Australia on March 25 sanctioned two Russian entities and one North Korean entity that it said are helping North Korea evade sanctions and build up its missile program. The sanctions target the Russian Financial Society, Russia’s Commercial Bank Agrosoyuz and North Korea’s Korean Ungum Corp., which are helping North Korea violate U.N. Security Council resolution, Australia said. “Australia urges the Security Council to respond decisively to North Korea’s escalating behavior,” the country said. “We remain resolutely committed to sanctions enforcement.”
The U.S. and the EU last week announced a new initiative to reduce European dependency on Russian energy, in a bid to further isolate Moscow amid its war in Ukraine. The two sides will create a task force designed to stop European imports of Russian fossil fuels “as soon as possible,” a senior U.S. administration official said, which includes sourcing alternative energy supplies from third countries, including the U.S.
The U.K. Office of Financial Sanctions Implementation published a General License permitting until May 2 the "winding down of any derivatives, repurchase, and reverse repurchase transactions" made before March 1 with the Russian Central Bank, the Russian National Wealth Fund or the Russian Finance Ministry. The license took effect March 22.
The top trade official on the European Commission said that Russia's barbaric invasion of Ukraine revealed how important it was that he and U.S. Trade Representative Katherine Tai "spent last year fixing some aspects of U.S.-EU relations," and then moved to a forward-looking agenda with the Trade and Technology Council. Tai, who spoke remotely to the Brussels business audience hosted by the American Chamber of Commerce in the EU on March 24, called EC Trade Commissioner Valdis Dombrovskis a good friend.
Rep. Dusty Johnson, R-S.D., the top Republican on the House Agriculture subcommittee that covers trade, told Farmers For Free Trade that ag exporters "want China to live up to their commitments, but we don't want to put all our eggs in one basket."
The U.K. added 59 new entries to its Russia sanctions regime and six new entries under its Belarus sanctions regime in response to the countries' military invasion of Ukraine. The March 24 moves from the U.K. Office of Financial Sanctions Implementation add to the unprecedented amount of restrictions placed on the nations following the assault.
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 U.S. on March 24 announced another set of Russia 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, the Treasury Department said, including Herman Gref, CEO of Sberbank and a close Putin associate. Other sanctions target additional bank executives and the entire Russian State Duma, including 328 members who support the war in Ukraine, the State Department said.
The U.S.-EU Trade and Technology Council has so far made “good progress” on export controls and foreign investment screening, but both sides can do more to further harmonize their trade and investment restrictions, said Valdis Dombrovskis, the EU’s top trade official. Speaking at the European Parliament this week, Dombrovskis said Russia’s invasion of Ukraine highlights the need for more trade collaboration.