Western nations imposing export controls against Russia should shift their focus away from microchips and instead prioritize the key raw materials and machine tools that Moscow needs for its artillery, according to a report this month from the U.K-based Royal United Services Institute and Open Source Centre. The report calls for more enforcement against Chinese machine tool suppliers and new, “strict sanctions” against companies shipping materials like chrome ore that Russia uses for its weapons.
Data compiled by law firm Duane Morris shows which European nations are most actively enforcing sanctions, including by issuing fines, pursuing criminal convictions and undertaking investigations.
China’s Ministry of Commerce criticized a decision by the U.S. earlier this month to sanction two Chinese firms for helping to make drones for Russia (see 2410170011), saying the designations have “no basis in international law and are not authorized by the UN Security Council.” The ministry also said China doesn’t allow its businesses to sell drone parts for use by Russia’s military and has recently strengthened export inspections to stop those shipments.
While the Biden and Trump administrations both frequently imposed financial sanctions and export controls on China, the Biden administration has made greater use of two key tools: the Treasury Department’s Specially Designated Nationals and Blocked Persons List and the Commerce Department’s Entity List. That's according to a new report by the Center for a New American Security (CNAS).
The Office of Foreign Assets Control on Oct. 23 removed Ukrainian citizen Olena Yurevna Semenova from its Specially Designated Nationals List. Semenova was designated in 2015 as part of an effort to counter Russia-related sanctions evasion. The agency didn’t provide more information, and a Treasury Department spokesperson didn’t respond to a request for comment.
New export controls over U.S. persons’ support for certain foreign military, intelligence and security services activities would place too much strain on both the government and industry compliance departments, disadvantage American exporters compared with their foreign competitors, and may provide no clear benefit to U.S. national security, companies and trade groups told the Bureau of Industry and Security.
An updated maritime industry advisory issued this week by the group of countries implementing the price cap on Russian oil includes new compliance recommendations, including ways to improve due diligence around tanker sales and tips to avoid deals with sanctioned counterparties.
The Bureau of Industry and Security will add 26 companies and people to the Entity List after the agency said they violated U.S. export controls -- including by supplying sensitive items to China, Iran, Pakistan or Russia -- or failed to comply with U.S. end-use checks.
House Foreign Relations Committee Chairman Michael McCaul, R-Texas, urged the Biden administration Oct. 18 to give the Treasury and State departments additional resources, including personnel, to speed up implementation of the new sanctions authorities that were enacted into law almost six months ago.
Switzerland on Oct. 17 adopted most of the measures outlined in the EU's 14th sanctions package on Russia (see 2406240024), including expanded export controls, bans on the use of specialized financial messaging services, sanctions on vessels that are part of Russia's "dark fleet," and more.