Sanctions and Export Controls News Digest - August 2024
SYSTEMIC CHANGES
Switzerland Adopts Measures from EU 14th Sanctions Package against Russia
On 21 August 2024, the Swiss Federal Council announced its adoption of certain measures of the EU’s 14th Russia sanctions package. Newly adopted measures will include alignment with the ban on Russian diamonds, and extending deadlines to 31 December 2024 for exit licences regarding controlled goods and banned services and software.
UK Updates Somalia Sanctions Guidance
On 19 August 2024, the UK updated its Somalia sanctions guidance following the UN Security Council Resolution 2713 (2023), which imposes an arm embargo on Al-Shabaab but provides exemptions and exceptions for other actors in Somalia.
UK Publishes AUKUS Nations Open General Licence
On 16 August 2024, the UK published the AUKUS Nations Open General Licence, concurrent with an exemption to the ITAR granted by the US, and Australia’s license-free provisions. These changes allow treaty partners to ease export controls to ultimately allow for easier defence trade among and between Authorised Users within the partner’s nations.
US Bureau of Industry and Security Tightens Controls on Russia
On 23 August 2024, the Bureau of Industry and Security expanded the scope of the Russia/Belarus Military End User (MEU) and Procurement Foreign Direct Product (FDP) rule and imposed additional license requirements on operation software for computer numerically controlled (CNC) machine tools.
US Bureau of Industry and Security Proposes New Military End-User Rules and Controls
On 29 July 2024, the Bureau of Industry and Security proposed two new rules amending the Export Administration Regulations; the first would establish certain Foreign-Security End User (FSEU) and “US persons” activities controls and Commerce Control List-based (CCL) controls, and the second would amend the definition of and expand control over “support” furnished by “US persons” to military end users and military-production activities, as well as intelligence end users that are not otherwise already regulated under or prohibited by US law. These rules are open for public comment until 27 September 2024.
DESIGNATIONS AND DESIGNATION CHALLENGES
EU
On 5 August 2024, the EU designated 28 individuals for participating in internal repression and human rights violations in Belarus. Listings include members of government, as well as members of the judiciary, and various long-time supporters of the Lukashenka regime.
US
In August 2024, the US Government made the following designations (among others):
- On 28 August, pursuant to Executive Order 14115, one individual and one entity contributing to violence against Palestinians and instability in the West Bank.
- On 23 August, pursuant to Executive Order 14024, nearly 400 individuals and entities – both inside and outside Russia – who are supporting its war of aggression by supplying products and services.
- On 15 August, pursuant to Executive Order 13224, as amended by Executive Order 13886, counter terrorism designations against one Indian individual, seven entities (registered in the Marshall Islands, the UAE, Hong Kong, and Malaysia respectively) and seven vessels operating under various different flags.
- On 9 August, pursuant to Executive Order 14038 and Executive Order 14024 respectively, 19 individuals and 14 entities supporting Russia’s war in Ukraine through military resource production and transshipment of goods to Russia, sanctions evasion on behalf of Belarusian defense entities, and revenue generation for Belarusian oligarchs in Lukashenka’s inner circle.
- On 6 August, pursuant to Executive Order 13818, one Paraguayan tobacco company for providing financial support to Paraguay’s former president, Horacio Manuel Cartes Jara (Cartes), who was designated by the USG in 2023 for his involvement in corruption.
UK
On 27 August 2024, the UK delisted one individual previously designated under the Isil (Da'esh) and Al-Qaeda sanctions regime.
On 9 August 2024, the UK designated four individuals and three entities under the Belarus sanctions regime. The individuals were designated respectively for their involvement in the commission of a serious human rights violation in Belarus, the repression of civil society and democratic opposition in Belarus, and actions and activities which undermine democracy and the rule of law in Belarus. The entities were designated respectively for their obtaining a benefit from the Government of Belarus, and involvement in conduct destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine, including by supporting or facilitating Russia’s actions in respect of Ukraine.
On 1 August 2024, the UK delisted two individuals previously designated under the Yemen sanctions regime.
IMPORT AND EXPORT CONTROLS
Cypriot authorities have arrested and extradited to the US, on 8 August 2024, a Russian individual charged by the US Attorney’s Office for the Southern District of New York with export control violations, smuggling, wire fraud, and money laundering offenses. The individual was allegedly procuring US-made microelectronics subject to US export controls for a Russia-based supplier of critical electronics components for manufacturing in the Russian military-industrial complex.
