The U.K. adopted an amendment to its Russian sanctions regime that alters the designation criteria for listing an individual or entity. The new criteria expand the definition of "involved in obtaining a benefit from or supporting the Government of Russia," to include working as a "manager" of or "holding the right, directly or indirectly," to nominate a director, trustee or equivalent of a Russian government-affiliated entity; an entity conducting business as a government affiliate; or an entity conducting business of economic significance to the Russian state.
The Biden administration should sanction Hong Kong government prosecutors for trying political cases and undermining democracy in the region, U.S. lawmakers said in a July 20 letter to the White House. Hong Kong’s Justice Department and criminal prosecutors have played a significant part in “undermining the rule of law and detaining political prisoners” under its so-called national security law (see 2107160030), and have even created a “Special Duties team” to exclusively handle political cases, said the letter, signed by bipartisan members of the Congressional-Executive Commission on China.
The State Department’s Directorate of Defense Trade Controls posted its two new open general licenses on its website and issued a fact sheet to describe the new pilot program (see 2207190008). Open General License No. 1 and Open General License No. 2 will be valid for one year -- Aug. 1 through July 31, 2023 -- as DDTC tests the “viability and appropriateness of the open general license concept.”
The Senate is making progress on bipartisan legislation that would give the administration stronger authorities to investigate, prosecute and seize the assets of sanctioned Russian oligarchs, including in cases of sanctions or export control evasion. The proposals received broad support this week from Senate Judiciary Committee members, who said DOJ’s powers should be expanded and bolstered to better punish Russian war crimes.
The U.K.'s Office of Financial Sanctions Implementation and its National Crime Agency issued a "Red Alert," titled "Financial Sanctions Evasion Typologies: Russian Elites and Enablers." The alert says sanctioned parties are using various techniques to skirt sanctions, including transferring assets to proxies. OFSI and NCA laid out the offenses that can apply to individuals or entities aiding sanctions circumvention. The alert contains a list of "indicators" of sanctions evasion and industry recommendations.
The U.S. Court of Appeals for the District of Columbia Circuit in a July 19 opinion denied Hong Kong-based apparel company Changji Esquel Textile's (CJE) bid for a preliminary injunction against its placement on the Commerce Department's Entity List, calling it "a Hail Mary pass." Judges Judith Rogers, Patricia Millett and Gregory Katsas held that CJE's claims that human rights violations are not proper grounds to be placed on the Entity List are not likely to succeed, upholding the district court's ruling saying the same thing.
The U.K. adopted further Russian sanctions in an amendment to its restrictions that came into force July 15. The changes relate to trade in maritime goods and technology, military goods and technology with non-Russian-government controlled Ukrainian territory, defense and security goods, interception and monitoring services, banknotes, jet fuel and fuel additives, and goods that generate significant revenues for Russia.
President Joe Biden issued a new executive order this week that could lead to new sanctions against terrorist organizations, criminal groups or other “malicious actors” who take hostages. The order authorizes U.S. agencies, including the State Department and Treasury Department, to identify and sanction foreign government officials and others involved in hostage taking of U.S. nationals.
The Bureau of Industry and Security this week published two public comments it received on a May rule that proposed unilateral export controls on four dual-use biological toxins (see 2205200017). One comment, from Raytheon BBN, addresses the “feasibility of regulating access” to nodularin, brevetoxin, palytoxin and gonyautoxin, the four toxins that BIS said can be weaponized to kill people or animals, “degrade equipment” or damage the environment. The second comment, from Bill Root, a frequent public commenter during the agency’s technical advisory committee meetings, includes recommendations for revisions to the rule. Root also said the controls must be accompanied by “major changes” to the State Department’s International Traffic in Arms Regulations and “the regulations of other affected U.S. agencies.”
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