RegRally Insights: Sanctions Essentials

ECOVIS ProventusLaw annouces a new edition of monthly newsletter on Sanctions, which is dedicated to everyone who wants to understand the latest trends and developments, get tips from our experts, and deepen their knowledge.

Lithuanian Vehicle Exporter Fined €13.6 Million for Violating International Sanctions

Lithuanian Customs announced that a Lithuania-registered vehicle export company had been fined €13.6 million for violating international sanctions. The company failed to comply with sanctions in transactions with Kazakhstan, Belarus, and Turkey firms. The violation involved exporting vehicles registered in Russia before reaching these countries, breaching international sanctions.

Enforcement and Recommendations: Lithuanian Customs’ actions highlight increased enforcement of international sanctions, particularly against high-risk countries. Financial market participants are advised to strengthen compliance, conduct enhanced due diligence, update risk assessments, and improve Know Your Customer (KYC) procedures to avoid similar violations.

US, EU, UK, and Canada Impose New Sanctions on Belarus for Support of Russia and Human Rights Abuses

Marking the fourth anniversary of Belarus’s fraudulent 2020 presidential election, the US, EU, UK, and Canada imposed new sanctions on the country. These sanctions target Belarus for its support of Russia’s invasion of Ukraine and ongoing human rights violations under Alexander Lukashenko’s regime. The US sanctioned 19 individuals and 14 entities, the EU added 28 officials to its sanctions list, the UK targeted 4 individuals and 3 entities, and Canada imposed sanctions on 10 individuals and 6 entities, all in response to Belarus’s military and political repression activities.

Lithuanian Group Suspected of Smuggling €2 Million Worth of Goods into Russia in Violation of International Sanctions

Seven individuals and four legal entities in Lithuania are under investigation for allegedly violating international sanctions and smuggling nearly €2 million worth of goods into Russia. The group, reportedly acting on instructions from Russian nationals, is suspected of falsifying export documents to evade customs checks, claiming goods were destined for countries like Turkey and Kazakhstan. The investigation, led by the Financial Crime Investigation Service (FNTT) and Vilnius Regional Prosecutor’s Office, has resulted in multiple searches and the seizure of significant evidence. The suspects face severe legal penalties, including up to eight years in prison.

Lithuanian Authorities Launch Over 50 Investigations into Suspected Sanctions Violations Involving Russia and Belarus

Lithuanian prosecutors have initiated more than 50 investigations into suspected violations of international sanctions on Russia and Belarus. The Financial Crime Investigation Service (FNTT) announced that seven individuals and four companies are suspected of smuggling nearly €2 million worth of goods to Russia. Recently, Lithuanian Customs imposed a €13.6 million fine on a car exporting company, identified as Biovarda, for similar violations.

Lithuanian Customs Fines Company €1.27 Million for Importing Sanctioned Russian Coal and Rubber

Lithuanian Customs has fined an unnamed company €1,274,960 for importing coal and rubber from Russia, violating EU sanctions. The Russian suppliers involved are also under sanctions. The Business Entity Inspections Department of the Kaunas Region carried out the enforcement.

Lithuanian Customs to Tighten Controls on High-Priority Exports

Starting August 22, 2024, the Lithuanian Customs will enforce stricter controls on Common High Priority (CHP) items exported, re-exported, or transiting through Lithuanian airports to third countries. Exporters must submit additional documentation with their export declaration, including sales contracts, invoices, proof of payment, and undertakings, ensuring compliance with sanctions. If documentation is incomplete or authenticity is doubted, the CHP goods will not be released from the EU. The new rules aim to prevent the misuse of sensitive items violating international sanctions.

Switzerland Adopts New Sanctions Against Russia

On August 27, 2024, the Swiss Federal Council will implement additional measures from the EU’s 14th sanctions package against Russia. These include clarified bans on Russian diamonds and extended deadlines for exemption permits for withdrawing investments from Russia. The Federal Council will review further measures from the EU’s sanctions package in the future.

U.S. Sanctions Over 400 Entities and Individuals for Supporting Russia

The United States imposed sanctions on more than 400 entities and individuals on Friday for aiding Russia’s war in Ukraine. Among those targeted are Chinese companies that allegedly helped Moscow bypass Western sanctions and bolster its military. The sanctions focus on companies shipping machine tools and microelectronics to Russia and transnational networks procuring ammunition, assisting Russian oligarchs in evading sanctions, and laundering gold for a sanctioned company.