The 22 states, along with Washington, D.C., that challenged the Trump administration's decision to transfer "ghost gun" blueprints from the U.S. Munitions List to the less-restrictive Commerce Control List will not seek a review of the U.S.Court of Appeals for the 9th Circuit's decision to greenlight the move. According to a May 18 consent motion, lawyers for the State Department and the Directorate of Defense Trade Controls requested that the court immediately issue the mandate in the case, claiming that they received the go-ahead from the plaintiffs. Brendan Selby, counsel for the plaintiff State of Washington, told the defense that the states consent to the "immediate issuance of the mandate."
Seventeen House Republicans introduced a resolution that opposes removing sanctions on a company and executive connected to the Nord Stream 2 pipeline. Rep. Richard Hudson, R-N.C., on May 20 introduced the resolution, which is not binding on the administration, even if it were to pass both chambers. Republicans have been publicly criticizing the decision (see 2105200055).
The Office of Foreign Assets Control on May 21 designated three entities and 13 vessels under the Protecting Europe’s Energy Security Act (PEESA), which authorizes sanctions against Russia’s energy sector and its use of energy export pipelines. OFAC also issued a general license to exempt certain transactions with one of the sanctioned entities and issued two new frequently asked questions.
A “groundbreaking” settlement agreement between a German software company and three U.S. agencies (see 2104290069 and 2105070042) may signal greater enforcement of sanctions and export violations and present more compliance challenges for industry, law firms said. The more than $8 million settlement between SAP SE and the Justice, Treasury and Commerce departments -- the first non-prosecution agreement under the Justice Department's revised voluntary disclosure policies (see 2008180043) -- also includes several important lessons for businesses and may lay out how monitorships can be avoided, the firms said.
The Treasury and State departments May 20 sanctioned two senior Ansarallah military leaders for exacerbating Yemen’s civil war. The Treasury's Office of Foreign Assets Control sanctioned Muhammad Abd Al-Karim al-Ghamari and the State Department designated Yusuf al-Madani. The agencies said the two committed human rights violations and terrorism on behalf of Ansarallah, also known as the Houthis.
The Directorate of Defense Trade Controls will see a return to “normal order” under the Biden administration, with a stronger emphasis on export control cooperation with allies and collaboration at multilateral control regimes, said Mike Miller, a senior State Department official. Miller said the agency is “busy” implementing President Joe Biden’s foreign policy objectives and has seen “robust management” from administration officials.
The Senate’s China competition bill will now include legislation introduced by two senators earlier this year aimed at securing U.S. leadership in emerging technologies. Sens. Chris Van Hollen, D-Md., and Roy Blunt, R-Mo., said their National Strategy to Ensure American Leadership Act will be included in the Endless Frontier Act, which is expected to see a vote before the Senate soon (see 2105130025). The two senators’ original bill called for the Commerce Department to work with the National Academies of Sciences, Engineering and Medicine to identify the 10 most critical emerging technology challenges facing the U.S. and recommend steps to ensure U.S. leadership in those technologies. Commerce is in the middle of crafting a series of export controls over emerging and foundational technologies (see 2105040063 and 2103190037).
Three senators reintroduced legislation May 20 that would lift a Cuba trade embargo to eliminate business barriers between the two countries and boost U.S. exports to the island. The Freedom to Export to Cuba Act wouldn’t repeal trade restrictions surrounding human rights violations but would eliminate “key provisions of previous laws that block” U.S. exports to Cuba, a news release said. Sens. Amy Klobuchar, D-Minn.; Jerry Moran, R-Kan.; and Patrick Leahy, D-Vt., are the sponsors.
Congressional Republicans are expressing their dismay at the White House notification earlier this week that it will not be imposing sanctions on the CEO of the primary company building the Nord Stream 2 pipeline from Russia to Germany, even though Congress clearly said it wanted that company to be a sanctions target (see 2104220003). Rep. Andy Barr, R-Ky., said that all congressional sanctions bills give the president the authority to waive the sanctions, and President Joe Biden is choosing to do so.
The House Foreign Affairs Committee passed a resolution May 19 urging the United Nations to impose an arms embargo against the Myanmar military. The resolution calls on the UN to “prevent the continued acquisition of arms and military equipment and the proliferation of weapons throughout the country,” and to hold Myanmar officials accountable for human rights violations. The U.S. has placed sanctions and other restrictions on the Myanmar military for its overthrow of the country’s government (see 2105170015 and 2104080026).