The U.S. is considering new sanctions against a Middle East-based businessman and a network of companies exporting Iranian oil and disguising it as Iraqi, The Wall Street Journal reported July 31. The sanctions could target a United Arab Emirates-based businessperson and several other individuals and firms that have been conducting ship-to-ship transfers of the oil in waters between Iran and Iraq, the report said. The ships then forge documents to hide the oil's true origin and evade Western sanctions. But the U.S. may not impose the sanctions, the report said, because it’s “balancing the desire” to limit funds to Iran’s nuclear program while also battling inflation partly caused by international sanctions against Russia, one of the world’s largest oil exporters. The White House didn’t comment.
A U.S. aerospace company said it may have violated U.S. export controls when it shared a photograph of one of its controlled components. The company, Astra, which offers satellite space launch services, submitted an initial voluntary disclosure to the “appropriate regulatory authority” but hasn’t yet heard back, it said in a July SEC filing.
The U.S. is preparing several new restrictions on exports of semiconductor manufacturing equipment to China to further impede Beijing’s semiconductor capabilities, according to multiple reports.
The Bureau of Industry and Security updated its restricted aircraft list with 25 foreign-produced planes that have violated U.S. export controls, the agency said in an news release. BIS said the commercial planes -- which are the first foreign-produced aircraft added to the list -- violated the Export Administration Regulations’ de minimis threshold for U.S. components by flying into Russia or Belarus. Certain activities involving the planes, including maintenance and repair, are now subject to restrictions outlined in General Prohibition 10 of the EAR.
The Bureau of Industry and Security on Aug. 2 suspended the export privileges of a Venezuela-based cargo airline for violating U.S. export controls. The agency said Empresa de Transporte Aéreocargo del Sur, also known as Aerocargo del Sur Transportation Company, acquired control of a U.S.-origin Boeing aircraft from Mahan Air -- Iran’s sanctioned airline -- and illegally flew that plane between Venezuela, Iran and Russia. BIS suspended the airlines’ export privileges for 180 days, barring it from participating in transactions subject to the Export Administration Regulations.
The Office of Foreign Assets Control’s recent finding of a violation sent to Midfirst Bank can serve as useful insight into OFAC’s compliance expectations, various firms focusing on compliance said. The enforcement notice, which outlined several mistakes by the bank in its attempt to comply with U.S. sanctions, also represents a warning to companies with insufficient screening processes, the firms said.
The Guangzhou Automobile Group -- the Chinese state-owned partner of Stellantis -- accused the European auto giant of disrespecting Chinese customers by shutting down its only Jeep factory in China. In announcing the shutdown, Stellantis cited local political interference in China and worries that political tensions could result in sanctions on the carmaker (see 2207280018). In a statement, GAC Group, as Guangzhou is known, said its joint venture with Stellantis “has not been able to establish a mutually trustworthy operating mechanism adapted to the highly competitive environment in China in order to turn the adverse situation of continuous losses in recent years,” Bloomberg reported July 29. Stellantis CEO Carlos Tavares said the reasons for leaving China were steeped in "broken trust" with the GAC Group along with Chinese policy, Bloomberg said.
The EU General Court in a July 27 judgment rejected RT France's bid to annul sanctions levied against it in March. The restrictions bar EU operators from broadcasting and facilitating the broadcast of RT France and suspend any broadcasting license or arrangement with the media outlet. The court ruled that the European Council didn't violate the law in finding that RT France was controlled by the Russian government and issues statements backing the war in Ukraine. Further, the court dismissed the media company's challenge to the council's reasons for imposing the sanctions, the fairness of the procedures used to make the listing and the arguments that the sanctions were a disproportionate restriction on RT France's right to freedom of expression.
The European Commission updated its Russian sanctions frequently asked questions pages, providing guidance on gold imports, aviation, asset freezes and oil reporting obligations. The gold imports FAQs cover why the EU introduced the import ban and what it covers, and whether processed gold, including gold jewelry, is included in the ban and if there are exceptions. The aviation FAQs include whether measures affect a non-Russian operator that operates a Russian registered aircraft, or if the ban concerns private flights owned or rented by Russian citizens or EU or third-country registered aircraft rented by Russian citizens.
President Joe Biden last week extended for one year beyond Aug. 1 a national emergency that authorizes certain sanctions against people who undermine Lebanon’s government or contribute to the “deliberate breakdown in the rule of law” in Lebanon, the White House said. Certain “ongoing activities,” including Iran’s “continuing arms transfers” to Hezbollah, “serve to undermine Lebanese sovereignty” and contribute to political and economic instability in the region, the White House said.