Sanctions Watch | Weekly Vol. 155

Sanctions Watch Vol 155

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

OFAC Extends Authorization Window for Lukoil International GmbH Sale and Operational Wind-Down Through June 2026

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License No. 131F under the Russian Harmful Foreign Activities Sanctions Regulations, extending regulatory authorizations related to Lukoil International GmbH (LIG) and its subsidiaries through June 27, 2026. The updated license permits transactions necessary for negotiating and entering into contingent contracts involving the sale, transfer, or disposition of LIG and entities in which it holds a majority ownership stake.

The authorization provides additional time and regulatory clarity for potential buyers, investors, and stakeholders to pursue strategic transactions involving LIG while ensuring compliance with U.S. sanctions requirements. OFAC also allows transactions required for the maintenance or orderly wind-down of LIG operations, contracts, and business activities during the extension period. Blocked accounts of LIG entities may be used for these authorized operational activities.

The measure supports a structured and transparent process for evaluating ownership transitions and preserving business continuity while maintaining broader sanctions restrictions. However, the license does not authorize the unblocking of sanctioned property, transactions involving other blocked persons, or transfers of funds to individuals or accounts located in Russia.

Effective May 28, 2026, General License No. 131F replaces and supersedes General License No. 131E, previously issued on April 29, 2026.

UK Expands Russia Sanctions Licence to Cover Cryptoasset Transactions with New Reporting Framework

The United Kingdom Office of Financial Sanctions Implementation (OFSI) introduced significant updates to General Licence INT/2024/4761108 by formally incorporating cryptoasset transactions within the scope of the licence and establishing new reporting obligations. The amendment introduces a definition of “Cryptoasset” as a cryptographically secured digital representation of value or contractual rights that uses distributed ledger technology and can be transferred, stored, or traded electronically.

The update enhances regulatory clarity by ensuring that individuals and entities using cryptoassets for permitted personal-use payments under the licence remain subject to oversight and transparency requirements. Under the revised framework, any person using cryptoassets to make or receive payments under the licence must comply with a dedicated reporting requirement outlined in the licence.

Additionally, OFSI has modernized the reporting process for Relevant Institutions. Instead of reporting individual transactions within 14 days of processing, institutions are now required to submit consolidated monthly reports within 14 days after the end of each calendar month. Reports must include transaction amounts, payment routes, processing dates, and supporting evidence.

The amendment reflects the UK’s continued efforts to adapt sanctions compliance measures to evolving financial technologies while maintaining effective monitoring of cross-border personal-use payments involving designated Russian financial institutions.

EU Extends Russia Human Rights Sanctions Until May 2027 Amid Ongoing Concerns Over Repression

The European Union has extended its restrictive measures targeting individuals and entities responsible for serious human rights violations, political repression, and actions undermining democracy and the rule of law in Russia until 28 May 2027. The decision reflects the EU’s continued concern over the deteriorating human rights situation in Russia, particularly in the context of the country’s ongoing war against Ukraine.

Under the sanctions framework, 72 individuals and one entity remain subject to EU restrictive measures. These sanctions include asset freezes, which prevent access to funds and economic resources within the EU, as well as travel bans that prohibit listed individuals from entering or transiting through EU member states. Additionally, EU citizens and companies are barred from providing financial resources to those designated under the regime.

Originally established in March 2024, the sanctions framework was introduced following the death of Russian opposition leader Alexei Navalny and in response to what the EU described as an increasing and systematic crackdown on civil society, democratic opposition, and independent voices in Russia.

The framework also includes trade restrictions on the export of equipment that could be used for internal repression, surveillance, or the interception of telecommunications. By extending these measures, the EU signals its continued commitment to defending human rights, democratic values, and accountability for abuses in Russia.

U.S. Intensifies Pressure on Iran with Sweeping Sanctions Targeting Shadow Oil Network

The United States has announced a major new round of sanctions aimed at disrupting Iran’s shadow oil economy and cutting off revenue streams that support the country’s military activities, regional influence operations, and terrorist networks. In a coordinated effort, the U.S. Department of State sanctioned multiple entities, individuals, and vessels involved in the transportation and trade of Iranian petroleum and petrochemical products. The measures include sanctions on 11 entities, one individual, and the blocking of eight vessels linked to Iran’s energy exports.

Simultaneously, the U.S. Department of the Treasury targeted a Hong Kong-based network that allegedly facilitated the storage, transportation, and sale of tens of millions of barrels of Iranian oil worth billions of dollars. According to U.S. authorities, the proceeds from these activities have benefited the Islamic Revolutionary Guard Corps (IRGC), Iran’s Armed Forces General Staff, and other military institutions.

The sanctions were imposed under Executive Orders 13224 and 13846, reinforcing the administration’s “maximum economic pressure” strategy toward Iran. The United States warned that any entity involved in Iran’s illicit oil trade could face similar penalties. Additionally, the Rewards for Justice program announced a reward of up to $15 million for information that helps disrupt the financial networks supporting the IRGC and its affiliated organizations.

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