The European Commission updated various elements of its frequently asked questions guidance pertaining to the ever-changing Russian sanctions regime. The commission on May 4 updated the guidance for "Circumvention and due diligence," "Trading" and "Assets freeze and prohibition to make funds and economic resources available." The guidance walks through the nuances of how to comply with sanctions on Russian individuals, entities and sectors of the economy. Other recently updated FAQs cover "Insurance and reinsurance," "Sale of securities in an official Member State currency," "Deposits," "Luxury goods," "Humanitarian aid" and "Credit rating."
Russia imposed retaliatory sanctions on Japanese politicians, businesspeople and members of the media, including Prime Minister Fumio Kishida, banning their travel to Russia, the Russian Ministry of Foreign Affairs announced May 5, according to an unofficial translation. The 63 individuals subject to the reciprocity also include Chief Cabinet Secretary Hirokazu Matsuno and Foreign Affairs Minister Yoshimasa Hayashi.
The University of Pennsylvania posted presentation materials from the first and second day of its annual University Export Control Conference last week. The materials include agency update presentations from the Bureau of Industry and Security, the Directorate of Defense Trade Controls, the Office of Science and Technology Policy and other government agencies. Among the presentation materials are ones on foreign influence investigations, implementing a research security program and how to construct an export control program in a university setting.
The Senate last week passed a motion urging Senate conferees for the compromise China package to include an Iran-related sanctions provision in the final version. The nonbinding motion, introduced by Sen. Ted Cruz, R-Texas, asks the conference managers to include a provision stating that terrorism-related sanctions on the Central Bank of Iran and the Islamic Revolutionary Guard Corps are “necessary to limit” cooperation between China and Russia.
Legislation from Senate Foreign Affairs Chairman Bob Menendez, D-N.J., would direct the administration to impose export controls on semiconductor manufacturing equipment, and asks that the government "develop a strategy to diplomatically engage the governments of the Netherlands, Japan, and other appropriate countries ... to formulate export controls on semiconductor manufacturing equipment" so that China couldn't purchase the equipment. The Economic Statecraft for the Twenty-First Century Act's text was published May 6. The bill also directs the administration to review the economic, diplomatic and security effects of implementing export controls on semiconductor manufacturing equipment, and how such a policy would affect China's semiconductor industry.
The U.S. is discussing with other U.N. Security Council members whether to impose more sanctions on North Korea for its continued ballistic missile testing, State Department spokesperson Ned Price said. Price said the agency isn’t “going to get ahead of any steps that the U.N. might take” but called the missile launches “an affront to multiple U.N. Security Council resolutions.”
The Census Bureau is still receiving questions about the role of auction houses in export transactions and that “is probably one of the biggest challenges that we're facing right now,” said Omari Wooden, assistant division chief for trade outreach and regulations. Some exporters have struggled to determine whether the houses should be listed as the U.S Principal Party in Interest and have asked Census for more guidance, but the agency has said each case may be different (see 2107010043).
CBP is almost ready to mandate electronic export manifest for ocean, air and rail, and plans to issue an EEM pilot for trucks within the next year, said Jim Swanson, director of the cargo and security controls division, for cargo and conveyance security in the CBP Office of Field Operations. CBP has been under pressure to move faster on the project after delays in 2021 pushed back its full release to at least this year (see 2110180038).
The U.S. expanded export controls on Russia to cover a broader range of “commercial and industrial operations,” including wood products and construction machinery, the Commerce Department said. The new controls make more items on the Export Administration Regulations subject to “stringent” licensing restrictions for export to Russia, the Bureau of Industry and Security said in a final rule that includes the specific Schedule B numbers and Harmonized Tariff Schedule codes of the newly restricted items. Commerce said the items previously didn’t require a license for “most exports” to Russia.
German exports to Russia fell 62.3% in a one-month period to around $905 million in March due to the fallout from the Russian invasion of Ukraine, which began Feb. 24. According to data from Germany's statistics office, total exports fell 3.3% from February. The decline stems from the deluge of sanctions being placed by the EU and other leading economies on Russia while private companies are also rushing to sever ties with Russia. "Compared with February 2022, exports to the Russian Federation decreased by 62.3% to 0.9 billion euros in March 2022 because of the sanctions imposed as a result of Ukraine's fight against Russia, further measures to restrict exports, and unsanctioned behaviour of market participants," the statistics office said. "Imports from Russia declined by 2.4% to 3.6 billion euros in the same period."