The U.S. can take several steps to increase its export control pressure against Russia, including expanding certain restrictions to capture a wider range of end-users in Russia beyond the military, said Matt Borman, a senior official at the Bureau of Industry and Security. Borman also stressed that Chinese companies on the Entity List still have much to lose if they aid Russia, including a complete ban from U.S. exports, financing and other services.
The Commerce Department should add ZTE to its Entity List now that its five-year probation period and U.S. criminal case has ended, Sen. Marco Rubio, R-Fla., said in a March 28 letter to Commerce and Justice departments. Rubio also expressed “disappointment and concern” that a U.S. court this month ruled against further penalties against the Chinese telecommunications company (see 2203240060) despite “credible evidence” that ZTE violated its probation. Rubio said the judge in the case “appeared unconvinced of any serious commitment to reform” by ZTE officials.
Australia announced the first designations under its recently created Magnitsky-style human rights sanctions law, targeting more than 30 Russian people for their role in the death of lawyer Sergei Magnitsky in 2009. “This will ensure that Australia does not become a safe haven for those already locked out of like-minded countries and their financial systems,” Australia’s foreign ministry said March 29. Australia said the announcement was just the first of “what will be ongoing sanctions” it will use under its law to target human rights abusers, which was passed in December (see 2112220008).
The EU updated its Russia sanctions guidance this week with new frequently asked questions, including several that clarify how it interprets its 50% rule and how asset freezes apply to entities owned by sanctioned people.
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The U.S. Court of Appeals for the D.C. Circuit upheld the sanctions listing of Russian billionaire Oleg Deripaska, finding that the Treasury Department's Office of Foreign Assets Control provided proper evidence for the listing. The court also held that while Deripaska was found to no longer own two major energy companies, OFAC found him to still operate them, justifying his placement in the Russian sanctions regime.
Proposed changes to the State Department’s defense export regulations, including a provision that would clarify definitions for “export” and “reexport,” received strong support from U.S. universities this month. The Association of University Export Control Officers said the proposed changes to the International Traffic in Arms Regulations will “make it simpler and more efficient for universities to remain compliant with” U.S. export regulations.
The Bureau of Industry and Security added 73 new aircraft to its list of planes that have violated U.S. export controls by flying into Russia, including aircraft owned by Russian cargo carriers, the agency said in an emailed news release. 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. BIS also removed 12 aircraft that were allowed to return to owners in partner countries and updated tail numbers for other aircraft to “reflect their purported re-registration in Russia.” The agency said it will impose penalties and/or jail time or revoke export privileges for any company or person that violates the Export Administration Regulations by providing “any form of service” to the aircraft without a required BIS license.
The U.S. is preparing more sanctions and export controls against Russia, including more measures to target the country's defense industrial base and critical supply chains, Deputy Treasury Secretary Wally Adeyemo said March 29 during an event at Chatham House in London. The U.S., which will announce those steps alongside more than 30 allies, is also turning its enforcement focus to companies or countries that may be helping Russia evade the sanctions, Adeyemo said.
Elizabeth Craddock, former partner at Jones Walker, has joined Holland & Knight in its Public Policy & Regulation Group in Washington, D.C., the firm announced. Craddock's practice will focus on energy, environment and trade policy, among other things, the firm said. She also brings experience with sanctions issues. Earlier in her career, Craddock was vice president of government affairs for the International Association of Drilling Contractors.