INTERNATIONAL SANCTIONS NOVEMBER 2021

2021-12-01 International Sanctions Newsletters

INTERNATIONAL SANCTIONS NOVEMBER 2021

EUROPEAN UNION

LIBYA

On 09 November 2021, Council Implementing Decision (CFSP) 2021/1942 of 9 November 2021 implementing Decision (CFSP) 2015/1333[1] concerning restrictive measures in view of the situation in Libya has been published in the Official Journal of the European Union
With regard to Council Regulation (EU) 2016/44 of 18 January 2016 concerning restrictive measures in view of the situation in Libya and repealing Regulation (EU) No 204/2011 (1 ), and in particular Article 21(2) thereof;
With regard to the proposal from the High Representative of the Union for Foreign Affairs and Security Policy;

With regard to the following:

1. On 18 January 2016, the Council adopted Regulation (EU) 2016/44;
2. On the basis of a review carried out by the Council, the entry for a natural person should be deleted; and
3. Annex III to Regulation (EU) 2016/44 should therefore be amended accordingly.

VENEZUELA

On 11 November 2021, Council Decision (CFSP) 2021/1965 of 11 November 2021 amending Decision (CFSP) 2017/2074[2] concerning restrictive measures in view of the situation in Venezuela was published in the Official Journal of the European Union.

Decision (CFSP) 2017/2074 is applicable until 11 November 2021. On the basis of a review of that Decision, the restrictive measures provided for therein should be extended until 11 November 2022.

SYRIA

On 15 November 2021, Council Decision (CFSP) 2021/1984 of 15 November 2021 implementing Decision 2013/255/CFSP[3] concerning restrictive measures against Syria was published in the Official Journal of the European Union.

Decision (CFSP) 2013/255/CFSP applies until 15 November 2021. On the basis of a review of that Decision, the restrictive measures provided for therein should be extended until 15 November 2022.

BELARUS

On 09 November 2021, Council Decision (EU) 2021/1940 of 9 November 2021 on the partial suspension of the Agreement between the European Union and the Republic of Belarus on the facilitation of the issuance of visas was published in the Official Journal of the European Union:

As a result, The Council of the European Union, with regard to the Treaty on the Functioning of the European Union, and in particular Articles 77(2)(a) and 218(9) thereof, with regard to the Agreement between the European Union and the Republic of Belarus has decided to restrict the issuance and facilitation of the issuance of visas.

On 15 November 2021, Council Decision (CFSP) 2021/1989 of 15 November 2021 amending Decision 2012/642/CFSP[4] concerning restrictive measures in view of the situation in Belarus was published in the Official Journal of the European Union:
- On 15 October 2012, the Council adopted Decision 2012/642/CFSP concerning restrictive measures in view of the situation in Belarus.
- On 24 June 2021, the Council adopted Decision (CFSP) 2021/1031 amending Decision 2012/642/CFSP in order to provide for a number of economic restrictions, in particular a prohibition on the provision of insurance and reinsurance services to the Government of Belarus and to public bodies and entities of Belarus.
- In this context, it is appropriate to introduce certain exemptions from the prohibition on the supply of insurance or reinsurance services to the Government of Belarus and to public bodies and entities of Belarus.
  1. Further action is needed by the Union in order to implement some of the measures.
  2. Decision 2012/642/CFSP should therefore be amended accordingly.

