Sanctions Updates

29 Nov 2023, 53 mins ago

This page provides a summary of the measures imposed by each of the UK, EU, USA, and some other countries (Australia, Canada, Czech Republic, Switzerland, New Zealand, and Ukraine); following Russia’s invasion of Ukraine in February 2022. We also look at the measures that neighbouring to Russia coutnries plus Turkey and UAE undertake to prevent circumvention.
UK

On 11 December, the Foreign, Commonwealth and Development Office made new and updated existing designations under Russia, Belarus, Haiti and Counter-Terrorism sanctions regimes.

Russia

The following entry was amended and is still subject to an asset freeze and trust services sanctions

• OOO MVIZION (Group ID: 16261) (Notice).

Belarus

The following entries were amended and are still subject to an asset freeze:

• Mikhail Ivanovich DOLA (Group ID: 16280)

• Mikhail KAVALIOU (Group ID: 16284) (Notice).

Haiti

The following entries were added to the Consolidated List and are now subject to an asset freeze.

• Johnson ANDRE (Group ID: 16325)

• Renel DESTINA (Group ID: 16326)

• Vitelhomme INNOCENT (Group ID: 16328)

• Wilson JOSEPH (Group ID: 16327) (Notice).

Counter-Terrorism (International)

The following entry was amended and is still subject to an asset freeze:

• Abdelbasit Hamza Elhassan Mohamed KHAIR (Group ID: 16202) (Notice).

USA

On 11 December, the Department of Justice, Department of Commerce’s Bureau of Industry and Security (BIS), Department of Homeland Security’s Homeland Security Investigations, Department of State’s Directorate of Defence Trade Controls, and OFAC issued a joint compliance note highlighting common tactics deployed by malign actors in the maritime and other transportation industries, as well as recent criminal and civil enforcement actions taken in response to alleged violations of US sanctions and export controls (Compliance note).

European Union

On 11 December, the EU Council imposed restrictive measures against 6 individuals and 5 entities involved in Iran’s development and production of unmanned aerial vehicles (UAV) used by Russia in its war inUkraine.

Those are the first listings under the newly established framework for restrictive measures in view of Iran’s support of Russia. The new designations include:

Shakad Sanat Asmari Companyits CEO, deputy CEO, and chief scientist;

Baharestan Kish Company and its managing director, Saad Sazeh Faraz Sharif and its CEO, as well as Sarmad Electronic Sepahan Company,offering aerospace engineering services, and companies helping Iran’s Islamic Revolutionary Guard Corps Quds Force (IRGC-QF) improve the UAV programme (Kimia Part Sivan Company) (Press release & EU Council Decision (CFSP) 2023/2792 of 11 December 2023).

UK

On 6 December, the FCDO sanctioned 46 individuals and entities involved in supplying military goods to the Russian state. This includes individuals and businesses based in Russia, Belarus, China, Serbia, Turkey, Uzbekistan and the UAE (Press release & Notice).
On 6 December, G7 leaders agreed “to introduce import restrictions on non-industrial diamonds, mined, processed, or produced in Russia, by January 1, 2024, followed by further phased restrictions on the import of Russian diamonds processed in third countries targeting March 1, 2024”. (UK Government’s press release).
On 6 December, the National Economic Crime Centre, a multi-agency unit in the National Crime Agency (NCA), HM Treasury’s Office of Financial Sanctions Implementation (OFSI) and the Foreign, Commonwealth & Development Office (FCDO) issued a red alert “Exporting High Risk Goods” aimed at providing information to UK businesses on common techniques suspected to be in use to evade sanctions on the export of high-risk goods. The primary users of this alert is the UK’s financial sector, including banks, credit card operators, foreign exchange dealers and non-bank payment service providers.
Today, the UK Government added 2 entries to its Sanctions Consolidated list. They were added under The Cyber (Sanctions) (EU Exit) Regulations 2020 (S.I. 2020/597) and are now subject to an asset freeze:
  • Andrey Stanislavovich KORINETS (Group ID: 16278)
  • Ruslan Aleksandrovich PERETYATKO (Group ID: 16277) (Notice).

EU

On 6 December, the Court of Justice of the European Union (CJEU) rejected delisting application in the case of Evgeny Borisovich Zubitskiy v Council (Case T-359/22). In its judgment, the CJEU stated that the notion of “influential businessmen” shall be understood as referring to the importance of the latter with regard, in particular, to their professional status, the importance of their economic activities, the scale of their capital holdings or their functions within one or more companies where they carry out these activities. In response to the applicant’s argument about the reliability of evidence used by Council to designate him, the Court stated that in the absence of any element capable of calling into question the reliability of the sources used by the Council, they must be recognised as sensible and reliable.

USA

On 5 December, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 11 Belarusian entities and seven individuals pursuant to Executive Order (E.O.) 14038, and one individual pursuant to E.O. 14024. This action aimed to increase pressure on Belarus president Mr Lukashenko and his regime (Press release & Notice).
OFAC also issued Belarus General License 10, which authorises the wind-down of transactions involving Tabak Invest LLC.

