Sanctions Watch | Weekly Vol. 71

Sanctions Watch Vol 71

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

1. EU Extends Sanctions on Chemical Weapons for Another Year

The European Council has extended its sanctions against the proliferation and use of chemical weapons for another year, until 16 October 2025. These restrictive measures target 25 individuals and 3 entities, subjecting them to asset freezes and banning EU persons and entities from providing them with funds, financial assets, or economic resources. Additionally, a travel ban to the EU applies to the individuals listed.

The sanctions are part of the EU’s broader efforts to combat the spread and use of chemical weapons, reinforcing the implementation of the Convention on the Prohibition of the Development, Production, Stockpiling, and Use of Chemical Weapons. This regime aims to deter violations of the Chemical Weapons Convention, contributing to international peace and security by holding responsible those involved in chemical weapons activities. These measures demonstrate the EU’s commitment to countering global chemical weapon threats.

2. OFSI Issues General Licence for UK Government Debt Payments

On October 14, 2024, the Office of Financial Sanctions Implementation (OFSI) released General Licence INT/2024/5294388, which allows certain payments related to UK Government Debt involving UK-Designated Persons (UK DPs) and UK-Prohibited Persons. The licence enables transactions from Frozen Accounts or UK Prohibited Persons Accounts, provided they adhere to the UK Autonomous Sanctions Regulations.

UK DPs refer to individuals or entities designated under sanctions, while UK Prohibited Persons are defined by specific regulatory frameworks concerning Russia and Belarus. The General Licence outlines relevant UK and non-UK institutions involved, as well as details about Frozen Accounts and Prohibited Persons Accounts. This development is significant for financial transactions involving sanctioned entities and the UK government’s debt management strategies.

3. U.S. Imposes Sanctions on Chinese Firms Allegedly Supplying Drone Components to Russia

The U.S. Department of the Treasury has imposed sanctions on Chinese manufacturers of drone engines and parts linked to Russia’s long-range drone attacks in Ukraine. Announced on Thursday, the sanctions target three entities and one individual involved in the development of the “Garpiya series” drones, which have been utilized by Russia to strike critical infrastructure in Ukraine, causing significant casualties. The Treasury emphasized that these drones are designed and produced by Chinese experts in collaboration with Russian defense firms.

This marks the first instance of U.S. sanctions against Chinese entities directly developing complete weapons systems for Russia. Acting Undersecretary Bradley T. Smith stated that Russia increasingly relies on foreign expertise and technologies to sustain its military efforts in Ukraine. where, China has denied providing weapons to Russia, defending its trade relations as legitimate.

4. UN Security Council Extends Sanctions and Arms Embargo on Haiti

The UN Security Council has renewed its sanctions regime on Haiti for one year. This decision aims to combat the illicit flow of weapons to criminal gangs, which have contributed to a severe humanitarian crisis in the country. The resolution maintains targeted measures, including asset freezes, travel bans, and an arms embargo, to deter arms supplies to gangs. Exemptions are made for UN missions and Haitian security forces, allowing non-lethal military equipment for humanitarian purposes.

The resolution also emphasizes the need for better coordination among the UN, regional organizations, and the Haitian government to enhance border security and control over weapons. Furthermore, the sanctions committee’s mandate is renewed, with benchmarks established for lifting sanctions based on improvements in security and governance. The UN Secretary-General is tasked with assessing progress by October 2025.

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