Companies should expect the Commerce Department to add more entities to the Entity List for aiding Russia amid its war in Ukraine, said Thea Kendler, the agency’s assistant secretary for export administration. Commerce has so far added more than 100 entities to the list for supporting the Russian and Belarusian militaries (see 2204040006). Kendler, speaking during a May 12 Materials and Equipment Technical Advisory Committee meeting, said the agency is looking at entities in both Russia and Belarus "that may be contributing to the military industrial complex."
The Transportation and Related Equipment Technical Advisory Committee is considering asking the Bureau of Industry and Security for more Russian export control guidance and is hoping to help address the agency's backlog of military end-user license applications, said committee Chair Ari Novis, chief global trade officer for Pratt & Whitney.
The Commerce Department is working with allies to create a new multilateral export control enforcement coordination mechanism to better tighten gaps in global export control regimes, said Matthew Axelrod, the agency’s lead export enforcement official. Axelrod said more enforcement cooperation can strengthen the effectiveness of the controls, particularly for Russia-related restrictions.
The U.K. amended 88 entries under its Russia sanctions regime, the Office of Financial Sanctions Implementation said in a May 9 notice. The updates state the reasons for the individuals' and entities' listing on the sanctions regime. Listed individuals include media figures, prominent businesspeople, regime officials and politicians.
The EU plans to drop the piece of its sixth sanctions package on Russia that would have banned EU-owned vessels shipping Russian oil to third countries, according to people familiar with the matter, Bloomberg reported May 9. The proposed ban, part of the sanctions on Russia following its invasion of Ukraine, was nixed following pushback from certain EU member states, including Greece, whose economy leans heavily on shipping. Further, a lack of a coherent position from the G-7 nations was at the heart of the proposal being dropped.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Treasury Department has enough evidence to show that its Russia sanctions are being violated and needs to move faster to impose secondary sanctions, Sen. Chris Van Hollen, D-Md., said. He said he and Sen. Pat Toomey, R-Pa., plan to push the agency to act.
The U.K. added Russian steel manufacturing and mining company Evraz to its Russia sanctions regime, the Office of Financial Sanctions Implementation said in a May 5 notice. The company is now subject to an asset freeze. Per a statement from the Foreign, Commonwealth & Development Office, Evraz makes 28% of all Russian railway wheels and 97% of Russian railtracks. The OFSI notice listing Evraz also corrected eight entries under the Russia sanctions regime.
Hungary blocked an EU proposal to ban Russian oil imports at a meeting of the EU's 27 ambassadors that ended on May 8 without an agreement, Bloomberg reported May 8, quoting "people familiar with the talks." The proposal would ban crude oil imports from Russia, phasing in the ban over the next six months, and also ban refined fuels by January. The EU offered Hungary and Slovakia until the end of 2024 to come into compliance with the bans and the Czech Republic until June 2023 to do the same, given their reliance on Russian oil, Bloomberg said.
The U.K. rolled out another round of sanctions on Russia and Belarus in response to their assault on Ukraine, the Department for International Trade announced May 9. The new restrictions target over $2 billion worth of goods, imposing tariffs on over $1.7 billion worth of Russian imports, including platinum and palladium, and export bans on over $307 million worth of goods, in an effort meant to disrupt Russia's manufacturing and heavy machinery industries.