The EU last week issued new guidance on a requirement created in 2024 that calls on EU parent companies to make “best efforts” to ensure that their third-country subsidiaries aren’t enabling sanctions evasion (see 2411220014 and 2406240024). Although this “legal obligation applies only in the context of sanctions on Russia and Belarus,” the European Commission said it’s encouraging all EU parent companies “to seek to ensure that all entities they own or control do not undermine EU sanctions anywhere in the world.”
A U.S. business owner allegedly exported gun parts and accessories to Russia illegally by routing them through Kazakhstan and mislabeling the shipments to evade authorities, DOJ said last week. Maxim Larin, a Florida resident who owns multiple U.S.-based firearms supply companies, illegally worked with a person in Russia to evade export restrictions and ship items controlled under both the Export Administration Regulations and International Traffic in Arms Regulations, the agency said.
When the Senate returns from its August recess, Sen. James Lankford, R-Okla., said, he wants the chamber to take up a major Russia sanctions bill to spur Moscow to end its war with Ukraine.
Rep. Zach Nunn, R-Iowa, said Aug. 21 that the House should take up his Russia sanctions bill if Moscow doesn’t negotiate a peace deal with Ukraine.
The U.K. this week sanctioned several entities and people tied to a Kyrgyzstan-based financial network helping Russia evade sanctions, including through the use of cryptocurrency.
The U.S., the EU and others should pursue tougher enforcement on Chinese companies that continue to supply Russia’s military industrial complex and continue to buy Russian oil, panelists said during an event this week hosted by the Peterson Institute for International Economics. One said the EU should consider automatically sanctioning any Chinese company whose products are found more than once in drones, missiles or other military items used by Russia.
The U.K.’s Office of Financial Sanctions Implementation issued three new FAQs to provide guidance on its Russia-related general license that authorizes certain transactions involving brokerage firms.
Dual U.S. and Russian national Vadim Yermolenko was sentenced to 30 months in prison, and ordered to forfeit $75,547, for his role in a scheme to illegally export controlled dual-use and military items to Russia as part of a Moscow-led sanctions evasion scheme. He pleaded guilty in November to conspiracy to violate the Export Control Reform Act, commit bank fraud and defraud the U.S. (see 2411010047).
Despite co-sponsoring a bill that would impose a wide range of sanctions on Russia and its supporters if Moscow refuses to reach a peace deal with Ukraine, Sen. Tommy Tuberville, R-Ala., said Aug. 19 he is hesitant for Congress to take up the legislation when it returns from its August recess.
The Senate “stands ready” to give President Donald Trump “any economic leverage” he needs to pressure Russia to reach a peace deal with Ukraine, Senate Majority Leader John Thune, R-S.D., said Aug. 18 as Trump was planning to meet with Ukrainian and European leaders at the White House.