The Treasury Department this week expanded its sanctions authorities to cover Russia’s aerospace, electronics and marine sectors, building on an April 2021 executive order that targeted the country’s defense and technology sectors (see 2104150019). Treasury also announced a host of new designations against Russian people and entities, including the country’s largest chip maker.
The Bureau of Industry and Security is adding 120 entities to its Entity List for supporting the Russian and Belarusian militaries, the agency said in a final rule. The additions include military end-users in Russia and Belarus, along with others that have tried to send export-controlled items to Russia’s military, BIS said. The parties will be subject to a “highly restrictive” policy of denial for all items subject to the Export Administration Regulations, the agency said, and no license exceptions will be available. The additions, which will be published in the Federal Register April 7, take effect April 1.
U.S. export controls against Russia have proven to be effective more quickly than expected, said Thea Kendler, the Bureau of Industry and Security's assistant secretary for export administration. While the U.S. restrictions have hit key Russian industrial and defense inputs, Kendler said a major reason behind their success has been the substantial buy-in from allies in Europe and Asia.
The State Department recently approved up to $1 billion in combined emergency military assistance to Ukraine, it said in Federal Register notices released March 30. The first notice approves $800 million and the second notice approves $200 million of defense equipment, services and aid. The department approved the emergency assistance, part of a DOD “drawdown” package, because the aid could not have been met under the authority of the Arms Export Control Act or “any other provision of law.”
During a hearing with the House Ways and Means Committee March 30, U.S. Trade Representative Katherine Tai was asked by many Republicans and a few Democrats why the administration has ruled out cutting tariffs to convince negotiating partners in Asia to open their markets, and why it has shied away from continuing free trade agreement negotiations started during the previous administration.
The top Republican on the House Foreign Affairs Committee is asking the Biden administration for more information on Russia's ability to use digital currencies to evade sanctions. The director of national intelligence should say whether there are “any indications” Russia is using digital assets to evade sanctions, said Rep. Michael McCaul, R-Texas, including whether Russian oligarchs and officials are turning to cryptocurrency.
The U.S. and Canada issued more sanctions last week against people and entities in Myanmar responsible for supplying defense equipment to the country’s military regime. The Office of Foreign Assets Control targeted five people and five entities, including several arms dealers and their companies, for supporting the regime. Canada sanctioned four suppliers and two entities, including Myanmar Chemical & Machinery and Yatanarpon Aviation Support. The U.K. announced similar sanctions (see 2203280009).
The Office of Foreign Assets Control has sanctioned Iranian procurement agent Mohammad Ali Hosseini and four Iranian entities that procured ballistic missile propellant-related materials. “This action reinforces the United States’ commitment to preventing the Iranian regime’s development and use of advanced ballistic missiles,” Brian Nelson, undersecretary for terrorism and financial intelligence, said in a news release March 30. “While the U.S. continues to seek Iran’s return to full compliance with the Joint Comprehensive Plan of Action, we will not hesitate to target those who support Iran’s ballistic missile program. We will also work with other partners in the region to hold Iran accountable for its actions, including gross violations of the sovereignty of its neighbors.”
Half of Russia's 20 richest billionaires have not been hit with any U.S., U.K. or EU sanctions over Russia's military assault on Ukraine, Bloomberg News reported March 30. Three of those 20 individuals appeared on the EU, U.K. and U.S. sanctions lists. Russia's richest man, Vladimir Potanin, a metals executive with a $30 billion net worth, remains unlisted. Bloomberg cited sanctions experts who say that the decision not to list these men is due, at least in part, to their stakes in massive energy, metal and fertilizer companies. They said this decision may be due to the 2018 experience of sanctioning of Oleg Deripaska, an aluminum executive, which caused a massive price hike that settled only after Deripaska gave up control of United Co. Rusal International in 2019.
The Bureau of Industry and Security on March 30 added 73 new aircraft to its list of planes that have violated U.S. export controls by flying into Russia, including several aircraft owned by Russian cargo carriers. The list includes new planes owned by AirBridgeCargo, which calls itself Russia's largest cargo airline; Atran, a Moscow-based cargo airline; and other commercial or private aircraft owned by Aeroflot, Alrosa, Azur Air, Nordstar, Nordwind, Pegasfly, Pobeda, Rossiya, Royal Flight, S7 Airlines and Utair.