Siemens appeals against Russian ruling refusing injunction against Crimean turbines

SiemensThe Moscow Arbitration Court has refused to grant injunctive relief in an action by Siemens Gas Turbines Technologies LLC (SGTT) against Technopromexport LLC and Technopromexport VO OJSC (subsidiaries of Russian state conglomerate Rostec) in respect of power turbines illegally diverted to Russia-annexed Crimea in mid-2017 (in violation of EU sanctions). As part of its claim, SGTT sought an injunction preventing the turbines from being installed in Crimea. SGTT has now appealed against the ruling (papers filed at Moscow’s Ninth Arbitration Appeals Court).

In December 2017, the Moscow Arbitration Court had dismissed a similar action by Siemens AG (a parent company of SGTT) for the seizure of the power turbines (see previous blog here).


OFAC designates ‘Thieves-in-Law’ Eurasian criminal organisation and its supporters

Logo_of_the_U.S._Office_of_Foreign_Assets_Control_(OFAC)OFAC has designated ‘Thieves-in-Law’, a “Eurasian criminal entity”, along with 10 individuals and 2 entities allegedly linked to the organisation (asset freezes imposed). The designations were made pursuant to Executive Order 13581, which targets significant transnational criminal organisations and their supporters.

In addition, OFAC has deleted 26 entries from its SDN list. Links here for the OFAC Notice and the US Treasury press release.

EU extends Russia sanctions by six months

EU3The EU has adopted Council Decision (CFSP) 2017/2426, which prolongs sanctions targeting the financial, energy and defence sectors of the Russian economy until 31 July 2018 (we reported last week that EU leaders had agreed to continue the sanctions). The EU measures were originally introduced in July 2014 for one year in response to Russia’s actions “destabilising the situation in Ukraine”. EU press release here (includes summary of sanctions prolonged by this decision).

Russian court rejects seizure of Siemens power turbines in Crimea

power turbine.jpgA Russian court has dismissed Siemens’ action against Technopromexport, a subsidiary of Russian state conglomerate Rostec, and has refused to order the seizure of four power turbines that were transferred to Russia-annexed Crimea.

The lawsuit had been filed in July after Siemens had learned that the turbines had been diverted to Crimea in breach of contract and in violation of EU sanctions imposed on Russia for “actions destabilising the situation in Ukraine”.

OFAC issues general licence and guidance on Ukraine/Russia

OFAC2OFAC has issued Ukraine/Russia-related General Licence 1B and has published updated FAQs and one new FAQ on Ukraine/Russia.

These changes relate to the amended Ukraine/Russia-related Directive 1 and Directive 2 that were issued on 29 September 2017, in accordance with Title II of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA). Certain CAATSA-related prohibitions in the amended Directives had a delayed effective date of 28 November 2017.

In order to account for the fact that the CAATSA-related prohibitions in the amended Directives have now come into effect, General Licence 1B addresses the decrease in the debt/equity maturity dates for Directive 1 from 30 days to 14 days, and the decrease in the maturity dates for Directive 2 from 90 days to 60 days (these new prohibitions relate to debt issued on or after 28 November 2017).

EU adds Governor of Sevastopol to Ukraine sanctions

EU2The EU has today added Dmitry Vladimirovich Ovsyannikov, Governor of Sevastopol, to its sanctions list for actions “undermining Ukraine’s territorial integrity”, see Council Implementing Regulation (EU) 2017/2153 and Council Decision (CFSP) 2017/2163.

The EU Notice says Mr Ovsyannikov may submit a request to the Council for a reconsideration of his designation, and may challenge the Council’s decision in the EU General Court. EU press release here, and UK OFSI Notice here.

2 more EU Ukraine misappropriation judgments: Klymenko’s listing upheld, Ivanyushchenko’s annulled

CJEU1Two new EU General Court Ukraine misappropriation judgments – Klymenko v Council T-245/15 and Ivanyushchenko v Council T-246/15.

As we have reported, the Court has annulled designations on the EU Ukraine list which imposes restrictive measures on those said to be “responsible for misappropriating Ukrainian state funds”, where there is insufficient evidence that the relevant person is “subject to criminal proceedings by the Ukrainian authorities for the misappropriation of public funds or assets”.

In the two most recent judgments, the Court considered the information set out in various letters from the prosecutors to decide whether it was sufficiently specific and up to date as regards the allegations against each applicant to form the basis for EU designation. In Mr Ivanyushchenko’s case, the Court annulled his designation because the evidence was beset with inconsistencies or irrelevant, such that the Council should have had doubts about its accuracy and sought further information. In Mr Klymenko’s case, the Court declined to annul.

Ukraine sanctions 18 Russian companies

Ukraine1.jpgUkraine’s Ministry of Economic Development and Trade has imposed sanctions against 18 Russian companies for actions that “may harm the interests of national economic security” (orders No. 1582 and 1583). The sanctions prohibit economic activity in Ukraine for those entities from 9 December 2017.

The entities are reported to be: Loli-Pak Exports, the Snack Group, Belgorod Khladokombinat, Donspetsstroy Trading House, Yuzhtrans, Mikas, Stroyservis, Volma-Marketing, the Penetron-Russia group of companies, the Penetron-Russia Trading House, Penetron-Export, Volma-VTR, Penetron, Aromadon Trading House, the Starfud-Yug Trading House, MK-Metiz, Narodny Plastic, and Miroshnikova Irina Vladimirovna.