The G-7 and the EU last week committed to expanding sanctions against Russia and picking up enforcement efforts to counter Moscow’s sanctions evasion tactics. In a joint statement released Feb. 24, the group’s leaders said they “will maintain, fully implement and expand the economic measures we have already imposed” and establish an “Enforcement Coordination Mechanism to bolster compliance and enforcement of our measures and deny Russia the benefits of G7 economies.”
The State Department’s Directorate of Defense Trade Controls this week finalized its first reorganization rule for its defense trade regulations (see 2203220013), addressing some commenters’ concerns and recommendations. But DDTC didn’t make many substantial changes in the final rule, which takes effect Feb. 27, saying it would consider some revisions in future rulemakings and stressing that this rule was “focused on movement and consolidation” of the International Traffic in Arms Regulations.
South Korean chip companies are dealing with significant “uncertainty” stemming from U.S. chip controls issued in October against China (see 2210070049) and are concerned about the looming expiration of a one-year authorization from the Commerce Department, a Korean economic security expert said last week. Although Bureau of Industry and Security Undersecretary Alan Estevez said the agency is working with Korean companies on potentially extending certain aspects of the authorization, details of those conversations remain unclear.
The Bureau of Industry and Security issued a temporary denial order last week suspending the export privileges of Russian company Radiotester OOO and owner Ilya Balakaev for illegally shipping “counterintelligence items” to Russia and North Korea. The denial order was released alongside a DOJ indictment charging Balakaev for smuggling devices used in foreign counterintelligence and military operations from the U.S. to Russia and “for the benefit” of Russia’s Federal Security Service and North Korea. Both Radiotester and Balakaev will be subject to a 180-denial order, barring either from exporting items or participating in transactions with items subject to the Export Administration Regulations.
The U.S. announced a new, sweeping set of export controls and sanctions last week to further hobble Russia on the one-year anniversary of its invasion of Ukraine, including additions to the Entity List, an expansion of industry sector restrictions on both Russia and Belarus, new export controls against Iran to address its drone transfers to Russia, and new financial sanctions against more than 100 people and entities. Many of the measures, which were announced alongside similar actions by U.S. G-7 allies, aim to “cut off the Russian defense industrial base and military from even low-technology consumer items,” the Bureau of Industry and Security said.
The Netherlands recently released a "non-paper" covering ways to boost its sanctions enforcement. The proposals include elevating information sharing between EU member states, establishing an EU point of contact and platform for sanctions circumvention data, using diplomatic tools to increase sanctions compliance and fight circumvention, and expanding the EU's designation criteria to include individuals and entities in third-party countries involved in sanctions circumvention for the use of products on the battlefield in Ukraine.
The EU urged all U.N. member states to fully implement Security Council sanctions imposed on North Korea following its launch of an intercontinental ballistic missile Feb. 18 and short-range ballistic missiles Feb. 20. In a Feb. 23 statement, the European Council said it will work with its partners to restrict the flow of "finance, knowledge and components that the DPRK could use to support its unlawful weapons programme."
China's Chamber of Commerce for Import and Export of Machinery and Electronic Products held an export control compliance forum on Feb. 23, the Ministry of Commerce announced, according to an unofficial translation. Commerce Vice Minister Wang Shouwen said the Chinese government will look to further strengthen its guidance and assistance to businesses subject to export controls to safeguard their interests. He said the Chinese government actively backs international cooperation in export controls while promoting trade in controlled items.
The U.S. is considering publicizing intelligence it believes shows China is deciding whether to send weapons to Russia for its war in Ukraine, The Wall Street Journal reported Feb. 22. The discussions within the Biden administration came before Feb. 25 U.N. Security Council meeting and a “number of closed-door appeals” to China coordinated among NATO members, the report said. Other Western countries in recent weeks have also “picked up on” intelligence that China may begin supplying weapons to Russia, but “it appears that China hasn’t yet made a final decision,” the report said.
The Office of Foreign Assets Control this week published previously issued general licenses under its Global Magnitsky Sanctions Regulations and Nicaragua Sanctions Regulations. The full text of each license appears in its respective notice.