The Office of Foreign Assets Control fined two Texas companies -- both subsidiaries of Netherlands-based oilfield services company ​Schlumberger Ltd. -- for violating U.S. sanctions against Russia and Sudan, OFAC said Sept. 27. The agency fined oil and gas service provider Cameron International Corp. more than $1.4 million for illegally providing services for a Russian Arctic offshore oil project and fined gas product provider Schlumberger Rod Lift, Inc. $160,000 for helping to illegally facilitate shipments to Sudan. OFAC said neither company voluntarily self-disclosed its violations.
The Office of Foreign Assets Control issued two general licenses aimed at allowing humanitarian assistance and aid to more easily flow to Afghanistan amid the Taliban takeover of the country’s government. The agency, which also published new guidance for using the licenses, said Sept. 24 it’s “committed to ensuring that U.S. sanctions do not limit the ability” of the Afghan people to receive aid from the U.S. government and the international community.
Although President Joe Biden’s new executive order authorizing sanctions against Ethiopia (see 2109170036) allows for a potentially broad scope of designations, it also signals that the administration will take a slow, cautious approach to its new authorities, law firms said. Companies shouldn’t expect immediate U.S. action against Ethiopia, the firms said, as the administration seems primarily concerned about deterring bad behavior and assuring humanitarian access can still flow to the region.
President Joe Biden issued an executive order last week authorizing a range of sanctions and export restrictions against human rights abusers and other people committing violence, blocking humanitarian aid or threatening peace in Ethiopia. The new sanctions regime can target the Ethiopian and Eritrean government and several military groups in the region, including the Ethiopian National Defense Forces, the Eritrean Defense Forces, the Tigray People’s Liberation Front and Amhara regional forces, and others supporting those groups and people. In addition to asset freezes, the order authorizes the Treasury Department to work with other agencies to deny export licenses for certain goods and technology to people or entities sanctioned under this regime.
The Office of Foreign Assets Control on Sept. 10 again extended a general license that continues to delay certain transactions related to Petroleos de Venezuela, S.A.. General License No. 5H, which replaced No. 5G (see 2107210009), now authorizes certain transactions with PdVSA involving an 8.5% bond on or after Jan. 1, 2022. The agency also updated a frequently asked question to reflect the change. The previous license was set to allow those transactions to occur on or after Oct. 21.
Two members of an open radio access network alliance have halted activities over concerns about possible ramifications of the U.S. decision to place three Chinese alliance members on the Commerce Department's Entity List. Ericsson and Nokia responded that they remain committed to the project. Resolving the issue could require the O-RAN Alliance to throw out its Chinese members or receive a U.S exception.
The Treasury Department needs to provide significant assurances to banks and non-governmental organizations that they will not be sanctioned for transactions related to humanitarian relief in Afghanistan (see 2108260055), a former sanctions official and an export control official said. Without those assurances, large banks will be unwilling to risk approving transactions to the country because they fear violating U.S. sanctions and potentially large enforcement penalties.
The Office of Foreign Assets Control extended a general license that authorizes U.S. academic institutions to exports certain “online educational services” and software to Iran, the agency said Aug. 24. General License M-1, which replaces General License M (see 2010290043), was extended through 12:01 a.m. EDT Sept. 1, 2022. The original license was scheduled to expire Sept. 1, 2021.
The Biden administration recently announced a series of new sanctions measures against Russia that take aim at the poisoning of Russian opposition figure Aleksey Navalny and officials connected to the country’s Nord Stream 2 pipeline.
The Bureau of Industry and Security and the Office of Foreign Assets Control issued a fact sheet this week highlighting the various exemptions and authorizations available for companies, people and exporters providing telecommunications goods and services to Cuba. The five-page guidance covers OFAC general licenses and BIS license exceptions and comes as the Biden administration tries to increase sanctions pressure on the Cuban government for its crackdown on pro-democracy protests in recent weeks (see 2107300063).