August 8, 2024

The Readbook is Kharon's weekly roundup of our published pieces, upcoming events, and the best-curated news feed on the intersection of international security and global commerce. Subscribe to the email version.

/THIS WEEK ON THE KHARON BRIEF

Russians Imported Millions in Chinese Drone Parts, Some With Western Chips

Amid the ongoing war in Ukraine, a Kharon investigation has revealed that Russian entities have imported millions in drone parts from Chinese brand Tarot-RC, some of which use western chips. This discovery comes as Ukraine reports that Russia has significantly increased its drone capabilities on the front lines. [Read More]

/MEDIA ROUNDUP

SANCTIONS        

The EU sanctioned 28 individuals for participating in ongoing internal repression and human rights violations in Belarus. [European Council]

Washington has warned Turkey that there will be “consequences” if the country does not curtail its exports to Russia of U.S. military-linked hardware that is vital to Moscow’s war machine. [FT]

A liquefied natural gas tanker that’s docked at a sanctioned Russian gas facility has no known insurer, is managed by a little known Indian company, and is pretending to be somewhere else. [Bloomberg]

The U.S. Department of the Treasury issued two general licenses extending the authorization for certain wind-down and divestment transactions involving the Moscow Exchange, the Russian National Clearing Center, and the Russian National Settlement Depository. [U.S. Treasury]

The U.S. Department of the Treasury updated the designation criteria for a previously sanctioned Paraguayan tobacco company due to its continued financial support for Paraguay’s former president, Horacio Manuel Cartes Jara, following his divestment from the company. [U.S. Treasury]

Escalating attacks on civilians have made it clear that Myanmar is evading sanctions aimed at blocking the flow of jet fuel that the regime needs to keep its bombers, fighter jets, and helicopter gunships in the air. [NYT]

COMPLIANCE + ENFORCEMENT        

China will impose controls in September on the production of critical chemicals for the manufacture of fentanyl, in a sign of rising cooperation between Beijing and Washington over efforts to crack down on the deadly synthetic opioid. [FT]

U.S. Customs and Border Protection officers recently seized approximately 4 million blue fentanyl pills - weighing more than 1,000 pounds - in the largest singular fentanyl seizure in CBP history. [U.S. CBP]

Fifteen individuals were charged in the U.S. for distributing methamphetamine, cocaine, and fentanyl sourced by the Sinaloa Cartel and Cartel de Jalisco Nueva Generacion. [U.S. Justice]

A Lithuania-registered company exporting vehicles was fined EUR 13.6 million for violating international sanctions through its transactions with companies registered in Kazakhstan, Belarus, and Turkey. [LRT]

An American multinational financial services company is being investigated by government authorities over issues in its anti-money laundering and sanctions programs. [Reuters]

The Solicitors Regulation Authority of England and Wales updated its guidance on complying with the U.K. sanctions regime, to include the addition of red flags for attempted circumvention and clarification on reporting requirements and license responsibilities. [SRA]

To improve efficiency in responding to requests for sanctions guidance from the public, OFAC will update its Compliance Hotline by streamlining and enhancing the query submission process. [U.S. Treasury]

TRADE CONTROLS + SUPPLY CHAIN        

The U.S. is trying to stop China from getting specific microchips to advance its military, and the private sector is fighting back. [NYT]

The U.S. Commerce Department is expected to propose barring Chinese software in autonomous and connected vehicles in the coming weeks. [Reuters]