Biden Issues EO Establishing Ethiopian Sanctions Regime
President Joe Biden issued an executive order last week authorizing a range of sanctions and export restrictions against human rights abusers and other people committing violence, blocking humanitarian aid or threatening peace in Ethiopia. The new sanctions regime can target the Ethiopian and Eritrean government and several military groups in the region, including the Ethiopian National Defense Forces, the Eritrean Defense Forces, the Tigray People’s Liberation Front and Amhara regional forces, and others supporting those groups and people. In addition to asset freezes, the order authorizes the Treasury Department to work with other agencies to deny export licenses for certain goods and technology to people or entities sanctioned under this regime.
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Along with the Sept. 17 order, Treasury issued three new general licenses authorizing certain transactions in Ethiopia. General License No. 1 authorizes transactions and activities by certain international organizations, including the United Nations, the International Committee of the Red Cross and the African Development Bank Group. General License No. 2 authorizes certain transactions that support nongovernmental organizations’ activities in Ethiopia, including the payment of import duties, humanitarian aid, democracy-building and more. General License No. 3 authorizes exports of agricultural commodities, medicine, medical devices, replacement parts and components for medical devices or software updates for medical devices to Ethiopia and Eritrea.
Newly issued frequently asked questions 922, 923, 924, 925, 926 and 927 describe the new executive order and general licenses in more detail. FAQ 923 clarifies that the Office of Foreign Assets Control's 50% rule doesn't “automatically” apply to people sanctioned solely under the new executive order. The rule applies only if they are also listed separately on OFAC’s Specially Designated Nationals and Blocked Persons List. Similarly, FAQ 924 clarifies that non-blocking sanctions issued under the new order don't automatically apply to entities owned by the sanctioned person unless OFAC “separately lists the entity” on the Non-SDN Menu-Based Sanctions List.
The sanctions are aimed at ending “one of the worst humanitarian and human rights crises in the world” in Ethiopia, where more than 5 million people need humanitarian aid, a senior administration official told reporters during a call last week. In a fact sheet, the White House stressed that the sanctions won’t impede exports of humanitarian goods to the region and called on allies to also make sure aid is unimpeded.
The official said the Biden administration doesn’t have to follow through on the strict sanctions measures if the Ethiopian government and the Tigray People’s Liberation Front “take meaningful steps” to negotiate a ceasefire and allow humanitarian aid into the region. “A different path is possible,” the official said but added that “the administration is prepared to take aggressive action under this new executive order to impose targeted sanctions against a wide range of individuals or entities.” The official called the new executive order “broader, faster, more flexible” than previous sanctions against Ethiopia, including trade restrictions announced by the State Department in May (see 2105250018).
In its fact sheet, the White House pointed to those restrictions, which increased export controls on defense trade goods, as an example of how other countries should treat Ethiopia. “The United States urges other countries to implement similar measures to stop the flow of weapons to any parties to the conflict and support a negotiated ceasefire,” the White House said. The administration official said the U.S. has already asked allies in Europe and “elsewhere” to increase their sanctions and export restrictions against the region.
“As all of you know, for European sanctions to be approved, you’ve got 27 member states you’ve got to convince,” the official said. “So I wouldn’t expect the [European Union] to be able to move as quickly as we can move as a single government. But we are in touch with them.”