The Office of Foreign Assets Control issued a general license authorizing certain transactions involving securities of companies affiliated with the Chinese military. General License No. 1, issued Jan. 8, authorizes certain transactions involving publicly traded securities with an entity with a name that “closely” matches the name of a company identified in President Donald Trump’s November executive order (see 2011130026) but that has not yet been identified on OFAC’s Chinese military companies list (see 2012290017). The authorization also applies to transactions involving “any securities that are derivative of” those publicly traded securities or “designed to provide investment exposure to such securities.” The transactions are authorized through 9:30 a.m. EST Jan. 28.
The United Kingdom’s Office of Financial Sanctions Implementation updated general licenses under its counterterrorism licensing policy, a Jan. 11 notice said. The U.K. revoked three general licenses and revoked and replaced one general license related to “legal aid.” The legal aid license allows certain agencies and bodies to make payments relating to “legal services” to sanctioned people.
The State Department said Jan. 10 it will notify Congress of the agency’s intent to designate Ansarallah -- also known as the Houthis -- as a foreign terrorist organization. The agency also designated three of the group’s leaders -- Abdul Malik al-Houthi, Abd al-Khaliq Badr al-Din al-Houthi and Abdullah Yahya al Hakim -- as specially designated global terrorists. The State Department said it will “put in place” measures to minimize the sanctions’ impact on humanitarian imports into Yemen. The Treasury Department will provide humanitarian-related licenses and guidance for certain transactions and activities conducted by both the U.S. government and nongovernmental organizations, State said.
The State Department designated Cuba as a state sponsor of terrorism, the agency said Jan. 11. Cuba's designation, which was lifted in 2015 by the Obama administration, will reimpose export restrictions on shipments of certain arms and dual-use items to the island, along with other trade prohibitions and restrictions. Secretary of State Mike Pompeo said Cuba has “broken” its commitment to stop supporting terrorism as a condition of the 2015 designation removal. The move was met with criticism from at least one Senate Democrat, with Sen. Patrick Leahy, D-Vt., who called it a “blatantly politicized designation.” Leahy added that “domestic terrorism in the United States poses a far greater threat to Americans than Cuba does.”
The Office of Foreign Assets Control sanctioned seven people and four entities involved in a Russia-linked influence network aimed at influencing U.S. elections, OFAC said Jan. 11. The designations target former Ukrainian government officials Konstantin Kulyk, Oleksandr Onyshchenko, Andriy Telizhenko and current Ukraine Parliament member Oleksandr Dubinsky. OFAC also sanctioned NabuLeaks and Era-Media TOV, media companies in Ukraine that “push false narratives,” and Petro Zhuravel, who owns designated media disinformation companies Only News and Skeptik TOV. Also designated were Dmytro Kovalchuk and Anton Simonenko, who work closely with Andrii Derkach, a sanctioned Russian agent. Senate Finance Committee ranking member Ron Wyden, D-Ore., released a statement on the move, saying: “The decision to impose sanctions on Andriy Telizhenko for his role in these efforts is welcome and long overdue. By imposing sanctions on Telizhenko, the Trump administration confirms that Senate Republicans’ year-long investigation was based on Russian disinformation. In fact, Chairmen [Ron] Johnson [of Wisconsin, who chairs the Homeland Security Committee] and [Chuck] Grassley [of Iowa, the Finance Committee] cited Mr. Telizhenko 42 times in the letters sent as part of this investigation, and ignored repeated warnings to not give credibility to disinformation.”
The United Kingdom amended several entries under its Syria, Russia and chemical weapons sanctions regimes, Jan. 8 notices said. The revisions include changes to Kamal Cheikha’s entry under Syria and the entry of Russia’s State Unitary Enterprise of the City of Sevastopol (Sevastopol Sea Port). The other revisions amend seven entries designated for chemical weapons reasons: Andrei Veniaminovich Yarin, Sergei Vladilenovich Kiriyenko, Sergei Ivanovich Menyailo, Aleksandr Vasilievich Bortnikov, Pavel Anatolievich Popov, Aleksei Yurievich Krivoruchko and the State Scientific Research Institute for Organic Chemistry and Technology.
The State Department criticized the arrests of more than 50 pro-democracy activists in Hong Kong last week, saying the U.S. could levy more sanctions on Chinese officials. “The United States will consider sanctions and other restrictions on any and all individuals and entities involved in executing this assault on the Hong Kong people, explore restrictions against the Hong Kong Economic and Trade Office in the United States, and take additional immediate actions against officials who have undermined Hong Kong’s democratic processes,” Secretary of State Mike Pompeo said Jan. 6. The European Union also criticized the arrests but did not threaten more sanctions. It said Jan. 7 the arrests “are the latest indication that the National Security Law is being used by the Hong Kong and mainland authorities to stifle political pluralism in Hong Kong.”
The Office of Foreign Assets Control on Jan. 8 updated its list of Chinese military companies and sanctioned an Iraqi official for human rights abuses. OFAC designated Falih al-Fayyadh, a former national security adviser who serves as the Iraqi Popular Mobilization Committee chairman. OFAC said al-Fayyadh headed the PMC when its “subcomponents” fired live ammunition at peaceful protesters in 2019.
The State Department officially added Cuba’s Banco Financiero Internacional to its Cuba Restricted List, a Jan. 8 notice said. The addition blocks direct financial transactions with the bank under the Cuban Assets Control Regulations, and subjects certain U.S. export applications for items to be used by the bank to a denial policy. The change takes effect Jan. 8.
The Office of Foreign Assets Control on Jan. 6 issued a frequently asked question to provide guidance on President Donald Trump’s November executive order to ban U.S. investment in Chinese military companies (see 2011130026). OFAC said market intermediaries and others may “engage in ancillary or intermediary activities that are necessary to effect divestiture during the relevant wind-down periods” with publicly traded securities of Chinese military companies. The agency clarified that transactions by U.S. people and investors involving investment funds “seeking to divest during the relevant wind-down periods to ensure compliance” with Trump’s order are allowed.