The U.S. this week expanded sanctions against Wagner Group and designated people, entities and aircraft linked to the Russian private military company. The designations will "degrade the Russian Federation’s capacity to wage war against Ukraine," the Office of Foreign Assets Control said in a Jan. 26 news release, and target infrastructure that "supports battlefield operations in Ukraine," including weapons producers and administrators of Russian-occupied areas.
The U.S. should impose sanctions against China for allowing its companies to continue to supply semiconductors and other dual-use technologies to Russia, said Sen. Bob Menendez, chair of the Senate Foreign Relations Committee. Although the U.S. has penalized specific Chinese companies for supplying Russia -- including new sanctions this week -- Menendez said he wants to see a more “robust” set of measures.
The White House this week released its final report on “standing up a national research infrastructure” for artificial intelligence. The report, written by the National Artificial Intelligence Research Resource (NAIRR) Task Force, provides an “implementation plan” to “strengthen and democratize the U.S. AI innovation ecosystem in a way that protects privacy, civil rights, and civil liberties.” Among several recommendations in the report, the task force said the NAIRR should have an “independent Operating Entity that manages the day-to-day operations” of the NAIRR. That operating entity should help promote U.S. AI outreach and collaboration with other countries while also complying with “relevant export controls,” the report said.
The U.S. should double down on its resources, oversight and enforcement to prevent Russia from acquiring semiconductors and other dual-use goods used to power its war against Ukraine, the Silverado Policy Accelerator said in a report this week. If the broad Western export controls against Russia aren’t followed up with strict enforcement, the think tank said, Moscow will continue to find ways to import chips, including from China.
ASML, the Netherlands’ flagship semiconductor company, said it saw higher-than-expected fourth quarter revenue and expects a 25% increase in net sales this year despite challenges caused by existing and potential future export controls against China. The company also declined to predict whether the Netherlands will join the U.S. in imposing similar chip export restrictions but warned that broad controls could severely damage the semiconductor industry.
A group of European countries not in the EU aligned with five recent sanctions actions taken by the bloc pertaining to those who undermine the sovereignty of Ukraine, the European Council announced. In September, the European Council extended the restrictions until March. North Macedonia, Montenegro, Albania, Ukraine, Bosnia and Herzegovina, Iceland, Liechtenstein and Norway imposed the decision.
The EU added 18 people and 19 entities to its Iran sanctions regime in response to the violent crackdown on protests following the death of Mahsa Amini, a woman arrested by the morality police who died in custody, the European Council announced. The listed individuals include government representatives, parliament members, media figures and high-ranking members of the Iranian security forces. The sanctions on Iran now cover 164 individuals and 31 entities and amount to an asset freeze and travel ban for those on the list, along with trade sanctions and export controls.
While companies should expect the U.S. to continue to coordinate trade restrictions with Europe this year, the EU, the U.K. and others may look to impose “broader” measures than the U.S. does as those nations try to strengthen their individual sanctions regimes, Willkie Farr said in a client alert this month. The firm also said the sanctions cooperation among many of the world’s democracies in 2022, particularly the trade restrictions imposed on Russia, “highlighted the divergence between governments and increased the demand on compliance teams.”
The Office of Foreign Assets Control this week designated three people for their financial support of Hezbollah, including Hassan Moukalled and his business CTEX Exchange. OFAC sanctioned Moukalled, a Lebanese money exchanger, and CTEX for working closely with Hezbollah financiers to help the group "establish a presence" in Lebanon's financial system. Moukalled serves as a financial adviser to Hezbollah and does business on behalf of the group, representing it in financial negotiations, the agency said. In addition, OFAC designated Moukalled's two sons, Rayyan and Rani, who OFAC said support their father and his business with Hezbollah.
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