The U.K.'s Office of Financial Sanctions Implementation updated its general financial sanctions guidance to discuss aggregation. The new paragraphs say that OFSI doesn't simply aggregate different designated individuals' holdings in a company when making an ownership assessment unless the shares are subject to a joint arrangement between the designated parties or one party controls the other's shares. "Consequently, if each of the designated person’s holdings falls below the 50% threshold in respect of share ownership and there is no evidence of a joint arrangement or that the shares are held jointly, the company would not be directly or indirectly owned by a designated person," the guidance said.
The U.K.'s Office of Financial Sanctions Implementation added one entity to its cyber sanctions regime, in a March 24 notice. The Central Scientific Research Institute of Chemistry and Mechanics, based in Moscow, is now subject to an asset freeze. OFSI said the institute was responsible for a cyberattack on a petrochemical company in August 2017.
The Office of Foreign Assets Control designated six individuals in the United Arab Emirates for raising money on behalf of Boko Haram insurgents in Nigeria. OFAC actions follow arrests in the UAE in September, which OFAC says "demonstrates the commitment of the Emirati government to using judicial measures and targeted financial sanctions to disrupt the flow of funds to these networks."
Japan imposed a new wave of restrictions on Russia following its invasion of Ukraine. Japan is adding 24 individuals and 81 entities to its Russia sanctions regime, subjecting them to an asset freeze, the Ministry of Foreign Affairs said March 25. It also banned the export of luxury goods to Russia, joining the EU and the U.K. in taking this action (see 2203150027). The sanctioned individuals include Andrey Patrushev, CEO of Gazprom; Sergei Ivanov, former chief of the presidential administration; and Igor Shuvalov, chairman of VEB.RF.
Australia on March 25 sanctioned two Russian entities and one North Korean entity that it said are helping North Korea evade sanctions and build up its missile program. The sanctions target the Russian Financial Society, Russia’s Commercial Bank Agrosoyuz and North Korea’s Korean Ungum Corp., which are helping North Korea violate U.N. Security Council resolution, Australia said. “Australia urges the Security Council to respond decisively to North Korea’s escalating behavior,” the country said. “We remain resolutely committed to sanctions enforcement.”
The U.S. and the EU last week announced a new initiative to reduce European dependency on Russian energy, in a bid to further isolate Moscow amid its war in Ukraine. The two sides will create a task force designed to stop European imports of Russian fossil fuels “as soon as possible,” a senior U.S. administration official said, which includes sourcing alternative energy supplies from third countries, including the U.S.
The Federal Maritime Commission has so far received mixed feedback on the possibility of new demurrage and detention billing requirements (see 2202070026), with shippers saying the rules are sorely needed and at least one carrier saying the industry shouldn’t face additional regulations.
The U.K. Office of Financial Sanctions Implementation published a General License permitting until May 2 the "winding down of any derivatives, repurchase, and reverse repurchase transactions" made before March 1 with the Russian Central Bank, the Russian National Wealth Fund or the Russian Finance Ministry. The license took effect March 22.
The top trade official on the European Commission said that Russia's barbaric invasion of Ukraine revealed how important it was that he and U.S. Trade Representative Katherine Tai "spent last year fixing some aspects of U.S.-EU relations," and then moved to a forward-looking agenda with the Trade and Technology Council. Tai, who spoke remotely to the Brussels business audience hosted by the American Chamber of Commerce in the EU on March 24, called EC Trade Commissioner Valdis Dombrovskis a good friend.
The State Department’s Directorate of Defense Trade Controls this week released supporting materials and guidance for its recently announced restructuring of purposes and definitions in the International Traffic in Arms Regulations (see 2203220013). The agency issued a summary of the changes and a table outlining the moves, edits, removals and additions.