The Bureau of Industry and Security is adding 71 entities to its Entity List for supporting Russia’s military or for trying to illegally acquire U.S.-origin goods. The additions include 70 entities based in Russia and one based in Belarus, BIS said, and 66 of them are now subject to BIS’ Russia/Belarus foreign direct product rule. All the entities will require a license for all items subject to the Export Administration Regulations. No license exceptions will be available, and BIS will review applications under a policy of denial. Exports of certain food and medicine will be reviewed on a case-by-case basis, the agency said. The additions, which will be published in the Federal Register June 6, take effect June 2.
The U.K. amended the sanctions entries for 299 individuals and entities under its Russia sanctions regime. The updates apply to 278 individuals and 21 entities. The amendments renewed the urgent listings initially made for 96 individuals and 19 entities, while the listings for over 170 entries, including the Wagner Group and Credit Bank of Moscow, were changed from urgent to standard procedure listings.
The EU added one group and two individuals to its ISIL/Da'esh and al-Qaida sanctions regime, the European Council announced May 30. The restrictions apply to Hurras al-Din, the Syria-based affiliate of al-Qaida, its leader Faruq al-Suri and its religious leader Sami al-Aridi.
The Drug Enforcement Administration is placing the newly approved drug ganaxolone in Schedule V of the Controlled Substances Act, it said in an interim final rule. Effective June 1, ganaxolone, which was granted approval by the FDA in March, is subject to new registration, labeling, record-keeping, and import and export requirements. DEA is accepting comments on the rule until July 1.
Canada this week announced another set of sanctions against Russia for its invasion of Ukraine, including designations targeting 22 more people and four more entities. The new sanctions, announced May 31, apply to “key” Russian financial institutions, including banks, and their senior officials. Canada said it has so far imposed sanctions against more than 1,500 people and entities since Russia’s invasion of Crimea in 2014, including more than 1,050 designations since Moscow’s invasion of Ukraine in February.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The EU agreed to a partial ban on Russian oil ahead of a sixth sanctions package on Russia following its invasion of Ukraine. The ban applies to the purchase of crude oil and petroleum products from Russia delivered to EU member states by sea. A temporary exclusion applies to crude shipped via pipeline. European Council President Charles Michel confirmed the agreement on a partial ban on Russian oil in a May 30 tweet following a summit in Brussels. "This immediately covers more than 2/3 of oil imports from Russia, cutting a huge source of financing for its war machine," the tweet said.
The Bureau of Industry and Security soon will introduce a congressional notification requirement for certain firearm exports, the agency said in a final rule. The change, effective July 18, will add a new section to the Export Administration Regulations that will require congressional reporting for certain semiautomatic firearms shipments valued at $4 million or more and destined to certain countries. The requirement will apply to certain guns whose export control authority was transferred from the State Department to the Commerce Department in 2020 (see 2001170030).
The U.K. issued a license allowing the sale of Chelsea Football Club, Culture Secretary Nadine Dorries confirmed in a tweet. The club was subject to an asset freeze after owner and Russian billionaire Roman Abramovich was sanctioned by the U.K. in March related to Russia's invasion of Ukraine. The club was sold to a consortium led by American businessman Todd Boehly. Dorries also said May 26 the U.K. government is confident the integrity of the sanctions regime will be maintained throughout the sale and proceeds will be transferred to a frozen U.K. bank account belonging to Fordstam -- a holding company owned by Abramovich. The U.K. agreed to a Deed of Undertaking that would have Abramovich commit the proceeds to a charity for the purposes of helping victims of the war in Ukraine. The sale also needed the approval of the Portuguese government because Abramovich is a Portuguese passport holder. The Portuguese government gave their consent on May 26, per the Associated Press.
Jonathan Yet Wing Soong, former employee at Universities Space Research Association, was charged with violating export control laws by shipping sensitive aeronautics software to a university in Beijing, the U.S. Attorney's Office for the Northern District of California announced. Soong, of San Jose, is charged with violating the International Emergency Economic Powers Act and and one count of smuggling, which, respectively, carry maximum penalties of 20 years in prison and a $1 million fine, and 10 years in prison and a $250,000 fine.