June 13, 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.

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/THIS WEEK IN THE KHARON BRIEF

House Bill Seeks to Ban DHS from Purchasing Chinese Batteries

House Republicans introduced a bill last week that would ban the Department of Homeland Security from procuring batteries from six Chinese companies that have links to the People’s Republic of China. [Read More]

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/MEDIA ROUND UP

SANCTIONS        

The U.S. Department of the Treasury and the U.S. Department of State together sanctioned more than 300 individuals and entities both in Russia and outside its borders whose products and services enable Russia to sustain its war effort and evade sanctions. [U.S. Treasury] [U.S. State]

The U.K. announced new designations targeting ships in Vladimir Putin’s shadow fleet, institutions at the heart of Russia’s financial system, and suppliers supporting Russia’s military production. [U.K. Government]

The Government of Canada imposed sanctions on individuals and entities implicated in disinformation and propaganda operations, entities in Russia’s military-industrial complex, and entities involved in sanctions circumvention that facilitate Russia’s access to sanctioned goods or revenue from oil sold above the G7 price cap. [Canadian Government]

Russia’s main exchange said it’s halting trading in U.S. dollars and the euro after the U.S. unveiled a raft of measures designed to further isolate Moscow from the international financial system over its war in Ukraine. [Bloomberg]

The EU is proposing to sanction Russia’s oil-shipping giant Sovcomflot PJSC in a move to limit the Kremlin’s ability to finance its war against Ukraine. [Bloomberg]

The first Russian oil tanker attempting to deliver crude while under U.S. sanctions made a secret cargo transfer onto another ship, a sign of the lengths to which Moscow is going to undermine the effectiveness of American restrictions on its fleet. [Bloomberg]

An armada of old tanker ships has sprung up to move sanctioned Russian and Iranian oil, with Gabon emerging as a surprising new player at the center of this trade. [WSJ]

Several North Korean oil tankers that allegedly violated U.N. Security Council resolutions visited a far eastern Russia port in early April and were apparently loaded with refined petroleum products that were shipped back to North Korea. [Japan News]

German exports of cars to Kyrgyzstan are up 5,100 percent since the start of the Ukraine war – with other routes channeling luxury goods and computer chips. [Guardian]

An ex-employee has alleged that an American multinational technology company breached U.K. sanctions by providing Moscow with its facial recognition technology after Russia’s full-scale invasion of Ukraine. [FT]

An investigation found that one of the largest legal services providers in Amsterdam had multiple Russian state-owned companies and Putin-friendly oligarchs as customers. [NL Times]

China has urged the BRICS bloc of nations to take on greater responsibilities and establish itself as being inclusive to the world, in the wake of Western sanctions and trade restrictions imposed on the country. [Reuters]

The U.S. Department of the Treasury sanctioned ten individuals, entities, and vessels, including tanker captains, in multiple jurisdictions that have engaged in the illicit transport of oil and other commodities, including for the network of Houthi financial facilitator Sa’id al-Jamal. [U.S. Treasury]

The U.S. Department of the Treasury sanctioned members of one of Guyana’s wealthiest families and their companies as well as a Guyanese government official for their roles in public corruption in Guyana. [U.S. Treasury]

COMPLIANCE + ENFORCEMENT        

The U.S. Commerce Department’s Bureau of Industry and Security imposed a civil penalty of USD 285,000 against a Turkish aviation company for flying a U.S.-origin aircraft into Russia without a required BIS license. [U.S. BIS]

A dual U.S.-Russian citizen pleaded guilty to conspiracy to violate the Export Control Reform Act by exporting firearm parts, components, and ammunition to Russia without the required authorization. [U.S. Justice]

Two U.S. citizens born in Russia were charged with allegedly operating a scheme to illegally export nearly half a million dollars’ worth of snowmachines and associated parts from the U.S. to Russia without the required licenses and approvals, in violation of U.S. export laws. [U.S. Justice] 

Two Texas men were sentenced to prison for evading U.S. economic sanctions against Iran by facilitating the purchase of sanctioned oil from Iran and selling the oil under masked origins to buyers in China. [U.S. Justice] 

A U.S. federal jury convicted a Kentucky man of providing material support to ISIS and receiving military-type training from ISIS. [U.S. Justice]

Scientists are embarking on an effort to keep sanctioned Russian timber out of Europe by mapping the unique chemical fingerprints of trees, a process that could be used to vet corporate supply chains for other banned commodities. [WSJ]

A U.S. federal jury decided that a major banana producer must pay more than USD 38 million in damages to victims of a Colombian paramilitary group the company was found liable for financing in the late 1990s and early 2000s. [WaPo]

Banks caught up in Singapore’s biggest money laundering scandal are ramping up scrutiny of their wealthy customers and potential clients to avoid exposure to illicit flows. [Bloomberg]

TRADE CONTROLS + SUPPLY CHAIN        

The U.S. Commerce Department’s Bureau of Industry and Security announced several significant additional export control restrictions and related actions against Russia to further degrade its ability to continue waging war against Ukraine. [U.S. BIS]

The Biden administration is considering further restrictions on China’s access to chip technology used for artificial intelligence, targeting new hardware that’s only now making its way into the market. [Bloomberg]

A Chinese CCTV giant labeled a security risk by the U.K. Government more than doubled sales of its surveillance cameras in Britain last year despite an official ban at sensitive locations. [Telegraph]

HUMAN RIGHTS + FORCED LABOR        

The U.S. Department of Homeland Security announced the addition of three China-based seafood, aluminum, and footwear companies to the Uyghur Forced Labor Prevention Act Entity List. [U.S. Homeland Security]

The chair of the U.S. Senate Finance Committee said he was expanding its probe into a German automaker’s use of electronic components from a banned Chinese supplier. [Reuters]

CRYPTO + CYBER        

A provision in the recent spending package from the U.S. Senate's intelligence committee targets crypto ties to terrorism with sanctions threats, catching many in the industry off-guard. [CoinDesk]