US Sanctions | EU Sanctions | UK Sanctions | Russia/Ukraine Sanctions | Other Notable Developments
I. US SANCTIONS
- US Department of the Treasury Acts to Curtail
Russia's Use of the International Finance System: On
November 21, the US Department of the Treasury's Office of
Foreign Assets Control ("OFAC") designated Gazprombank,
more than 50 internationally connected Russian banks, more than 40
Russian securities registrars, and 15 Russian finance officials to
"further diminish and degrade Russia's war machine."
OFAC also released a new, Russia-related Alert, "Sanctions Risk for
Foreign Financial Institutions that Join Russian Financial
Messaging System, System for Transfer of Financial Messages"
to warn foreign jurisdictions and financial institutions about the
sanctions risks of joining the Russian financial messaging system
Sistema Peredachi Finansovykh Soobscheniy or "System for
Transfer of Financial Messages.." Read more >> and Read more >>
- US Commerce Department Expands Scope of Export Controls Against Russia and Belarus:On November 1, the US Department of Commerce's Bureau of Industry and Security ("BIS") published a final rule to expand Russian and Belarusian industry sector sanctions by imposing controls on nine key precursors for riot control agents and a chemical weapon determined to be used by Russia against Ukraine. The final rule also adjusts exclusions, exceptions, and licensing policies for exports, reexports, or transfers (in-country) to certain components of the governments of Country Group A:5 and A:6 destinations that are in Russia and Belarus. Finally, the rule clarifies that the Russia/Belarus-Military End User and Procurement Foreign-Direct Product ("FDP") rule and the Export Administration Regulation ("EAR")'s other Entity List FDP rules' license requirements extend to or within any destination or to any end user or party that otherwise meets the criteria. BIS also concurrently published an additional rule, which amended the EAR by adding 40 entities under 42 entries and four addresses under four entities to its Entity List. Read more >> and Read more >>
- US Justice Department Charges Indian National with Conspiring to Illegally Export US Aviation Components to Russia: On November 22, the Justice Department announced the indictment of an Indian national for his alleged conspiracy to export controlled aviation components with dual civilian and military applications to end users in Russia, in violation of the Export Control Reform Act. Read more >>
- US and Ukraine Announce Partnership on Leading Edge Small Modular Reactor Projects at COP29: On November 16, during the UN Climate Change Conference in Baku, Azerbaijan, US Under Secretary of State for Arms Control and International Security, Bonnie Jenkins, and Ukraine Minister of Energy, German Galushchenko, announced three project partnerships under the Foundational Infrastructure for the Responsible Use of Small Modular Reactor Technology program: 1) Ukraine Clean Fuels from Small Modular Reactor ("SMR") Pilot Plant (Phase 2), 2) Project Phoenix – Ukraine, and 3) Ukraine Clean Steel from SMR Roadmap. These projects are intended to help position Ukraine to take a leadership role on secure and safe nuclear energy and industrial decarbonization. Read more >>
- US Justice Department Announces Sentencing of Ukrainian National: On November 13, the Justice Department announced the sentencing of a Ukrainian national, Stanislav Romanyuk, for his role in a scheme to violate US export laws and regulations by attempting to smuggle a dual-use export-controlled item to Russia. Romanyuk worked with citizens of Latvia and Russia and a Russian company to smuggle to Russia a 500 Series CPWZ Precision Jig Grinder that was manufactured in Connecticut. Read more >>
- US Justice Department Announces Guilty Plea in
Connection with Shipments of Sensitive Technology to
Russia: On November 7, the Justice Department announced
that a national of the US, Israel, and Russia pleaded guilty to
conspiracy to violate the Export Control Reform Act for his role in
a transnational, multi-million-dollar scheme to secure and
illegally export dual-use semiconductors and other sensitive
technology to Joint Stock Company Research and Development Center
ELVEES and other entities in Russia. Read more >>
- US State Department Issues Joint Statement on the
DPRK's Deployment of Troops to Russia: On November 6,
the State Department, along with the Foreign Ministers of
Australia, Canada, France, Germany, Italy, Japan, Republic of
Korea, New Zealand, the United Kingdom, and the High Representative
of the European Union issued a joint statement expressing
"grave concerns regarding the deployment of [Democratic
People's Republic of Korea] troops to Russia, potentially for
the use on the battlefield against Ukraine." Read more >>
- US Justice Department Charges Executives of Virginia
Company with Conspiracy to Violate Export Control Reform
Act: On November 4, the Justice Department unsealed a
complaint charging two executives of Eleview International Inc. for
conspiring to violate the Export Control Reform Act. The executives
are alleged to have participated in three different schemes to
illegally transship sensitive American technology to Russia. Read more >>
- US State Department Condemns Russia's Conviction of
Robert Shonov:On November 2, the State Department
published a statement strongly condemning Russia's conviction
and sentencing of Robert Shonov, a former employee of US Mission
Russia. The statement emphasized the allegations "are entirely
without merit, and his conviction is an egregious injustice."
