UK Sanctions Weekly Update - Week of November 13, 2023

In this weekly update, we summarise the most notable updates in the UK sanctions world. If you have any questions in respect of any of the developments set out below, please do not hesitate to contact a member of our London Global and Government Trade team listed above.

1. Russia Sanctions

• FCDO and OFSI issue joint guidance on ownership and control: On November 17, 2023, the FCDO and OFSI published a joint guidance note on the applicability of the ownership and control test in relation to public officials.  Following the recent Mints case, the guidance provides helpful clarity, including that “the UK government does not consider that President Putin exercises indirect or de facto control over all entities in the Russian economy merely by virtue of his occupation of the Russian Presidency.” (Ownership and Control: Public Officials and Control guidance - GOV.UK (www.gov.uk))
• UK High Court casts doubt over Mints case: On November 15, 2023, the UK High Court handed down summary judgment in Litasco v Der Mond [2023] EWHC 2866 (Comm).  In respect of a submission that President Putin controlled Litasco, Foxton J commented [at paragraph 70]: “I believe the better interpretation of Regulation 7(4) is that it is concerned with an existing influence of a designated person over a relevant affair of the company […], not a state of affairs which a designated person is in a position to bring about. Were matters otherwise, it would follow that President Putin was arguably in control, for Regulation 7(4) purposes, of companies of whose existence he was wholly ignorant, and whose affairs were conducted on a routine basis without any thought of him.” (See judgment at https://www.bailii.org/ew/cases/EWHC/Comm/2023/2866.html)
• UK Government updates UK sanctions list under Russia regime: On November 15, 2023, the UK Government updated the entry for Irina Anatolievna Kostenko on the UK sanctions list.  The individual remains subject to an asset freeze and trust services sanctions. (Notice_Russia_151123.pdf (publishing.service.gov.uk))
• OFSI blog reflects on OFAC-OFSI enhanced partnership: On November 15, 2023, OFSI published a blog post reflecting on the first year of its formal enhanced partnership with OFAC following a technical exchange in London in October 2023.  Among other things, the blog post reflected on regular exchanges between OFSI and OFAC throughout the past year, the publication of joint industry guidance by OFSI and OFAC and a commitment to ongoing collaboration from both the United Kingdom and the United States to ensure the implementation of “robust, cutting-edge financial sanctions”.  (https://ofsi.blog.gov.uk/2023/11/15/one-year-on-the-ofac-ofsi-enhanced-partnership/)
• UK Government amends General Licence for arbitration costs under the Russia sanctions: On November 13, 2023, OFSI amended General Licence INT/2022/1552576 - London Court of International Arbitration (LCIA) Arbitration Costs to remove the schedule of arbitration costs, and change the definition of arbitration costs to reflect the relevant Schedule of Costs for LCIA arbitration. (13112023_INT-2022-1552576_LCIA_Fees_GL.pdf (publishing.service.gov.uk))

2. Israel / Hamas-related Sanctions

• UK Government updates UK sanctions list under counter-terrorism regime: On November 14, 2023, the UK Government designated six individuals under the Counter Terrorism International Regime who are affiliated with the Hamas organisation.  The individuals being sanctioned are (i) Musa Muhammad Salim Dudin, (ii) Muhammad Deif, (iii) Issa Marwan, (iv) Yahya Ibrahim Hassan Sinwar, (v) Nabil Khaled Hilal Chouman and (vi) Adbelbasit Elhassan Mohamed Khair Hamza.  All six individuals are subject to an asset freeze. (Notice_Counter_Terrorism__International__141123.pdf (publishing.service.gov.uk))
• UK Government issues General Licence for humanitarian aid to Israel and the Occupied Palestinian Territories: On November 14, 2023, OFSI issued General Licence INT/2023/3749168 to facilitate the delivery of humanitarian aid to Israel and the Occupied Palestinian Territories.  The terms of the licence authorise certain activities necessary to provide humanitarian assistance and other activities that support basic human needs and facilitate the provision of those activities. (Gaze_Humanitarian_GL.pdf (publishing.service.gov.uk)) (Gaza_Humanitarian_GL_Pub_Notice.pdf (publishing.service.gov.uk))

3.  Iran, ISIL (Da’esh) and Al-Qaida Sanctions

• UK Government amends UK sanctions list under ISIL (Da’esh) and Al-Qaida regime: On November 16, 2023, the UK Government amended the UK sanctions list under the ISIL (Da’esh) and Al-Qaida regime to enacts certain changes made by the United Nations. The following entries were updated: (i) Makhtab Al-Khidamat, (ii) Mohamed Amin Mostafa, (iii) Said Jan 'Abd Al-Salam and (iv) Iyad Ag Ghali. The individuals remain subject to an asset freeze and arms embargo. (Notice_ISIL__Da_esh__and_Al-Qaida_161123.pdf (publishing.service.gov.uk))
• UK Government updates UK sanctions list under Iran regime: On November 15, 2023, the UK Government updated the entry for Ya Mahdi Industries Group on the Uk sanctions list. The entity remains subject to an asset freeze. (Notice_Iran__Nuclear__151123.pdf (publishing.service.gov.uk))