On 15 November 2021, Council Decision (CFSP) 2021/1990 of 15 November 2021 amending Decision 2012/642/CFSP[5] concerning restrictive measures in view of the situation in Belarus was published in the Official Journal of the European Union:

With regard to the following:

- On 15 October 2012, the Council adopted Decision 2012/642/CFSP concerning restrictive measures against Belarus. On 21-22 October 2021, the European Council adopted Conclusions stating that it would not accept any attempt by third-party countries to exploit migrants for political purposes, condemned all hybrid attacks at EU borders and stated that it would respond accordingly. It also stressed that the Union would continue to address the continued hybrid attacks by the Belarusian regime, including by adopting, as a matter of urgency, additional restrictive measures against individuals and legal entities, in line with its gradual approach.
- In view of the gravity of the situation, the Council considers that the designation criteria set out in Decision 2012/642/CFSP should be amended in order to allow for targeted restrictive measures against natural or legal persons, entities or bodies organising or contributing to activities of the Lukashenko regime which facilitate the illegal crossing of the external borders of the Union or the transfer of prohibited goods and the illegal transfer of restricted goods, including dangerous goods, within the territory of a Member State.
- Decision 2012/642/CFSP should therefore be amended accordingly.

TURKEY

On 11 November 2021, Council Decision (CFSP) 2021/1966 of 11 November 2021 amending Decision (CFSP) 2019/1894 concerning restrictive measures in view of unauthorised Turkish drilling activities in the Eastern Mediterranean was published in the Official Journal of the European Union.

Decision 2019/1894 is amended accordingly by Council Decision 202 /1966.

UNITED STATES

CYBERSECURITY

On 08 November 2021, OFAC, pursuant to Executive Order (E.O.) 13694, added to the SDN List one (1) natural person of Russian nationality and one (1) natural person of Ukrainian nationality, “[f]or their involvement in the perpetuation of the Sodinokibi/REvil ransomware incidents against the United States“. In addition and pursuant to the above-mentioned EO, OFAC has added to the SDN List one (1) entity of Estonian nationality, one (1) entity of Russian nationality, two (2) entities of Latvian nationality, and one (1) entity of San Marino nationality “[f]or their associated support network, for facilitating financial transactions for ransomware actors. These entities, which claim to have a presence in several countries, have facilitated transactions for multiple ransomware variants. Analysis of the known transactions of these entities indicates that more than half are directly related to illicit or high-risk activities, such as darknet marketplaces, high-risk exchanges and ransomware”.

As a result of today’s designation, all assets and interests in assets of the designated targets that are subject to US jurisdiction are blocked and US persons are generally prohibited from carrying out any transactions with them. In addition, all entities that are 50% or more owned by one or more of these designated persons are also blocked. In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and persons may be subject to sanctions or enforcement action. Today’s action does not imply a sanctions nexus with any particular Ransomware-as-a-Service (RaaS) or variant.

CAMBODIA

Effective November 10, 2021, OFAC, pursuant to Executive Order (E.O.) 13818, which is based on the Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuses and corruption worldwide, has added to the SDN List two (2) natural persons “[B]eing foreign persons who are or have been government officials, or persons acting for or on behalf of such an official, who are responsible for or complicit in, or have directly or indirectly participated in, corruption, including misappropriation of state assets, expropriation of private assets for personal gain, corruption related to government contracts or natural resource extraction, or bribery”.

All assets and interests in assets of the above persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entity owned, directly or indirectly, 50% or more by one or more blocked persons is also blocked. Unless authorised by, or exempted from, a general or specific licence issued by OFAC, OFAC regulations generally prohibit all transactions by U.S. persons or within (or in transit through) the United States involving property or interests in property of designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods or services by or for the benefit of any blocked person, or the receipt of any contribution or provision of funds, goods or services from or for the benefit of any such person.

ERITREA

On 12 November 2021, OFAC, pursuant to Executive Order (E.O.) 14046, has added to the SDN List two (2) natural persons and two (2) entities of Eritrean nationality, “[f]or having contributed to the crisis and conflict, which have undermined the stability and integrity of the Ethiopian State”.

All assets and interests in assets of the persons named above that are in the United States, or in the possession or control of U.S. persons, are blocked and must be reported to OFAC. No entity will be blocked under EO 14046 solely because it is owned in whole or in part, directly or indirectly, by one or more sanctioned persons, unless the entity itself is a sanctioned person.

