ARTICLE
1 May 2025

Weekly Sanctions Update: April 28, 2025

SJ
Steptoe LLP

Contributor

In more than 100 years of practice, Steptoe has earned an international reputation for vigorous representation of clients before governmental agencies, successful advocacy in litigation and arbitration, and creative and practical advice in structuring business transactions. Steptoe has more than 500 lawyers and professional staff across the US, Europe and Asia.
The Sanctions Update is compiled by Steptoe's International Trade and Regulatory Compliance team and Steptoe's Strategic Risk team.
Worldwide International Law

The Sanctions Update is compiled by Steptoe's International Trade and Regulatory Compliance team and Steptoe's Strategic Risk team. You can subscribe to receive the Sanctions Update every week through Steptoe's International Compliance Blog and Stepwise Risk Outlook publication home pages.

US Developments

US Considering Lifting Sanctions on Russian Energy Assets

The White House is reportedly exploring options to remove sanctions on certain Russian energy assets, including sanctions related to the Nord Stream 2 pipeline, as part of its effort to end the war in Ukraine. As we previously covered, in March, the White House reportedly requested the Departments of State and the Treasury to draft a list of sanctions that could be eased during negotiations with the Kremlin. Reporting also indicated that Moscow was asking companies which sanctions it should prioritize negotiating relief for ahead of its first meeting with the US delegation.

However, Secretary of State Marco Rubio publicly denied the reports that he and White House special envoy Steve Witkoff have discussed lifting energy sanctions as part of a Ukraine deal. In addition, we expect that a decision to lift the sanctions may face considerable opposition from many members of Congress and the European Union, among others.

Treasury Continues to Issue Iranian Energy Designations

The Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated an alleged Iranian liquified petroleum gas (LPG) magnate, Seyed Asadoollah Emamjomeh, and others involved in his "corporate network," for their purported roles in the shipment of Iranian LPG and crude oil to foreign markets. OFAC's actions were taken in furtherance of President Trump's National Security Presidential Memorandum (NSPM-2), which renewed the Trump administration's "maximum pressure" strategy against Iran.

These are the fourth installment of designations that OFAC has announced since the US and Iran first agreed to negotiations over Iran's nuclear program. While the US and Iranian officials have described the ongoing negotiations as constructive, Iran's Foreign Ministry Spokesperson, Esmaeil Baghaei, recently stated that the "continued imposition of sanctions" is in "clear contradiction with the US claim for dialogue" and indicates a "lack of goodwill and seriousness." It remains to be seen how, if at all, the Trump administration's decision to continue applying sanctions pressure on Iran will impact the trajectory of the negotiations.

Lawmakers Push for Engagement with Syria's Interim Government

Senator Elizabeth Warren (D-MA), the Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, along with Representative Joe Wilson (R-SC), Member of the House Foreign Affairs Committee, sent a follow-up letter to Secretary Rubio urging the State Department to provide details on the Trump administration's plans with respect to Syria-related sanctions. Sen. Warren and Rep. Wilson claimed that the State Department's response to their initial request was insufficient, especially in light of reports that the US had given the Syrian interim government a list of conditions for partial sanctions relief.

A few days after Sen. Warren and Rep. Wilson's follow-up, Sen. James Risch (R-ID) and Sen. Jeanne Shaheen (D-NH), the Chairman and Ranking Member of the Senate Foreign Relations Committee, respectively, sent a letter to Secretary Rubio and Secretary of the Treasury Scott Bessent encouraging the Trump administration to increase its engagement with the Syrian interim government, including by reducing the sanctions risk in sectors such as agriculture, energy, power grid infrastructure, finance, telecommunications, and education; expanding general licenses (GLs) to provide more flexibility for those on the ground; and providing short-term sanctions relief.

Both of these letters came as Reps. Marlin Stutzman (R-IN) and Cory Mills (R-FL), visited Syria to meet with President Ahmad al-Sharaa. New reports also suggest that the Trump administration is engaged with the Syrian interim government and has increased its requirements for sanctions relief. It remains to be seen whether the Syrian interim government will agree to the Trump administration's conditions, although the last week's arrest of two Palestinian Islamic Jihad leaders signals that Sharaa may be open to complying with US requests to sideline Hamas-linked jihadists that have historically operated freely in Syria.

Senators Express Concern Over De-listing of Hungarian Official

Sen. Shaheen and Sen. Warren released a statement condemning President Trump's decision to remove Antal Rogan from the List of Specially Designated Nationals and Blocked Persons (SDN List). In their statement, Shaheen and Warren questioned the legality of the de-listing on the basis that proper and timely notice was not given to the required Congressional committees under the Global Magnitsky Human Rights and Accountability Act.

