Sanctions Digest #3 summarizes the key trends of 2024. Europe is not only imposing new restrictions but also tightening enforcement of existing sanctions. The US is showing readiness for decisive action against China, Russia and even Georgia. Meanwhile, Putin is mobilizing all resources of the sanctioned syndicate for the war against Ukraine, while his citizens suffer from food inflation.
Washington Takes a Stand Against Pro-Russian Georgia
The United States has slapped sanctions on Bidzina Ivanishvili, the founder and chairman of Georgia's ruling party, Georgian Dream, for actions that undermine Georgia's democratic and Euro-Atlantic aspirations in favor of Russia.
According to the Office of Foreign Assets Control (OFAC), all assets of Ivanishvili within the United States or under the control of U.S. persons will be frozen. This move, as noted by the agency, was made under Executive Order 14024, issued by President Joe Biden on April 15, 2021, in response to "harmful activities of the Russian Federation."
"Ivanishvili and Georgian Dream are eroding democratic institutions, enabling human rights abuses, and restricting fundamental freedoms in Georgia. Their actions have derailed Georgia's Euro-Atlantic future, leaving the country vulnerable to Russia, which continues to occupy more than 20% of its territory. The United States condemns the actions of Georgian Dream under Ivanishvili's leadership, including the violent suppression of protests, persecution of journalists, human rights defenders, and opposition figures. We are committed to holding accountable those who undermine democracy and human rights in Georgia," reads the official statement on the State Department's website.
North Korea Increases Arms Supplies to Russia
The Wall Street Journal reports a surge in weapons production in North Korea, with around 200 military factories operating at full capacity. North Korea has already sent 20,000 containers of ammunition to Russia, including 122mm and 152mm artillery shells and new Hwasong-11 ballistic missiles. Additionally, Pyongyang has provided Russia with 170mm self-propelled howitzers and 240mm long-range multiple rocket launchers.
This cooperation raises concerns among Western countries as it violates international sanctions and undermines efforts to limit Russia's military capabilities.
UK Targets Putin's "Shadow Fleet"
The United Kingdom has added 2Rivers, a Dubai-based commodities trader run by Azerbaijani businessmen, to its sanctions list. Coral Energy, involved in trading Russian oil, has also been sanctioned. Prime Minister Keir Starmer's office noted that these companies were key players in trading Russian oil, and the sanctions aim to curb Russia's oil revenues.
The UK also announced sanctions against 20 ships, including Ocean Faye, Andaman Skies, and Mianzimu, each of which transported over four million barrels of Russian oil in 2024. The country has now sanctioned over 100 ships, including 93 oil tankers used for transporting Russian energy resources—more than any other nation.
Twelve European Countries Intensify Crackdown on Putin's "Shadow Fleet"
Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, the Netherlands, Norway, Poland, Sweden, and the UK have announced coordinated measures to counter Russia's "shadow fleet."
Maritime authorities in these countries will require insurance verification from "shadow fleet" vessels transiting strategic waterways such as the English Channel, Danish Straits, Gulf of Finland, and the Sound between Denmark and Sweden. The initiative aims to halt illegal operations by increasing control, thereby raising Russia's operational costs for illicit maritime activities.
US Investigates Chinese Chips for Trade Violations
President Joe Biden has announced a new investigation into Chinese chips used in cars and other industrial goods. The goal is to identify potential trade rule violations and protect American manufacturers.
The investigation focuses on so-called "previous-generation chips," which are less advanced but still widely used in various industries. The Biden administration seeks to determine whether China employs unfair trade practices, such as subsidies or dumping, to gain competitive advantages. The investigation's findings could lead to new tariffs or other restrictions against Chinese companies.
US Company Fined for Violating Export Sanctions
Between February and October 2023, Integra Technologies Inc. illegally supplied Russia with transistors and other radio frequency components listed as CHPL (common high-priority items), worth over $6.6 million. These components can be used in radar systems and other high-tech devices.
The US Department of Commerce's Bureau of Industry and Security (BIS) found 94 violations. Integra admitted its guilt, cooperated with the investigation, voluntarily agreed to pay the fine, and ceased all shipments to Russia.
This case shows that the US is moving from discussions with its companies to penalties, making it increasingly difficult for Russia to procure American components.
Food Prices Soar as Russians Eat More?
Putin claimed that rising food prices in Russia are due to "increased appetite of citizens." According to him, meat consumption has doubled to 80 kg per person per year, significantly exceeding the global average of 42 kg. According to Rosstat, as of December 16, food price inflation in Russia reached 10.93% year-on-year, the highest since November 2022.
But of course, this is due to "appetites" and not international isolation and the simple lack of imported goods on the shelves.
These were the sanctions news for the third week of December. Stay tuned to our resources to catch the next issue of the Sanctions Digest in January 2025.