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.
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The Treasury Department’s new proposed rule restricting U.S. outbound investment is "narrowly targeted" and aims to address technology that could enhance China’s military, intelligence or cyber capabilities, Treasury Secretary Janet Yellen told a congressional panel July 9.
The House Foreign Affairs Committee this week plans to mark up a newly unveiled bill that would sanction foreign persons engaged in piracy.
The U.K. on July 3 issued a general license authorizing certain transactions between sanctioned parties and the National Settlement Depository. The license allows certain designated parties -- except for those subject to Russia-related sanctions -- to "carry out any activity reasonably necessary to sell, divest or transfer" debt and equity securities and financial instruments held by the National Settlement Depository. The Office of Financial Sanctions Implementation said any party conducting a transaction under the license must keep records on those transactions for a minimum of six years. The license runs through Aug. 13.
The Office of Foreign Assets Control deleted two Russia-related entries from its Specially Designation Nationals List. The agency removed Marina Igorevna Tsareva, who was sanctioned in 2018 for helping to procure underwater equipment and diving systems for Russian government agencies, and Alexey Valeryevich Panferov, who OFAC had sanctioned in 2022 as part of a tranche of designations targeting Russia's defense industrial base. An agency spokesperson didn't immediately respond to a request for comment about why OFAC removed both from the SDN List.