Read more >>
- US Justice Department Announces Guilty Plea Relating to Evasion of US Export Controls: On November 1, the Justice Department announced that a dual US-Russian national, Vadim Yermolenko, pleaded guilty to conspiracy to violate the Export Control Reform Act, conspiracy to commit bank fraud, and conspiracy to defraud the United States for his role in a transnational procurement and money laundering network that sought to acquire sensitive dual-use electronics for Russian military and intelligence services. Read more >>
II. EU Sanctions
- EU Widens Sanction Measures in View of Iran Support of
Russia: The EU introduced a prohibition on the export,
transfer, supply, or sale from the EU to Iran of components used in
the development and production of missiles and Unmanned Aerial
Vehicles (UAV). The EU also introduced a transaction ban
prohibiting any transaction with ports and locks that are owned,
operated or controlled by listed individuals and entities, or are
used for the transfer of Iranian UAVs or missiles or related
technology and components to Russia. Furthermore, the EU adopted
restrictive measures against one individual and four entities
following Iran's missile and drone transfers to Russia,
including the Islamic Republic of Iran Shipping Lines. Read more >>, Read more >> and Read more >>
- EU Commission Updates Guidance on Intellectual Property
Rights under EU Sanctions Targeting Belarus and Russia: On
November 5, the European Commission updated its Frequently Asked
Questions on intellectual property rights concerning sanctions
adopted in view of Russia's military aggression against Ukraine
and Belarus' involvement in it. Read more >>
- EU Commission Adopts Guidance Clarifying 'Best
Efforts' Obligations under EU Sanctions Targeting Belarus and
Russia: On November 22, the European Commission issued
guidance interpreting the 'best efforts' obligations in
Frequently Asked Questions. As part of the sanctions packages
adopted against Russia and Belarus, the EU introduced novel
'best efforts' requirements, which seek to "hamper
sanctions circumvention", by "keeping in check" the
foreign subsidiaries of individuals and entities required to comply
with EU sanctions. Read more >>
- European Banking Authority Guidance to Ensure the
Implementation of EU and National Sanctions: On November
14, the European Banking Authority issued final guidelines that set
common EU standards on the governance arrangements and the
policies, procedures and controls financial institutions should
have in place to be able to comply with the EU and national
restrictive measures. Read more >>
- EU's General Court Dismisses Action Against EU Sanctions Brought by Several Individuals:By its judgments delivered in November, the General Court dismissed actions brought by Evgeny Borisovich Zubitskiy, Artem Alexandrovich Uss and Bogoljub Karić against EU sanctions targeting Russia or Belarus. Read more >>, Read more >> and Read more >>
- German Businessman Sentenced to 7 Years for Selling Machining Tools to Russian Weapons Manufacturer: The Higher Regional Court of Stuttgart has sentenced a man to seven years in prison for selling machinery to a Russian weapons manufacturer for the production of sniper rifles in breach of EU sanctions. Read more >>
- Poland Arrests a Man Over Alleged Export of Dual-Use Technology to Russia: On November 20,Poland's Internal Security Agency apprehended a German citizen involved in the trade of machinery that had been diverted to Russia for use in arms production. The prosecution office managing the case has leveled charges against the suspect for facilitating and exporting dual-use goods to Russia. Read more >>
- Dutch Court Convicts Company Director for Breaches of Russia Sanctions and Confiscates Proceeds from Company:The Rotterdam District Court has handed down two judgments relating to the conviction and sentencing of an individual for exporting computer goods and software destined for Russian companies via intermediaries in Kazakhstan, Kyrgyzstan and Uzbekistan. According to the judgment, the man had been selling computer equipment to two Russian companies prior to 2022. After the goods in questions became sanctioned, a fact he was made aware of by his customs agent, the man directed the exports to affiliates of his Russian customers in Kazakhstan, Kyrgyzstan and Uzbekistan. All the communications, however, remained with the Russian companies. Read more >>, Read more >> and Read more >>
