Asia-based companies should make sure they’re doing enough due diligence to take into account heightened Western focus on Russia-related sanctions evasion, Ropes and Gray said in a Nov. 5 client alert, particularly because of their “geographical proximity” to Russia. The firm pointed to guidance on sanctions evasion recently released by the Group of 7 nations (see 2409250004), adding that Asian companies “are at higher risk for diversion as Russia is ever more reliant on complex transnational structures to circumvent sanctions and procure critical technology and manufacturing components” for its weapons.
The possible North Korean deployment of troops to Russia, as well as Russia’s transfer of missile technology to North Korea, would violate multiple U.N. sanctions resolutions and shouldn’t be allowed, the U.S. and several allies said in a Nov. 6 joint statement. They said they have “grave concerns” about Russia’s use of North Korean troops against Ukraine and are “deeply concerned” about potential shipments of nuclear or ballistic missile-related technology from Russia to North Korea.
A Virginia-based freight consolidation and forwarding business and two of its executives were charged with conspiracy to violate the Export Control Reform Act after they allegedly exported goods and technology to Russia by transshipping them through Turkey, Finland and Kazakhstan, DOJ announced Nov. 4.
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Maros Sefcovic of Slovakia, the EU’s candidate for trade and economic security commissioner, said this week he would “double down” on defending European industry against “increasingly widespread” unfair practices.
The U.K. recently fined four exporters more than $2 million combined for breaching the country’s export controls, including one for violating trade restrictions against Russia, the country announced Nov. 4.
A Texas-headquartered offshore drilling company is filing a voluntary disclosure with the Office of Foreign Assets Control after its former Russian subsidiary may have breached U.S. sanctions, according to corporate filings.
Dual U.S. and Russian national Vadim Yermolenko pleaded guilty Nov. 1 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, DOJ said. Yermolenko pled guilty to conspiracy to violate the Export Control Reform Act, conspiracy to commit bank fraud, and conspiracy to defraud the U.S. Yermolenko faces up to 30 years in prison.
Banks that choose not to follow a set of export compliance best practices recently issued by the Bureau of Industry and Security may be leaving themselves “wide open” to possible penalties under U.S. export regulations, a senior BIS official said, especially if they don’t have other compliance safeguards in place.
The Bureau of Industry and Security is imposing export controls on nine “key” precursors that Russia has used in chemical weapons against Ukraine, the agency said in a final rule that becomes effective Nov. 1. The rule also updates certain language in BIS regulations that it said will reduce the “licensing burden” for certain government entities located in Russia and Belarus, and it clarifies the scope of the agency's foreign direct product rules.