In the Netherlands, the Dutch government amended a general license in order to address the recent judgment in appeal to halt delivery of F-35 aircrafts to Israel. At a European level, the European Commission has suggested using Russian frozen assets to arm Ukraine. The United States of America (“US”) has sanctioned members of a European spyware operation. In the United Kingdom (the “UK”) new guidance has been published to address ongoing sanction concerns in the maritime sector. This, and more, in this newsletter.
1. The Netherlands
- The Netherlands – Dutch government amends General Licence NL009 – On 19 February 2024, the Dutch government amended General Licence NL009 (“GL NL009”) in order to address the judgment of the The Hague Court of Appeal of 12 February 2024. In that judgment, highlighted in our previous newsletter, the Court of Appeal ordered the Dutch State to stop further export of F-35 aircraft parts to Israel, due to concerns of human rights violations in the Gaza Strip by means of the F-35 fighter jets. GL NL009 provided a general license for the export of military goods under the F-35 Lightning II programme, which includes export to Israel. Following the judgment, GL NL009 was amended to specifically exclude export under the general license, insofar it involves Israel as its final destination.
- The Netherlands – The Council of State finds the AIVD report insufficient grounds for freezing – On 28 February 2024, the Council of State ruled on the appeal of a Dutch citizen of Turkish background who was placed on the Dutch sanctions list by the Minister of Foreign Affairs (the “Minister“) in mid-July 2017. The Minister based the decision on an individual official notice issued by the General Intelligence and Security Service of the Netherlands (In dutch: Algemene Inlichtingen en Veiligheidsdienst (“AIVD”) on 28 March 2017 and the underlying classified documents. After unsuccessful objection and appeal proceedings, the individual was vindicated on appeal. According to the Council of State, the AIVD report did not provide sufficient grounds for the freezing measures. The Minister should therefore have provided more substantiation for its decision to freeze funds.
- The Netherlands – Government publishes comments on European Commission Export Controls White Paper – On 1 March 2024, the Government issued its comments on the European Commission’s White Paper on Export Controls. The Government was positive about the plan to give the Commission the power to modify the control list through Article 17 of the Dual-Use Regulation. Given the exceptional circumstances in which the export control regimes currently find themselves – in which the current geopolitical situation leads to disagreement among the participating states of the control regimes, and thus blocking adjustments to the dual-use list – the Government indicates its willingness to engage in further discussion with other EU member states about expanding the control list through a consensus among all EU member states, rather than through the control regimes themselves. In addition, the Government emphasized the need for better and earlier coordination of national control measures with an international dimension. To further this process, the Government wants to bring in its own experience – with the implementation of the Regeling Geavanceerde Producctieapparatuur Voor Halfgeleiders in March 2023 – to strengthen EU coordination. Since the coordination and implementation work is still in progress, it expressed reservations about bringing forward the review of the dual-use regulation.
2. European Union
- EU – The EU prolongs the restrictive measures against Belarus for another year – On 26 February 2024, The Council of the EU has decided to prolong the sanctions linked to ongoing internal repression and support for Russia’s war against Ukraine until 28 February 2025. Signalling the EU’s continuous support for the Belarusian people and their effort in achieving a democratic Belarus, the existing sanctions consist of individual, sectoral sanctions and economic sanctions such as restrictions in the financial sector, trade, dual-use goods, technology and telecommunication, energy and transport.
- EU – European Commision President Von der Leyen suggests the usage of frozen Russian assets to arm Kiev – On 28 February 2024, the President of the European Commission, Ursula von der Leyen, announced that it is time to start a conversation about utilizing windfall profits of frozen Russian assets to purchase military equipment for Ukraine. This statement can be seen as a follow-up of a recent decision adopted by the European Council, which was seen as the first step to set aside profits made on frozen Russian Central Bank assets. While a clear signal that the EU may indeed opt for an approach of seizing all Russia’s state assets, many legal hurdles still remain.
- EU – Delisting of Yandex Cofounder Arkady Yurievich Volozh – On 12 March 2024, the EU removed eleven (11) individuals from its sanctions list. Along the delisted is Arkady Yurievich Volozh. The cofounder of tech giant Yandex stepped down as CEO after being targeted by EU sanctions in June 2022. Yandex announced in February that it would sell its Russian holdings for 475 billion rubles ($5.2 billion) to a group of Russian investors.The EU also lifted sanctions against Jozef Hambalek, the leader of the pro-Kremlin Night Wolves motorbike club’s European branch, and Sergei Mndoyants, the former vice-president of the Russian AFK Sistema.
3. United Kingdom
- United Kingdom – OFSI updates its guidance for sanctions compliance in the maritime sector – On 28 February 2024, the Office of Financial Sanctions Implementation (“OFSI”) published a renewal of its maritime sector guidance, which covers new tactics used by illicit actors active in the maritime industry to evade UK sanctions. By understanding these tactics, business can adjust their compliance measures accordingly. Moreover, the new guidance offers recommendations for implementing additional due diligence practices. Tactics used by illicit actors that are highlighted in the guidance include false flags, ship-to-ship transfers with the intent of sanctions evasion, irregular sailing patterns to disguise ultimate destinations and complex ownership structures.
4. United States of America
- US – The U.S. Department of State concludes an administrative settlement with Boeing – On 29 February 2024, the U.S. Department of State concluded an administrative settlement of USD 51 million, in light of 199 violations of the Arms Export Control Act, and the International Traffic in Arms Regulation. All of the alleged violations were voluntarily disclosed by Boeing, and in majority predate 2020. In particular, Boeing violated the aforementioned regulations by engaging in unauthorized exports of technical data to foreign-person employees and contractors, unauthorized export of defence articles, and violations of license terms, conditions and authorizations.
- US – The Zimbabwe sanctions program has been terminated – On 4 March 2024,the Office of Foreign Assets Control (“OFAC”) sanctions program regarding Zimbabwe has been terminated. At the same time, OFAC designated 11 individuals, including Zimbabwe’s President Emmerson Mnangagwa, and three entities for their involvement in corruption or serious human rights abuse. These designations were done pursuant to the Global Magnitsky Human Rights Accountability Act. Thesechanges make clear that OFAC’s sanctions programs are not intended to target the people of Zimbabwe, but rather President Mnangagwa’s criminal network of government officials and businesspeople who are most responsible for corruption or human rights abuse.
- US – OFAC sanctions members of European spyware maker Intellexa Consortium – On 5 March 2024, OFAC designated two individuals, including the founder of the Intellexa Consortium, and five largely EU entities associated with the Intellexa Consortium. As part of a larger crackdown against commercial spyware vendors, OFAC stated that this action represents a step forward in discouraging the misuse of commercial surveillance tools. The Intellexa Consortium, being a marketing label for a variety of cyber companies, enables the usage of spyware technologies, including for authoritarian regimes.