Russia

UK

On 6 December, the FCDO sanctioned 46 individuals and entities involved in supplying military goods to the Russian state. This includes individuals and businesses based in Russia, Belarus, China, Serbia, Turkey, Uzbekistan and the UAE (Press release & Notice)
On 6 December, the National Economic Crime Centre, a multi-agency unit in the National Crime Agency (NCA), HM Treasury’s Office of Financial Sanctions Implementation (OFSI) and the Foreign, Commonwealth & Development Office (FCDO),  issued a red alert “Exporting High Risk Goods”, aimed to provide information to UK businesses on common techniques suspected to be in use to evade sanctions on the export of high-risk goods. The primary users of this alert is the UK’s financial sector, including banks, credit card operators, foreign exchange dealers and non-bank payment service providers.
On 6 December, G7 leaders agreed “to introduce import restrictions on non-industrial diamonds, mined, processed, or produced in Russia, by January 1, 2024, followed by further phased restrictions on the import of Russian diamonds processed in third countries targeting March 1, 2024”. (UK Government’s press release).
Today, the UK Government have added 2 entries to its Sanctions Consolidated list. They were added under The Cyber (Sanctions) (EU Exit) Regulations 2020 (S.I. 2020/597) and are now subject to an asset freeze:
  • Andrey Stanislavovich KORINETS (Group ID: 16278)
  • Ruslan Aleksandrovich PERETYATKO (Group ID: 16277)   (Notice)

EU

On 6 December, the Court of Justice of the European Union (CJEU) rejected delisting application in the case of Evgeny Borisovich Zubitskiy v Council (Case T-359/22). In its judgment the CJEU stated that the notion of “influential businessmen” shall be understood as referring to the importance of the latter with regard, in particular, to their professional status, the importance of their economic activities, the scale of their capital holdings or their functions within one or more companies where they carry out these activities. To the applicant’s argument about the reliability of evidence used by Council to designate him, the Court stated thatin the absence of any element capable of calling into question the reliability of the sources used by the Council, they must be recognised as sensible and reliable.

USA

On 5 Decemberthe US Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 11 Belarusian entities and seven individuals pursuant to Executive Order (E.O.) 14038 and one individual pursuant to E.O. 14024. This action aimed to increase pressure on Belarus president Mr Lukashenko and his regime (Press release & Notice).  
OFAC also issued Belarus General License 10, which authorises the wind down of transactions involving Tabak Invest LLC.

Russia

UK Sanctions Regime

On 17 November 2023, The Foreign Commonwealth and Development Office (FCDO) and the Office of Financial Sanctions Implementation (OFSI) have issued joint guidance relating to ownership and control in UK sanctions regimes. This guidance is applicable to all sanctions regimes, including the Russia (Sanctions) (EU Exit) Regulations 2019. In summary, that guidance provides that.

* https://www.gov.uk/government/publications/ownership-and-control-public-officials-and-control-guidance/ownership-and-control-public-officials-and-control-guidance

EU Sanctions Regime

On 04 December 2023 the EU extended its Global Human Rights Sanctions Regime for another three years.

USA Sanctions Regime

On 1 December 2023, the US Department of the Treasury imposed sanctions on three entities and identifying as blocked property three vessels that used Price Cap Coalition services while carrying Russian crude oil above the Coalition-agreed price cap.

*Press release: https://home.treasury.gov/news/press-releases/jy1940

Other sanctions regimes

In November 2023, Canada decided to lift sanctions from the businessman Oleg Boyko. The reasons for imposing and lifting sanctions are not publicly disclosed, but Boyko’s lawyers insisted that he does not have any business in Canada, is not a person associated with the authorities and government bodies of Russia, and does not take part in political processes.

Court Decisions

On 15 November 2023, the UK High Court has granted Litasco SA summary judgment for sums due under contract for the sale of oil to Der Mond, rejecting Der Mond’s reliance on the force majeure and sanctions as defences for not making payment.

* https://www.bailii.org/ew/cases/EWHC/Comm/2023/2866.html

CIS / Former Soviet States/Turkey/UAE measures for prevention of sanctions circumvention

On 9-10 November 2023, the European Union (EU) organised training workshops in Bishkek, Kyrgyzstan on EU sanctions, with organisational support from the International Science and Technology Center (ISTC) and the Association of Certified Sanctions Specialists (ACSS).

* https://www.eeas.europa.eu/delegations/kyrgyz-republic/eu-sanctions-training-workshops-conducted-bishkek-conveying-state-representatives-and-private-sector_en?s=301

How Gherson can assist

Gherson’s sanctions team are highly experienced in advising on UK sanctions matters. If you have any questions arising from this blog relating to issues of ownership and control or any other sanctions related issues, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on TwitterFacebookInstagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2023