- EU Commission Clarifies its Approach on the Potential Use of Former Soviet Republics to Circumvent EU Sanctions:The European Commission indicated that the EU Sanctions Envoy has engaged in extensive outreach to jurisdictions representing high-risk of EU sanctions' circumvention, including in Central Asia and the Caucasus. Both political and technical level engagement has borne tangible results, in particular as regards trade in the Common High Priority items. The European Commission has also organized capacity-building seminars to further inform third countries, including Uzbekistan, and their economic operators about EU sanctions. The European Commission also indicated that it welcomes any concrete information in the context of sanctions circumvention so it can take action. Read more >> and Read more >>
- EU Commission Responds Whether New Ukrainian Sanctions Call into Question the EU-Ukraine Association Agreement:The European Commission responded to questions concerning sanctions imposed by Ukraine on the Russian oil company Lukoil, resulting in a halt to oil deliveries via the Druzhba pipeline that crosses Ukraine to several EU Member States, especially Hungary and Slovakia. The European Commission clarified that missing volumes from Lukoil were replaced with different suppliers/traders through the same Druzhba pipeline in July and August 2024 and that there was no interruption of energy supplies. The European Commission services have concluded that urgent arbitration under the EU-Ukraine Association Agreement does not appear to be warranted. Read more >> and Read more >>
- European Court of Auditors to Assess the Implementation of Financial and Trade Sanctions Against Russia:The European Court of Auditors will assess whether the European Commission and Member States' procedures effectively support the implementation of the financial and trade sanctions introduced following Russia's invasion of Ukraine. Read more >>
- EU Proposes to Sanction Chinese Firms Aiding Russia's War:The EU is proposing to sanction several Chinese firms that it claims helped Russian companies develop attack drones that were deployed against Ukraine. The European Commission is also looking into imposing restrictions on additional Russian oil tankers to curb Moscow's ability to circumvent existing restrictive measures. The EU also proposed adding a Chinese national who controls a company that has breached EU trade sanctions, a Hong Kong-based firm that has provided Russian military firms with banned microelectronic components, and North Korean defense officials involved with the country's decision to deploy troops to aid Russia. Read more >>
III. UK Sanctions
- UK Government adds two entries to the UK sanctions list
and specifies 30 vessels under the Russia regime:On
November 25, OFSI added two entries to the UK sanctions list and
specified 30 vessels under the Russia regime. According to the UK
Government, the 30 vessels are part of Russia's shadow fleet
who are "responsible for transporting billions of pounds worth
of oil and oil products in the last year alone". Two leading
Russian insurance companies - Alfastrakhovanie Plc and VSK –
have also been designated for "enabling the shadow
fleet". Read more >> and Read more >>
- UK Government publishes Oil Price Cap Advisory on
evasion linked to product origin manipulation through falsified
certificates of origin: On November 21, the Office of
Financial Sanctions Implementation ("OFSI") published an
Oil Price Cap Advisory on evasion linked to product origin
manipulation through fabricated and falsified certificates of
origin ("CO"). The Advisory provides market participants
with further guidance to assist in the identification and
investigation of red flags in the maritime transport of oil and oil
products whose Russian origin status has been obscured. Among other
things, the Advisory provides includes a list of red flags which
may be indicative of a fabricated or falsified CO, and guidance on
how to conduct spot checks to ensure they are price cap compliant.
