New sanctions on the Russian Central Bank, Ministry of Finance and two Russian investment funds announced Feb. 28 are the “most significant action” the Treasury Department has ever taken against an economy the size of Russia, said a senior administration official that day. “We're doing exactly what we said we’d do,” the official said during a call with reporters. “We said all options are on the table, including the most severe sanctions ever contemplated against Russia.”
The U.S. is imposing additional sanctions and new export controls following Russia's "further invasion of Ukraine," as promised by President Biden in his Feb. 22 speech (see 2202220003). The sanctions cover financial restrictions on Russian state-owned enterprises, banks, and individuals, while the export controls set restrictions on a variety of high-tech products. The new measures are part of an "unprecedented level of multilateral cooperation" according to the White House.
The Commerce and Treasury Departments announced a raft of new export controls and sanctions measures against Russia in press releases issued Feb. 24 following White House remarks by President Joe Biden. The measures include export control license requirements for a broad swath of the Commerce Control List, and the expansion of sanctions, including to entities in Belarus. The Bureau of Industry and Security also released a final rule on the export control changes, which take effect Feb. 24.
President Joe Biden announced in a speech Feb. 22 that the U.S. will impose a series of sanctions on Russia for its continued aggression against Ukraine. Biden promised sanctions "far beyond what was implemented in 2014," in response to Russian recognition of the Luhansk and Donetsk republics on Feb. 21, which he called a "flagrant violation of international law." According to a Feb. 21 press call, the White House anticipated the possibility and was prepared to respond immediately. A senior administration official noted the measures were in response to "Russia’s recognition gambit" and that they are distinct from "swift and severe economic measures" prepared should Russia "further invade Ukraine."
The Office of Foreign Assets Control is adding regulations to implement a pair of executive orders from November 2020 and June 2021 related to securities investments that finance Communist Chinese military companies. The regulations prohibit the purchase or sale of securities with any of the listed people or entities. In addition, the secretary of the treasury can designate further entities that have operated in the defense, surveillance, or related sectors of the Chinese economy.
The Office of Foreign Assets Control is adding Ethiopia sanctions regulations to implement the Sept. 17 executive order "Imposing Sanctions on Certain Persons With Respect to the Humanitarian and Human Rights Crisis in Ethiopia" (see 2109170036).
The Office of Foreign Assets Control issued seven new frequently asked questions to provide more guidance on humanitarian shipments to Afghanistan. The new FAQs, issued Feb. 3, clarify aspects of general licenses 14, 15, 16, 17, 18 and 19 for authorized assistance by nongovernmental organizations and international organizations within Afghanistan that may involve transactions with the Taliban. These forms of assistance include cash shipments, bank transactions, support for municipal water systems that "directly benefit the Afghan people," and salary support for teachers and healthcare workers "even to the extent doing so would involve transacting with the Taliban and/or Haqqani Network."
The Office of Foreign Assets Control on Jan. 24 extended two Ukraine-related licenses. General License 13Q, which replaces 13P "Authorizing Certain Transactions Necessary to Divest or Transfer Debt, Equity, or Other Holdings in GAZ Group," and General License 15K, which replaces 15J "Authorizing Certain Activities Involving GAZ Group." These licenses were set to expire Jan. 26, via a previous extension issued Dec. 23, 2020. The new licenses are being extended for 90 days, through 12:01 a.m. Eastern Daylight Time, April 27. OFAC also updated its frequently asked questions related to the updated GLs.
Treasury’s Office of Foreign Assets Control is amending the Transnational Criminal Organizations Sanctions Regulations and reissuing them in their entirety. OFAC said, in a notice that the reissuance will further implement two executive orders related to transnational criminal organizations, issued July 24, 2011, and March 15, 2019. OFAC amended the regulations to provide “additional interpretive guidance, definitions, general licenses, and other regulatory provisions that will provide further guidance to the public.” The regulations implement targeted sanctions directed at persons that constitute a significant transnational criminal organization or persons that have materially assisted, or provided financial, material, or technological support for those organizations.
Australia this week began implementing a U.N. Security Council exemption for certain humanitarian-related activities and transactions involving the Taliban in Afghanistan. Under the exemption, adopted by the UNSC Dec. 22 and implemented by Australia Jan. 11, certain “payment of funds, other financial assets or economic resources, and the provision of goods and services necessary” for humanitarian aid will “not constitute an offence under Australian sanctions laws,” Australia said. All other transactions or activities not covered by the exemption may still violate Australian sanctions, the country said. The U.S. recently issued new guidance and general licenses to help humanitarian aid flow more easily to Afghanistan (see 2112220041).