top of page

Last week's major developments in sanctions - December 5th to December 9th, 2022

Monday, December 5

  • December 5th was the date that the Price Cap mechanism for Russian-origin seaborne oil (which was first mentioned in the September 2, 2022, G7's foreign ministers' statement) came into effect. Following the determination of the price cap at USD 60 per barrel by the G7 and Australia (here) on Friday, December 2, 2022:

    1. The EU Council adopted Decision 2022/2369, which among other things, established USD 60 as the price cap under the price cap restrictions implemented on the certain type of Russian-origin oil. (Here) (FAQs)

    2. OFSI issued general license INT/2022/2469656 allowing activities that would have been otherwise prohibited under Russia (Sanctions) (EU Exit) (Amendment) (No. 16) Regulations 2022 to be permissible provided the oil is purchased below the price cap of USD 60 per barrel. (Here) (Press release) OFSI also published a dedicated page on its website about the price cap which has listed all the relevant licenses and guidance (Here)

    3. The Department of the Treasury has published a Determination pursuant to Executive Order 14071 related to a price cap on crude oil of Russian Federation origin. (Here)

    4. Australian Minister for Foreign Affairs issued a general permit authorizing the provision of financial assistance and financial services if they assist with, or are provided in relation to, the import, purchase, or transport of Russian oil, if that oil was purchased at or below the price cap (USD 60 per barrel). (Here) Interestingly, this was a relaxation of rules per the Australian autonomous sanctions against Russia.

    5. Japan has also implemented the price cap. (Here)

  • In an administrative decision, the EU Council extended its human rights sanctions program for another year through December 8, 2023. (Here, press release)

  • The EU Council amended the designations grounds under its Democratic Republic of the Congo sanctions regime. (Here)

Tuesday, December 6

  • There was no major development on this day.

Wednesday, December 7

  • The United States Department of State imposed visa restrictions (a type of sanction) on those who attempt to undermine or delay democratic progress in Sudan by the expansion of the current visa restriction policy under Section 212(a)(3)(C) (or “3C”) of the Immigration and Nationality Act to cover any current or former Sudanese officials or other individuals believed to be responsible for, or complicit in, undermining the democratic transition in Sudan, including through suppressing human rights and fundamental freedoms, and the immediate family members of such persons. (Here)

  • The United States Department of Justice unsealed charges against Andrii Derkach, who was designated by OFAC in 2020. The defendant has been involved in the alleged violation of sanctions since his designations. (Here)

Thursday, December 8

  • The EU Council imposed blocking sanctions on eight individuals under its Democratic Republic of Congo sanctions regime. (Here) The Council also extended the validity of the sanctions regime against the Democratic Republic of Congo for another year. (Here)

  • OFAC imposed blocking sanctions on several individuals and entities that were part of a sanctions evasion network led by the high-profile Turkish businessman, Sitki Ayan. The network allegedly facilitated the sale of hundreds of millions of dollars' worth of oil for Iran’s Islamic Revolutionary Guard Corps-Qods Force. (Here, the Department of the Treasury's press release, the Department of State's press release) If you want to know more about this evasion network, check out this article at Politico.

Friday, December 9

  • OFSI imposed blocking sanctions on several individuals and entities. In particular, it added eight new designations under the Global Human Rights regime, five new designations under the Global Anti-Corruption regime, a new designation under the Mali sanctions regime, two new designations under the South Sudan sanctions regime, three new designations under the Myanmar sanctions regime, ten new designations under the Iran (Human Rights) regime and a new designation under the Russia sanction regime. ( Press release)

  • OFSI published a dedicated page for its Haiti sanctions regime which will come into force on 28 December 2022. (Here)

  • In a very welcomed breakthrough, the UNSC adopted Resolution 2664 (2022), which among other things, decided that the provision, processing or payment of funds, other financial assets or economic resources or the provision of goods and services necessary to ensure the timely delivery of humanitarian assistance or to support other activities that support basic human needs are permitted and are not a violation of the asset freezes imposed by that organ or its sanctions committees. (Resolution, UN press release, the United States Department of State's press release, the UK's government press release)

  • OFAC imposed blocking sanctions on scores of individuals and entities (Friday was International Anti-Corruption Day and Saturday was International Human Rights Day) under various programs notably its Global Magnitsky. Concurrently, the Department of State imposed several travel bans on several individuals. Specifically:

    1. OFAC designated Dalian Ocean Fishing Co., Pingtan Marine Enterprise, a company listed on NASDAQ, two individuals, and 157 vessels for their involvement in illegal, unreported, and unregulated fishing under its Global Magnitsky program. The press release accompanied the designated mentioned "environmental and socioeconomic effects of climate change" which was the first time I can remember OFAC mentioned climate change. (Here, the Department of the Treasury's press release, the Department of State's press release)

    2. More than 40 individuals were designated across the world for their involvement in human rights abuses or corruption. The Department of State also imposed several travel restrictions on violators of human rights and corrupt individuals across the world. (Here, the Department of the Treasury's press release, the Department of State's press release, and the Department of State's fact sheet)

    3. Several individuals and entities were added to the SDN list under the Russia sanctions program of the OFAC. (Here, the Department of the Treasury's press release, and the Department of State's press release)

Recommendation of the Week


bottom of page