INTERNATIONAL SANCTIONS APRIL 2022

2022-04-29 International Sanctions Newsletters

International sanctions have become a popular foreign policy instrument. Once limited to a few cases, they now have a broad mandate. In principle, sanctions aimed at addressing serious human rights violations, stopping arms sales to parties to armed conflicts and supporting peace negotiations are an important political instrument. However, there is growing evidence that the practice of international sanctions has become more of a problem than a solution for a humane and peaceful international order. The main causes are the excessive use of sanctions in general and the increasing use of sanctions as an instrument of power. These developments have also increased the negative side effects of sanctions.

We believe it is important to keep a register of legal and natural persons sanctioned by the United Kingdom, the European Union and the United States of America. If your business is international, this may be of concern to you, as they affect not only the sanctioned countries and individuals, but also those who do business with them.

1. EUROPEAN UNION

SYRIA

On 5 April 2022, COUNCIL DECISION (CFSP) 2022/539 of 4 April 2022 implementing DECISION 2013/355/CFSP concerning restrictive measures against Syria was published in the Official Journal of the European Union.

RUSSIA

On 8 April 2022, COUNCIL DECISION (CFSP) 2022/582 of 8 April 2022 amending DECISION 2014/145/CFSP concerning restrictive measures against actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine was published in the Official Journal of the European Union.

In view of the gravity of the situation, the Council considers that restrictive measures should be imposed on major entrepreneurs involved in economic sectors which provide a substantial source of revenue to the Government of the Russian Federation, on persons supporting or benefiting from the Government of the Russian Federation and on natural persons associated with such entrepreneurs, including members of their families who derive undue advantage from them.

On 8 April 2022, COUNCIL DECISION (CFSP)2022/578 of 8 April 2022 amending DECISION 2014/152/CFSP concerning restrictive measures motivated by actions by Russia which destabilise the situation in Ukraine has been published in the Official Journal of the European Union.

In view of the gravity of the situation, and in response to Russia’s military aggression against Ukraine, additional restrictive measures should be adopted. In particular, it is appropriate to extend the prohibition on deposits in crypto-asset wallets, as well as to extend the prohibitions on the export of euro banknotes and on the sale of euro-denominated negotiable securities to all official currencies of the Member States. It is also appropriate to prohibit the award of public contracts and concessions to Russian nationals and entities or bodies established in Russia, as well as the continued implementation of such contracts and concessions. In addition, it is appropriate to prohibit the provision of support, including funding and financial assistance – or any other benefits resulting from Union, Euratom or Member State programmes – to publicly owned or controlled entities in Russia. It is also appropriate to introduce a prohibition on being a beneficiary, acting as a trustee or on similar terms for Russian persons and entities, as well as a prohibition on the provision of certain services to trusts.

Moreover, it is appropriate to prohibit access to ports located in the territory of the Union for vessels registered under the Russian flag. It is also appropriate to restrict exports of jet fuel and other products to Russia and to introduce additional restrictions on the import of certain goods exported from or originating in Russia, including coal and other solid fossil fuels. Finally, road haulage companies established in Russia should also be prohibited from transporting goods by road within the territory of the Union, even in transit.

COUNCIL DECISION (CFSP) 2022/627 of 13 April 2022 amending DECISION 2014/145/CFSP concerning restrictive measures against actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine was published in the Official Journal of the European Union on 13 April 2022.

On 13 April 2022, COUNCIL DECISION (CFSP) 2022/628 of 13 April 2022 amending DECISION (CFSP) 2022/266 concerning restrictive measures in response to the recognition of the areas of the non-government-controlled provinces of Donetsk and Luhansk in Ukraine and the order for the entry of Russian armed forces into those areas was published in the Official Journal of the European Union.

In view of the humanitarian crisis resulting from the unprovoked invasion of Ukraine by the armed forces of the Russian Federation, the Council considers that, in accordance with international humanitarian law, principled humanitarian action by impartial humanitarian actors responding to the humanitarian needs of the Ukrainian civilian population should continue in Ukraine, including in the non-government-controlled areas of the Ukrainian provinces of Donetsk and Luhansk. The Council therefore considers that certain clearly defined categories of bodies, persons, entities, organisations and agencies should be exempted from the restrictions on trade in goods and technology for use in certain sectors, on the provision of certain services and assistance related to such goods and technology and on the provision of infrastructure-related services in certain sectors, where this is necessary for exclusively humanitarian purposes in the non-government-controlled areas of Donetsk and Luhansk oblasts of Ukraine.

