export-controls 30 August 2018

US sanctions Russia over its use of chemical weapons; UK calls on EU for further sanctions

On 24 August, the US Department of State announced new sanctions against Russia, effective from 27 August. The new restrictions on exports, targeting arms sales and foreign assistance, follow the Trump administration’s finding that Russia was responsible for the chemical poisoning of the Skripals which took place in Salisbury, UK, in March this year.

The sanctions, authorised under the Chemical and Biological Weapons Control and Elimination Act 1991 for the duration of one year, focus chiefly on government bodies and state-owned enterprises rather than a wider class of recipients. The sanctions involve the termination of foreign military sales and an export licensing ban on defence articles; the termination of foreign military financing; the denial of US government credit or other financial assistance; and a licensing policy of denial for sensitive goods and technology, such as dual-use items, to the Russian government or state enterprises.

The continuing export of certain dual-use items will be unaffected, although new licence requests will be considered on a case-by-case basis. Space flight activities, cooperation over government space projects, commercial aviation safety and urgent humanitarian assistance will be exempt.

Under the act, unless President Trump certifies to Congress within three months that Russia is no longer using chemical or biological weapons in violation of international law, further sanctions will be imposed. These could include a ban on all exports, other than food and agricultural commodities; restrictions on the import of Russian goods; a ban on state-owned air carriers travelling to or from the US; US opposition to the provision of financial or technical assistance by international financial institutions to Russia; or a downgrading of diplomatic relations between the two countries.

Congress is currently considering two bills that may rachet up financial and trade sanctions against Russia for its alleged hacking of the 2016 US presidential election: The Defending American Security from Kremlin Aggression Act of 2018 and The Defending Elections from Threats by Establishing Redlines Act of 2018.

During his recent visit to the US, new UK Foreign Secretary Jeremy Hunt called upon the EU to follow the US’s lead in imposing sanctions in response to the Salisbury attack. It is not clear whether this will happen, as a unanimous decision by all 28 States would be needed to take action against Russia, with Italy and Greece reluctant to press for sanctions against Russia in the past.

 

The Notice in the Federal Register can be found here:
https://www.govinfo.gov/content/pkg/FR-2018-08-27/pdf/2018-18503.pdf