Rogan was previously sanctioned by the Biden administration on January 7, 2025, for his alleged involvement in corruption in Hungary. Secretary Rubio announced that the US would be removing Rogan from the SDN List on April 15, 2025, noting that the continued designation was "inconsistent with US foreign policy interests."

UK Developments

UK Announces Wide-Ranging New Package of Russia Sanctions

On April 24, 2025, the UK government announced a new package of Russia trade sanctions, underscoring the UK government's continued focus on increasing economic pressure on the Russian government and degrading its ability to fund the war in Ukraine. The new sanctions further restrict Russian access to UK goods through the imposition of export bans on a range of products, including chemicals, electronics, machinery, plastics, and metals. These measures also more closely align these aspects of UK Russia sanctions with measures imposed by the UK's international partners, including the EU. Additionally, the UK has introduced significant new prohibitions on software and technology, which include (i) prohibitions on the transfer, making available and provision of ancillary services in relation to certain technology associated with energy-related, advanced, and industrial manufactured goods, thereby restricting information flows in relation to these items, and (ii) the imposition of sectoral software and technology prohibitions to prevent the transfer and making available of certain business enterprise, industrial design, and oil and gas related software and technology, as well as the provision of ancillary services related to this software and technology. Finally, synthetic diamonds processed in third countries and helium have been added to existing UK Russia import bans, with the aim of impacting Russian revenue streams critical to funding its war in Ukraine.

EU Developments

EU and China Near Agreement to Lift Sanctions on MEPs

Beijing has reportedly proposed lifting sanctions on several Members of the European Parliament, hinting at a potential reset in EU-China relations amidst the trade tensions sparked by Donald Trump's tariffs. Discussions are reportedly in the final stages, with the European Parliament eager to resume relations once the sanctions are officially lifted.

The sanctions were initially imposed by Beijing in retaliation for EU measures against Chinese officials over human rights violations in Xinjiang. This move had derailed a significant investment agreement between the EU and China. While recent diplomatic engagements suggest a thaw, the European Commission remains cautious about reviving the deal, emphasizing the need for diversified trade partnerships and careful consideration of economic impacts.

EU Extends Sanctions on Myanmar Until April 2026

The Council of the European Union has extended its restrictive measures on Myanmar for another year, until April 30, 2026, citing ongoing severe human rights violations and actions that undermine democracy. These sanctions affect 106 individuals and 22 entities, subjecting them to asset freezes, prohibitions on the provision of funds, and travel bans to the EU. The measures also include an arms embargo, export restrictions on communication monitoring equipment, and bans on dual-use goods for military use. Additionally, military training and cooperation with Myanmar's armed forces are prohibited. The EU continues to withhold financial assistance that could legitimize the junta and remains committed to supporting the people of Myanmar in their quest for democracy and human rights. Further sanctions may be imposed if the situation worsens.

Asia-Pacific Developments

China Sanctions US Congressional Members, Officials and NGO Heads in HK-Related Countermeasure

On April 21, 2025, China's Ministry of Foreign Affairs ("MOFA") announced sanctions against US officials following earlier US sanctions on six Beijing and Hong Kong officials accused of intimidating pro-democracy activists. Chinese Foreign Ministry spokesperson Guo Jiakun stated that the Chinese countermeasures would target US congressmen, officials, and NGO leaders who have performed poorly on Hong Kong-related issues, though specific names were not disclosed. The measures include denial of entry and asset freeze, as outlined by China's Anti-Foreign Sanctions Law. On March 23, 2025, China signed a State Council decree that unveiled the regulation implementing its Anti-Foreign Sanctions Law ("AFSL Implementation Act"). The AFSL Implementation Act further specifies that foreign countries, organizations, or individuals committing, assisting, or supporting acts that endanger China's sovereignty, security, and interests, can become a target of China's countermeasures.

China Denounces 'Illegal' Sanctions on Iran but Supports Nuclear Negotiations

On April 23, 2025, Chinese Foreign Minister Wang Yi reportedly firmly opposed the use of "illegal" sanctions while expressing strong support for Iran's ongoing negotiations regarding its nuclear program with the United States. According to a statement from the Chinese Foreign Ministry, Wang told Iran's Foreign Minister that "China has always been committed to a political and diplomatic solution to the Iranian nuclear issue and is opposed to resorting to force and illegal unilateral sanctions at every turn." Iran updated China on the progress of the "indirect talks" with the US and expressed gratitude for China's constructive stance regarding the nuclear program and the lifting of sanctions.

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