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 above.
1. RUSSIA SANCTIONS
- UK Ministry of Defence publishes defence intelligence update relating to sanctions targeting Russia: On April 1, 2024, the Ministry of Defence published an intelligence update reporting that sanctions will likely continue to disrupt key inputs for Russia's defence industry. Among other things, the update notes that (i) "Russia's isolation limits the number of countries it can directly trade with", causing disruption of "both supply and demand for Russian arms exports, as well as significantly complicating payment mechanisms to Russia"; and (ii) Russia's share of the global arms trade has fallen to 11% in the period 2019 to 2023 from 21% in the period from 2014 to 2018. (Ministry of Defence 🇬🇧 on X: "Latest Defence Intelligence update on the situation in Ukraine – 01 April 2024. Find out more about Defence Intelligence's use of language: https://t.co/VLI1JhTxbL #StandWithUkraine 🇺🇦 https://t.co/VV2an1FVEU" / X (twitter.com)
- UK court has jurisdiction to hear insurance claims in case relating to aircraft grounded in Russia: On March 28, 2024, in Zephyrus Capital Aviation Partners 1D Ltd & Ors v Fidelis Underwriting Ltd & Ors, the UK High Court held that it had jurisdiction to hear $10 billion worth of claims brought by aircraft lessors against reinsurers of an aircraft grounded in Russia. Some of the reinsurers sought a stay of the English proceedings, arguing that the Russian court has exclusive jurisdiction. The court held that "the Claimants are very unlikely to obtain a fair trial in Russia". Other reasons included the "inevitability of increased multiplicity of proceedings and far greater risk of inconsistent findings on fundamental issues were these claims to proceed in Russia" and "an element of risk of personal attacks on individuals who in the ordinary course would attend trial". (Zephyrus Capital Aviation Partners 1D Ltd & Ors v Fidelis Underwriting Ltd & Ors (Re Russian Aircraft Operator Policy Claims (Jurisdiction Applications)) [2024] EWHC 734 (Comm) (28 March 2024) (bailii.org))
2.COUNTER-TERRORISM SANCTIONS
- UK House of Commons publishes research on Israel-Hamas conflict and sanctions response: On April 3, 2024, the House of Commons published a research briefing on the UK and international response to the Israel-Hamas conflict. The report includes a summary of the UK's response to Hamas and other groups since 7 October 2023, including: five rounds of sanctions on Hamas; proscription of Hizb ut-Tahrir as a terrorist group; travel restrictions on Israeli settlers; and sanctioning of the IRGC under its nuclear sanctions regime (although the IRGC has not been proscribed as a terrorist group). The report also summarises the response to the conflict of the G7, United States and European Union, as well as the response in the wider Middle East. (CBP-9874.pdf (parliament.uk))
3. OTHER SANCTIONS
- UK Export Control Joint Unit (ECJU) updates the UK strategic export list: On April 3, 2024, the ECJU published notice to exporters 2024/06 in respect of updates to the UK strategic export control list. The new control entries added to the UK strategic export control list reflect recent amendments to Export Control Order 2008 and the Council Regulation (EC) No 428/2009 laid out in Notice to Exporters 2024/04. Alongside the inclusion of new control entries, a number of other amendments were made to the dual-use and munitions list. (NTE 2024/06: updates to UK strategic export list - GOV.UK (www.gov.uk))
- UK Office of Financial Sanctions Implementation (OFSI) amends General Licence authorising certain payments to Companies House: On April 2, 2024, OFSI amended General Licence INT/2023/3626884, which authorises certain payments to Companies House. The original general licence was issued on October 6, 2023 and it allows for UK Designated Persons ("UK DPs") to make Permitted Payments to Companies House and for persons acting on behalf of UK DPs to make Permitted Payments to Companies House. This latest update adds permissions to the list of Permitted Payments, allowing for: (1) the payment of fees owed by or due from UK DPs to Companies House for filing an Overseas Entity Update Statement in respect of entities on the Register of Overseas Entities; and (2) the payment of penalties owed by or due from UK DPs to Companies House incurred as a result of failure to register as an entity on the Register of Overseas Entities or failure to provide an Overseas Entity Update Statement in respect of entities on the Register of Overseas Entities. (General_Licence_INT20233626884_Payments_to_Companies_House_2.4.24.pdf (publishing.service.gov.uk))
- Office of Financial Sanctions Implementation (OFSI) publishes blog post on financial sanctions in the maritime sector: On April 2, 2024, OFSI published a blog post in respect of compliance with financial sanctions in the maritime sector. The guidance emphasises the importance of inter alia: conducting counterparty due diligence; implementing robust compliance policies and procedures; investing in advanced technology and screening tools; and ongoing training and communication. (Staying compliant with financial sanctions in the maritime sector – Office of Financial Sanctions Implementation (blog.gov.uk))
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