The Office of Foreign Assets Control on May 11 updated three frequently asked questions related to Russia sanctions. The FAQs clarify what type of services to Russia are blocked under U.S. restrictions.
The Office of Foreign Assets Control has issued Syria General License 22, which authorizes the processing or transfer of funds on behalf of third-country entities to or from Syria in support of the transactions necessary for agriculture, information and telecommunications, power grid infrastructure, construction, finance, clean energy, transportation and warehousing, water and waste management, health services, education, manufacturing and trade in northeast and northwest Syria.
Japan announced another wave of sanctions on Russia following its invasion of Ukraine, placing an asset freeze on 141 people and a ban on exports to 71 Russian entities. The newly sanctioned individuals include Russian Prime Minister Mikhail Mishustin and 133 politicians from the Donetsk and Luhansk regions of Ukraine, the Foreign Ministry said, according to an unofficial translation. The restrictions also include a general export ban on advanced technologies to Russia. Japanese Prime Minister Fumio Kishida confirmed in a separate announcement that Japan will phase out imports of Russian oil after the G-7, which includes Japan, committed to do the same. The list of the politicians from Donetsk and Luhansk will be listed here and the list of other Russian individuals is here.
The U.S. should take steps to address a range of loopholes in its export control regimes, including its inability to conduct end-use checks in China and unregulated technology transfers resulting from outbound investments, said Nazak Nikakhtar, former acting head of the Bureau of Industry and Security. “We have a lot of gaping holes in our export control system,” Nikakhtar told the Senate Intelligence Committee May 11. “I think we really need to tighten those up.”
Companies should expect the Commerce Department to add more entities to the Entity List for aiding Russia amid its war in Ukraine, said Thea Kendler, the agency’s assistant secretary for export administration. Commerce has so far added more than 100 entities to the list for supporting the Russian and Belarusian militaries (see 2204040006). Kendler, speaking during a May 12 Materials and Equipment Technical Advisory Committee meeting, said the agency is looking at entities in both Russia and Belarus "that may be contributing to the military industrial complex."
The U.S. and EU should use the upcoming Trade and Technology Council meeting to further harmonize their export controls and strengthen cooperation in semiconductor supply chains, the American Chamber of Commerce to the EU (AmCham EU) said in May 10 recommendations. While government officials have said the two sides have already surpassed some of the TTC’s short-term goals (see 2204130045), the chamber said it can still make progress outlining “clear deliverables” and better defining the scope of the council’s working groups.
The Transportation and Related Equipment Technical Advisory Committee is considering asking the Bureau of Industry and Security for more Russian export control guidance and is hoping to help address the agency's backlog of military end-user license applications, said committee Chair Ari Novis, chief global trade officer for Pratt & Whitney.
The Commerce Department is working with allies to create a new multilateral export control enforcement coordination mechanism to better tighten gaps in global export control regimes, said Matthew Axelrod, the agency’s lead export enforcement official. Axelrod said more enforcement cooperation can strengthen the effectiveness of the controls, particularly for Russia-related restrictions.
The U.K. amended 88 entries under its Russia sanctions regime, the Office of Financial Sanctions Implementation said in a May 9 notice. The updates state the reasons for the individuals' and entities' listing on the sanctions regime. Listed individuals include media figures, prominent businesspeople, regime officials and politicians.
The EU plans to drop the piece of its sixth sanctions package on Russia that would have banned EU-owned vessels shipping Russian oil to third countries, according to people familiar with the matter, Bloomberg reported May 9. The proposed ban, part of the sanctions on Russia following its invasion of Ukraine, was nixed following pushback from certain EU member states, including Greece, whose economy leans heavily on shipping. Further, a lack of a coherent position from the G-7 nations was at the heart of the proposal being dropped.