Sanctions Watch | Weekly Vol. 159

Sanctions Watch Vol 159

In the latest edition of our Sanctions Watch weekly digest, we present significant updates on sanction watchlists and regulatory developments.

U.S. OFAC Issues General License X Temporarily Authorizing Transactions Involving Iranian-Origin Oil and Petrochemical Products

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License X, authorizing transactions ordinarily incident and necessary to the production, sale, delivery, and offloading of Iranian-origin crude oil, petroleum products, and petrochemical products through 21 August 2026. The license provides temporary authorization for activities that would otherwise be prohibited under multiple Iran-related sanctions regulations and Executive Orders, including transactions involving certain blocked vessels and sanctioned Iranian energy producers.

The authorization also permits a range of related maritime and logistical services, including vessel management, crewing, bunkering, insurance, registration, emergency repairs, environmental protection measures, and safe docking. In addition, OFAC has authorized the importation of Iranian-origin oil and petrochemical products into the United States when such imports are directly connected to transactions covered by the license. Payments owed to Iran, the Government of Iran, or blocked persons for authorized transactions may also be made in U.S. dollar-denominated funds.

General License X establishes a defined validity period through 21 August 2026, while maintaining broader U.S. sanctions on Iran. The license does not authorize transactions involving persons connected to North Korea, Cuba, or certain sanctioned regions of Ukraine, nor does it waive restrictions under other U.S. sanctions programs.

The issuance of General License X provides greater legal certainty for shipping companies, insurers, traders, financial institutions, and other market participants by clarifying the scope of permissible activities involving Iranian-origin energy products during the license period, while preserving the overall U.S. sanctions regime against Iran.

OFAC Issues General License 60 Authorizing Sanctions Relief for Earthquake Relief Efforts in Venezuela

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License No. 60, authorizing transactions related to earthquake relief efforts in Venezuela through 23 October 2026. The license temporarily permits activities that would otherwise be prohibited under the Venezuela Sanctions Regulations (31 CFR Part 591), enabling humanitarian assistance and disaster response operations in the country.

The authorization covers transactions necessary to support earthquake relief efforts, including the processing and transfer of funds on behalf of third-country persons to or from Venezuela. U.S. financial institutions and registered money transmitters may process such transactions, provided they reasonably rely on the information supplied by the originator of the funds transfer and have no reason to believe the transaction falls outside the scope of the license.

General License 60 provides a defined framework for facilitating humanitarian assistance while preserving the broader U.S. sanctions regime against Venezuela. The license does not authorize the unblocking of property previously blocked under the Venezuela Sanctions Regulations, nor does it permit activities prohibited under other U.S. sanctions authorities or federal laws.

The issuance of General License 60 offers greater legal certainty for humanitarian organizations, financial institutions, aid providers, and other stakeholders involved in disaster relief by clarifying the scope of permissible transactions supporting earthquake response efforts in Venezuela during the authorization period.

UK Updates Open General Export Licence for Dual-Use Items, Expanding Export Authorization to Approved Destinations

The UK Department for Business and Trade has issued an updated Open General Export Licence (OGEL) for Dual-Use Items, which entered into force on 25 June 2026. The revised licence authorizes the export of a broad range of dual-use goods and technologies to approved destinations, including EU Member States, the United States, Canada, Japan, Australia, Singapore, South Korea, Switzerland, and other designated countries and territories. The measure is intended to simplify export licensing for eligible exporters while maintaining the UK’s strategic export control framework.

The updated licence establishes a standardized authorization process for eligible dual-use exports, allowing exporters to rely on a single open licence instead of applying for individual export licences for qualifying shipments. Exporters must register through the UK’s SPIRE system, maintain detailed export records, comply with customs declaration requirements, and satisfy audit and reporting obligations where applicable.

The licence retains strict safeguards by excluding exports where there is knowledge or suspicion that items may be used for prohibited military or weapons of mass destruction end-uses. It also excludes certain sensitive items and destination-specific products, while requiring additional reporting for exports of specified controlled items to certain non-Wassenaar Arrangement destinations.

The revised OGEL provides greater regulatory certainty for exporters, manufacturers, logistics providers, and compliance professionals by streamlining legitimate trade in dual-use items with trusted partner countries while preserving robust controls to prevent the diversion of sensitive technologies for unauthorized military or proliferation-related purposes.

EU Extends Economic Sanctions Against Russia for One More Year

The Council of the European Union has extended its economic sanctions against Russia for an additional 12 months, until 31 July 2027, in response to the Russian Federation’s continued actions destabilizing Ukraine. The decision follows the European Council meeting of 18–19 June 2026, where EU leaders agreed to maintain the existing sanctions framework and reaffirm their commitment to supporting Ukraine’s sovereignty, independence, and territorial integrity.

The renewed measures continue to target key sectors of the Russian economy, including trade, finance, energy, transport, and dual-use technology. They also maintain restrictions on imports of Russian seaborne crude oil and certain petroleum products, prohibit transactions with designated Russian financial institutions and crypto-asset service providers, suspend the broadcasting activities of Kremlin-backed media outlets, and include measures designed to prevent sanctions circumvention.

The extension preserves the comprehensive sanctions regime first introduced in 2014 and significantly expanded following Russia’s full-scale invasion of Ukraine in February 2022. In addition to economic restrictions, the EU continues to enforce asset freezes, travel bans, territorial measures relating to occupied Ukrainian regions, and other diplomatic actions targeting individuals and entities linked to Russia’s aggression.

The EU reiterated that it remains prepared to impose additional restrictive measures if Russia continues its unlawful actions. The European Council also emphasized its intention to further weaken Russia’s war economy, reduce Russian energy revenues, curb shadow fleet operations, strengthen financial restrictions, and advance the proposed 21st sanctions package, while continuing coordinated political, economic, military, humanitarian, and diplomatic support for Ukraine.

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Sanctions Watch is a weekly recap of events and news related to sanctions around the world.