On 21 April 2022, COUNCIL DECISION (CFSP) 2022/660 of 21 April 2022 amending DECISION 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine was published in the Official Journal of the European Union.

BELARUS

On 8 April 2022, DECISION 2012/642/CFSP concerning restrictive measures in view of the situation in Belarus and Belarus’ involvement in the Russian aggression against Ukraine was published in the Official Journal of the European Union.

In view of the seriousness of the situation, it is appropriate to prohibit the sale to Belarus of negotiable securities denominated in any official currency of a Member State and to prohibit the sale, supply, transfer, or export to Belarus of banknotes denominated in any official currency of a Member State.

NORTH KOREA

On 8 April 2022, Council DECISION (CFSP) 2022/661 of 21 April 2022 amending Decision (CFSP) 2016/849 concerning restrictive measures against the Democratic People’s Republic of Korea was published in the Official Journal of the European Union.

IRAN

On 12 April 2022, COUNCIL DECISION (CFSP) 2022/596 of 11 April 2022, amending DECISION 2011/235/CFSP concerning restrictive measures directed against certain persons and entities in view of the situation in Iran was published in the Official Journal of the European Union.

In view of the DPRK’s continued pursuit of ballistic missile-related activities in violation of and in blatant disregard of the relevant UNSC resolutions, eight (8) persons and four (4) entities should be placed on the lists of natural and legal persons, entities and bodies subject to restrictive measures set out in Annexes II and III to Decision (CFSP) 2016/849.

MYANMAR

On 22 April 2022, COUNCIL DECISION 2022/669 of 21 April 2022 amending DECISION 2013/184/CFSP concerning restrictive measures in view of the situation in Myanmar/Birmania was published in the Official Journal of the European Union.

2. UNITED STATES

RUSSIA

On 5 April 2022, pursuant to Executive Order (E.O.) 14024, which authorises the imposition of sanctions against Russia for its harmful foreign activities, including violation of basic principles of international law such as respect for the territorial integrity of other states, one (1) entity has been added to the SDN list.
On 6 April 2022, pursuant to Executive Order (E.O.) 14024, which authorises the imposition of sanctions against Russia for its harmful foreign activities, including the violation of basic principles of international law, such as respect for the territorial integrity of other states, twenty (20) natural persons, fifty (50) entities and five (5) vessels have been added to the SDN list.

The US Treasury Department’s OFAC has taken significant steps to degrade the economy of the Russian Federation in response to Russia’s continuing brutal war against Ukraine and the atrocities committed against Ukrainian citizens. The Treasury is imposing full blocking sanctions on Russia’s largest state-owned bank and Russia’s largest private bank. The Treasury is also targeting members of the family of President Vladimir Putin (Putin) and Foreign Minister Sergey Lavrov (Lavrov), as well as members of the Russian Security Council who are complicit in the war against Ukraine.

In addition, the President issues a new Executive Order prohibiting new investments in the Russian Federation and the provision of certain services to any person located in the Russian Federation by US persons, wherever located.

Today’s designations are pursuant to Executive Order (EO) 14024, which authorises the imposition of sanctions on Russia for its harmful foreign activities, including violations of basic principles of international law, such as respect for the territorial integrity of other states. OFAC’s actions complement ongoing efforts by allies and international partners to hold accountable all those responsible for promoting this unconscionable war against Ukraine and its people.

On 7 April 2022, pursuant to Executive Order (E.O.) 14024, which authorises the imposition of sanctions against Russia for its harmful foreign activities, including violation of basic principles of international law such as respect for the territorial integrity of other states, eight (8) individuals and twenty-nine (29) entities have been added to the SDN list.

Among those sanctioned are Russian state-owned companies and the world’s largest diamond mining company, which is also responsible for 90% of Russia’s diamond mining capacity. Through these designations, the Treasury is cutting off additional sources of support and revenue for the Russian government to wage its unprovoked war against Ukraine.

On 20 April 2022, OFAC, pursuant to Executive Order (E.O.) 14024, which authorises the imposition of sanctions against Russia for its harmful foreign activities, including violation of basic principles of international law such as respect for the territorial integrity of other states, twenty-nine (29) individuals and forty (40) entities have been added to the SDN list.

CYBERSECURITY

On April 5 2022, OFAC, pursuant to Executive Order (E.O. ) 13694, as amended, has added one (1) entity to the SDN List for being responsible for or complicit in, or having engaged, directly or indirectly, in cyber activities originating from or directed by persons located, in whole or in substantial part, outside the United States, that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, national security, foreign policy, economic health, or financial stability of the United States and that have the purpose or effect of causing significant misappropriation of funds or economic resources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain..

