Regulatory & International Trade | RIT
Helping Businesses Clear Regulatory Hurdles in Europe
Regulatory & International Trade | RIT
Regulatory & International Trade | RIT
Helping Businesses Clear Regulatory Hurdles in Europe

Quarterly Sanctions Update | Q3 2024

Although the European Union and the United Kingdom did not introduce new sanctions against Russia over the summer, they extensively focused on the implementation of the existing measures and their enforcement. This week, however, a new package of sanctions aimed at tackling hybrid operations by the Russian government has been agreed upon, and is expected to be published in the coming weeks. In the same period, the Court of Justice of the European Union (CJEU) issued a number of landmark judgments clarifying certain aspects of the EU sanctions regime and has, in one instance, openly disagreed with the interpretation of the regime by the European Commission.

Furthermore, in line with the overarching goal of EU sanctions against Russia, which is to support Ukraine, for the first time, the European Union has transferred profits from frozen assets of the Russian Central Bank to the European Peace Facility and the Ukraine Facility, which will used the monies in support of Ukraine’s military and reconstruction needs.

Finally, acknowledging the current geopolitical situation in the Middle East, the European Union and United Kingdom continued to issue new sanctions against Hamas and Iran. The United Kingdom has also revoked certain licences allowing the sale of [...]

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EU Member States Implement Additional Measures to Regulate Export of Non-Listed Dual-Use Items

Member States in the European Union have taken additional measures beyond Regulation (EU) 2021/821 to control exports of dual-use items. More than half have extended authorization requirements for non-listed dual-use items suspected of being intended for military “end-use.” Additionally, five Member States have imposed export authorization for cyber-surveillance items linked to internal repression and serious human rights violations. The official publication of these additional national measures has just been released.


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BIOSECURE Act: US to Target Chinese Biotechnology Companies

On September 9, the US House of Representatives passed H.R. 8333, known as the BIOSECURE Act, targeting WuXi AppTec, BGI, MGI, Complete Genomics, WuXi Biologics and Chinese biotechnology companies more broadly.

Measures & Context

If signed into law, the BIOSECURE Act would prohibit entities that receive US federal funding from doing business with foreign biotechnology companies affiliated with the People’s Liberation Army, including the five Chinese biotechnology companies explicitly named in the bill. The bill also seeks to prevent the transfer of US persons’ genetic information to foreign adversaries.

The bill addresses concerns that foreign biotechnology companies, particularly Chinese companies, could use genetic data for surveillance or espionage.

The bill’s measures are part of a broader set of restrictive measures against China following the passage of the Secure and Trusted Communications Networks Act. This law prohibits federal agencies from purchasing telecommunications equipment from certain foreign companies, including those from China, due to security concerns, and prevents them from contracting with companies that use such prohibited equipment.


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EU Court of Justice Upholds Confiscation of Proceeds from Brokering Services Relating to Russian Goods

Highlights

In a recent ruling, the Court of Justice of the European Union (CJEU) upheld the legality of confiscating the proceeds from brokering services relating to military equipment manufactured in Russia and sold from Ukraine to India, without entering the European Union. This decision highlights the increasingly broad reach of EU sanctions and the EU’s dedication to enforcing sanctions and preventing circumvention.

This is also a clear sign to all EU operators providing brokering services to implement robust due diligence mechanisms to ensure that they are not captured by prohibitions under EU sanctions should underlying goods be in any way linked to Russia. In addition, the CJEU gave a clear signal of support to the European Commission and the relevant authorities of EU Member States prosecuting violations of EU sanctions, assuring them of a pro-enforcement line of CJEU case law.


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