations.
John Unsalan, the president of building materials supplier Metalhouse, was arrested and charged with violating U.S. sanctions on oligarch Sergey Kurchenko and two of Kurchenko's companies by providing them with over $150 million for steel-making materials, DOJ announced April 17. Unsalan faces 10 counts of violating the International Emergency Economic Powers Act, one count of conspiring to evade U.S. sanctions, one count of conspiring to commit international money laundering and 10 counts of international money laundering, each of which comes with a maximum 10-year prison sentence.
The Bureau of Industry and Security again renewed the temporary denial order for Moscow-based air cargo carrier Aviastar. BIS first suspended the export privileges of the Russian cargo charter airline in April 2022 (see 2204210043) and renewed the order in October (see 2210190009), barring it from participating in transactions with items subject to the Export Administration Regulations. The agency renewed the denial order for another 180 days April 14 after finding Aviastar continued to illegally operate aircraft subject to the EAR, including for flights within Russia.
The Biden administration should impose new sanctions on people involved in human rights abuses and violence stemming from fighting in Sudan, the top two lawmakers on the Senate Foreign Relations Committee said April 17.