Sanctions Center’s Post

US denial of export privileges renewed against Russian airline The US Bureau of Industry and Security has issued an export order renewing its temporary denial (TDO) of export privileges against URAL Airlines JSC. The Russian airline’s export privileges were first denied in October 2022 on grounds that it was necessary to prevent an imminent violation of US export regulations (EAR). URAL was said then to have operated multiple aircraft subject to the EAR on flights into and out of Russia without the requisite licences. The latest order says URAL continues to engage in conduct prohibited by the TDO and the EAR. #Sanctions #Russia #EUCommission #ExportControl #TradeWar #TSECS #SanctionsUpdate #TurkishSociety #Sanctions #USA #OFAC #BIS #TradeUpdates #GlobalTrade #TradeCompliance #InternationalRelations #EconomicSanctions #TradeRegulations #TurkishExports #TradePolicy #SecurityMatters #ForeignPolicy #ComplianceNews #EconomicSecurity #CrossBorderBusiness

As an extension to the yesterday post, another case with stopped spare parts of planes destined to Russia. Two Russian nationals pleaded guilty this week to conspiracy to violate the Export Control Reform Act (ECRA) in connection with a scheme to acquire and unlawfully export controlled aviation technology to Russian end users. Using the same known tactics to obfuscate the reality of the transaction: ☛ False end-destination for carbon disk brakes ☛ Making false representations about the identities of their true customers ☛ Using straw buyer-companies located overseas to obscure the origin of revenue ⁉️ Having a final destination known as a circumvention hub may have triggered additional questions/requirements from the supplier as well. American bank accounts associated with MIC P&I LLC, a company controlled by Patsulya, received at least $4,582,288 sent from Russian airline companies through Turkish bank accounts to purchase aircraft parts and components intended for unlawful export. Cercle K2 Corporate Crime Observatory #sanctions #sanctionscompliance #airplanes #exportcontrol #DUG https://lnkd.in/d-vgAi4i

Gal Haimovich, 49, of Israel, pleaded guilty yesterday to conspiracy to commit export control and smuggling violations for his role in a scheme to illegally ship aircraft parts and avionics from U.S. manufacturers and suppliers to Russia, including for the benefit of sanctioned Russian airline companies. As part of his plea agreement, Haimovich admitted that his scheme involved deceiving U.S. companies about the true destination of the goods at issue, and that the defendant and others attempted to conceal the scheme by submitting false information in export documents filed with the U.S. government. A sentencing hearing has been set for Nov. 22. https://lnkd.in/ePW_NkjV. #Sanctions #Russia #EUCommission #ExportControl #TradeWar #TSECS #SanctionsUpdate #TurkishSociety #Sanctions #USA #OFAC #BIS #TradeUpdates #GlobalTrade #TradeCompliance #InternationalRelations #EconomicSanctions #TradeRegulations #TurkishExports #TradePolicy #SecurityMatters #ForeignPolicy #ComplianceNews #EconomicSecurity #CrossBorderBusiness

A recent investigation by the OCCRP has exposed a clandestine network funneling #EU-branded trucks to #Syria, where they are utilized by the Syrian army. Key insights include: 🔍 Undercover Operations: The investigation reveals how these trucks are covertly transported through Jordan and Lebanon. 🌍 Global Trade Loopholes: The report highlights the exploitation of regulatory gaps that enable this illicit trade. 🕵️♂️ Complex Networks: Various intermediaries play a crucial role in facilitating the movement of these vehicles. This investigation sheds light on the urgent need for stricter regulations and monitoring of international trade routes, particularly in conflict zones. 🌐 #SupplyChain #InternationalTrade #Compliance #Sanctions https://lnkd.in/gwKphAip via The Organized Crime and Corruption Reporting Project

Brand new Swedish Trucks used to transport tanks in Syria !!! How did they get there? Since 2000, the U.S. government’s use of sanctions has increased ninefold. But the growth of sanctions as a foreign policy tool has often complicated enforcement. The laws themselves are also written in ways that leave room for interpretation. “Sanctions can be quite vague for multiple reasons. Chief amongst them is that the cost of compliance is not borne by the party that imposes them,” said Karam Shaar, a fellow at the New Lines Institute who researches illicit narcotic flows in Lebanon and Syria. Reading this article by OCCRP one can easily spot the red flags such as: -Use of free trade zones -Use of exchange houses that enable Hawala exchange for complicit traders -Invoice and bill of lading manipulation -Bribery and corruption -Enablers What one should keep in mind is that criminals are always one step ahead therefore sanctions should be dynamic and follow a quick response to evolving trends …. ! By adopting to the new trends we are just loosing the game!… and more lives are lost #sanctions #syria

Most of the aircraft flying in Russia today are made by western companies, but waves of sanctions following the country's invasion of Ukraine mean it is near impossible to import replacement parts. Which begs the question: how is Russia keeping its planes in the air? Read for free on FT Edit.

Customs Officials Seize Over $90,000 in Unreported Currency at Dulles Airport Washington, D.C. - U.S. Customs and Border Protection (CBP) officers seized a total of $90,535 from five travelers at Washington Dulles International Airport in August. Under U.S. law, travelers may carry any amount of currency or monetary instruments internationally, but any sum of $10,000 or more must be reported to a CBP officer. Failure to report such amounts can lead to currency seizures, travel delays, missed flights, or even criminal prosecution. Four of the seizures involved travelers departing the U.S. to Bogota, Colombia; Doha, Qatar; and Accra, Ghana. The fifth seizure occurred with a traveler arriving from Shanghai, China. https://lnkd.in/gd63VTQ4 #CBP #EUA #News #AshleyMoreno

Foreign airlines react to sudden new US rule tightening air cargo security Foreign airlines are said to have reacted strongly to an emergency security change to US Customs regulations on airfreight, with at least one carrier temporarily halting cargo sales as it seeks more clarity on the sudden additional requirement. https://lnkd.in/gntyYkYK

FT long-form journalism is something to be admired. Here is a great piece on how Russian commercial airlines keep their planes in the air. I wanted to draw your attention to some of the comments. Lots of commentators are misunderstanding (wilfully or otherwise) the effect of sanctions. They are not designed to impact consumers directly, or to make planes fall out of the skies. They cannot bring any economy to a grinding halt, and obviously not overnight. The main objective of sanctions is to make life more difficult (not impossible) for the bad actors. Sanctions raise costs, and make supply chains more complex, more expensive and more unreliable. Yes, third party traders (i.e. sanctions busters) profit enormously from the sanctions, but the subject of the sanctions pays those inflated costs. I once saw a report that said that medical equipment imported by Cuba went round the globe several times to avoid US sanctions. Not a cheap or quick supply chain... If sanctions are designed carefully (and the Russian ones have been), the West will have picked sanctions that cause maximum impact in Russia, and that minimize impact in the West. The Western sanctions currently avoid sanctions that cause significant impact in the West. That might change. #vbb #uksanctions #eusanctions #ussanctions #circumvention #aircraftmaintenance