NICARAGUA

Effective 15 November 2021 OFAC, pursuant to Executive Order (E.O ) 13851, which blocks the assets of certain persons contributing to the situation in Nicaragua, and the Nicaragua Human Rights and Anti-Corruption Act of 2018 (NHRAA), now known as the Nicaragua Investment Conditionality Act of 2018 (NICA), has added nine (9) natural persons and one (1) entity of Nicaraguan nationality to the SDN List, “[I]n response to the fraudulent national elections orchestrated by President Daniel Ortega (Ortega) and Vice President Rosario Murillo (Murillo). This action targets those who repress Nicaraguans for exercising their human rights and fundamental freedoms”.

As a result of today’s sanctions, all assets and interests in assets of these individuals that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, all entities that are owned, directly or indirectly, on aggregate 50% or more by one or more of these persons are also blocked. OFAC regulations generally prohibit all transactions by US persons or within (or in transit through) the United States involving property or interests in property of designated persons.

The sanctions imposed today are not intended to be permanent but are issued to encourage positive behavioural change on the part of the identified persons and the authoritarian regime they support. The United States clarifies that removal of sanctions may be available to individuals and entities designated pursuant to E.O. 13851 and the NHRAA who take concrete and meaningful actions to promote democracy and the rule of law in Nicaragua.

IRAN

On 18 November 2021, OFAC, pursuant to Executive Order (E.O.) 13848, which imposes sanctions for foreign interference in a U.S. election, added six (6) individuals and one (1) entity of Iranian nationality to the SDN list for, “[I]ntending to influence the 2020 U.S. presidential election. The United States identified cyber intrusion attempts by state-sponsored actors, including Iranian actors that sought to sow discord and undermine voters’ faith in the US electoral process. The actors also spread disinformation on social media and sent threatening emails, as well as a fraudulent video. The fake video was made in an attempt to undermine faith in the election by implying that people could cast fraudulent ballots.”

As a result of today’s sanctions, all assets and interests in assets of these individuals that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, all entities that are owned, directly or indirectly, on aggregate 50% or more by one or more of these persons are also blocked. OFAC regulations generally prohibit all transactions by U.S. persons or within (or in transit through) the United States involving property or interests in property of designated persons.

YEMEN

Effective November 18, 2021 OFAC, pursuant to Executive Order (E.O.) 13611, which blocks the assets of persons who threaten the peace, security, or stability of Yemen, has added to the SDN list one (1) natural person of Yemeni nationality for being, “[T]he principal Houthi military officer responsible for stealing property from Yemeni citizens and leading a seizure campaign that further prolongs the ongoing conflict in Yemen by obstructing its resolution.”

As a result of today’s sanctions, all assets and interests in assets of these individuals that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, all entities that are owned, directly or indirectly, on aggregate 50% or more by one or more of these persons are also blocked. OFAC regulations generally prohibit all transactions by U.S. persons or within (or in transit through) the United States involving property or interests in property of designated persons.

COUNTERTERRORISM

On November 22, 2021, OFAC, pursuant to Executive Order (E.O.) 13224, added four (4) natural persons of Afghan nationality to the SDN List for, “[H]aving acted as financial facilitators for the Islamic State Khorasan Province (ISIL-Khorasan), active in Afghanistan and commonly referred to as “ISIS-K”. These individuals have supported ISIS-K operations in Afghanistan by facilitating international financial transactions that fund human trafficking networks and by facilitating the movement of foreign fighters who seek to escalate tensions in Afghanistan and the region.”

As a result of today’s sanctions, all assets and interests in assets of these persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, all entities that are owned, directly or indirectly, on aggregate 50% or more by one or more of these persons are also blocked. OFAC regulations generally prohibit all transactions by U.S. persons or within (or in transit through) the United States involving property or interests in property of designated persons.

