The United Kingdom maintained its barrage of restrictions imposed against Russia following its invasion of Ukraine. So far, the government has sweeping sanctions on a host of Russian individuals and entities, including the Russian Central Bank and President Vladimir Putin himself (see 2202280024). This deluge continued on Feb. 28 and March 1 with greater action to isolate Russia and freeze it out of the global economy.
The EU and the U.K. announced another round of sanctions following Russia's invasion of Ukraine. Building off a first wave of restrictions imposed on Russia following troop movement into the Donetsk and Luhansk regions, they either added or announced a series of individuals and entities that will be subject to greater restrictions. The EU said it plans to impose grand sectoral sanctions against Russia, while British Prime Minister Boris Johnson said that the U.K. will impose asset freezes on over 100 new entities and individuals.
The U.S. Court of Appeals for the Ninth Circuit affirmed a California district court ruling dismissing a case brought by investors in U.S. semiconductor developer Qualcomm over an alleged scheme by the American company to illegally block Singapore firm Broadcom's bid to take over Qualcomm. Investors had argued Qualcomm had improperly lobbied lawmakers and the Committee on Foreign Investment in the U.S. to block the acquisition.
The European Union launched a case at the World Trade Organization over China's allegedly discriminatory practices against Lithuania, which the EU claims are also affecting other exporters from the European trading bloc, the European Commission said. China's restrictions on Lithuania stem from the country's support for Taiwan. In November 2020, Lithuania's ruling coalition agreed to support "those fighting for freedom" in Taiwan. China's response included a refusal to clear goods from Lithuania through customs, rejection of Lithuanian import applications and a campaign to get non-Lithuanian EU companies to remove Lithuanian inputs from their supply chains when sending goods to China (see 2112090012). While the commission also implemented a proposal for an anti-coercion instrument to help respond to China's restrictive measures, it has now also requested consultations with China at the WTO over the restrictions.
Kambiz Attar Kashani, a citizen of both the U.S. and Iran, has been charged with conspiring to illegally export U.S. goods, technology and services to the Iranian government, and others, in violation of the International Emergency Economic Powers Act, the U.S. Attorney's Office for the Eastern District of New York said. A complaint was unsealed in the district court revealing the nature of the charges against Kashani and the extent of his alleged malfeasance. According to the complaint, Kashani conspired to ship goods, including two subscriptions to proprietary computer software, multiple fixed attenuators, six power supplies and various storage systems, to the Central Bank of Iran -- an entity recognized by the Treasury Department as an agency of the Iranian government and thus classified as a Specially Designated National. The complaint said that CBI provided assistance to "Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran's Islamic Revolutionary Guards Corps." Kashani allegedly arranged for the transshipping schemes while acting as the principal for two United Arab Emirates front companies. The defendant used the companies to procure electronic goods and technology from various U.S. technology companies for the CBI without obtaining the proper Office of Foreign Asset Control licenses, the U.S. Attorney's Office said.
A European Union law holding that entities cannot comply with the requirements in the laws of a third country applies even in the absence of an order to comply with the third country's laws, the European Court of Justice said in a December 2021 judgment. However, an EU company can terminate contracts with a person or entity subject to U.S. sanctions without giving reasons for such termination or without authorization from the European Commission, a summary of the judgment said. But, the European high court said the burden of proof is on the party terminating the contract to show it nixed the contract for a reason other than compliance with the third country laws.
China has told multinational corporations to break off ties with Lithuania or risk being shut out of the Chinese market, Reuters reported Dec. 9. The escalation comes after Lithuania's ruling coalition agreed in November 2020 to support "those fighting for freedom" in Taiwan, publicly challenging China's claim to the island nation. Further, the European Union noted that Lithuanian shipments are not being cleared through Chinese customs and that import applications from Lithuania are being rejected.
The Commerce Department's Bureau of Industry and Security is violating Belgian shipping company Exmar Marine's Fourth and Fifth amendment rights by blocking its ability to sell an aircraft it owns, Exmar alleged in a Dec. 1 complaint. Arguing its case in the U.S. District Court for the District of Columbia, Exmar said BIS has no legal authority to stop the sale of the aircraft and that such action to do so cuts against constitutional protections against unreasonable seizure and violations of due process (Exmar Marine, NV v. Bureau of Industry and Security, D.C. Cir. #21-3141).
While the World Trade Organization's upcoming 12th Ministerial Conference presents an opportunity to start meaningful discussion over revising the globe's leading multilateral trading body, the event will lack an immediate solution to pressing issues such as appellate body reform or an end to the all-purpose member veto, a former WTO deputy director-general said. Speaking at a Nov. 18 event on MC12 hosted by the Washington International Trade Association, Alan Wolff, now a visiting fellow at the Peterson Institute for International Economics, also explored the leadership dynamics that will be in play at the Nov. 30-Dec. 3 conference.
The European Union will request a World Trade Organization panel in its ongoing dispute settlement case against Russia's state-owned enterprise procurement practices, the European Commission announced Nov. 17. The EU is challenging Russia's favoring domestic goods and services by state-related entities "to the detriment of EU companies." The EU's panel request will be considered at the next WTO Dispute Settlement Body meeting on Nov. 29.