Sanctions Watch | Weekly Vol. 161

Sanctions Watch Vol 161

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

OFAC Revokes Iran Oil Trade Authorization, Grants 10-Day Wind-Down Period

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License X1, effective July 7, 2026, revoking and replacing General License X that had temporarily authorized certain transactions involving Iranian-origin crude oil, petroleum, and petrochemical products. The new license permits only the wind-down of previously authorized transactions until 12:01 a.m. EDT on July 17, 2026. During this period, parties may complete activities necessary to conclude existing transactions, provided that any payments to blocked persons are deposited into blocked, interest-bearing accounts in the United States. The authorization explicitly prohibits new purchases, loading, or other new transactions involving Iranian-origin energy products after July 7, except where strictly required for winding down prior activities. The license also excludes transactions involving parties connected to North Korea, Cuba, certain occupied regions of Ukraine, or activities prohibited under other U.S. sanctions authorities. This action reinforces U.S. sanctions enforcement by terminating the temporary authorization while allowing a limited compliance period for businesses to safely exit affected transactions.

US Extends License Allowing Essential Administrative Payments for US Operations in Russia

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License 13R, effective July 8, 2026, replacing General License 13Q. The license authorizes U.S. persons and U.S.-owned or controlled entities to make certain administrative payments required for their day-to-day operations in Russia through 12:01 a.m. EDT on October 9, 2026. Authorized transactions include the payment of taxes, fees, import duties, and the purchase or receipt of permits, licenses, registrations, certifications, and tax refunds, where such activities would otherwise be restricted under Directive 4 of Executive Order 14024. However, the license does not permit debits to accounts held by the Central Bank of the Russian Federation, the National Wealth Fund, or the Ministry of Finance of the Russian Federation at U.S. financial institutions. It also does not authorize any transactions involving blocked persons or activities otherwise prohibited under the Russian Harmful Foreign Activities Sanctions Regulations unless separately authorized. The measure ensures U.S. businesses can continue meeting essential administrative obligations in Russia while broader sanctions remain in effect.

OFAC Authorizes Humanitarian Trade and Medical Activities Under DRC Sanctions Program

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License No. 2 under the Democratic Republic of the Congo Sanctions Regulations (31 CFR Part 547), authorizing a broad range of humanitarian and medical-related transactions involving the Democratic Republic of the Congo (DRC) and Rwanda. The license permits transactions ordinarily incident and necessary for the export or reexport of agricultural commodities, medicines, medical devices, replacement parts, and software updates for medical devices, as well as activities related to disease prevention, diagnosis, treatment, clinical trials, and medical research. It also covers transactions supporting the provision of medical care and the operation of healthcare facilities. However, the authorization does not extend to any activities otherwise prohibited under the DRC sanctions regulations unless separately authorized. The measure is intended to facilitate humanitarian assistance and ensure continued access to essential food, healthcare, and medical research while maintaining broader sanctions against designated people and entities.

HMRC Expands Trade Sanctions Enforcement with Record Seizures and Ongoing Criminal Cases

HM Revenue & Customs (HMRC) reported strengthened enforcement of UK trade sanctions during the 2025–2026 financial year, reflecting a risk-based approach focused on compliance and criminal enforcement. HMRC recorded 58 seizures of sanctioned goods, issued 18 warning letters following voluntary disclosures, and secured one compound settlement worth £1.16 million for a breach of the Russia (Sanctions) (EU Exit) Regulations 2019. Prosecuting authorities also made three positive charging decisions across two cases that are awaiting trial, while 22 criminal investigations into suspected sanctions breaches remained ongoing. Companies submitted 29 voluntary disclosures, resulting in seven cases receiving no further action, one compound settlement offer, and three cases still under review. Under its enforcement partnership with the Office of Trade Sanctions Implementation (OTSI), HMRC received 44 referrals, with 13 supporting existing investigations, 10 closed without further action, and 21 still under review. Looking ahead, HMRC plans to seek new legal powers in 2026–2027 to publish details of companies agreeing to compound settlements, aiming to improve transparency and strengthen sanctions enforcement while continuing to support businesses through guidance and voluntary compliance.

Know more about the product: PreScreening.io

Click here to book a free demo. 

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