In today’s actions, OFAC has sanctioned the world’s largest and most prominent darknet entity in a coordinated international effort to disrupt the proliferation of malicious cybercrime services, dangerous drugs, and other illegal offerings available through the Russian-based site.

NORTH KOREA

On 8 April 2022, OFAC, pursuant to the Weapons of Mass Destruction Proliferators Sanctions Regulations [NPWMD], has added five (5) entities to the SDN List.

OFAC today sanctioned five entities for supporting the DPRK’s development of weapons of mass destruction (WMD) and ballistic missile programs in violation of multiple UN Security Council resolutions. The DPRK has conducted a series of ballistic missile launches in recent months, including the latest intercontinental ballistic missile (ICBM) launches on 26 February, 4 March and 24 March, which demonstrate the DPRK’s clear determination to continue developing its illegal WMD and ballistic missile programs. These ballistic missile tests are blatant violations of multiple UNSCRs, unnecessarily raise tensions and risk destabilising the security situation in the region. Today’s action targets a DPRK WMD research and development organisation that is directly linked to the DPRK’s development of intercontinental ballistic missiles, along with four of its revenue-generating subsidiaries.

“The DPRK’s provocative ballistic missile tests pose a clear threat to regional and global security and are a blatant violation of UN Security Council resolutions”, said Treasury Secretary Janet L. Yellen. “The United States and our allies, including Japan today, are committed to using sanctions authorities to limit the DPRK’s continued development and proliferation of its weapons of mass destruction and ballistic missiles.”

BALKANS

On 11 April 2022, OFAC, pursuant to Executive Order (E.O.) 14033 of 8 June 2021 blocking the assets and suspending the entry into the United States of certain persons contributing to the destabilising situation in the Western Balkans, added seven (7) natural persons and one (1) entity to the SDN List.

As a result, measures are imposed against individuals who threaten the stability of the region through corruption, criminal activity and other destabilising behavior. As part of this action, the State Department is designating individuals from North Macedonia and Bosnia and Herzegovina under Section 7031(c) of the State Department Appropriations, Foreign Operations, and Related Programs Act, 2022, instituting what is commonly referred to as a visa ban. The State Department is also designating their immediate family members under section 7031(c). This measure makes them and their immediate family members ineligible to enter the United States.

According to the Treasury Under Secretary for Terrorism and Financial Intelligence, “Today’s designees pose a serious threat to regional stability, institutional trust, and the aspirations of those who seek democratic and sensible governance in the Western Balkans. Fighting corruption around the world is a top priority for the Biden-Harris administration, and Treasury will not hesitate to use every tool at our disposal to hold corrupt and destabilising actors accountable.”

ORGANIZACIONES CRIMINALES TRANSNACIONALES

On 11 April 2022, OFAC, pursuant to Executive Order (E.O.) Executive Order 13581 of 24 July 2011 on Blocking the Assets of Transnational Criminal Organisations, added seven (7) natural persons and four (4) entities to the SDN list for their association with the Kinahan organised crime group.

3. UNITED KINGDON

RUSSIA

On 6 April 2022 the UK Government, pursuant to the Regime: Russia (Sanctions) (Eu Exit) Regulations 2019, has added eight (8) natural persons and one (1) entity to the UK Sanctions List (“UKSL List”).
On 8 April 2022 the UK Government has added three (3) natural persons to the UK Sanctions List (“UKSL List”) under the Regime: Russia (Sanctions) (Eu Exit) Regulations 2019.
On 13 April 2022 the UK Government has added two hundred and six (206) natural persons to the UK Sanctions List (“UKSL List”) under the Regime: Russia (Sanctions) (EU Exit) Regulations 2019.
On 14 April 2022 the UK Government has added two (2) natural persons to the UK Sanctions List (“UKSL List”) under the Regime: Russia (Sanctions) (Eu Exit) Regulations 2019.
On 21 April 2022 the UK Government has added twenty-six (26) natural persons to the UK Sanctions List (“UKSL List”) under the Regime: Russia (Sanctions) (Eu Exit) Regulations 2019.

BOSNIA AND HERZEGOVINA

On 11 April 2022 the UK Government under the Regime: Bosnia and Herzegovina (Sanctions) (EU Exit) Regulations 2020 added two (2) natural persons to the UK Sanctions List (“UKSL List”).

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In Madrid, 30 April 2022

International Trade and Sanctions Department

Lupicinio International Law Firm

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