The U.S., the U.K. and Canada last week issued new, coordinated sanctions against Belarus, targeting people, companies and entities that are helping Russia evade sanctions and export controls, funding Belarusian oligarchs tied to President Alexander Lukashenko or taking other steps to aid the Russian or Belarusian governments. The sanctions, which were announced days after a similar set of designations imposed by the EU (see 2408050008), were meant to mark the four-year anniversary of the “fraudulent” 2020 presidential election that helped Lukashenko keep power, the countries said in a joint statement.
Russian companies have bought millions of dollars worth of drone parts from China-based drone accessories supplier Tarot-RC, risk advisory firm Kharon said Aug. 6. Kharon said the parts were made by Chinese company Wenzhou Feiyue Aviation Technology Co. and have been shipped into Russia in “significant quantities” since the start of 2023 despite claims by Tarot-RC “that it does not engage in such activity.” Trade records and other public data “contradict that assertion, pointing to a consistent influx of Tarot-RC components into Russia, both through direct shipments from Wenzhou Feiyue Aviation Technology Co. and through intermediaries that move products from China and Hong Kong into Russia,” Kharon said.
Lithuania's customs authority fined an unnamed Lithuania-registered export company over $14.8 million for violating EU sanctions, according to an unofficial translation. The company exported vehicles to Russia through Kazakhstan, Belarus and Turkey, and “did not ensure compliance with the restrictions and obligations set by the international sanctions implemented in the Republic of Lithuania,” the customs agency said, adding that it detained and seized six “tractor semi-trailers.” It also said this “is not the first time that such sanctions have been applied to companies for violations of the law on international sanctions,” but didn’t provide more details.
The U.K. last week expanded the criteria under which an individual or entity can be sanctioned under the nation's Russia sanctions regime. The changes entered into force July 31. The U.K. may now sanction an individual who directly or indirectly "owns or controls" or is "working as a director (whether executive or non-executive), trustee, or other manager or equivalent of," a sanctioned individual or entity. An individual also can be sanctioned for providing financial services to a sanctioned party. The sanctions amendment also altered the "ship specification criteria" to "specify additional activities" for which a ship may be affected.
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The U.K. on Aug. 5 amended a Russia sanctions license allowing designated parties to make certain payments to British billing authorities. The update added a permission to the list of permitted payments, allowing for the payment of fees "owed by or due from UK" sanctioned parties to the billing authorities for "Business Improvement District levies."
Trade groups, lawyers, investment firms, technology companies and foreign governments suggested a range of changes to the Treasury Department’s proposed outbound investment rules (see 2406210034), echoing calls last year for more clarity surrounding the due-diligence steps that will be required of deal-makers and warning that the U.S. risks chilling a broad range of U.S. ventures in China (see 2310050035). Several commenters also urged the Biden administration not to finalize the new prohibitions without similar buy-in from allies, with at least one group suggesting the U.S. is further from coordinating the rules among trading partners than it has let on.
The U.K. on Aug. 2 renewed a sanctions license allowing for certain sales, divestments or transfers of "financial instruments" held by the Russian Central Securities Depository. The license now runs through Oct. 12.
The Senate Appropriations Committee is concerned that Chinese Communist Party-backed companies may be “exploiting” the U.S. bankruptcy process to obtain American companies’ sensitive and proprietary information, the panel wrote in a new report accompanying its version of the FY 2025 Financial Services and General Government Appropriations Act.
The Office of Foreign Assets Control renewed two Russia-related general licenses last week that authorize transactions related to debt, equity or currency-conversion. Both licenses were scheduled to expire Aug. 13 but now expire 12:01 a.m. EDT Oct. 12.