Sanctions Watch | Weekly Vol. 112

Sanctions Watch Vol 112

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

1. U.S. Grants Temporary License for Humanitarian and Safety Operations on Sanctioned Iranian Vessels

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License R under Executive Order 13902, temporarily authorizing limited transactions involving specific Iranian-linked vessels and entities. These vessels were previously sanctioned for ties to Iran’s petroleum and shipping sectors.

The license permits safety, health, and environmental activities related to the offloading of cargo, emergency repairs, crew welfare, and safe port entry/exit—but strictly excludes any activities occurring in Iran or Russia. Transactions are authorized only if cargo was loaded before July 30, 2025, and all payments to blocked persons must go into a blocked U.S.-based interest-bearing account.

This license is valid until 12:01 a.m. EDT, October 1, 2025, and does not permit new commercial contracts or other prohibited activities under OFAC or other sanctions regimes.

The annex lists Marvise SMC DMCC and Reel Shipping L.L.C. as the primary blocked entities, with 22 vessels identified, including ships named ALE, PINOCCHIO, SIMBA, MOANA, and TB ANPING.

This move reflects a measured approach by the U.S. to balance humanitarian concerns while maintaining pressure on Iran’s sanctioned sectors.

2. Estonia’s Enhanced Customs Controls Slash Timber Trade from High-Risk Countries in 2025 Mid-Year Sanctions Control

The Estonian Tax and Customs Board (ETCB) reported a significant decline in timber trade flows from high-risk countries linked to sanctions evasion. Focused primarily on goods originating from Russia and rerouted via Kazakhstan, China, Georgia, and Turkey, the enhanced customs controls aimed to curb origin fraud and prevent prohibited Russian timber from entering the EU.

Beginning in February 2025, full customs inspections were mandated for plywood imports from Kazakhstan and China. As a consequence, plywood imports from Kazakhstan decreased by about 20%, while those from China dropped by more than 90%.

The ETCB conducted a total of 618 inspections of timber shipments in the first half of the year, identifying 23 violations. Among them, 79 shipments were immediately turned back at the border. A further 39 shipments were returned after entry when post-clearance checks revealed the actual origin was Russia.

Additionally, over 100 proceedings have been initiated for customs origin-fraud declarations involving timber from Kazakhstan, indicating insufficient processing to merit Kazakh origin. Customs authorities will continue post-clearance verifications for imports from China and Kazakhstan to counter evolving evasion tactics.

This crackdown underscores the ETCB’s intensified efforts to strengthen sanctions enforcement and uphold EU-wide trade integrity by preventing illicit timber trade.

3. EU Extends Sanctions Against Terrorism, Keeps Most Listings Intact Amid Ongoing Security Efforts

The Council of the European Union officially renewed the EU Terrorist List, a key instrument in the bloc’s fight against terrorism. This periodic review led to the delisting of one deceased person, while all other listings remained unchanged.

The updated list now includes 13 individuals and 22 groups and entities. These subjects are impacted by restrictive measures, primarily the freezing of funds and economic resources across EU member states. In addition, EU operators are prohibited from providing any financial or economic resources to those listed.

This sanctions regime is based on Common Position 2001/931/CFSP, which allows the EU to independently list individuals or groups based on evidence of involvement in terrorism. It operates separately from the UN sanctions frameworks, such as those under UN Security Council Resolutions 1267, 1989, and 2253, which focus on entities like Al-Qaida and ISIL/Da’esh.

Furthermore, the EU has clarified that this regime is distinct from the autonomous 2024 EU sanctions framework targeting supporters of Hamas and Palestinian Islamic Jihad, implemented in response to escalating violent actions.

This renewal demonstrates the EU’s ongoing commitment to disrupting terrorist financing and infrastructure, while also adapting its framework to remain responsive to evolving threats.

4. UN Security Council Renews Sanctions on Armed Groups in Central African Republic Until 2026

The UN Security Council unanimously adopted Resolution 2789 (2025), extending sanctions against non-State armed groups and associated individuals in the Central African Republic (CAR) until 31 July 2026. The decision mandates that all UN Member States must continue to prevent the supply, sale, or transfer of arms to such actors and maintain travel bans and asset freezes on individuals threatening peace and stability in the country.

This resolution is a technical roll-over of Resolution 2745 (2024), which lifted the arms embargo on the CAR Government and its security forces, while keeping restrictions on non-State actors. The Panel of Experts monitoring the sanctions will also continue its mandate until 31 August 2026.

The renewal reflects increasing unity among Security Council members, with France—which drafted the resolution—emphasizing that building on last year’s consensus was key. Algeria, speaking on behalf of Sierra Leone, Somalia, and Guyana, praised the Council’s unity, noting it was the second consecutive year of unanimous agreement on CAR.

Positive developments on the ground were also acknowledged, including the dissolution of two armed groups, Retour, Réclamation et Réhabilitation and Unité pour la paix en Centrafrique, following successful mediation by Chad and a signed peace agreement with the government.

These steps are seen as crucial for sustained stability, especially in view of critical local and general elections scheduled for December 2025. The Council hopes the sanctions regime will continue to support peace and deter future destabilization efforts.

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