UK Weekly Sanctions Update - Week of May 13, 2024

In this weekly update, we summarise the most notable updates in the UK sanctions world. If you have any questions in respect of any of the developments set out below, please do not hesitate to contact a member of our London Global and Government Trade team listed above.

1. Russia Sanctions

• OFSI extends Russian Travel General Licence: On May 16, 2024, the UK Government extended OFSI General Licence INT/2022/1839676, which inter alia authorises UK persons to purchase tickets for flights or rail journeys originating in, or within, Russia, from certain designated persons. The general licence has been extended to 23 May 2026. (Russia_Travel_Publication_Notice.pdf (publishing.service.gov.uk)).
• UK Government updates financial sanctions guidance for Russia: On May 16, 2024, the UK Government amended its financial sanctions guidance for its Russia regime to reflect that certain guidance set out therein also applies to the reporting requirements of Regulation 38A of the Belarus Regulations. (Financial sanctions guidance for Russia - GOV.UK (www.gov.uk)).
• UK Government adds one entity to the UK sanctions list under the Russia regime: On May 15, 2023, the UK Government added Vostochnaya Stevedore Limited Liability Company to the UK sanctions list under the Russia regime. This entity is believed to be involved with the Government of Russia through carrying on business in the Russian transport sector.  This entry is now subject to an asset freeze and trust services sanctions. (Notice_Russia_170524.pdf (publishing.service.gov.uk); https://www.gov.uk/government/news/uk-and-partners-target-russia-dprk-arms-for-oil-trade-with-new-sanctions).

2. Belarus Sanctions

• UK introduces new trade sanctions on Belarussian aluminium: On May 16, 2023, the UK introduced new measures that relate to inter alia the import of aluminium that originates in Belarus, as well as the acquisition, supply and delivery of such aluminium, and related services. (https://www.gov.uk/government/publications/notice-to-importers-2952-belarus-import-sanctions/nti-2952-republic-of-belarus-import-sanctions; https://www.gov.uk/government/publications/republic-of-belarus-sanctions-guidance/the-republic-of-belarus-sanctions-guidance).

3. ISIL (Da’esh) and Al-Qaida Sanctions

• UK Government amends UK sanctions list under the ISIL (Da’esh) and Al-Qaida regime: On May 17, 2023, the UK Government amended the entry for Radulan Sahiron on UK sanctions list under the ISIL (Da’esh) and Al-Qaida regime.  Sahiron remains subject to an asset freeze. (Notice_ISIL__Da_esh__and_Al-Qaida_170524.pdf (publishing.service.gov.uk)).

4. Democratic Republic of the Congo Sanctions

• UK Government amends one entry on the UK sanctions list under the DRC regime: On May 17, 2024, the UK Government updated the entry for Sylvestre Mudacumura on the UK sanctions list under the DRC regime.  Mudacumura remains subject to an asset freeze. (Notice_Democratic_Republic_of_the_Congo_170524.pdf (publishing.service.gov.uk)).

5. Burundi Sanctions

• UK Government withdraws Burundi sanctions regime: On May 17, 2024, the UK Government withdrew the Burundi (Sanctions) (EU Exit) Regulations 2019.  ([Withdrawn]Financial Sanctions, Burundi - GOV.UK (www.gov.uk)).

6. Democratic People’s Republic of Korea Sanctions

• UK Government adds three entries to the UK sanctions list under the Democratic People’s Republic of Korea (“DPRK”) regime: On May 17, 2024, the UK Government added Aleksey Mikhailovich Vorotnikov, Paekyangsan Shipping Co Ltd and Toplivo Bunkering Company to the UK sanctions list under the DPRK sanctions regime. (Notice_Democratic_People_s_Republic_of_Korea_170524.pdf (publishing.service.gov.uk); https://www.gov.uk/government/news/uk-and-partners-target-russia-dprk-arms-for-oil-trade-with-new-sanctions).

7. Counter-terrorism Sanctions

• UK Government updates Counter-Terrorism sanctions guidance: On May 16, 2024, the UK government updated its Counter-Terrorism sanctions guidance to reflecting new immigration measures what are due to come into force on 5 June 2024. (Counter-Terrorism sanctions: guidance - GOV.UK (www.gov.uk)).

8. Other Sanctions

• UK Government updates enforcement and monetary penalties guidance:  On May 16, 2024, the UK government amended its enforcement and monetary penalties guidance to reflect HM Treasury’s power to impose monetary penalties for breaches of a designated person’s asset reporting requirement under Regulation 56C of The Republic of Belarus (Sanctions) (EU Exit) Regulations. (Financial sanctions enforcement and monetary penalties guidance - GOV.UK (www.gov.uk)).
• UK Government updates guidance on reporting information to OFSI:  On May 16, 2024, the UK Government updated its guidance on reporting information to OFSI by adding reporting requirements for the Belarus regulations. (Reporting information to OFSI – what to do - GOV.UK (www.gov.uk)).
• OFSI updates general guidance on UK financial sanctions: On May 16, 2024, the OFSI updated its general guidance on UK financial sanctions inter alia to reflect the reporting requirements in Regulation 38A of the Belarus Regulations and the monetary penalty regime for breaches such of reporting obligations. (UK financial sanctions general guidance - GOV.UK (www.gov.uk)).
• UK updates “export for exhibition: military goods” OGEL: On May 15, 2024, the ECJU updated the open general licence “export for exhibition: military goods” to update to the MOD’s contact details. (NTE 2024/10: updates to the open general licence export for exhibition: military goods - GOV.UK (www.gov.uk)).
• UK Supreme Court issues judgment in RTI Ltd v MUR Shipping BV: On May 15, 2024, the UK Supreme Court overturned the Court of Appeal’s judgment in Mur Shipping BV v RTI Ltd.  The case concerned the reliance of a party on a force majeure clause to suspend its contractual obligations under a shipping contract on the basis that US sanctions prevented payments in US Dollars.  The Court of Appeal had held that accepting the offer of payment in Euros would have “overcome” the force majeure by “reasonable endeavours”.  The Supreme Court disagreed and held that "reasonable endeavours" wording in a force majeure clause cannot require accepting an offer of non-contractual performance by the other party. MUR was therefore entitled to require payment be made in US dollars only (notwithstanding US sanctions targeting the owners of RTI), even though RTI had offered to make payment in Euros. (RTI Ltd (Respondent) v MUR Shipping BV (Appellant) (supremecourt.uk)).
• UK Supreme Court grants permission for Eugene Shvidler appeal: On May 14, 2024, the UK Supreme Court gave permission to Eugene Shvidler to appeal against a Court of Appeal judgment upholding sanctions against him.  Mr Shvidler was designated in March 2022 for being associated with a person, Roman Abramovich, who is involved in obtaining a benefit from Russia and for being a director of Evraz PLC, an entity carrying on business in sectors of strategic significance to the government of Russia. (See Court of Appeal judgment at: https://www.judiciary.uk/wp-content/uploads/2024/02/Dalston-Projects-and-Shvidler-judgment.pdf).
• OFSI amends general guidance on UK financial sanctions in respect to licensing approach: On May 13, 2024, OFSI updated Section 6 of its general guidance in respect to OFSI’s approach to licensing grounds for UK sanctions regimes, including updating the definitions for Extraordinary Expenses and Extraordinary Situations. (UK financial sanctions general guidance - GOV.UK (www.gov.uk)).