Russia opened a World Trade Organization dispute on May 19 against the EU's carbon border adjustment mechanism, arguing that the mechanism violates various provisions of the General Agreement on Tariffs and Trade 1994. Russia's request for consultations also covered the EU's scheme for greenhouse gas emissions allowances trading within the EU.
The U.K. released two sanctions licenses on May 20 permitting parties to wind down their financial positions involving St. Petersburg Currency Exchange and non-bank credit organization Joint-Stock Company Petersburg Settlement Center and to pay insurance premiums to the State Corporation Deposit Insurance Agency. The St. Petersburg Currency Exchange license permits any party to wind down from transactions involving the exchange or the Joint-Stock Company Petersburg Settlement Center and expires on June 19, 2025. The State Corporation Deposit Insurance Agency license runs indefinitely but requires parties making such premium payments to keep accurate records of any activity taken under the license for a minimum of six years.
The U.K. on May 20 added 82 entries to its Russia sanctions regime and seven entries to its global human rights sanctions list. The additions to the Russia sanctions list include 20 individuals and 62 entities and cover dozens of financial services companies and their executives, along with Chinese entities Electronic Scientific Engineering, Innopolis, Shanghai New Chess Co. and Shanghai New Chess Int'l Logistics Co.
Georgia formally accepted the World Trade Organization Agreement on Fisheries Subsidies on May 19, bringing the number of countries that have accepted the deal to 98. The WTO needs 13 more countries to accept to get to two-thirds of the membership, the threshold for the agreement to take effect.
Former airline executive Skye Xu was sentenced to two years in prison for his role in a scheme to defraud Polar Air Cargo Worldwide of more than $32 million, the U.S. Attorney's Office for the Southern District of New York announced on May 15. Xu pleaded guilty to conspiracy to commit wire fraud and honest services wire fraud, wire fraud and conspiracy to commit money laundering.
The Council of the European Union on May 13 reached an agreement that it said would improve the collection of value-added taxes "by making suppliers liable for the VAT paid on imports." The change will "likely" encourage foreign traders or platforms to use the "VAT import one-stop-shop," which is the EU's point of contact for importers of goods from third countries into the EU.
Patrick Childress, former assistant general counsel in the Office of the U.S. Trade Representative, has joined Holland & Knight as a partner in the international trade practice, the firm announced. Childress joined the USTR general counsel office in 2020, where he advised Congress, administration officials and federal agencies on various trade matters, including "digital trade, climate, trade in automotives, foreign investment and regional matters involving Canada and Mexico," the firm said.
The Council of the European Union on May 12 extended the sanctions against cyber-attacks threatening the EU for another year, until May 18, 2026. The council also extended the legal framework for the restrictions for three years, pushing them until May 18, 2028. The framework lets the EU impose targeted sanctions on individuals or entities involved in "cyber-attacks which cause a significant impact, and constitute an external threat to the EU or its member states," the council said. The measures currently apply to 17 people and four entities.
Jerrob Duffy, former head of DOJ's litigation unit in the criminal fraud section, has joined Hogan Lovells as a partner in the investigations, white collar and fraud practice, the firm announced. Duffy joins from Squire Patton, and his practice includes sanctions violations, Foreign Corrupt Practices Act proceedings and the False Claims Act investigations, Hogan Lovells said.
The U.K. extended its sanctions license permitting the winding down of transactions with Amsterdam Trade Bank N.V., which is a majority-owned subsidiary of sanctioned Russian bank Alfa-Bank. The Office of Financial Sanctions Implementation extended the license until May 12, 2030. OFSI also amended the license to say that any party, including the "Bankruptcy Trustees and any other insolvency practitioner," can make, receive or process any payments or "exercise all rights" in connection with any insolvency proceeding related to ATB or "the fulfilment of the Bankruptcy Trustees' statutory functions."