UK Sanctions Weekly Update – Week of October 16, 2023

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.  UK Sanctions

• OFSI amends General Licence for payments to Companies House: On October 19, 2023, OFSI amended General Licence INT/2023/3626884, under which UK assets freeze targets are authorised to make certain payments to Companies House. Most notably, the amendment updates the definition of Permitted Payments to include the payment of penalty fees relating to the late filing of annual accounts by those asset freeze targets. (General_Licence_INT20233626884_Payments_to_Companies_House_18.10.23.pdf (publishing.service.gov.uk))
• UK ECJU amends Export Control Order 2008: On October 17, 2023, the UK Government published a notice stating that the Export Control (Amendment) (No 2) Regulations 2023 will come into force on 23 October 2023. These regulation amends the Export Control Order 2008 to (i) remove Syria from Part 2 of Schedule 4 and (ii) correct two drafting errors in the retained Dual-Use Regulation. (NTE 2023/19: The Export Control (Amendment) (No 2) Regulations 2023 - GOV.UK (www.gov.uk))
• UK Government publishes guidance on the interception and monitoring prohibitions in UK sanctions: On October 17, 2023, the UK Government published guidance on the interception and monitoring prohibitions in UK sanctions on Russia, Belarus, Myanmar (Burma), Iran, Syria and Venezuela. The guidance provides further information on the meaning of 14 specific terms used in the scheduled to the relevant regulations. (Interception and monitoring prohibitions in sanctions made under the Sanctions and Anti-Money Laundering Act 2018: technical guidance - GOV.UK (www.gov.uk))
• US official warns of ‘decisive’ response if Russia sells oil outside price cap or G7 service providers: On October 16, 2023, US Acting Assistant Secretary for Economic Policy Eric Van Nostrand warned that any attempts by Russia to sell oil above the oil price cap or sell crude without G7 involvement will trigger a ‘decisive and unified response.’  The oil price cap has been a coordinated attempt by the G7 and Australia to restrict the sale of Russian crude and petroleum products to a certain price cap (https://www.worldecr.com/news/us-official-warns-of-decisive-response-if-russia-sells-oil-outside-price-cap-or-g7-service-providers/; https://home.treasury.gov/news/press-releases/jy1815).
• UK Government considering impact of Court of Appeal judgment in Mints case: On October 16, 2023, the FCDO published a statement that it was considering the impact of the Court of Appeal’s judgment in Mints & others v PJSC National Bank Trust & another, in particular the Court’s views that PJSC National Bank Trust is ‘controlled’ by Designated Persons by virtue of their political office. Among other things, the FCDO stated that there is no presumption on the part of the UK Government that a private entity based in or incorporated in Russia or any jurisdiction in which a public official is designated is in itself sufficient evidence to demonstrate that the relevant official exercises control over that entity. On 22 November, 2023, a webinar featuring speakers from inter alia FCDO and OFSI will take place to discuss ownership and control under UK sanctions and the Government’s statement following the Mints judgment. (Statement following the judgment in Mints & others v PJSC National Bank Trust & another (govdelivery.com))

2.  Libya Sanctions

• UK Government updates one entry under the Libya sanctions regime: On October 17, 2023, the UK Government made an update the Libya sanctions list to update the entry for Aisha Muammar Muhammed Abu Minyar Qadhafi. This individual remains subject to an asset freeze. (The UK Sanctions List - GOV.UK (www.gov.uk))

3.  Iran Sanctions

• Dubai-based shipping company sues UK law firm for complying with US Iran sanctions: On October 20, 2023, it was reported that Dubai-based shipping company, Virgo Marine (an SDN) has filed a lawsuit against law firm Reed Smith in the UK High Court, claiming £20.7 million in damages in connection with the proposed purchase of a tanker that fell through following the designation of Virgo Marine as an SDN by OFAC in September 2022.  Funds that had been held in escrow by Reed Smith were not returned to Virgo Marine due to concerns that this would violate US sanctions.  The claim has been brought under  the Extraterritorial US Legislation (Sanctions against Cuba, Iran and Libya) (Protection of Trading Interests) Order 1996, which makes it an offence for UK companies to comply with certain foreign laws, including certain US sanctions on Iran. (https://www.tradewindsnews.com/law/reed-smith-sued-for-21m-by-sanctioned-uae-owner-over-failed-tanker-sale/2-1-1534632)
• UK Government updates sanctions list under Iran regime: On October 20, 2023, the FCDO updated the UK sanctions list to re-add Samen Industries to the list, to remove Khorasan Metallurgy Industries from the list and to amend the entry for QODS Aeronautics Industries. (Notice_Iran__Nuclear__201023.pdf (publishing.service.gov.uk))
• OFSI removes 6 entries from the sanctions list: On October 19, 2023, OFSI removed 3 individuals and 3 companies from the Iran (Nuclear) financial sanctions regime. The persons removed from the sanctions list are: Mohsen Fakhrizadeh-Mahabadi; Mohammad Hejazi; Qasem Soleimani; Barzagani Tejarat Tavanmad Saccal Companies; Doostan International Company; and Pejman Industrial Services Corporation. These persons are no longer subject to an asset freeze. (Notice_Iran__Nuclear__191023.pdf (publishing.service.gov.uk))
• FCDO releases statement on Joint Comprehensive Plan of Action (JCPoA) Transition Day: On October 18, 2023, the FCDO announced that the UK Government had transferred 20 individuals and 58 entities from UN sanctions to UK autonomous sanctions under the Iran (Nuclear) sanctions regime. These persons remain subject to an asset freeze. (UK statement on Joint Comprehensive Plan of Action (JCPoA) Transition Day - GOV.UK (www.gov.uk); https://assets.publishing.service.gov.uk/media/652fc03492895c0010dcb973/Notice_Iran__Nuclear__181023.pdf)