Read more >>
- UK Government adds ten entries to the UK sanctions list
under the Russia regime:On November 19, OFSI added eight
individuals and two entities to the UK sanctions list under the
Russia regime. According to the UK Government, the new sanctions
target those supporting Vladimir Putin's attempts to forcibly
deport and indoctrinate Ukraine's children and erase their
Ukrainian cultural heritage. Among the designations was All-Russian
Young Army Military Patriotic Social Movement (Yunarmia), a
paramilitary organisation who have been central to Russia's
programme of deporting and indoctrinating Ukraine's young
people. Read more >> and Read more >>
- UK Government specifies vessel under the Russia
regime: On November 18, OFSI specified Port Olya-3 (IMO
9481910) under the Russia sanctions regime. This measure was taken
alongside the designation of two Iranian entities for, according to
the UK Government, their role in supporting the Iranian defence
sector or transporting weapons to Russia for use on the battlefield
in Ukraine. Read more >> and Read more >>
- OFSI blog reflects on two years of enhanced partnership
with OFAC: On November 19, OFSI published a blog
reflecting on two years of enhanced partnership with OFAC. Among
other things, OFSI noted that it had engaged in joint private
sector outreach with OFSI, had entered a Memorandum of
Understanding to enhance its ability to collaborate and share
information, and had considered organisational modernisation to
support OFSI's ability to quickly adapt and respond to new
challenges in an increasingly complex sanctions landscape. Read more >>
- UK Government amends four entries on and removes one
entry from the UK sanctions list under the Russia regime:
On November 15, OFSI updated four entries on the UK sanctions list,
namely the entries relating to Anatoly Ilyich Bibilov, Juhang
Aviation Technology (Shenzhen) Co., Limited, Konstantin Yurievich
Mirzayants, and Virmavia Ou. At the same time, the UK Government
removed Didier Casimiro, former Vice President of Rosneft, from the
UK sanctions list. Read more >>
- OFSI publishes FAQ relating to Russian Decree
840:On November 11, OFSI published FAQ 124, which
acknowledges the Russian Decree 840 has moved equities held at the
Russian National Settlement Depository to local registrars. In the
FAQ, OFSI cautions that many Russian registrars may be captured by
other existing designations, and notes that the UK government is
exploring options to further clarify the current position. Read more >>
- UK Government introduces amendments across certain UK
sanctions regimes, including Russia: On November 14, the
UK laid down the Sanctions (EU Exit) (Miscellaneous Amendments)
(No.2) Regulations 2024, which introduces a number of changes
across the UK sanctions regime. Most of these changes come into
effect on December 5, 2024. Among other things, the new statutory
instrument: (i) changes the existing requirements on "relevant
firms" and "involved persons" to report suspected
offences to a requirement to report suspected breaches of sanctions
regulations; (ii) creates a new insolvency licensing purpose under
certain UK sanctions regimes; (iii) introduces new civil monetary
penalty powers for breaches in relation to Russia land
prohibitions; and (iv) with effect from May 14, 2025, expands the
definition of "relevant firms" subject to financial
sanctions reporting obligations to cover additional sectors –
high value dealers, art market participants, insolvency
practitioners and letting agencies. Read more >> and Read more >>
- OFSI publishes new financial sanctions guidance for
insolvency practitioners, letting agents and art market
participants:On November 14, OFSI published new guidance
for Insolvency Practitioners, Letting Agents and High Value Dealers
and Art Market participants. The new guidance will support market
participants in those sectors understand their obligations under UK
sanctions and to identify sanctions red flag typologies (including
