Concern is “growing” within the U.S., Australia and the U.K. that “indiscriminate and extraterritorial application” of the International Traffic in Arms Regulations will hurt the Australia-U.K.-U.S. (AUKUS) partnership and “slow-roll cooperation on existing technology transfer,” the Sydney-based U.S. Studies Centre said in a report released this month. The report warned that “another failure” to reform the ITAR could “carry significant consequences for the three countries’ shared defence technology advantages vis-a-vis China and, therefore, their ability to deter regional conflict.”
The U.S. announced a host of new Russia-related sanctions and export controls last week, including more than 300 sanctions designations by the Treasury and State departments and an expansion of Commerce Department export controls on items destined to Russia and entities supporting the country’s military. The measures, some of which were coordinated with allies as part of the Group of 7 summit in Japan, aim to “further undermine Russia’s capacity to wage its illegal aggression” in Ukraine, the G-7 countries said in a May 19 joint statement.
The Office of Foreign Assets Control this week published previously issued General License O under its Iranian Transactions and Sanctions Regulations. The full text of the license is available in the notice.
The Office of Foreign Assets Control reached a $3.3 million settlement this week with a California-based skincare company and a $175,000 settlement with its former unnamed senior executive for illegal exports to Iran in violation of U.S. sanctions. Murad, owned by multinational company Unilever, worked with distributors in Iran and the United Arab Emirates to ship goods to Iran, leading to at least 62 exports worth more than $11 million, OFAC said.
The Office of Foreign Assets Control amended and replaced its South Sudan Sanctions Regulations to “further implement” a 2014 executive order. The new, “more comprehensive” set of regulations includes “additional interpretive and definitional guidance, general licenses, and other regulatory provisions that will provide further guidance to the public,” OFAC said. The changes take effect May 18.
The Office of Foreign Assets Control this week published a previously issued general license under its Global Magnitsky Sanctions Regulations. The notice includes the full text of the license, which authorizes certain transactions involving Tabacos USA, Tabacalera del Este or any entity they own by 50% or more (see 2303310033).
The Office of Foreign Assets Control this week renewed an authorization for certain Russia-related energy transactions. General License 8G, which replaced GL 8F, authorizes certain transactions with several Russian energy companies through 12:01 a.m. EDT Nov. 1. The license was previously scheduled to expire May 16.
A bill introduced in the Senate last week could create new export authorizations -- including a new open general license for certain defense exports and a new license exception for dual-use goods -- to expedite shipments to Australia, Canada and the U.K. The legislation, introduced by Sens. Jim Risch, R-Idaho, and Bill Hagerty, R-Tenn., also would allow the State Department to hire more export license review officers, create a “fast-track” foreign military sales process, reduce barriers to information sharing within the Australia-U.K.-U.S. partnership and more.
The U.K. issued a General License under its Russia and Belarus sanctions regimes permitting sanctioned individuals and entities to pay legal fees to law firms and counsel. The license took effect on April 29 and permits these payments in relation to any matter, except defamation or malicious falsehood proceedings, until Oct. 28. The license distinguishes between legal services issued pre-listing and post-listing.
The Office of Foreign Assets Control this week issued new General License 42, which authorizes certain transactions involving the IV Venezuelan National Assembly, its “Delegated Commission,” any entity established by the assembly to “exercise its mandate,” or “any person appointed or designated by, or whose appointment or designation is retained by” such an entity. Those transactions include any that are “ordinarily incident and necessary to the negotiation of settlement agreements” involving any debt of the Venezuelan government, its state-owned energy company Petroleos de Venezuela, S.A., or any entity PdVSA owns 50% or more.