Sanctions Watch | Weekly Vol. 81

Sanctions Watch Vol 81

In the latest edition of our Sanctions Watch weekly digest, we present significant updates on sanction watchlists and regulatory developments.

1. OFAC Issues Russia-Related General License 116

General License No. 116, issued under the Russian Harmful Foreign Activities Sanctions Regulations (31 CFR part 587) and Executive Order (E.O.) 14024, authorizes specific transactions involving entities owned by Bidzina Ivanishvili. The license permits transactions with entities blocked solely due to Ivanishvili’s direct or indirect ownership of 50% or more interest, provided these entities are not listed on the Office of Foreign Assets Control’s (OFAC) List of Specially Designated Nationals and Blocked Persons.

However, certain transactions remain unauthorized. These include transactions prohibited by Directive 2 under E.O. 14024, which concerns correspondent and payable-through accounts of certain foreign financial institutions, and Directive 4, which restricts dealings with the Russian Central Bank, National Wealth Fund, and Ministry of Finance. Additionally, the license excludes transactions related to the Singapore Court of Appeal case involving Ivanishvili and Credit Suisse Trust Ltd, including enforcement of judgments, settlements, or related payments. Transactions prohibited under the Russian Harmful Foreign Activities Sanctions Regulations involving other blocked persons also require separate authorization.

This license provides conditional flexibility for dealing with Ivanishvili-linked entities while upholding strict limitations to maintain sanctions against Russia and certain legal proceedings. It emphasizes adherence to existing prohibitions and regulatory frameworks.

2. Switzerland Expands EU Sanctions Against Russia and Belarus

Switzerland has implemented the latest EU sanctions package targeting Russia and Belarus, effective December 24. The sanctions list includes 54 individuals and 30 companies or organizations, with assets frozen and travel bans imposed on the individuals. Additionally, 52 Russian ships, primarily tankers circumventing price caps on Russian crude oil, transporting military goods, or stolen Ukrainian grain, are prohibited from accessing services.

Aligned with EU measures, Switzerland has also introduced financial and travel sanctions against 26 individuals and two organizations from Belarus. This step reinforces the broader European effort to address Russia’s military activities and its use of shadow fleets to bypass international restrictions. These sanctions emphasize Switzerland’s commitment to upholding international law and deterring violations of economic and territorial sovereignty.

3. China Imposes Sanctions on US Firms for Supporting Taiwan’s Military

China has imposed sanctions on seven U.S. companies following Washington’s approval of a $571.3 million military aid package to Taiwan, a move Beijing asserts infringes on its sovereignty and territorial integrity.

The sanctioned entities include Insitu (a Boeing subsidiary), Hudson Technologies, Saronic Technologies, Aerkomm, Oceaneering International, and Raytheon’s subsidiaries in Canada and Australia. These sanctions, effective immediately, involve freezing the companies’ assets in China and prohibiting them from engaging in business with Chinese organizations and individuals.

This action follows the U.S. administration’s recent defense budget, which encompasses a security cooperation initiative with Taiwan and advocates for enhanced defense industrial collaboration with Taipei. China, viewing Taiwan as part of its territory, has expressed strong opposition to these developments, warning that U.S. support for Taiwan could have self-damaging consequences.

The United States, while not officially recognizing Taiwan diplomatically, remains its most significant strategic ally and primary arms supplier. In response to perceived threats, China has escalated military pressure on Taiwan, conducting multiple large-scale drills since Taiwanese President Lai Ching-te assumed office in May.

These sanctions are part of a series of measures by China targeting U.S. firms involved in arms sales to Taiwan, reflecting ongoing tensions between Beijing and Washington over the island’s defense support.

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Sanctions Watch is a weekly recap of events and news related to sanctions around the world.