in relation to sanctions evasion). Read more >>, Read more >>, Read more >>, Read more >> and Read more >>
- OFSI issues Correspondence Banking General Licence for
2022 payments:On November 7, OFSI issued General Licence
INT/2024/5394840, which authorises the processing by a relevant
institution of certain payments that were blocked in 2022, subject
to certain terms and conditions. This General Licence expires on
November 6, 2025. Read more >> and Read more >>
- OFSI extends General Licence for Continuation of
Business of Evraz Plc's North American Subsidiaries:On
November 7, OFSI extended General Licence INT/2022/1710676, which
authorises certain activities relating to the continuation of
business of Evraz Plc's North American Subsidiaries. The
general licence now expires on 30 September 2025. Read more >>
- UK Government adds 47 entries to the UK sanctions list
under the Russia sanctions regime: On November 7, OFSI
added 16 individuals and 31 entities to the UK sanctions list under
the Russia sanctions regime. According to the UK Government, the
new sanctions targets suppliers supporting Russia's military
production, Russian-backed mercenary groups operating in
Sub-Saharan Africa and a GRU agent involved in the use of a
Novichok nerve agent in Salisbury. Read more >> and Read more >>
- OFSI issues new UK Financial Sanctions FAQs:On
November 5 and 7, OFSI added several new FAQs to support
stakeholders in interpreting and complying with UK sanctions.
Several new FAQs relate to inter alia OFSI's legal
services general licence (FAQs 49-51, 55, 61-66, 72-73, 76 and 84)
and the impact of Russian Decree 840 (FAQ 123). In respect of the
latter point, OFSI has extended the 2024 Frozen Asset Reporting
Date by two weeks to November 25, 2024. Read more >>
- HMRC agrees compound settlement with UK exporter in
connection with apparent breach of Russia sanctions: On
November 4, HMRC announced that it had agreed a compound settlement
offer in August 2024 pursuant to which an (unnamed) UK exporter
paid £58,426.45 in connection with apparent violations of the
Russia (Sanctions) (EU Exit) Regulations 2019. The Notice to
Exporters states that, since February 2022, HMRC has issued six
compound settlements against UK companies that have breached the
Russia sanctions regulations for a total of £1,363,129. Read more >>
- UK Government updates licensing grounds described in Russia trade sanctions guidance:On October 31, the UK Government removed the following licensing ground from its trade sanctions guidance in relation to the provision of professional and business services to Russia: services to a person connected with Russia by a UK parent company or UK subsidiary of that parent company. Read more >> and Read more >>
IV. Russia/Ukraine Sanctions
- Ukraine sanctions 15 Russian individuals and 102 Russian entities:On November 12, President Zelenskyy introduced two decrees which sanctioned several Russian individuals and Russian entities under its economic and other restrictive measures (sanctions) regime. Under Decree No. 761/2024, 15 Russian nationals and 39 Russian entities, including entities in Belarus and occupied territories of Ukraine, were sanctioned. Decree No. 762/2024 also introduced sanctions to 63 companies, including Russian airlines and airports. Read more >>
V. Other Notable Developments
- Japan's JERA Reports No Impact on its LNG Supply following Gazprombank Sanctions: On November 27, the President of Japan's top utility company, JERA, reported seeing no impact from new US sanctions on Gazprombank on its procurement of liquefied natural gas ("LNG") from Russia's Sakhalin-2 project, as it does not use the lender for payment settlements. Japan's Industry Minister, Yoji Muto, also stated that Japan would take all possible measures to prevent disruptions in securing stable LNG supply from Sakhalin-2 following the new U.S. sanctions. Read more >>
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