The Defense Department on June 24 released a list of Chinese companies with links to the Chinese military, including Huawei and Hikvision. The list includes 20 companies, most which are already listed on the Commerce Department’s Entity List, that could be subject to additional U.S. sanctions. "As the People’s Republic of China attempts to blur the lines between civil and military sectors, 'knowing your supplier' is critical," a Defense Department spokesperson said in a statement. "We envision this list will be a useful tool for the U.S. Government, companies, investors, academic institutions, and likeminded partners to conduct due diligence with regard to partnerships with these entities, particularly as the list grows." The release of the list comes two months after Commerce issued a rule expanding export licensing restrictions on shipments to military end-users or for military end-uses in China, Russia and Venezuela (see 2004270027).
Russia export controls and sanctions
The use of export controls and sanctions on Russia has surged since the country's invasion of Crimea in 2014, and especially its invasion of Ukraine in in February 2022. Similar export controls and sanctions have been imposed by U.S. allies, including the EU, U.K. and Japan. The following is a listing of recent articles in Export Compliance Daily on export controls and sanctions imposed on Russia:
The Eurasian Economic Commission plans to extend an export restrictions on sunflower seeds, the U.S. Department of Agriculture Foreign Agricultural Service said in a June 22 report. The restrictions, which will apply to exports outside the Eurasian Economic Union, will be extended through Aug. 31 to stabilize domestic prices for sunflower oilseeds, the report said. The restrictions would allow exports of the seeds on a “permit basis.” The EAEU includes Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan. The EEC is its regulatory body.
The United Kingdom, France and Germany suggested they would support a continued arms embargo against Iran but opposed U.S. threats of snapback sanctions. The scheduled expiration of the embargo would have “major implications for regional security and stability,” the countries said in a June 19 statement, adding that they plan to discuss the matter with Russia or China. But the three nations rejected U.S. threats to invoke snapback sanctions under the Iran nuclear deal if the embargo is not extended (see 2006090047). “Any unilateral attempt to trigger [United Nations] sanctions snapback would have serious adverse consequences in the UN [Security Council],” they said.
The European Union has not yet decided whether to reciprocate the United Kingdom’s six-month grace period on import entry requirements after Brexit (see 2006120031), said João Vale de Almeida, the EU’s ambassador to the U.K. While de Almeida said the EU wants to be “forceful and systematic” in protecting its market, it is first focused on reaching a withdrawal agreement and will decide on customs issues later.
An Italian national was sentenced to prison after trying to procure a U.S. power turbine without an export license, the Justice Department said June 18. Gabriele Villone, who was sentenced to 28 months in prison for conspiring to violate the International Emergency Economic Powers Act and the Export Control Reform Act, tried to procure the $17.3 million turbine for Russian companies, the agency said.
The European Council renewed sanctions against Russia for its annexation of Crimea and Sevastopol, it said in a June 18 press release. The sanctions, extended until June 23, 2021, ban imports from Crimea into the European Union; block exports of certain goods and technologies to Crimean companies; and place restrictions on Crimea’s transport, telecommunications and energy sectors.
The Bureau of Industry and Security's increased restrictions on shipments to military end-users (see 2004270027) presents “significant questions” for industry, which may struggle to comply with the new due diligence expectations, said Ajay Kuntamukkala, an export controls lawyer with Hogan Lovells and a former BIS official. Kuntamukkala said the rule will “significantly impact business transactions” with Chinese entities.
The United Kingdom released a June 16 guidance on the country’s Russia sanctions after Brexit, including the restrictions that will impact financial and investment actions with Russia. The guidance also includes a list of exceptions for doing business with Russian entities and frequently asked questions.
The Eurasian Economic Commission lifted restrictions on exports of soybeans, a June 12 U.S. Department of Agriculture Foreign Agricultural Service report said. The measure allowed soybeans exports from the Eurasian Economic Union as of June 1, USDA said. The soybeans were previously restricted under a temporary EAEU ban on a range of food products due to the COVID-19 pandemic. That ban is expected to end June 30. The EAEU includes Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan. The EEC is its regulatory body.
The Commerce Department’s increased restrictions on shipments to military end-users is causing widespread confusion and could cripple exporters struggling to survive during the global COVID-19 pandemic (see 2005010037), industry groups said. The Bureau of Industry and Security's April 28 final rule (see 2004270027), set to take effect June 29, is too complex and was released with “poor” timing and without industry input, the National Customs Brokers & Forwarders Association of America said.