In addition, the conduct of certain transactions with the designated person today carries the risk of secondary sanctions under Executive Order (E.O.) 13224, as amended. Under this authority, OFAC may prohibit or impose strict conditions on the opening or maintenance in the United States of a correspondent or payable-through account with a foreign financial institution that has knowingly conducted or facilitated any material transaction on behalf of a Specially Designated Global Terrorist.

CYPRUS

On 23 November 2021 OFAC, pursuant to Executive Order (E.O.) 14039, which blocks ownership with respect to certain Russian energy export pipelines and the Protecting Europe’s Energy Security Act of 2019 (“PEESA”),. has added one (1) entity of Cypriot nationality and one (1) Russian national vessel to the SDN list, saying that“[T]he entity will be sanctioned by PEESA, and its vessel will be identified as blocked property […] being consistent with the United States’ continued opposition to the Nord Stream 2 pipeline and the United States Government’s continued compliance with PEESA”.

UNITED KINGDOM

YEMEN

On 9 November 2021 the UK Government, under The Yemen (Sanctions) (EU Exit) Regulations has added to the UK Sanctions List (“UKSL List”) three (3) natural persons of Lebanese nationality, “[f]or their involvement and leadership in Houthi military campaigns that threaten the peace, security and stability of”. The sanctions imposed on the individuals on the USKL list are a travel ban and an assets freeze.

NICARAGUA

On 15 November 2021 the UK Government, under The Nicaragua (Sanctions) (Eu Exit) Regulations 2020, has added to the UK Sanctions List (“UKSL List”) eight (8) individuals of Lebanese nationality, “[f]or undermining democracy and the rule of law, for repression of civil society and democratic opposition and for violations of human rights in Nicaragua.” Sanctions imposed on individuals on the USKL list include a travel ban and an assets freeze.

TRINIDAD AND TOBAGO

On 23 November 2021 the UK Government, under the ISIL (DA’ESH) and AL-QAEDA (United Nations Sanctions) (EU Exit) Regulations 2019, added to the UK Sanctions List (“UKSL List”) eight (8) natural persons of Lebanese nationality, “[B]eing a senior member of the Islamic State in Iraq and the Levant (ISIL), listed as Al-Qaida in Iraq. He recruited for ISIL and instructed individuals to perpetrate terrorist acts through online videos.” Sanctions imposed on individuals on the USKL list include an asset freeze, travel ban and arms embargo.

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In Madrid, 30th November 2021

International Trade and Sanctions Department

Lupicinio International Law Firm

More information:

C/ Villanueva 29, 28001 Madrid
T: +34 91 436 00 90

Av. Diagonal 520, 08006 Barcelona
T: +34 93 488 28 02

info@lupicinio.com

[1] Decision (PESC) 2015/1333 concerning the adoption of restrictive measures in view of the current situation in Libya. https://eur-lex.europa.eu/legal-content/ES/TXT/PDF/?uri=OJ:L:2021:396:FULL&from=ES

[2] Council Decision (PESC) 2017/2074 of 11th November 2021 concerning restrictive measures in view of the current situation in Venezuela. https://eur-lex.europa.eu/legal-content/ES/TXT/PDF/?uri=OJ:L:2021:400:FULL&from=ES

[3] Council Decision (PESC) 2013/255/PESC of 15th November 2021 concerning restrictive measures in view of the current situation in Syria. https://eur-lex.europa.eu/legal-content/ES/TXT/PDF/?uri=OJ:L:2021:402I:FULL&from=ES

[4] Council Decision (PESC) 2021/1989 of 15th November 2021 concerning restrictive measures in view of the current situation in Belarus.https://eur-lex.europa.eu/legal-content/ES/TXT/PDF/?uri=OJ:L:2021:405:FULL&from=ES

[5] Council Decision (PESC) 2012/642 of 15th November 2021 concerning restrictive measures in view of the current situation in Belarus. https://eur-lex.europa.eu/legal-content/ES/TXT/PDF/?uri=OJ:L:2021:405:FULL&from=ES