The Biden administration is having “a lot” of conversations with China to try to convince the country to stop shipping certain dual-use goods to Russia, and some of those conversations appear to be working, said Jay Shambaugh, the Treasury Department’s undersecretary for international affairs. But Shambaugh also said the U.S. wants Beijing to do more, and the administration is analyzing whether its current trade and financial restrictions are strong enough.
Nikolay Goltsev of Montreal and Brooklyn, New York, resident Salimdzhon Nasriddinov pleaded guilty July 9 to conspiracy to commit export control violations. The two men shipped electronic components to sanctioned Russian companies, some of which were then found in "seized Russian weapons platforms and signals intelligence equipment in Ukraine," according to DOJ.
The House Foreign Affairs Committee approved several export control and sanction bills July 10, including a resolution that would block the Bureau of Industry and Security’s new interim final rule restricting firearms exports (see 2406100048).
The Office of Foreign Assets Control this week renewed a Russia-related general license that authorizes certain transactions involving the Russian Federation's Central Bank, Wealth Fund and Ministry of Finance. General License No. 13J which replaced 13I, now authorizes those transactions, including taxes, fees, or import duties, through 12:01 a.m. EDT Oct. 9. The license was set to expire July 11.
U.S. chipmaker Nvidia is investigating reports that “unauthorized parties claim to have small numbers of restricted products for sale,” a company spokesperson said in a statement late July 9. Nvidia works with its customers and the U.S. government “to ensure that all sales comply with U.S. export control rules,” the spokesperson said. The statement came after Sen. John Kennedy, R-La., said he’s concerned advanced computing chips made by Nvidia and other companies are ending up in China despite export restrictions that are supposed to prevent those shipments (see 2407090030).
The Bureau of Industry and Security is recommending exporters, reexporters and other businesses add a new customer screening tool to their due diligence steps before trading in goods that could later be diverted to Russia’s military, especially for microelectronics and other sensitive goods Russia is looking to import. In new guidance published this week, BIS also clarified the specific compliance steps companies and universities should take if they receive a red-flag letter, an is-informed letter or other written warnings from the agency about certain risky customers or transactions.
Jessica Lewis, who leads the State Department’s Bureau of Political-Military Affairs, will leave the government this month, Secretary of State Antony Blinken announced July 9. Lewis worked on a range of defense trade issues during her three years with the State Department, including the Biden administration's revamped arms transfer policies (see 2302230049 and 2111040056) and its efforts to harmonize defense export controls with Australia and the U.K. as part of the AUKUS partnership (see 2305240061 and 2309270007). Blinken said Lewis is returning "to private life."
Sen. John Kennedy, R-La., urged the Commerce Department July 8 to increase its efforts to stem the flow of advanced computing chips to China.
The U.K. this week updated guidance for several of its sanctions regimes to provide more information on its “director disqualification sanctions,” which block designated people from being a director of a U.K. company. The country’s Office of Financial Sanctions Implementation said the restrictions also prohibit a designated person from “directly or indirectly taking part in or being concerned in the promotion, formation or management of a company.” The U.K.’s Companies House is responsible for “preventing registration” of a sanctioned person as a director of a U.K. company unless the government issues that person a license. OFSI added the language to its guidance for its Bosnia and Herzegovina, Nicaragua, Global Human Rights, Global anti-corruption, Zimbabwe, Venezuela and Guinea-Bissau sanctions regimes.
Certain vessels targeted by the EU’s sanctions against Russia may use European ports and port services in special emergency scenarios, including to unload “dangerous or polluting goods,” the European Commission said in a recent frequently asked question. Those vessels can use EU ports “within a reasonable time” after being sanctioned, “and in any case not later than 30 days from the date of” their designation, the FAQ said.