February 20, 2025
The Readbook is Kharon's weekly roundup of our published pieces, upcoming events, and the best-curated news feed on the intersection of international security and global commerce. Subscribe to the email version.?
/EVENTS
Academic Security & Counter Exploitation 2025
Visit our booth and tune into our tech talks each day at 2:45 PM, where Kharon’s Ethan Woolley will provide an overview of how universities are using Kharon’s data to enhance their due diligence into foreign research security and export control risks. [Learn More]
/THIS WEEK IN THE BRIEF?
The U.K.’s New Sanctions Office Wants To Hear From You
The U.K. launched the Office of Trade Sanctions Implementation (OTSI) in October to strengthen sanctions enforcement as measures against Russia continue to expand. Last week, Deputy Director Anna Deibel-Jung outlined its role and business engagement in a Kharon webinar. [Read More]
Inside an Intricate Shadow Fleet Crossing Russian, Iranian, and Venezuelan Sanctions
A Kharon investigation uncovered a shadow fleet moving Iranian, Russian, and Venezuelan oil despite sanctions. As U.S. pressure on Iran grows, similar networks may face increased scrutiny. [Read More]
/MORE FROM THE BRIEF
A Sprawling Iranian Network Is Facilitating Its Tech Exports, Sidestepping Sanctions
An Iranian government initiative is expanding globally despite sanctions, enabling the export of dual-use technologies to Russia, China, and beyond for civilian and military use. [Read More]
With Australian Court Rulings, ‘The Bar Has Lowered’ for Sanctions Violations
Australian court rulings against a Russian aluminum giant have set a significantly lower threshold for sanctions liability and enforcement than the U.S., EU, or U.K. [Read More]
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/MEDIA ROUNDUP
SANCTIONS
The U.K. sanctioned high-profile individuals with links to Russian President Vladimir Putin’s inner circle and supporters of Russian state-owned businesses. [U.K. Government]
Canada sanctioned two European companies that are related to a leading Russian airline group. [Canadian Government]
U.S. Secretary of State Marco Rubio told European allies that the U.S. will keep sanctions on Russia in place at least until a deal to end the Ukraine conflict is reached, even as U.S. President Donald Trump said he’ll probably meet Vladimir Putin to discuss a settlement before the end of February. [Bloomberg]
Türkiye’s biggest refiner is restricting its purchases of Russian oil and fuels to avoid falling foul of U.S. sanctions, the latest customer to show wariness in dealing with Moscow following the measures last month. [Bloomberg]
EU envoys agreed on a 16th package of sanctions against Russia, EU diplomats said, including a ban on primary aluminum imports, sales of gaming consoles, and the listing of 73 shadow fleet vessels. [Reuters]
Privately-run terminals in China have taken deliveries from U.S.-sanctioned oil tankers, suggesting that a region that is home to the country’s largest buyers of Iranian and Russian crude is finding ways to circumvent the reluctance of larger port operators. [Bloomberg]
A notorious Russian ship under sanctions for transporting arms from North Korea is set to enter the Mediterranean via the Suez Canal, the first time that a vessel involved in arms-running for Pyongyang would have entered European waters. [FT]
A leading Norwegian automotive supplier has exported millions of dollars in truck parts that ended up feeding Russia’s war machine via a Turkish intermediary, which resold them in circumvention of EU sanctions, an investigation by RFE/RL and Norwegian public broadcaster NRK has found. [RFE/RL]
Three North Korean companies are set to export their products to Russia this year in likely violation of international sanctions, official records show, after multiple North Korean firms sought entry into the Russian market amid rebounding ties in 2024. [NK News]
The EU is set to suspend Syria sanctions related to energy, transport, and reconstruction, according to a draft declaration. [Reuters]
A U.N. sanctions monitoring team released a report on ISIL and Al-Qaida sanctions, highlighting concerns about the lack of implementation of sanctions, including insufficient reporting by Member States. [U.N.]
The U.S. Department of State listed Tren de Aragua, the Sinaloa Cartel, and other drug cartels as specially designated global terrorists. [U.S. Federal Register]
The U.K. government is urging European partners to replicate Britain’s plans for a sanctions regime aimed at organized immigration crime gangs and their networks. [U.K. Government]
The ability of a U.S. multinational energy corporation to continue exporting crude from Venezuela is under review, President Trump said, signaling an openness to tighter restraints on the oil giant’s operations in the South American country. [Bloomberg]
The European Council renewed its framework for restrictive measures in view of the situation in Zimbabwe for a further year and delisted the last remaining entity – Zimbabwe Defence Industries – while keeping the embargo on arms and equipment which might be used for internal repression in place. [European Council]
COMPLIANCE + ENFORCEMENT
The U.K.’s OFSI published a threat assessment report for the financial services sector to assist U.K. firms in better understanding and protecting against threats to financial sanctions compliance. [OFSI]
The U.S. Financial Crimes Enforcement Network (FinCEN) announced that beneficial ownership information reporting requirements under the Corporate Transparency Act are back in effect, with a new deadline of March 21, 2025, for most companies. [FinCEN]
A U.S. subsidiary of a Russian aircraft parts supplier, along with three of its current and former employees, were charged with crimes related to a scheme to illegally export aircraft parts and components from the U.S. to Russia and Russian airline companies without the required licenses from the U.S. Department of Commerce. [U.S. Justice]
A London-based bank is facing an investigation from the U.K.’s financial watchdog over its anti-money-laundering and financial crimes controls. [WSJ]
Iraq's central bank will ban five more local banks from engaging in U.S. dollar transactions, a move that comes after meetings with U.S. Treasury officials in efforts to combat money laundering, dollar smuggling, and other violations. [Reuters]
Canada’s FINTRAC imposed an administrative monetary penalty on an independent wealth management firm in Ontario for failing to develop and apply written compliance policies and procedures. [FINTRAC]
The Dutch Fiscal Information and Investigation Service (FIOD) arrested the director of a company suspected of violating sanctions through the sale of motherboards and graphic cards to Russian buyers via Hong Kong, the UAE, and Cyprus. [FIOD]
TRADE CONTROLS + SUPPLY CHAIN
President Trump’s temporary suspension of a popular trade exemption that has in recent years turbocharged China-founded bargain platforms Shein and Temu has rattled the country’s cross-border e-commerce industry, jolting the platforms and their suppliers. [WSJ]
A Chinese company has stopped exporting a piece of equipment used to process the electric vehicle battery metal lithium, in the clearest sign yet that manufacturers are already implementing export controls proposed by Beijing. [Reuters]
Canada is taking further action to detect, disrupt, and dismantle the fentanyl trade by proposing to control three precursor chemicals that can be used in the production of illegal drugs. [Canadian Government]
Chinese money brokers, part of an underground banking system that has long served the country’s immigrant diaspora, have become go-to partners for fentanyl traffickers and other criminal groups needing to launder illicit drug profits, U.S. officials say. [WSJ]
HUMAN RIGHTS
The European Parliament adopted human rights resolutions on Türkiye, Nicaragua, and Nigeria, and urged the Commission to consider imposing restrictive measures against certain individuals. [European Parliament]