The U.S. is imposing additional sanctions and new export controls following Russia's "further invasion of Ukraine," as promised by President Biden in his Feb. 22 speech (see 2202220003). The sanctions cover financial restrictions on Russian state-owned enterprises, banks, and individuals, while the export controls set restrictions on a variety of high-tech products. The new measures are part of an "unprecedented level of multilateral cooperation" according to the White House.
OFAC sanction activity
The Commerce and Treasury Departments announced a raft of new export controls and sanctions measures against Russia in press releases issued Feb. 24 following White House remarks by President Joe Biden. The measures include export control license requirements for a broad swath of the Commerce Control List, and the expansion of sanctions, including to entities in Belarus. The Bureau of Industry and Security also released a final rule on the export control changes, which take effect Feb. 24.
President Joe Biden announced in a speech Feb. 22 that the U.S. will impose a series of sanctions on Russia for its continued aggression against Ukraine. Biden promised sanctions "far beyond what was implemented in 2014," in response to Russian recognition of the Luhansk and Donetsk republics on Feb. 21, which he called a "flagrant violation of international law." According to a Feb. 21 press call, the White House anticipated the possibility and was prepared to respond immediately. A senior administration official noted the measures were in response to "Russia’s recognition gambit" and that they are distinct from "swift and severe economic measures" prepared should Russia "further invade Ukraine."
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The Office of Foreign Assets Control on Feb. 17 sanctioned Sergio Armando Orozco Rodriguez for his involvement with the Cartel de Jalisco Nueva Generacion (CJNG) in Puerto Vallarta, Jalisco, Mexico. CJNG traffics a “significant proportion” of fentanyl and other drugs into the U.S., OFAC said, and Rodriguez helps launder money for the group, and carries out extortion schemes. OFAC previously sanctioned CJNG in 2015 and 2021.
The Office of Foreign Assets Control is adding regulations to implement a pair of executive orders from November 2020 and June 2021 related to securities investments that finance Communist Chinese military companies. The regulations prohibit the purchase or sale of securities with any of the listed people or entities. In addition, the secretary of the treasury can designate further entities that have operated in the defense, surveillance, or related sectors of the Chinese economy.
The Office of Foreign Assets Control is removing sanctions regulations on Burundi, it said in a notice. It follows President Joe Biden's Nov. 18 executive order (see 2111180014) declaring an end to the state of national emergency in Burundi, citing the "significantly altered" situation over the past year, "including the transfer of power following elections in 2020, significantly decreased violence, and ... reforms across multiple sectors."
The Office of Foreign Assets Control is adjusting its civil monetary penalties for inflation, the agency said in a notice released Feb. 8. The new amounts include higher maximum penalties for violations of the Trading With the Enemy Act, the International Emergency Economic Powers Act, the Antiterrorism and Effective Death Penalty Act, the Foreign Narcotics Kingpin Designation Act and the Clean Diamond Trade Act. The agency also updated two references to “one-half the IEEPA maximum CMP from $155,781 to $165,474” and adjusted the recordkeeping CMP amounts in OFAC’s Economic Sanctions Enforcement Guidelines. The changes take effect Feb. 9.
The Office of Foreign Assets Control is adding Ethiopia sanctions regulations to implement the Sept. 17 executive order "Imposing Sanctions on Certain Persons With Respect to the Humanitarian and Human Rights Crisis in Ethiopia" (see 2109170036).
The Office of Foreign Assets Control on Feb. 3 sanctioned World Human Care, a non-governmental organization created by Indonesia-based terrorist group Majelis Mujahidin Indonesia. OFAC said the group provides financial support for MMI “extremists” in Syria “under the guise of humanitarian aid.”