Canada last week announced another set of Russia sanctions, including a ban on the export of 28 services “vital” for the operation of oil, gas and chemical industries. The ban also applies to technical, management, accounting and advertising services, Canada said. The country said the ban is meant to target Russia’s energy and chemical industry, which “accounts for about 50% of Russia’s federal budget revenues.” The sanctions took effect June 8.
The U.S. should create a new multilateral export control regime to counter China’s unfair industrial policies and misuse of sensitive technologies, said Mark Dallas, an associate professor at Union College in New York and a fellow with the Council on Foreign Relations. A new regime would create a “unified, clear and multilateral voice” around export controls and would reduce “commercial tensions” between the U.S. and its allies through better information sharing and enforcement.
U.S. sanctions and export controls are having a “severe” impact on Russia even though Moscow has continued its war in Ukraine, said Erik Woodhouse, a senior sanctions official with the State Department. Woodhouse said the U.S. is hoping the restrictions eventually force Russia to reverse course and expects the impacts to grow over time.
The Bureau of Industry and Security last week charged a Montana resident and his two companies with violating U.S. export controls after BIS said he tried to ship controlled items knowing they would be used in Iran. Kenneth Scott and his companies, Scott Communication and Mission Communications, also made false or misleading statements to agents, failed to file Electronic Export Information and didn’t maintain the required export records, BIS said.
The U.K.'s Office of Financial Sanctions Implementation issued guidance on the enforcement and monetary penalties for violations of financial sanctions to reflect changes made by the Economic Crime (Transparency and Enforcement) Act of 2022. The new measures and guidance come into effect June 15.
Russia imposed a travel ban June 6 on another 61 U.S. citizens in response to U.S. sanctions, the Russian Foreign Ministry announced, according to an unofficial translation. Listed are Treasury Secretary Janet Yellen and U.S. Trade Representative Katherine Tai, along with other American officials and businesspeople in the media, finance, aviation and shipping sectors.
The EU adopted a European Council decision and regulation asking member states to implement "appropriate measures" to confiscate proceeds of sanctions infringements "in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine." The decisions tack on an amendment to Article 2 of the EU's Russia sanctions regime that freezes all funds belonging to or held by any listed individual or entities.
The Office of Foreign Assets Control on June 9 published new Russia-related frequently asked questions to clarify which activities are prohibited by its restrictions surrounding accounting, corporate formation and management consultant services (see 2205090042).
Amid the rapid pace of Russia-related sanctions and export controls, regulators around the world are sometimes struggling or unwilling to provide timely and clear answers to industry questions about the trade restrictions, lawyers said. The issue is especially problematic in Europe, they said, where sanctions guidance may differ among the 27 EU member states and U.K. general licenses can be delayed or unhelpful.
A group of European countries not in the EU aligned with the EU's recent sanctions decisions under the bloc's South Sudan and cyberattack sanctions regime, the European Council announced. In May, the council updated its list of individuals subject to the South Sudan restrictions. North Macedonia, Montenegro, Serbia, Albania, Bosnia and Herzegovina, Iceland, Liechtenstein, Norway, Ukraine and Moldova then aligned with the decision, the council said June 7. Under the regime targeting cyberattacks against the EU, the council extended the restrictive measures for three years, until May 18, 2025. North Macedonia, Montenegro, Albania, Bosnia and Herzegovina, Iceland, Norway and Ukraine aligned with the decision, the council said.