The Office of Foreign Asset Control on March 24 updated two existing Russia-related general licenses and issued two new licenses. Updated License 6A authorizes certain transactions involving exports of agricultural commodities, medicine, medical devices and COVID-19 diagnosis and treatment equipment, while updated License 17A authorizes certain imports of Russian alcoholic beverages, non-industrial diamonds or seafood. New License 20 authorizes certain transactions involving the official business of third-country diplomatic or consular missions in Russia, and new License 25 authorizes certain transactions involving "journalistic activities" in Russia. OFAC also updated two existing Frequently Asked Questions to reflect the new licenses.
Although the EU has been reluctant to impose an embargo on Russian oil and gas (see 2203230037), the bloc could soon take steps to impose some energy-related trade restrictions, Vladimir Milov, a Russian economist and opposition politician, said during a March 24 event hosted by Chatham House. He said the EU will eventually introduce some “gradual embargo measures,” potentially against refined products or liquefied natural gas. “In terms of European unity, my understanding is they're moving,” he said. “There will be movement in that direction.”
The Biden administration is emphasizing enforcement of Russia sanctions and export controls, making industry compliance with trade restrictions increasingly important, law firms said. Businesses should be taking several due diligence steps to avoid being caught in Russia-related sanctions evasion attempts, they said, and also can take action to protect their business operations in the Russia and Ukraine regions.
The White House and the State Department on March 24 announced full blocking sanctions on more than 400 individuals and entities, including members of the Russian legislature, defense companies and their leadership, and additional Russian elites. The targets are "key enablers of the invasion" of Ukraine, OFAC said in a press release that accompanied the full list of sanctioned individuals and entities.
The Office of Foreign Assets Control designated the Central Reserve Police of the Sudan for human rights abuses. The CRP has "used excessive force and violence intended to silence civilian activists and protesters,” Undersecretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson said. The CRP is a militarized Sudanese police unit that OFAC says has been "at the forefront of the Sudanese security forces’ violent response to peaceful protests." OFAC designated the CRP under Eexecutive Order 13818 and the Global Magnitsky Human Rights Accountability Act in 2017. As of March 21, all property of the CRP that is in the U.S. or that is in the possession or control of U.S. persons, is blocked and must be reported to OFAC.
The Office of Foreign Assets Control last week issued a new general license to authorize certain transactions related to “civil maritime services” with people or companies in the so-called Donetsk People’s Republic or Luhansk People’s Republic regions of Ukraine. General License No. 24 only authorizes the transactions if the services are performed outside the covered regions and aren’t performed “on behalf of any entity located in, or organized under the laws of,” the covered regions.
The Office of Foreign Assets Control designated seven individuals and two entities as part of its efforts to combat drug trafficking in Central America. On March 18, OFAC designated the Los Huistas Drug Trafficking Organization and its leadership that threatens the people and security of the United States and Guatemala. OFAC said that Los Huistas DTO is the dominant criminal structure on the Guatemala/Mexico border.
The Office of Foreign Assets Control designated one individual and nine entities as part of its efforts to combat illicit gold trade. On March 17, OFAC sanctioned Alain Goetz, a Belgian businessman who operates the African Gold Refinery in Uganda as well as companies in the UAE that receive illicit gold from mines in regions of the Democratic Republic of the Congo that are controlled by armed groups involved in destabilizing activities in the Congo. Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson said that "[c]onflict gold provides the largest source of revenue to armed groups in eastern DRC where they control mines and exploit miners,” in a press statement.
As the U.S. continues to tighten Russia export controls (see 2203110056), more companies may ask customers to sign end-use statements as a way to document their due diligence, said Marwa Hassoun, a trade lawyer with ArentFox Schiff. Businesses must also make sure they are taking certain minimum compliance steps to comply with U.S. sanctions, said ArentFox Schiff sanctions lawyer Matthew Tuchband, including more regular screening of restricted party lists.
The Office of Foreign Assets Control added 15 Russian and Belarusian individuals and one entity to the Specially Designated Nationals list, it said in a March 15 announcement. Four individuals and one entity were listed under Magnitsky Act designations for "gross human rights violations" involving events surrounding the death of renowned Russian whistleblower Sergei Magnitsky" or against Russian human rights defender Oyub Titiev. In a separate press release, OFAC lists sanctions blocking the property of President Alyaksandr Lukashenka of Belarus, Judge Natalia Mushnikova, Nurid Salamov, and Dzhabrail Akhmatov in connection with human rights abuses in Russia and Belarus. The State Department also announced sanctions in a second notice, listing 11 Russian military leaders "who operate or have operated in the defense and related materiel sector of the Russian Federation economy." OFAC Director Andrea Gacki said the designations, "demonstrate the United States will continue to impose concrete and significant consequences for those who engage in corruption or are connected to gross violations of human rights."