China’s Foreign Ministry this week criticized the U.S. Indo-Pacific strategy, saying it “will only undermine regional peace and stability and is doomed to fail.” During a May 24 news conference, a ministry spokesperson said the U.S. “concocted” the strategy, which will soon lead to the start of negotiations with several other countries on a new Indo-Pacific Economic Framework (see 2205230003), and “created political and military confrontation by ganging up with some countries.” China’s Ministry of Commerce said the framework “should be open and inclusive rather than discriminatory and exclusive,” according to an unofficial translation of a May 24 statement.
The U.K.’s Office of Financial Sanctions Implementation on May 24 corrected one entry under its Iran sanctions regime and amended 63 entries under its Russia sanctions regime. All entries are still subject to an asset freeze.
The U.K.’s Office of Financial Sanctions Implementation issued a new general license authorizing certain activities, including purchases of tickets for flights or “rail journeys” originating in Russia. The license, issued May 23, authorizes those activities with sanctioned Russian entities PJSC Aeroflot, JSC Rossiya Airlines, JSC Ural Airlines, Russian Railways or any of their subsidiaries.
The Office of Foreign Assets Control added a Hamas finance official, three Hamas financial facilitators, and six companies that have generated revenues for Hamas to its Specially Designated Nationals list, it announced May 24. The "expansive network" has generated revenue for the group through the management of an international investment portfolio, a related press release said. Hamas’s Investment Office is in charge of the day-to-day management of its estimated $500 million portfolio, including companies operating in Sudan, Turkey, Saudi Arabia, Algeria and the United Arab Emirates. “Today’s action targets the individuals and companies that Hamas uses to conceal and launder funds. ... The United States is committed to denying Hamas the ability to generate and move funds,” Assistant Secretary of the Treasury for Terrorist Financing and Financial Crimes Elizabeth Rosenberg said.
Canada last week imposed another set of sanctions against Russia for its war in Ukraine, designating 14 people and banning exports and imports of “targeted” luxury goods to and from Russia. The designations apply to Russian oligarchs, their family members and “close associates” of the Vladimir Putin regime. The trade restrictions apply to exports of alcohol, tobacco, certain textile products, luxury clothing, jewelry, art and accessories, and imports of alcohol, seafood and nonindustrial diamonds.
The Office of Foreign Assets Control said it will not renew the expiring General License 9C, with its authorizations set to end at 12:01 a.m. EDT on May 25. The license allowed transactions necessary to dealings in debt or equity with Bank for Development and Foreign Economic Affairs Vnesheconombank, Bank Otkritie Financial Corporation, Sovcombank Open Joint Stock Company, Sberbank of Russia and VTB Bank (see 2204080046).
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 U.S. and other techno-democracies should capitalize on their closely coordinated Russia sanctions work to create a new multilateral export control group, said two experts with Georgetown University’s Center for Security and Emerging Technology. A new regime, which would include a range of technology-producing nations that share democratic values, would help those countries address technology proliferation issues that existing regimes can not.
The U.K., in sanctions moves announced May 20, dropped three entries from its Iraq sanctions list and corrected two entries under its Global Anti-Corruption sanctions regime. Under Iraq, the Office of Financial Sanctions Implementation delisted individual Khalaf M M Al-Dulaymi and the entities Midco Financial and Montana Management. Under anti-corruption, OFSI updated information on the entries for Dmitry Vladislavovich Klyuev and Jose Francisco Lopez Centeno, still subjecting them to an asset freeze.
The U.K. Financial Conduct Authority called for reports of sanctions evasion or weaknesses in sanctions controls over registered forms or U.K. listed securities. The FCA in a notice updated May 20 asked for information on insufficient sanctions controls, suspected or known breaches of the sanctions regime and any methods thought to be used by individuals or entities to breach the sanctions regime. Submissions can be made via the FCA Whistleblowing team by filing out a reporting form or reviewing Sup 15 for details on how to issue a report.